CHANGING LIVES CHARITY . glvlng hope and a future CHANGING LIVES CHARITY Trustees, Annual Report & Financial Statements for the year ended 30 September 2022 A Company Limited by Guarantee and a Registered Charity Company Registration No 9517906 Chariiy Registration No1161892
CHANGING LIVES CHARITY . glvlng hope and a future CHANGING LIVES CHARITY Truslees, Annual Report & Flnancial Stslements for the year ended 30 September 2022 CONTENrs Page Off leers and Professional Advisèis Annual Report of the Trustees Independent Examiner's Report 10 Statement ol Financial Aclivilies 11 Balance Sheel 12-13 Noles lo the Financial Statements 14-20
CHANGING LIVES CHARITY . givlng hope and a future CHANGING LIVES CHARITY Report ol the Trustees lor the year ended 30 September 2022 OFFICERS AND PROFESSIONAL ADVISERS Company Number 9517906 CharSty Number 1161892 Reglstered Offlce Unil 2a, Kimberley Road Clevedon, North Somersel BS216QJ Trustees (who are also directors for the purposes of Company law) lan Burnham FCA Chris Hibbs Terry Mears {Charity Secretary) Jell Peacock lunlil 31.03.221 Jennifer SGhaeler Ifrom 01.02.221 Daniel Siblhorpe David Tomlinson (Chair} Ray Wilson CBE lunlil 22.09.211 Bankers for Changlng Llves Charlty CAF Bank Limited, 25 Kings Hill Avenue, KirNJS Hill. Wesl Malling. Kent ME19 4JQ Bankers for Subsldlary Companles Lloyds Bank plc (Changing Lives in Clevedon Limiledl and Sanlander UK plc IBusiness4Mission Limiledl Independent Examlner Andrew Jordan Haineswalls, Chartered AccoL¢nlants Bath House, 6-8 Bath Slreel, Bristol BS1 6HL (Xher Prof¢sslonal Advlsors Strategic Policy Advice & Support Rev Stephen Fowler, Moorirvj Upper G¢xlney, Wells BA5 1RX IT & Web Solutions Worlhers Ltd, Long Barn, Folly Farm. Tickenham, Bristol BS21 6RY Policy Advisors Cornerstone Resources Ltd., Trinity House, Newby Road, Slo¢kporl SK7 5DA Page3
CHANGING LIVES CHARITY . glvlng hope and a future CHANGING LIVES CHARITY Report of Ihe Trustees for the year ended 30 September 2022 The Trustees are pleased to present their Report, together with the Financial Statements ol the Charity for the year ended 30 September 2022. The Financial Slalemenls comply with the requirements of the Charilies Act 2011, the Companles Act 2006, the Articles and Memorandum ol Asso¢ialion ol the Company, and Ihe Sialemenl of Recommended Pracli¢e applicable lo charities preparing their accounts In accordance with the Flnanclal Reporting Standards applicable In the UK and Republic ol Ireland IFRS1021. Charitable Object Th8 Object ol the Charity is lor the public benefit, °Ihe relief ol thos8 in need by reason of youlh, ago, ill-hea11h, disability. tlnancial hardship or other social or economic disadvantage" Included in the Articles ol Association are the powers lo make grants, donations, or loans lo organisalions which further the aims of Changing Lives Charily. The current range of the Charity is throughout the whole ol North Somerset. Vlslon The vlslon Is lo serve tho needs ol a wide range ol marginalised men, women. and young adults from a variety of backgrounds who face barriers 10 employment and a fulfilling, independent life. We aim to achieve do Ihis by.. providing high qualily, workplace training and erfflployment opportunities Iby volunteeiingl lo equip our Supporled Volunteers lo assume a lullilling life in the community., ollering access lo a range ol Iherapeullc support, including a monloi, lo lacililate recovery- expanding the social enterprise lo increase our capacity to meet the growing demand Irom thoso in need ol help; making available suitable. sale, supported accommodation lo those joining the work-based recovery proaramm8 who are cu¥renlly homeless or al risk of becoming homeless. These alms are exp¥essed in Ihe Bu$lness and Investment Plan, published on 151h November 2021. The plan describes the methods by which the aims will be mel, and sets out the resources required and the means by which those resources will be garnered. 11 Introduces and describes the programme Volunteer Plus (V+), which is Ihe seNice provision delivering the care for the Charity's cli8llis. This service is headed by a manager skilled and exp&rienced in the conditions which the clients generally display, and a part-lime manager appointed lo dfive the development ol this enterprising inilialive. Men and women enter the scheme lollowing assessment lo ascertain their ability lo benefit from the therapeutic seivice on offer. Residential places al Andrew House came on-slream in December 2022. These places are reslricled lo men, and limited lo 11 at any one lime. Non-resident clionls, men and women, enjoy access lo all the Ihefapy support services, and the limilalion on the potential lor growth in their numbers is the availability ol tralned mentors. During the year, th8 Charity, has contlnued lo gain a greater understanding ol the background ol most ol those exhibiting chaotic and damaging behaviouf associated with substance abuse, serial offending, violence, and homelessness. It is now becoming a¢¢epled in the UK that chronic, toxic trauma in early years - e.g. abuse lol all types), neglect and loss of a significant person I carer- is the prime eausal lacloi. Page 4
CHANGING LIVES CHARITY . giving hope and a future These experiences result in lasting physiological and psychological damage, potentially leading lo permanent health, relational, and social disadvantage. The Charity has reallirmed ils aim lo enable those affected lo live lullillirvJ lives and contribute lo the wellbeing of the communlty- Voluntee¥ Plus is a workplace programme of volunteering, education and liaining.. comblned with supportive Iherapeulic input; and the ofler ol a mentor lo accofnpany the cllenl throughout the piogramme and beyond. This employability programme is composed ol elements that have also been shown lo lacililale permanent change, personal developmenl. and improved health outcomes. The aim ol the programffle is lo equip the peison lor independenl living, employment, and a lullilling The purpose of a residential component al Andrew House, Clevedon is to provide sale, supported houslng lor eligible participants ol Volunteer Plus. It also provides a greater level ol support, which only a close community, such as Ihe House, can provide. This provision is relevant for those who wish lo join the programme and currently live remotely from Clevedon. have no salislaclory accommodation. or need to escape th8 damaging social nelworks to which they currently belong in order to enable recovery lo take firm root. The Charity operates a social enterprise comprisiro a numbei ol elemenls-which, together, not only support the work ol the Charity financially, bul also, in themselves, have considerable community benefit. Additionally. it provides important volunteering opporlunilles lor those on the V+ programme. Some ol these servlces operate in partnership with North Somerset Council.. e.g. A waste disposal seNice, which incorporates a re¢ycling component. Discussions are taking place to extend this lo add a reuse facility, with the aim ol luriher reducing the amount ol waste that ends up in landfill. The Welfare Provision Service, under which Ihe Charity sources and supplies essential household goods lo disadvantaged families. A House Clearance seNice, which has the spin oll benelll ol providiwJ donated goods lor sale through the Charily's retail and online outlets. During the year, the Trustees have Gontinued lo make and implement several progressive decisions in furtherance ol the Charills Object. The Qhiel aim has b8en lo plan and continue to deliver the Vision sel out above. To do this, the Trustees have worked lo identify and make progress in developing apprq)riale Ih8rapeulic support for their clients, and lo improve the viability of ils social enterprise. Mlsslon Volunteer Plus Piloted In the Summer of 2019, the Volunteer Plus programme saw the introduction of this workplace education, training, and employment Ivolunteeringl programme, based in the Charlly's hub in Kimberley Road, Clevedon. This programme has been developed and extended and the Trustees believe il ollers a unique holistic pathway lo recovery. Andrew House forms an important part of th& developing ministry programme. and wlll Inlegrale with V+, ollering the benefits ol a Iherapeulic community lor those who require a sale place lo live and a greater level ol support as they recover their ability to manage a tenancy ol their own. During the year, the interior ol the building was upgraded and made ready lor the admission ol clients. Since then, 9 01 the 11 bedspaces have been filled Page S
CHANGING LIVES CHARITY . givlng hope and a fulure Communi The fresh vision and inspiration arising from work by Trustees, aided by professional SLspporl, resulted in adopting, as a key element of ils vision, the concept ol a'communily Hub, defined as follows-. "An inspirational destination space with retail spaco COTnmunity café, wothshop / learning space, and a productive walled garden. Through the development ol Ihe Communily Hub, Changing Llves Charity would become a unique project leading the way in translormalive healing programmes." The property occupied by the Charily in Kimberley Road. Clevedon had been under consideration as the means ol accommodating and hosting the Community Hub. However. ils limilalions have be&n iecognised, and allernalives have been considered during the year, with no success to dale in finding a suitable alternabve in Clevedon. Business & Investment Plan Following a period ol strategic review, the Trustees saw the need lo draw together the aspirations of the Charity (vision. mission, and values) and the financial requirement lo lullil these aims. The Plan inlroduces the detailed proposals lor the Volunteer Plus programme, incorporating Andrew House; fundraising and stalling requirements,. and Ihe delivery ol the therapeutic and other components of support for the clients, hosled by the social enterprise ol the Charily. In March 2022 a fundraislng company, Ihe Marsha Mlles Consultancy, was appolnted. Early results have been encouraging. Social Enter rise The purpose of the Social Enterprlse is io perform the hosting function for the work-based recovery programme, Volunteer Plus. The managers, members ol staff, and volunteers diawrk Iroffi the wider community all play their parl in supporting the V+ participanls, with the aim ol providing ¥ealislic workplace experience lo help them becom8'work-ready'. The core ol Ihe Charity's primary purpose Iradino is focused on the salo ol donated furniture and household goods. The Charity's beneficiaries ale engaged in undertaking many ol the activities the sooial enterprise, guided and encouraged by employees ol the Charity in key roles. Measures lo improve the perlomance ol the social enterprise have continued during the yeay, with encouraging Tesulls. Concern regarding Ihe public perception ol Ihe Charity led lo a review ol how the Charity is presented through stationery, van lellering, liieTature, etcetera,. and quotations were invited lor rebranding. In September, the contract for this was awarded to Amperative. enc All expenditure during the period 2021-2022 was lor the public benefil, in accordance wllh the Object ol the Charily. A heme of delegation tor financial control was agreed in September. 2022. Resourc Individuals, the communlty and local Churches continue lo be valued conlribulors lo the Cha¥lty. in terms of both financial and practical support. The Charity has met all ils financial responsibilities and remains financially viable. Opportunilles lor allracling financial support through the use ol Web-based tools and social media have begn exploited. and Total Giving provides an easy means ol donating lo the Charity. Page 6
CHANGING LIVES CHARITY . giving hope and a fulure Structure Governance & Adminislralion The Charity is governed by ils Memorandum and Articles ol Association, signed by all formation Trustees on 16 Ma¥ch 2015. The Charity is a Company limited by guarantee wilhoul shares, ineorporaled on 30 Mwch 2015. The Trustees are determined lo ensure good practice is followed and are aware ol Iheir obligation lo abide by Charity land other relevant) Law, including the reporting lo the relevant aulhorilie8, as necessary, ol adverse incldenls occurring in the life ol the ChaTIty. Trustees: Changes in Trustee membershlp occurred during the year, as loll¢)ws: 1S1 February 2022, Dr Jenny Schaefer was appoinled Trustee 31sI March 2022, Jell Peacock retired as a Trustee oinlmenl I Chief Executive Having established the Business and Investment Plan as Ihe guiding document for the Charity and its Managers, the Trustees turned their allenlion lo the need lor a senior manager, lo whom they could hand the day-lo-day executive leadership,. along with many administrative and managerial tasks they had been carrying since the Charity was registered in 2015. In May 2022 a Chlef Executive was appoinlod and commenced on 16th May. This appointment was terminaled in December 2022, and an Interim CEO is in place pendlng a permanent replacement. af uardin Poli The developments ol the ministry ol the Charily resulted in Ihe need lo review and revise the Safeguarding Policy. Accordingly, a professionally wrillen policy was commissioned. This policy was approved by the Trustees in April 2022, for review in 12 months. Public B nel. The Trustees confirm that they have lullilled their duly lo have due regard lo compliance with the guidance on public benefit rules. Volunteers Volunteers are essential lo the wellbeing arKI sustainability ol tho Charity. The Trustees, desire is.. lo engage with the wldesl variety ol people ol goodwi11 in our communily,. and lo help them serve each other by this means, whilst meeting their own needs tor fullilmenl, Companionship, and a sense ol 'gwing-back'. The details ol the Charity's 45 regular volunteers who support the work are recorded in the Volunleers Register. Opporlunilies lor volunteers are many and varied, including lor those within the Volunteer Plus scheme dèscribed above. Al the year-end Iheie were 7 clients in the Volunteer Plus programme. This has increased post year end. Flnancial Fleview The Charity's finances have slabilised after the c105ure of los$-man9 shops., the Covid lockdown, when we were in recelpl ol Government support- and a very generous donation lo the Charity last year. The ministry and trading aclwilies are operating at near CapaCY, although the Irathng arm and recelpl ol Housing Benefit are unable lo fund lully Ihe ddivery ol the Charity's ministry. Grants and donations are sought lo cover th8 shortfall. The Charity recorded a deficit 01 £46.6k in the year. The previous year had returned a surplus of £161.7k In the greater part, due lo the donation referred lo above. Turnover increased, as did the Charity's costs. The investment plan anticipates that the Trustees will need to raise around £1 Ook ol grants each year to suslaln the Charity's model of ministry. Page 7
CHANGING LIVES CHARITY . glvlng hope and a future Mana emenl of Risk The Trustees meet regularly and are sensitive lo the risks whlch attend all charities Isuch as the risk ol money laundering, and risks lo its repulalionl, and lo any special potential risks arising from the Charily's aclivilies. During the year, the Trustees were made aware ol the importance ol managing a Risk Register, and further work was undertaken on its formulation during the 2021-22. Bulletins are regularly received from various sources, which alert Trustees to new risks or new legislation, potentially, requiring them lo pertoxm in ways, ol which they would otherwise be ignorant. Reference is made lo the Chwity Commission's Web pages for advice as required. Until 31 March 2021, operational risks were limited. This was due lo the partnership working with Alaba¥é Christian Care & Support, who look day-lo-day responsibility lor running Andrew House. Since then, the Charlly has assumed responsibility lor all risks associated with activity involving clients,. and, as reported earlier in the report, a new Safeguarding policy has been adopted. The appointrnenl ol a lull-lime manager lor the V+ programme has assisted in exercising vigilance over the welfare of clients. The main ilsks that fall lo Changing Lives Charity are: risks lo the clionl group,. financial risks. e.g. the social enleTpYise and lulure operation ol Andrew House: the Income and expendilure ol the Charity., and risks relating lo property ownership. The short lo medium-lerm risks around the repayment I refinance ol the debt that the Charily has taken on are being addressed, and form part of the Business and Investinenl Plan referred to earlier in this report. Reserves Poli The Reserves Poll¢y. agreed on 21st November 2016, was reviewed duling 2019. Whilst the refurbishment of the Charily's freehold property, Andrew House, Victoria Fload, Clevedon is largely complete, the level ol fflonlhly running costs lor the Charity has increased substantially from hiving- up the trading business. Because ol this, combined with the ralalively shorl-lerm nature ol a portion ol the Charity's debt. the Trustees believe that the pollcy sel In 2016 01 "not setting an upper limil ol cash reserves" should iemain lor the time being. The Trustees consider Ihal the Charity will continue as a going concern for a period ol al least 12 months from the dale on which Ihese linancial statements are approved, lor the lollowing reasons.. the Charity holds free reseNes, as detailed in the financial slalemenls-, Ilnancial lorecasls lor the next 3 years anlicipale a m(K*esl surplus, thereby increasing the level ol free reserves. The year lo September 2023 is expected to record a delicil. allowing lor the inevitable lime lag in genefating grant income following the appolnlmenl ol the Fundraisers,. the Trustees wlll extend the Charity's programme lo lis beneficiaries only following careful onsideralion ol the financial impact on the Charily., the Trustees, therefore, consider il appropriate lo adopt the going ¢on¢ein basis ol preparalion ol the accounts, as detailed in note 1 to the financlal slalemenls. Future Plans The Charity has now firmly established the V+ programme. The reopenlng ol Andrew House lo ngw residents is complete, and it has ralionalised ils commercial activities and social enterprise. Each ol these components of ils minislry and work can be incrementally enhanced, bul the main foundations ol ils vision are now securely in place. Some success in raislng funds has been achieved since the appointment ol the Charills Fundraising Consultants and further success will be key lo delivering ministry.11 will also be Important lo refinance loans on Andrew House and a number ol options are currently under onsideralion Page 8
CHANGING LIVES CHARITY . glvlng hope and a future The Cornm5ty Hub.. 11 has been acoeptsd Ihal Ihls project cannot go lorw8rd, based on tho premises currenlly occupied by the Charity and referred to as the Warehouse. The location does not lend Ilsell to such a d8vèlopment. but neilh8r ara there other viab18 options locally. It is still the Intention ol the Trustees lo pursue thls obltiVe, and com ete the vSsion for V+, and this will rgmain on the table. Exprasslon of thank The Trustees wish to express Ihelr sincer8 gratitude lor the hard work and extraordinary lev8101 commitment ol all the employees, consultants and volunteers ol thg Chaiily. Th8 Truslees extend this 8xpression of thanks to Itg partners, aRd Ihose speclal peOe who Ire81y gwe theSr tlmo and considerable expertsse supporting the work of the Trustee Board as advi58rs. Finally, the Trustees wish to thank the countless people of goodwill In North Somèrset aTh beyond. who shop, donate and support Ihe work ol Changing Lbves Charity in so many ways. Without Ihe tireless gflofts o* everyone Involved the Charity would not suNive, let alone thrè. As a Ghrislian Charity, Ihe Trustees also publicly acthowl&Jge the provldence of our Heavenly Father who, often through the Charity's stakehdders, provides lor our every need. Approved by the Board ol Trustees on- and sign9d on thalr behall by.. l Burnharti 27JunÈ 20 Pap9
CHANGING LIVES CHARITY . glvlng hope and a futuie CHANGING LIVES CHARITY Independent Examiner's Report to Ihe Trustees of Changing Llves Charlly I report lo the eharity Iruslees on rny examination of the accounts ol the Charitable Company lor the year ended 30 September 2022. Re$pon8lbllllles and bas1$ of raport As the charity's Iruslees ol the Charalable Company land also ils directors lor the purposes ol company lawl you are responsible lor the preparation ol the aount8 in accordance with the requiremenis ol the Companies Act 20061.the 2006 Acl'l. Having salisfled myself that the accounts of the Charitable Company are not required lo bo audiled under Part 16 01 the 2006 Act and are eligible lor independent examination. I report in respect ol my examinatiori ol your charity's accounts as carried out under section 145 of the Charities A¢1 2011 I'lhe 2011 Acl'l. In carrying out my examination I have lollowed the Directlons given by the Charity COMMISOn under section 145151 Ibl of the 2011 Act. Independent examlnerfs statement Since the company's gross income exceeded £250,1]IJO your examiner musl be a membgr of a body listed in section 145 01 the 2011 Ad. I confirm that l am qualified lo undertake the examination because l am a memb8r ol ICAEW, which is one ol the listed bodies. I have compleltsd my examination. I conlimi Ihal no matters have come lo my attention In connection wilh the examination giving me cause lo believe.. accounting records wgrg nol kept in iespect ol the Charitable Company as required by section 386 of Ihe 2006 Act., or 2. Ihe accounts do not accord with Ihose records., or 3. the accounts do not Comply with the accounling fequiremenls of section 396 01 the 2006 Act other than any requirement that the accounts give a true and Ir view which is nol a matter considered as part ol an independent examination., or 4. the accounts have not been prepared in accordance with the melh¢)ds and princiFJes ol Ihg Slalemenl ol Recommended Practice lor accounling and reporting by Charities (applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 10211. I have no concèrns. and have come across no olheT matters in conng¢tion with the examlnalion lo which allenlion should be drawn in Ihls rewjrt in order lo enable a proper und8rslanding ol the accounts to b& reached. Andrgw Jordan FCA Inslilule of Chartered AcUntantS in England and Wale8 Haines Watts Chartered Ac¢ounlanls Bath House 6-8 Bath Street BTlslol BS16HL Dale 28th June 2023 Page 10
CHANGING LIVES CHARITY STATEMENT OF FINANCIAL ACTIVITIES Ilncorporating Income and Expenditure Actountl YEAR ENDED 30 SEPTEMBER 2022 Year Ended 30.9.22 Vnrestricted fund Year Ended 30.9.21 Total funds (R¢-tlo$sifiedJ Note Income from Donations Other income (Gift Aid) Ralslng funds Itradlngl Ralsing funds l¢ha¥ltable actlvitlesl Rental income Income from Investments Grant Income 15.617 5A82 129,013 322,829 J,155 280 154,986 2,118 117.534 199.957 19.521 21 23,62J 499,999 79,615 573,752 Expenditure on Raising funds experlditure ltradln81 Charltable activitSes 122,345 423,549 545,894 118.187 291,023 409,210 Net incomlllexpenditurel before tax Tax payable 145,8951 744 164,542 2.887 17 Net incomellexpenditurel 146,fj391 161.655 Total funds brought forward Totsl funds carrled forward 175,940 IZ9.301 14.285 175.940 'Prlor yeorfigures hove been re-clcssifjed to rÉflErt the accurate closslfiration of troding income ond expenditure li
CHANGING LIVES CHARITY (Registered numbèr: 95179061 BALANCE SHEET AS AT 30 SEPTEMBER 2022 Note 2022 2021 Unrestricted fund Total fund5 FIXED ASSETS Tan8ible Fixed Assets li 551,755 551,755 548,262 548,262 CURRENT ASSETS Debtors Cash at Bank 12 15,121 161,559 176.680 22,622 237,678 260,300 CREDITORS Amounts fallln8 due withln one year 13 135,634 109,122 NET ASSETS 592,801 699.440 CRÉDITORS Amounts falling due after more than one year 14,15 463.500 523,5 TOTAL NET ASss 129,301 175,940 FUNDS Vnrestrlcted Charitable FLinds brought fon*ard 1st October 2021 SurplusllDeficitl for the year Unrestrlcted Charitable Funds at 30th september 2022 175.940 46,639 129,301 14,285 161,655 175.940 The charitsble company Is entltled to exemptlon from audlt under Section 477 of the Companies Act 2(M)6 for the perlod ended 30 September 2022. The members have not required the company to obtaln an audlt of its financial statements for the period ended 30 September 2022 in accordance with Sectlon 476 of the Companles Act 2(X)6. The trustees acknowledge thelr responslbllitles for: lal en5urlnE that the charitable tompany keeps accountlng retords that comply with Sections 386 and 387 of the Companles Act 2006 and, Ibl preparing financial statementswhlch glve a true and fail view of the stste of affaif5 of the charltable company as t the end of each flnanclal year and of Its surplus or deticii for each flnancia1 year in accordance wlth the requirements of Sections 394 and 395 and which othenlSe comply with the requirements of the Companles Act 2006 relatln8 to flnancial statements, so far a5 applS¢able to the charSlable companv. 12
CHANGING LIVE¥cHARITYIR¢glstered numljer.. 95179061 BALANCE SHEET AS AT 30 SEPTEMBER 2022 These flnanclal Statements have been prepared in Zccordance wlth the provlsions appllcable to Charitable companie5 subject to the small companie5 regime. The financial statements were appioved by the Board of Trustees and authorlsed for Issue 3nd were signed on its behalf by.. l Burnham 27June 2023
CHANGING LIVES CHARITY NOTESTOTHE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022 ACCOUNTING POUCIES Chan8lnB Llves Charlty Is a company Ilmited by guarantee wSthout share capital use. re8lstered In England and Wales. The financlal statements of the charity. which is a public beneflt entlty under FRS 102. have been prepared In accordance with the Charltles SORP IFRS 1021 'Accountin8 and ReportinE by Charltles.. Statement of Recommended Pra¢tlce applicable to charities preparSng thelr accounts In accordance with the FlnancSal Reporting Standard applltable In the UK and Republic of Ireland IFRS 1021 (effective l January 20191,, Flnanclal Reportlng Standard 102 The Flnancial ReportSng standard applicable in the UK and Republlc of Ireland. and the Charitie5 Act 2011. The financial statetnents have been prepared under the hlstOTical cost conventlon. These flnanclal statements are those of the parent company only and not that of the group. as the charitable parent company has taken advantage of the avallable exemptions not to prepare con501idated accounts. The flnancial statements are prepared In sterlln& whlch Is the functlonal curiency of the charity. Monetary amounts In these financial statements are rounded to the nearest É. The trustees consldeT that there are no materlal uncertaintles about the charitvs abS11ty to ¢ontlnue as a goln8 conceTn. The charlty holds unrestricted. general reserves of £129,301. The trustees consider that the charity has sufficient cash reserves to contlnue as a golng concern for a perlod of at least 12 months from the date on whlch these flnancial statements are approved. Incomln8 Resourc•s Income Is reco8nised in the Statement ol Flnanclal Activities once the char5ty has entitlement to the funds, and it is probable that the Sncorne will be received and the amount can be measured reliably. Donations and Blfts are ccounted for when received. Incorne tax reclalmed In relatlon to amounts received under glft aid is Included In the same perlod as the Income to which it relates. Resources Expended All soUrceS expended afe accounted for on an attruals basls. Dlre¢t costs are allocated io charitable 8ctlvltles and ralslng of fund5 Itradlngl as approprlate. Support costs are apportioned to tradl#g and charltable activities in Ilne wlth the proportional split of income lex£ludinE donatlons and Investment incornel. Property expenses are apportioned as support tosts with the trading element being 50% of the proportlonal income split refle¢tlnK the estlm8ted use of the warehouse. Depre¢latlon Is provlded at the followin8 annual rates In order to wrlte off each asset over it5 estimated useful Freehold PToperty Flxtures & f¢ttings Motor vehlcles Not depreciated 3 years straight line 5 years straight line All fixed assets are stated at purchase cost plus Incldental expenses of acqulsltion. No provlslon for depreciation has been made for freehold property a5 It l$the view of the Trustees that the estimated resldual value of ea£h property is noi materially dlfferent from the carryin8 value. 14
CHANGING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022 ACCOUNTING POLICIES. contlnued Fund accountlng Unrestricted tunds can be used in accordance with the charitable objectives ot the discretion ot the trustees. Taxation The charSty1s exernpt from corporation tsx on Its charltable activltie5. Current tax 15 re¢tsgnlsed In the SOFA on tradlng Income at the amount payable uslng tax rates and laws that have been enacted or 5ubstantlally enacted at the balance sheet date. Debtors Debtors are measured on Inltlal recognition at settlement amount after any amounls advanced by the charlty. Subsequently, they are measured atthe cash or other consideratlon expected to be recelved. Cash and cash equivalents Cash and cash equlvalents Include cash In hand, deposits held 3t call with banks, other short-term Ilquld InvestmeThts with original maturlties of three rnonths or le55. and bank overdrafts. Bank overdrafts are shown wlthln borrowinss in current Ilabllitles. Cr¢dltors The charlty has credltors which are measured at settlement amounts. Fin4ntlal Instrument The charlty only has flnanclal assets and liabS1itles of a klnd that qualify 05 bas1£ flnanclal instruments. Baslc flnanclal Instruments are lnilia1 recognlsed at transaction value and subsequently measured at their settlement value. Penslon costs and other post-retlremerrt beneffts The CLimpany operates a defined contrSbutlon pension scheme. Contrlbutlons payable to the company's penslon scherne are Charged io profit or loss In the perlod to whlch they relate. Donated goods and ser¥ic•s The value of servlces provided by volunteers is fiot Incorpofated Into the financial statements. Where goods or 5ervl¢e are provlded to the ¢harlty as a donation that would normally be purchased from supplleT5, the contfibutlons are Included In the finan¢Sal statements 05 an estlmate based on the value of the contrlbutlon. Conce551oM•ry loans Contts51onary loans Include those payable to thlrd partles whl¢h 8re interest free or below market Interest rates and are made to advance cha¥itable purposes. The chaTlty has applied S34 ot FRS102 wlth regards to the valuatlon of loan5 to publlc beneflt entltle5 $0 Ihat dlscounted present value and an assoclated Interest charge are not recognised. All loans are measured at cost. Is
CHANGING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022 2022 2021 INCOME Raising funds Sales Auctlon sales Dellvery Welfare Provislon Scheme other Total raisinB ftjnds Icharitoble activities) 230,807 5.822 9.311 74,789 2,100 322,829 144.232 5.479 4,659 42,159 3.428 199.957 Tradlng in¢orne' Bulky waste House clearance Total rai51ng funds Itradlngl Total raising funds Trading as percentage of ralslngfunds 75,693 53,320 129,013 1151,842 29% 77.144 40,390 117,534 317,491 37% COST SUMMARY 2022 Charltable Trading 288,089 75,302 68,334 29.519 54,018 13.366 13,108 423,549 2021 Trading 85,273 27,911 9.161 Charitable 170.609 50,261 58.883 11,270 291,023 Dlrect Costs Inote 41 Support costs Inote 51 Property expen5e5 Inote 71 Loan Interest on property 122,345 118.187 DIRECT COSTS Charitable artlvitv Appllances forWPS Depreciation charitable a¢tlvity Rental costs for waste Welfare Provlslon Scheme InstallatloTh 2022 2021 51.90fj 804 29.426 623 6.416 2,631 185,739 14,099 2.320 7,660 16,514 288.089 6.998 629 104.139 2,368 Employers Nl Pen51ons Costs Operatin8 Lease Payment5 Consultlnglprofessional Fees Total direct Costs attrlbutable to tharitablÈ actlvlties TradinBJ Bulky waste dlsposal Motor Vehlcle Expenses Salarles- trading employees Penslons Costs- tradlng employees Depre¢latlon tradlng Total direct Costs attrlbutable to tradln8 activltles Total direct costs 11,216 14,201 170.609 6,417 14,852 55.000 686 6.997 9,411 55.000 544 8,318 85,273 373.362 3,350 75.302 245,911 16
CHANGING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022 SUPPORT COSTS Advertising & Marketlng Bank Fee5 Ch8¥1ty admin cost5 (see note 61 Food & Drink General Expen5e5 ITSoftware and Consumables Prlntin8* Statlonery and posta8e staff Trainin8 Subscriptions Telephone & Internet Travel- Natlonal 10,628 1,084 4850 1.345 19,414 3,538 IA04 3A65 547 4,565 990 43,468 789 13.324 3,914 378 5,009 574 1,6Z7 4A43 96.245 2,886 3,883 79.780 Trading 29%12021- 37%1 Charitable activlty 71%12021- 63%) 27,911 68,334 96.245 29.519 50,261 79,7gO 17
CHANGING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 305EPTEMBER 2022 2022 2021 CHARITY ADMINISTRATION COSTS Audlt & Accountancy fees 3,IMJ 26.749 334 6,718 17.682 173 Penslons Costs Employers Nl General Expenses 1,566 2,157 263 1.480 E il Insurance 6,186 3,539 1,172 625 6,909 3,914 2,090 737 IT Software and Consumables Rent Repalrs & MaInteanCe Sub5crlptlons, posta8e and statlonery Telephone & l#ternet 1,851 1,628 48A50 616 2.886 43.468 CHARITY PROPERTY EXPÉNSES Insurance ght, Power. Heatlng Legal Expenses Rates 6,187 12,139 175 6,909 9,657 10.538 22,269 11,871 63.179 1,971 39,713 13.999 72.249 ReTrt Repalrs & MaSntenance Tradlng 14.5%12021- 18.5%) Charltable activity 85.5%12021- 81.5%) 9,161 54,018 63,179 13,366 58,883 72,249 STAFF COSTS Wages and salarles Soclal se¢urlty costs Penslon costs 267,488 15.665 3,340 286N93 176,821 2,631 1,726 181.178 The avera8e number of employees durlng the perlod was 15 12021- 121. TRUSTEE REMUNERAfioN AND BENEFITS No Dlre¢tornru5tee ha5 re¢Èlved any remuneratlon for servlces as a Directornrustee In either perS0d. There were no trustees, expenses pald for the year ended 30 September 2022 noT forthe period ended 30 September 2021. INDEPENOENT EXAMINER'S REMUNERATION The independent examlnerfs rernuneratlon conslsts of the follovAng'. 2022 2021 For Independent examlnatlon 984 984 984 984 18
CHANGING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022 li TANGIBLE FIXED ASSETS Freehold Flxtures & Land & Flttin¥5 buildings Motor Total Vehlcle$ COST A5 at 30 September 2021 Additions A5 at 30 September 2022 DEPRECIATION As at 30 September 2021 Charge As at 30 September 2022 NET BOOK VAIUE As at 305eptember 2022 520.934 4,184 12,615 16.799 27,117 552,235 12,615 564.850 520,934 27,117 701 2.779 3.480 3.272 6,343 9,615 3,973 9,122 13,095 520.934 13,319 17.502 551.755 As at 30 september 2021 520.934 3.483 23,845 548,262 12 DEBTORS 2022 2021 Trade debtors Corporation tax reclalm other debtor5 and prepayrnents 10.428 2,Z56 37 15,121 6,483 22.622 CREDITORS: Amounts falling due within one year 2022 2021 Loans from Trustee5 and related partles Trade creditor5 Tax Soclal securlty and other taxes Other credltors and accruals Van loans 50,000 15,784 2,887 4.465 30,385 5,601 109.122 8,135 3,000 7,037 2,661 4.801 135.634 Included in other credltors Is £1,58712021'. £8601 In relatlon to penslon contrlbutlons owlng. 14 CREDITORS: Amounts fallFng due after more than one year 2022 2021 Loans from DirectorslTrustees Over 5 years Over l year, under 5 years Company loan Over l year, under 5 years Over 5 years Mortgage loan on property repayable under 5 years 65,500 5.000 65.500 5,000 60.000 71,000 322,000 523,500 71,000 322,000 463.500 19
CHANGING LIVE5 CHARITY NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 SEPTEMBER 2022 15 RELATED PARTYTRANSACTIONS The charity has re¢elved loans from trustees and related partles as follows- 2022 2021 Keystone Projects & Management Llmlted Terry Mears Keystone Projects & Management Limited Keystone Projects & Management Ilmlted* Jeff Peacock liepayable in les5 than I year Repayable in over l year iio.000 5.000 50.000 5,000 Repayable In over l year 60,000 Repayable In over 5 years Repayable in over 5 years 71.000 65.500 71,tY>O 65,500 251,51XI 251,500 From Keystone Projects & Management Limited lof whl¢h David Tomllnson, a Trustee of Changing Lives Charity. is a director and shareholder) The above coThcesslonary loans are not secured and are Interest free. Between l and 5 years Over 5 years S,OlY) 65,500 5.000 65,500 70,500 70,500 16 COMPANY IIMITED BY GUARANTEE The charity Ss a prlvate company, incorporated In EnKland and Wales, Ilmlted by guarantee having no share capital and. in accordance wlth the Memorandum of Association, every member is liable to contrlbute £1 toward5 the costs of dlssolutlon and liabllities incurred by the charlty In the event ofthe company being wound up. 17 TAXATION 2022 2021 Currènt tsx: UK corporation tax owed to HMRC 2021122 UK corporation tax due from HMRC 2020121 2,887 12.2561 Tax on tradlng profit 744 2,887 20