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2023-01-31-accounts

REGISTERED COMPANY NUMBER: 09390907 (England and Wales) REGISTERED CHARITY NUMBER: 1168833

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023

FOR

FABRIC FOUNDATION LTD

FABRIC FOUNDATION LTD

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023

Page
Report of the Trustees 1 to 4
Independent Examiner's Report 5
Statement of Financial Activities 6
Balance Sheet 7 to 8
Notes to the Financial Statements 9 to 16
Detailed Statement of Financial Activities 17 to 18

FABRIC FOUNDATION LTD

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 JANUARY 2023

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 January 2023. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

Our charity's aims as set out in the objects contained in the company's Memorandum and Articles of Association are to:-

'advance in life and relieve needs of young people across South and West Wales through

(a) The provision of semi-independent living with 24 hour support for 16-17 year old looked after children and care leavers.

(b)' Provide support and activities which develop their skills, capacities and capabilities to enable them to participat in society as mature, responsible individuals.'.'

Significant activities

The FABRIC Foundation had a busy year with many activities.

At the beginning of the year the FABRIC Foundation continued to provide Yoga Sessions in the community which were supported from funds by the National Lottery.

We recruited our first volunteer fundraiser Frankee, who ran 100 miles and organised a pub quiz and curry to raise funds.

Page 1

She raised £3,368.

Period poverty was an issue that we addressed thanks to the donation of hundreds of sanitary items which we offered out in our local communities and also within our foodbank deliveries.

We ran a pop up clothing event where 14 young people in need were able to come and choose new clothes. This meant that they didn't feel like a 'charity case' but were able to choose like in a shop. We had a volunteer DJ with volunteers serving hot dogs and organising the clothes. It was a great event in which we partnered with Evolve Youth Service and then donated the remaining clothes to the Local Authority teams.

We gained a grants officer through university funding in October. He started a 200 hour placement and quickly sourced funds for our foodbank.

Page 1

Our foodbank which has become a vital service continued to grow in strength. By the end of the year we were delivering to 50 young people a week.

At Christmas we delivered gifts to former FABRIC Kids and others in the community, adding festive cheers to 45 young people.

Page 1

FABRIC FOUNDATION LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

FINANCIAL REVIEW

Going concern

Financial support was provided by WCVA and Finance Wales to acquire a property, but also to support the purpose of FABRIC Foundation. The loans exceeded the value of property as funds were required to cover start-up costs. This position has always been accepted by the board of trustees, The Finance Wales loan has been replaced by two lower interest loans from NatWest Bank and the WCVA loan has been replaced by an interest free Welsh Government loan. The charity is aiming to replace the bank loan with a loan on more favourable terms. The Trustees are confident that the charity is able to meet all its financial commitment as they fall due.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a Community Interest Company limited by guarantee, incorporated on 15th January 2015, and registered as a charity on 19th August 2016.

Recruitment and appointment of trustees, induction and training .

The trustees carry out a skills audit prior to recruiting new trustees. Role descriptions and job specifications are drawn up and a search programme undertaken. All new trustees are required to accept the organisation's code of conduct that contains details of the number of board meetings and the number of projects they are required to attend throughout the year. In addition a structured induction programme has been devised to enable trustees to more quickly understand the structure and culture of the organisation. Further training for trustees is to be considered following enlargement of the trustee body and a trustee training needs analysis.

Charity constitution

The company was established under a Memorandum of Association(amended 20 May 2016) which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £2.

Organisational structure

The trustees are responsible for the overall management of the charity, its strategic direction and decision making. However, day-to-day management of treatment, non-treatment services and business services is delegated to the Chief Executive and senior management team.

Decision making

The trustees are responsible for the overall management of the charity,its strategic direction and decision making. However, day-to-day management of treatment, non-treatment services and business services However, day-to-day is delegated to the Chief Executive and senior management team

Risk assessment and management.

The trustees have overall responsibility for ensuring that the charity has appropriate systems of control; both financial and operational; for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity; for safeguarding the assets of the charity and for taking reasonable steps for the prevention and detection of fraud and other irregularities. The systems of internal control are designed to provide reasonable assurance that: The charity is operating efficiently and effectively in the pursuit of its objectives;

Page 2

FABRIC FOUNDATION LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

Related parties

Ms Helvon-Hardy is director of FABRIC Support Services. The link between the two companies is noted by the board of trustees. Whilst there is an undeniable link the between the companies, the decisions that are made in both companies are separate and in the best interests of the company in question .In this case, the FABRIC Foundation. There is an intrinsic link between the two companies as they both form the group "FABRIC: The Care leavers' Community". whilst the board moves towards a position where she can step away. Ms Helvon-Hardy donates her time to run the FABRIC Foundation as it is not yet in a position where it can employ staff.

FABRIC Support Services provides the FABRIC Foundation with access to their staff (as the FABRIC Kids have relationships with them) at a cost effective price.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 09390907 (England and Wales)

Registered Charity number 1168833

Registered office Water Street Business Centre Unit 13 Water Street Business Cen Neath Port Talbot SA12 6LF

Trustees

M D Harvey (appointed 20.3.23) H C Helvon-Hardy Mrs S Junor-Fitzpatrick (appointed 20.3.23) Mrs J Perry L J Spikes (resigned 20.3.23) J D Harris (resigned 20.3.23) M P Bradley (resigned 6.5.22) H Palmer (appointed 25.8.22)

Page 3

FABRIC FOUNDATION LTD

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 JANUARY 2023

REFERENCE AND ADMINISTRATIVE DETAILS Company Secretary

Independent Examiner

Janet D Jenkins Ltd 60, Saint Teilo Street Pontarddulais Swansea SA4 8SY

Approved by order of the board of trustees on 22[nd] November 2023 and signed on its behalf by:

MDHarvey

Mr MD Harvey - Trustee

Page 4

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF FABRIC FOUNDATION LTD

Independent examiner's report to the trustees of Fabric Foundation Ltd ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 January 2023.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  3. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

JD Jenkins

Mrs Janet D Jenkins Janet D Jenkins Ltd 6, Llys Ynyscedwyn Ystradgynlais Swansea SA9 1EN

22[nd] November 2023

Page 5

FABRIC FOUNDATION LTD

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 JANUARY 2023

31.1.23
Unrestricted
fund
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
2,666
Charitable activities
Supporting young people
13,798
Investment income
3
21,000
Total
37,464
EXPENDITURE ON
Raising funds
5
627
Charitable activities
6
Supporting young people
51,233
Total
51,860
NET INCOME/(EXPENDITURE)
(14,396)
RECONCILIATION OF FUNDS
Total funds brought forward
(29,835)
TOTAL FUNDS CARRIED FORWARD
(44,231)
31.1.22
Total
funds
£
5,432
90,307
18,000
113,739
-
111,781
111,781
1,958
(31,793)
(29,835)

The notes form part of these financial statements

Page 6

FABRIC FOUNDATION LTD

BALANCE SHEET

31 JANUARY 2023

31.1.23
Unrestricted
fund
Notes
£
FIXED ASSETS
Tangible assets
13
227,027
CURRENT ASSETS
Debtors
14
-
Cash at bank and in hand
12,906
12,906
CREDITORS
Amounts falling due within one year
15
(23,797)
NET CURRENT ASSETS
(10,891)
TOTAL ASSETS LESS CURRENT
LIABILITIES
216,136
CREDITORS
Amounts falling due after more than one year
16
(260,367)
NET ASSETS
(44,231)
FUNDS
19
Unrestricted funds
(44,231)
TOTAL FUNDS
(44,231)
31.1.22
Total
funds
£
235,128
6,762
38,846
45,608
(15,681)
29,927
265,055
(294,890)
(29,835)
(29,835)
(29,835)

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

The notes form part of these financial statements

continued...

Page 7

FABRIC FOUNDATION LTD

BALANCE SHEET - continued

31 JANUARY 2023

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 22[nd] November 2023 and were signed on its behalf by:

MDHarvey

Mr MD Harvey Trustee

The notes form part of these financial statements

Page 8

FABRIC FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JANUARY 2023

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery - 10% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

continued...

Page 9

FABRIC FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2023

2. DONATIONS AND LEGACIES DONATIONS AND LEGACIES
31.1.23 31.1.22
£ £
Gifts 1 -
Donations 2,665 5,432
2,666 5,432
3. INVESTMENT INCOME
31.1.23 31.1.22
£ £
Rents received 21,000 18,000
4. INCOME FROM CHARITABLE ACTIVITIES
31.1.23 31.1.22
Activity £ £
Fundraising Supporting young people 6,123 -
Grants Supporting young people 7,675 90,307
13,798 90,307
Grants received, included in the above, are as follows:
31.1.23 31.1.22
£ £
5. RAISING FUNDS
Raising donations and legacies
31.1.23 31.1.22
£ £
Sundries 627 -
6. CHARITABLE ACTIVITIES COSTS
Grant
funding of
activities Support
Direct (see note costs (see
Costs 7) note 8) Totals
£ £ £ £
Supporting young people 43,767 2,065 5,401 51,233

continued...

Page 10

FABRIC FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2023

7. GRANTS PAYABLE

7. GRANTS PAYABLE
31.1.23 31.1.22
£ £
Supporting young people 2,065 -
8. SUPPORT COSTS
Governance
Management costs Totals
£ £ £
Supporting young people 4,741 660 5,401
9. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
31.1.23 31.1.22
£ £
Independent examiners fee 660 -
Depreciation - owned assets 225 5,399
Other operating leases 4,442 4,546
Surplus on disposal of fixed assets (10,740) -

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 January 2023 nor for the year ended 31 January 2022.

Trustees' expenses

Trustees expenses HC Helvon-Hardy £173

11. STAFF COSTS

STAFF COSTS
31.1.23 31.1.22
£ £
Wages and salaries 20,299 36,196
20,299 36,196
The average monthly number of employees during the year was as follows: 3 3

No employees received emoluments in excess of £60,000.

continued...

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FABRIC FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2023

12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted
fund
£
INCOME AND ENDOWMENTS FROM
Donations and legacies 5,432
Charitable activities
Supporting young people 90,307
Investment income 18,000
Total 113,739
EXPENDITURE ON
Charitable activities
Supporting young people 111,781
NET INCOME 1,958
RECONCILIATION OF FUNDS
Total funds brought forward (31,793)
TOTAL FUNDS CARRIED FORWARD (29,835)

13. TANGIBLE FIXED ASSETS

COST
At 1 February 2022
Disposals
At 31 January 2023
DEPRECIATION
At 1 February 2022
Charge for year
Eliminated on disposal
At 31 January 2023
NET BOOK VALUE
At 31 January 2023
At 31 January 2022
Freehold
property
£
225,000
-
225,000
-
-
-
-
225,000
225,000
Plant and
machinery
£
2,252
-
2,252
-
225
-
225
2,027
2,252
Motor
vehicles
£
26,995
(26,995)
-
19,119
-
(19,119)
-
-
7,876
Totals
£
254,247
(26,995)
227,252
19,119
225
(19,119)
225
227,027
235,128

continued...

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FABRIC FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2023

14.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.1.23
£
Other debtors
-
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.1.23
£
Bank loans and overdrafts (see note 17)
6,269
Other loans (see note 17)
7,350
Hire purchase (see note 18)
-
Trade creditors
(1)
Social security and other taxes
-
Wage control
-
Other creditors
9,519
Accrued expenses
660
23,797
16.
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.1.23
£
Bank loans (see note 17)
126,841
Other loans (see note 17)
133,526
Hire purchase (see note 18)
-
260,367
17.
LOANS
An analysis of the maturity of loans is given below:
31.1.23
£
Amounts falling due within one year on demand:
Bank loans
6,269
Other loans
7,350
13,619
Amounts falling between one and two years:
Bank loans - 1-2 years
16,546
Other loans - 1-2 years
7,351
23,897
Amounts falling due between two and five years:
Bank loans - 2-5 years
13,695
Other loans - 2-5 years
22,050
35,745
31.1.22
£
6,762
31.1.22
£
6,269
-
4,716
2
1,260
1,813
1,621
-
15,681
31.1.22
£
133,990
147,000
13,900
294,890
31.1.22
£
6,269
-
6,269
6,269
7,350
13,619
23,972
22,050
46,022

continued...

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FABRIC FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2023

17. LOANS - continued

Amounts falling due in more than five years:
Repayable by instalments:
Bank loans more 5 yr by instal
Other loans more 5yrs instal
18.
LEASING AGREEMENTS
Minimum lease payments under hire purchase fall due as follows:
Net obligations repayable:
Within one year
Between one and five years
19.
MOVEMENT IN FUNDS
At 1.2.22
£
Unrestricted funds
General fund
(29,835)
TOTAL FUNDS
(29,835)
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
37,464
TOTAL FUNDS
37,464
31.1.23
31.1.22
£
£
96,600
103,749
104,125
117,600
200,725
221,349
31.1.23
31.1.22
£
£
-
4,716
-
13,900
-
18,616
Net
movement
At
in funds
31.1.23
£
£
(14,396)
(44,231)
(14,396)
(44,231)
Resources
Movement
expended
in funds
£
£
(51,860)
(14,396)
(51,860)
(14,396)

continued...

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FABRIC FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2023

19. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

At 1.2.21
£
Unrestricted funds
General fund
(31,793)
TOTAL FUNDS
(31,793)
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
113,739
TOTAL FUNDS
113,739
Net
movement
At
in funds
31.1.22
£
£
1,958
(29,835)
1,958
(29,835)
Resources
Movement
expended
in funds
£
£
(111,781)
1,958
(111,781)
1,958

A current year 12 months and prior year 12 months combined position is as follows:

Net
movement At
At 1.2.21 in funds 31.1.23
£ £ £
Unrestricted funds
General fund (31,793) (12,438) (44,231)
TOTAL FUNDS (31,793) (12,438) (44,231)

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming Resources Movement
resources expended in funds
£ £ £
Unrestricted funds
General fund 151,203 (163,641) (12,438)
TOTAL FUNDS 151,203 (163,641) (12,438)

continued...

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FABRIC FOUNDATION LTD

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 JANUARY 2023

20. RELATED PARTY DISCLOSURES

FABRIC Foundation owed FABRIC Support Services £8,625 at 31st January 2023.

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FABRIC FOUNDATION LTD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 JANUARY 2023

31.1.23 31.1.22
£ £
INCOME AND ENDOWMENTS
Donations and legacies
Gifts 1 -
Donations 2,665 5,432
2,666 5,432
Investment income
Rents received 21,000 18,000
Charitable activities
Fundraising 6,123 -
Grants 7,675 90,307
13,798 90,307
Total incoming resources 37,464 113,739
EXPENDITURE
Raising donations and legacies
Sundries 627 -
Charitable activities
Wages 20,299 36,196
Insurance - 189
Telephone 733 -
Postage and stationery 841 6,954
Advertising 691 433
Sundries 16 1,091
Travel expenses 1,844 9,248
YP Service 5,387 21,699
YP Gym membership 2,365 4,550
YP additional activities 2,473 8,802
Property repairs 14,522 -
Plant and machinery 225 -
Motor vehicles - 5,399
Loss on sale of tangible fixed assets (10,740) -
Bank loan interest 5,111 10,670
Grants to individuals 2,065 -
45,832 105,231
Support costs
Management
Other operating leases 4,442 4,546
Computer costs 299 1,354
4,741 5,900

This page does not form part of the statutory financial statements

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FABRIC FOUNDATION LTD

DETAILED STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 JANUARY 2023
31.1.23 31.1.22
£ £
Management
Governance costs
Auditors' remuneration for non audit work 660 -
Accountancy and legal fees - 650
660 650
Total resources expended 51,860 111,781
Net (expenditure)/income (14,396) 1,958

Signature:

Email: mike.harvey@on-systems.co.uk

This page does not form part of the statutory financial statements

Page 18