**Charity Registration No. 1172214**
**Company Registration No. 09941590 (England and Wales)**
## **CHANGING PATHWAYS**
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 MARCH 2023**
## **CHANGING PATHWAYS**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Trustees**|J Deeney||
|---|---|---|
||L Headley||
||J Frost||
||T Brushett|(Appointed 9 August 2022)|
||J Aylott|(Appointed 9 January 2023)|
||P Leahy|(Appointed 9 January 2023)|
||T Mullaney-Downer|(Appointed 9 January 2023)|
||P Sterry|(Appointed 9 January 2023)|
||S Tilling|(Appointed 9 January 2023)|
|**Secretary**|T Woodgate||
|**Charity number**|1172214||
|**Company number**|09941590||
|**Registered office**|Parklands Centre||
||Felmores End||
||Felmores||
||Basildon||
||Essex||
||SS13 1PN||
|**Auditor**|Rickard Luckin Limited||
||Phoenix House, Suite 8||
||Christopher Martin Road||
||Basildon||
||Essex||
||SS14 3EZ||
|**Charity's website**|https://changingpathways.org/||
|**Solicitors**|Birkett Long LLP||
||Phoenix House||
||Christopher Martin Rd||
||Basildon||
||SS14 3EZ||
||Essex||
||CO3 3WG||
## **CHANGING PATHWAYS**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 6|
|Statement of trustees' responsibilities|7|
|Independent auditor's report|8 - 11|
|Statement of financial activities|12 - 13|
|Balance sheet|14|
|Statement of cash flows|15|
|Notes to the financial statements|16 - 30|
## **CHANGING PATHWAYS**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
The trustees present their report and financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitable company's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".
## **Objectives and Activities**
In this report the Trustees of Changing Pathways look at what the Charity has achieved and the outcomes of our work between April 2022 and March 2023. This report reviews our progress:
- towards achieving our vision of a world in which all can live fulfilled lives free from domestic abuse
- towards achieving our mission in pursuit of this vision to help each individual find their pathway out of a life of domestic abuse and change their future for the better,
- by identifying the key aims and objectives that we have worked towards and how successful Changing Pathways has been in focusing activity on the pursuance of our charitable objects, namely:
‘To relieve the needs of persons who are victims of, or in fear of, domestic violence and/or abuse in Essex and surrounding areas in particular but not exclusively, by providing refuge, counselling and practical support for victims of domestic violence, raising public awareness of domestic abuse issues; and in such other ways as the trustees may from time to time decide.’
The Trustees have referred to the Charity Commission’s guidance on public benefit when reviewing the Charity’s aims and objectives and in planning how our activities will contribute to the aims and objectives that have been set. This is supported by a performance monitoring and reporting system and an annual consultation programme for staff and clients.
## **Beneficiaries of our Services**
During 2022-23, the Charity has continued to deliver specialist support to survivors of domestic abuse, covering South and West Essex which comes under the remit of Essex County Council and the Borough Councils of Basildon, Brentwood, Castle Point, the District Councils of Epping Forest, Harlow and Rochford, and the Unitary Authority of Thurrock.
We strive to provide responsive and high-quality support to survivors of the broadest definition of domestic abuse including stalking and harassment, ‘honour-based’ abuse and forced marriage and all other forms of violence against women and girls. We take a strength-based approach to our support, working with survivors to empower them to choose a different pathway, one that enables them to live their lives free from fear and abuse.
## **Statistics**
In 2022-23, Changing Pathways received a total of 2,316 referrals for survivors of domestic abuse, where we offered both telephone and face to face support. The total number of survivors reached in 2022-23 represents an increase on 2021-22 where Changing Pathways reached 2,062 survivors.
Domestic abuse has a devastating impact on all communities. However, as reflected in the gendered nature of domestic abuse, the majority of survivors we supported were female.
We supported 1292 survivors this year 1% more than the previous year. Of those who received support via our community services 96% were female and 4% were male. 2% of survivors were transgender. The majority (85%) were aged between twenty-one and fifty years, 3 were under sixteen and 14 were over seventy. 92 were pregnant. 35% had a disability. 852 survivors had 1800 children between them of which 30% had social services involvement.
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## **CHANGING PATHWAYS**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
Only 23% of service users were employed full time. 4% were self-employed. 40% were unemployed. 15% were employed part time (under 24 hours). 8% were on long term sick leave or disabled. 2% were students, doing apprenticeships or Government training. 2% were on maternity leave. 0.5% were retired and 2% were full time carers. 5% were not asked.
We received the same amount of referrals into the refuge service as we did 2022-23 with 74 being offered a place in one of our temporary bed spaces. In total, the number of survivors of domestic abuse that we accommodated was 108 women and 124 children in our refuges and they stayed on average for 7.20 months, which is slightly shorter than the previous year.
Women who stayed in the refuge were supported to achieve positive outcomes for their family, with 71% securing a safe move-on option.
Across all our services 94% of survivors reported feeling better able to recognise abusive behaviour and 96% feel they understand more about the impact of abuse on my child/children.
In 2021-22 report we reported that we have redesigned our therapeutic model and the benefit for our clients has been significant. The referrals into adult counselling in 2022-23 increased by 444%. This is likely due to continuing effect of Covid-19. 119 survivors had 424 face to face counselling sessions. Over half completed the full counselling provision. Engaging survivors is historically difficult and whilst the number who completed is just over half 52%, we still consider this to be a positive amount of survivors being able to complete a full counselling programme.
## **Our Achievements and Performance through 2022-2023**
## **1 - Improve service offer for women experiencing multiple disadvantage and those accessing health services.**
Our IDVA work at Basildon and Thurrock University Hospital continued throughout Covid 19 and both National and Local lockdowns, funding was successfully secured for 2022-23 and we have seen an increase on referrals by 23%.
We have continued to deliver specific services for victims of stalking, sustaining levels of funding.
## **2 - Ensure our services promote and reflect increased equality and diversity.**
Throughout 2022-23 we continued to build on the work we undertook in 2019 to help us develop our understanding around all issues of Equality and Diversity and we prioritised this stream of our work.
We have improved our analysis of equality and diversity data across the organisation and have set our intention to feature this as a key headline in the 2022 – 2025 strategic plan.
Our specialist BAME service funding remain secure. Client accessing our BAME service has decreased by 30% from 118 in 2021-22 to 82 in 2022-23. The decrease is due to capacity and the difficulties the service has had in recruiting BAME staff, in order to provide a “by and for service”. That said, despite the fact that referrals have decreased, we have seen an increase in the risk for BAME clients and cases are becoming more complex. Our service experienced a 16% increase in referrals from the previous year.
Two new panels have been implemented, EDI Network group and an EDI Scrutiny Panel to consider how best the organisation can meet the needs of the LGBTQ+ survivors of domestic abuse and explore partnerships to increase accessibility for this group.
## **3 - Expand our service offer for children and young people.**
During 2022-23, 94 children that were resident in our refuges had support during the year. 85% of these children were aged under ten years. 52% were female and 48% male. 53% had directly witnessed abuse. 22% had social services involvement. 48 children had mental health support needs. 49 had physical health support needs.
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## **CHANGING PATHWAYS**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
During the 2022-23, CYP services in Changing Pathways developed supportive programmes to help parents while staying in refuge. By offering all mums, parenting sessions has allowed a more personalised and parent lead approach to identify the needs of the family as a whole and for individual children’s needs. By supporting families, ‘Family Star, My Star and My Mind Star’ this way has allowed us to work in a multi-agency way, allowing us to be involved with schools, nurseries and health visitors to give an all-round support network.
In house support for children is focused around Helping Hands, Art therapy, counselling and homework support, these are personalised for each child.
Teenage sessions have also been a new introduction in 2022-23, these are generally one to one sessions based on healthy relationships, respect, self-awareness, healthy boundaries, school transitions and various other needs
## **4 – Provide the highest quality services to survivors of domestic abuse through an employee development and succession programme.**
Changing Pathways is fully committed to continuing professional development and have been working on providing a fully comprehensive suite of training or our practitioners. We encourage self development, where our staff research and find resources of training suitable for their needs. This has enabled Changing Pathways to develop a diverse suite of training opportunities for staff.
We have continued with our training for Independent Domestic Violence Advisors through the 2022-23 year.
Plans for the Future – Strategic Plan April 1st 2022 to March 31st 2025
We continue to work on, and have begun to implement our strategic plan. Working inclusively with all colleagues is informed by the Changing Pathways culture and our commitment to empowering each other.
As a result, a number of headline areas emerged, to form the Strategic Plan 2022 to 2025, as follows:
- To invest and develop our workforce.
- To increase Financial Resilience.
- To improve the management of our assets.
- To develop our presence in the West of the county.
- To fully embed our Equality and Diversity commitment across the organisation.
- To develop our social media presence across multiple platforms.
## **Financial Review**
In 21-22 the DA Bill was fully enacted, the main area of focus on this was that children were seen as victims within their own right. This provided an increase in funding to DA organisations to recognise this. Changing Pathways successfully bid for further funding to ensure that the Local Authorities Statutory duty was met and that the programme for children was funded appropriately. This funded has continued into 23-24 with a view of a tender process after that date.
## **Reserves Policy**
Changing Pathways has two types of funds as follows:
## **Restricted funds**
- Funding received from donors for specific purposes;
- Restriction by activity or geographical region;
- These funds are ring-fenced for specified purposes and, therefore, do not form part of available reserves;
## **Unrestricted funds**
- Funding received that are available for any purpose and anywhere;
- These include designated funds;
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## **CHANGING PATHWAYS**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
Reserves are represented by unrestricted funds (excluding designated funds) less tangible fixed assets. The level of reserves required have been set at three to six months of non-charitable activity costs. Charitable activity costs have been excluded from these calculations for the following reasons:
- Non-core charitable activities will only be carried out for the duration that funding is available;
- Designated funds have been created to support core charitable activities (e.g. refuges)
The Trustees consider that reserves at this level will ensure that, in the event of a significant drop of funding, they will be able to continue the Charity’s current activities whilst consideration is given to ways in which additional funds may be raised.
To assist the Charity in meeting its charitable objectives in the future, a number of designated funds have been created. The Capital reserve was set up to finance the continuous replacement of a minibus which is central to the day to day running of the Charity's functions. This reserve is maintained at approximately the value of the current vehicle plus cash reserve necessary to replace which is currently £16,537. The Rent Reserve is a condition of the property lease and holds at least two months’ worth of operating costs which will be used to meet rental commitments should incoming resources and general-purpose funds not be sufficient. The Board have decided that this fund should be maintained at £100,000. The Contingency fund was set up to help meet any unforeseen expenses and has been set at not less than £15,000 by Trustees and it is currently at £16,655.
The available funds in the reserves at the year-end were £1,927,360. Included within the available funds are restricted funds of £807,675.
## **Risks**
There are risk registers in place to cover both the organisational risks and those risks associated with the larger EIDAS contract. These are reviewed at the Board meetings.
## **Review of Financial Position**
Changing Pathways holds a reasonable financial position.
During the year the charity had total incoming resources of £2,721,739 (2022: £2,519,197), it incurred expenses totalling £2,332,412 (2022: £2,019,022), generating an operating surplus of £389,327 (2022: £500,175). The total Net Assets of the charity at the year end were £1,927,360 (2022: £1,538,033) which is represented by restricted reserves of £807,675 (2022: £475,000), designated funds of £1,117,425 (2022: £957,598) and unrestricted reserves of £2,260 (2022: £105,435).
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## **CHANGING PATHWAYS**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **Structure, Governance and Management**
Governing Document - The organisation is a charitable company limited by guarantee and registered as a Charity. The Charity is governed under its Articles of Association.
Company Status - Members of the Charity guarantee to contribute an amount not exceeding £1 to the assets of the Charity in the event of winding up. The total number of such guarantees at 31st March 2023 was Ten.
Trustees **-** The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
J Deeney J Gould (Resigned 30 June 2022) L Headley L Martin (Resigned 7 November 2022) P Collinson (Resigned 2 November 2023) A Wright (Resigned 25 July 2022) J Frost T Brushett (Appointed 9 August 2022) J Aylott (Appointed 9 January 2023) J Harris (Appointed 9 January 2023 and resigned 14 October 2023) P Leahy (Appointed 9 January 2023) T Mullaney-Downer (Appointed 9 January 2023) P Sterry (Appointed 9 January 2023) S Tilling (Appointed 9 January 2023)
They have no beneficial interest in the Charity. All trustees give their time voluntarily and receive no benefits from the Charity. Any expenses reclaimed from the Charity are set out in the accounts.
The Charity is looking to develop the skills for the trustees and undertakes an annual skills audit to identify an address any gaps in Board experiences. There is an induction and training plan for all trustees to strengthen their role in strategic planning and they attend mandatory training in safeguarding and equality and diversity.
All trustees give their time voluntarily and receive no benefits from the Charity. Any expenses reclaimed from the Charity are set out in the accounts.
## **Organisational Structure**
The organisation is affiliated to Women’s Aid Federation of England (WAFE) but is an independent charitable company with its own structure and operational policies. The Women’s Aid gives access to a bigger network like government policies and they have a greater database. The CEO is also part of the group which allows the charity to share resources and receive guidance. The accreditation gives the charity a quality mark.
The Trustees delegate day-to-day management of the Charity to the Chief Executive Officer (CEO) and Senior Leadership Team (SLT) which in 2022-2023 included:
Chief Executive Officer Tania Woodgate Finance Manager Sarah Harris (Resigned 24 March 2023) Operational Manager Natasha Jean-Louis Operational Manager Ranjit Sindhar Operational Manager Gemma Faraway Operational Manager Zoe McKee
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## **CHANGING PATHWAYS**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
The CEO and SLT make decisions on daily operations, with any decisions concerning the strategic direction, additional spend on budget, legal issues, governance and anything else considered outside the remit of the CEO or SLT, being escalated to the Board of Trustees.
## **Staff Remuneration Policy**
The remuneration package for all personnel comprises of a basic salary and contribution to a pension scheme. Salaries are reviewed annually by the Board of Trustees. The organisation pays at least the Living Wage as set out by the Living Wage Foundation. The Charity is subject to auto-enrolment and contributions are currently made at 3%. The Charity is supported to meet its requirements under auto-enrolment by the Work Place Pension Group and payroll provider, Rickard Luckin.
## **Auditor**
In accordance with the company's articles, a resolution proposing that Rickard Luckin Limited be reappointed as auditor of the company will be put at a General Meeting.
## **Disclosure of information to auditor**
Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.
The trustees' report was approved by the Board of Trustees.
.............................. **J Frost** Trustee Dated: 20/12/2023
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## **CHANGING PATHWAYS**
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** _**FOR THE YEAR ENDED 31 MARCH 2023**_
The trustees, who are also the directors of Changing Pathways for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees confirm that so far as they are aware, there is no relevant audit information (as defined by section 418(3) of the Companies Act 2006) of which the charitable company’s auditors are unaware. They have taken all the steps that they ought to have taken as trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditors are aware of that information.
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## **CHANGING PATHWAYS**
## **INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CHANGING PATHWAYS**
## **Opinion**
We have audited the financial statements of Changing Pathways (the ‘charitable company’) for the year ended 31 March 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the _Auditor's responsibilities for the audit of the financial statements_ section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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## **CHANGING PATHWAYS**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CHANGING PATHWAYS**
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of our audit:
- the information given in the trustees' report for the financial year for which the financial statements are prepared, which includes the directors' report prepared for the purposes of company law, is consistent with the financial statements; and
- the directors' report included within the trustees' report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the trustees' report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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## **CHANGING PATHWAYS**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CHANGING PATHWAYS**
## **Capability of the audit in detecting irregularity, including fraud**
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the charity's regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations to our team and remained alert to any indicators of noncompliance throughout the audit, we also specifically considered where and how fraud may occur within the charity.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the charitable company is subject to laws and regulations that directly affect the financial statements, including: the charitable company’s constitution; relevant financial reporting standards; company law; the Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with FRS 102 (effective from 1 January 2019) and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly the charitable company is subject to many other laws and regulations where the consequences of noncompliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: legislation directly applicable to charities sector such as the Charities Act 2011; employment legislation; health and safety legislation; safeguarding legislation; the regulatory requirements of the Charity Commission and data protection legislation.
International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
- Challenging assumptions made by management in its significant accounting estimates in particular: recognition of income;
- Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations;
- Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
- Ensuring that testing undertaken on both the Statement of Financial Activity (SoFA) and the Balance Sheet includes a number of items selected on a random basis.
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.
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## **CHANGING PATHWAYS**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF CHANGING PATHWAYS**
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Auditing Standards (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## **Kate Bell (Senior Statutory Auditor) for and on behalf of Rickard Luckin Limited**
.........................
## **Chartered Accountants Statutory Auditor**
Phoenix House, Suite 8 Christopher Martin Road Basildon Essex SS14 3EZ
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## **CHANGING PATHWAYS**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Current financial year**
**Unrestricted Unrestricted**
**Restricted**
**funds**
**funds**
**funds**
**general designated**
**2023**
**2023**
**2023**
**Notes**
**£**
**£**
**£**
**Income from:**
Donations
40,445
-
25,256
Charitable activities
**3**
-
859,784
1,784,333
Fundraising
**4**
5,820
-
-
Investments
**5**
6,101
-
-
**Total income**
52,366
859,784
1,809,589
**Expenditure on:**
Charitable activities
**6**
220,026
635,072
1,477,314
**Net (outgoing)/incoming resources**
**before transfers**
(167,660)
224,712
332,275
Gross transfers between funds
64,485
(64,885)
400
**Net (expenditure)/income for the year/**
**Net movement in funds**
(103,175)
159,827
332,675
Fund balances at 1 April 2022
105,435
957,598
475,000
**Fund balances at 31 March 2023**
2,260
1,117,425
807,675|**Total**
**Total**
**2023**
**2022**
**£**
**£**
65,701
57,514
2,644,117
2,458,569
5,820
3,016
6,101
98
2,721,739
2,519,197
2,332,412
2,019,022
389,327
500,175
-
-
389,327
500,175
1,538,033
1,037,858
1,927,360
1,538,033|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 12 -
## **CHANGING PATHWAYS**
## **STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Prior financial year**||||||
|---|---|---|---|---|---|
|||**Unrestricted**|**Unrestricted**|**Restricted**|**Total**|
|||**funds**|**funds**|**funds**||
|||**general**|**designated**|||
|||**2022**|**2022**|**2022**|**2022**|
||**Notes**|**£**|**£**|**£**|**£**|
|**Income from:**||||||
|Donations||51,374|-|6,140|57,514|
|Charitable activities|**3**|-|856,620|1,601,949|2,458,569|
|Fundraising|**4**|3,016|-|-|3,016|
|Investments|**5**|98|-|-|98|
|**Total income**||54,488|856,620|1,608,089|2,519,197|
|**Expenditure on:**||||||
|Charitable activities|**6**|150,235|566,911|1,301,876|2,019,022|
|**Net (outgoing)/incoming resources before**|**transfers**|(95,747)|289,709|306,213|500,175|
|Gross transfers between funds||(502)|-|502|-|
|**Net (expenditure)/income for the year/**||||||
|**Net movement in funds**||(96,249)|289,709|306,715|500,175|
|Fund balances at 1 April 2021||201,684|667,889|168,285|1,037,858|
|**Fund balances at 31 March 2022**||105,435|957,598|475,000|1,538,033|
- 13 -
## **CHANGING PATHWAYS**
## **BALANCE SHEET**
## _**AS AT 31 MARCH 2023**_
|**Notes**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**14**
Unrestricted funds
Designated funds
**15**
General unrestricted funds|**2023**
**£**
226,227
1,735,243
1,961,470
(103,325)
1,117,425
2,260|
**£**
69,215
1,858,145
1,927,360
807,675
1,119,685
1,927,360|**2022**
**£**
46,444
1,565,789
1,612,233
(147,615)
957,598
105,435|
**£**
73,415
1,464,618|
|---|---|---|---|---|
|||||1,538,033|
|||||475,000
1,063,033|
|||||1,538,033|
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 13/12/2023
.............................. L Headley **Trustee**
## **Company Registration No. 09941590**
- 14 -
## **CHANGING PATHWAYS**
## **STATEMENT OF CASH FLOWS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**21**
**Investing activities**
Purchase of tangible fixed assets
Investment income received
**Net cash used in investing activities**
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2023**
**£**
(16,646)
6,101|
**£**
179,999
(10,545)
-
169,454
1,565,789
1,735,243|**2022**
**£**
(13,154)
98|
**£**
609,347
(13,056)
-
596,291
969,498
1,565,789|
|---|---|---|---|---|
- 15 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **Charity information**
Changing Pathways is a private company limited by guarantee incorporated in England and Wales. The registered office is Parklands Centre, Felmores End, Felmores, Basildon, Essex, SS13 1PN.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charitable company's Articles of Association, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charitable company is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
The nature of the Charity's funding is such that it relies on annual awards from local authorities and other charitable bodies. Income from grants is expected to remain consistent for the coming financial year, and as such the trustees do not have any concern over the charity's ability to operate for at least 12 months from the date of signing the financial statements.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. Designated funds can be undesignated if necessary. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Incoming resources**
Contractual income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Contractual income is deferred to the extent that it has been received but the right to the income is recognised in a future accounting period in order to match with performance under the terms of contract.
Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
- 16 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
**(Continued)**
## **1.5 Resources expended**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of the resources including a category for costs directly related to management and running of the charity.
Fund-raising costs are those incurred in seeking voluntary contributions and do not include the costs of dissemination of information in support of the charitable activities. Support costs are those costs incurred directly in support of expenditures on the objects of the charity and include project management carried out at Headquarters. Governance costs are those incurred in connection with compliance with constitutional and statutory requirements.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Refuge fixtures and fittings 25% reducing balance Fixtures and fittings 25% reducing balance Motor vehicles 25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
## **1.7 Impairment of fixed assets**
At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
- 17 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.
## **1.10 Employee benefits**
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **1.11 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Prior to May 2016, employees were entitled to join the defined benefit scheme operated by Essex County Council. Although the Pension Fund is a defined benefit scheme, because Changing Pathways, as a Small Admitted Body, has been grouped together with other Small Admitted Bodies, it is not possible to separately identify its share of the underlying assets and liabilities and it is therefore accounted for as a defined contribution scheme. The assets of the scheme are held separately from those of the charity. The pension cost charge represents contributions payable by the charity to the fund.
## **2 Critical accounting estimates and judgements**
In the application of the charitable company’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
## **Critical judgements**
## **Income recognition**
The Trustees exercise judgement in applying the accounting policy for recognising grant income. Grants are reviewed on an individual basis to identify when any performance conditions are met, and there is unconditional entitlement to the grant, such that income can be recognised in the Statement of Financial Activities. Where performance conditions have not been met the grant income is deferred.
- 18 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **3 Charitable activities**
|Grants
Laundry
Utilities
Housing benefit
Analysis by fund
Unrestricted funds - designated
Restricted funds
**For the year ended 31 March 2022**
Unrestricted funds - designated
Restricted funds
**Performance related grants**
ISAS
Children in Need
Thurrock Grants
Brighter futures
BME
EDAPP
Basildon Grants
Children & Young People
MOJ
EIDAS
Counselling
Discretionery Housing Payment|**Outreach**
**£**
1,334,127
-
-
-
1,334,127
859,784
474,343
1,334,127
856,620
421,461
1,278,081
32,117
-
-
86,003
52,984
80,000
-
-
182,335
859,783
40,905
-
1,334,127|**Children's**
**services**
**£**
189,059
-
-
-
189,059
-
189,059
189,059
-
128,780
128,780
-
7,353
82,120
-
-
-
-
99,586
-
-
-
-
189,059|**Refuge**
**£**
495,593
1,175
60,293
563,870
1,120,931
-
1,120,931
1,120,931
-
1,051,708
1,051,708
-
-
315,003
-
-
-
180,590
-
-
-
-
-
495,593|**Total**
**2023**
**£**
2,018,779
1,175
60,293
563,870
2,644,117
859,784
1,784,333
2,644,117
32,117
7,353
397,123
86,003
52,984
80,000
180,590
99,586
182,335
859,783
40,905
-
2,018,779|**Total**
**2022**
**£**
1,831,753
1,276
60,039
565,501|
|---|---|---|---|---|---|
||||||2,458,569|
||||||856,620
1,601,949|
||||||2,458,569|
||||||32,117
29,194
400,892
86,003
54,904
80,000
24,000
99,586
119,999
856,620
33,450
14,988|
||||||1,831,753|
- 19 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **4 Fundraising**
|||**Unrestricted**|**Unrestricted**|
|---|---|---|---|
|||**funds**|**funds**|
|||**general**|**general**|
|||**2023**|**2022**|
|||**£**|**£**|
||Other fundraising events|5,820|3,016|
|**5**|**Investments**|||
|||**2023**|**2022**|
|||**£**|**£**|
||Interest receivable|6,101|98|
- 20 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **6 Charitable activities**
|Staff costs
Depreciation and impairment
Minibus and travel
Telephone charges
Admin and printing
Utilities
Equipment, repairs and renewals
Children's counselling, tutoring and
nursery costs
Computer costs
Household expenses
Insurance
Rent and rates
Recruitment
Training
Legal and professional fees
Share of support costs (see note 7)
Share of governance costs (see note 7)
**Analysis by fund**
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds
**For the year ended 31 March 2022**
Unrestricted funds - general
Unrestricted funds - designated
Restricted funds|**Outreach**
**Children's**
**services**
**2023**
**2023**
**£**
**£**
842,042
47,762
4,601
-
3,589
565
13,077
511
5,502
-
-
-
-
-
2,280
47,743
1,515
-
739
19
-
-
11,254
-
-
-
4,226
230
25,907
-
914,732
96,830
150,558
12,104
-
-
1,065,290
108,934
-
-
635,072
-
430,218
108,934
1,065,290
108,934
-
-
566,911
-
295,037
108,439
861,948
108,439|**Refuge**
**2023**
**£**
309,118
2,813
3,511
8,264
6,531
63,313
61,935
13,627
4,158
60,189
3,109
293,569
169
1,577
1,904
833,787
262,223
62,178
1,158,188
220,026
-
938,162
1,158,188
150,235
-
898,400
1,048,635|**Total**
**2023**
**Total**
**2022**
**£**
**£**
1,198,922
1,003,885
7,414
8,570
7,665
9,227
21,852
21,670
12,033
15,962
63,313
69,074
61,935
67,683
63,650
44,164
5,673
9,772
60,947
49,435
3,109
2,159
304,823
300,541
169
324
6,033
23,961
27,811
35,583
1,845,349
1,662,010
424,885
320,112
62,178
36,900
2,332,412
2,019,022
220,026
150,235
635,072
566,911
1,477,314
1,301,876
2,332,412
2,019,022
150,235
566,911
1,301,876
2,019,022|
|---|---|---|---|
- 21 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**7**
**Support costs**
Staff costs
Depreciation
Minibus and travel
Telephone charges
Admin and printing
Rent, rates and utilities
Equipment and computer
repairs
Training and recruitment
Household expenses
Insurance
Bank charges
Audit fees
Accountancy
Legal and professional
Analysed between
Charitable activities|**Support Governance**
**costs**
**costs**
**£**
**£**
253,064
-
13,432
-
1,564
-
28,807
-
21,824
-
8,662
-
41,656
-
32,464
-
8,295
-
13,936
-
1,181
-
-
15,520
-
2,889
-
43,769
424,885
62,178
424,885
62,178|**2023**
**£**
253,064
13,432
1,564
28,807
21,824
8,662
41,656
32,464
8,295
13,936
1,181
15,520
2,889
43,769
487,063
487,063|**Support Governance**
**costs**
**costs**
**£**
**£**
196,050
-
12,163
-
2,134
-
12,994
-
25,959
-
9,712
-
23,717
-
13,507
-
3,450
-
19,193
-
1,233
-
-
14,160
-
3,692
-
19,048
320,112
36,900
320,112
36,900|**2022**
**£**
196,050
12,163
2,134
12,994
25,959
9,712
23,717
13,507
3,450
19,193
1,233
14,160
3,692
19,048|
|---|---|---|---|---|
|||||357,012|
|||||357,012|
Trustees consider that overhead costs are largely attributable to providing outreach and refuge, which are the the main activities of the charity. Therefore, 12.5% of support and governance costs have been allocated accordingly against charitable projects, with the remaining costs allocated to refuge and early outreach.
Governance costs includes payments to the auditors of £15,520 (2022: £14,160) for audit fees and £2,889 (2022: £3,692) for non-audit fees.
## **8 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the current or previous year.
No reimbursement of expenses has been made or is due to be made to any of the trustees in respect of the current or previous year.
## **9 Taxation**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
- 22 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **10 Employees**
|Caring services
Administration of the charity
Total
**Employment costs**
Wages and salaries
Included within wages and salaries is a settlement payment of £22,170.
The number of employees whose annual remuneration was more than £60,000
is as follows:
£60,000 - £70,000
There were no employees who had a salary exceeding £60,000 this year.|**2023**
**Number**
44
5
49
**2023**
**£**
1,451,986
**2023**
**Number**
-|**2022**
**Number**
42
5
47
**2022**
**£**
1,199,935
**2022**
**Number**
1|
|---|---|---|
## **11 Tangible fixed assets**
|**Refuge**
**fixtures and**
**fittings**
**Fixtures and Motor vehicles**
**fittings**
**Cost**
**£**
**£**
**£**
At 1 April 2022
36,723
84,176
14,000
Additions
4,926
11,720
-
At 31 March 2023
41,649
95,896
14,000
**Depreciation and impairment**
At 1 April 2022
15,815
42,169
3,500
Depreciation charged in the year
5,924
12,297
2,625
At 31 March 2023
21,739
54,466
6,125
**Carrying amount**
At 31 March 2023
19,910
41,430
7,875
At 31 March 2022
20,908
42,007
10,500|**Total**
**£**
134,899
16,646|
|---|---|
||151,545|
||61,484
20,846|
||82,330|
||69,215|
||73,415|
- 23 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
|**12**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Prepayments and accrued income
**13**
**Creditors: amounts falling due within one year**
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income|**2023**
**£**
150,658
75,569
226,227
**2023**
**£**
29,811
44,348
7,033
22,133
103,325|**2022**
**£**
-
46,444|
|---|---|---|
|||46,444|
|||**2022**
**£**
-
39,861
2,605
105,149|
|||147,615|
- 24 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **14 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|New Burdens
Children in need
EDAPP
ISAS
Counselling
Children & Young People
Refuge
Brighter futures
BME
MHCLG
Resettlement
Big Lottery
MOJ
ECF|**Balance at**
**1 April 2021**
**£**
-
7,866
16,182
-
-
-
97,805
-
8,591
8,055
9,594
4,392
15,800
-
168,285|**Movement in funds**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Transfers**
**£**
-
-
-
29,194
(23,605)
-
80,000
(53,999)
-
32,117
(34,391)
3,997
33,450
(20,653)
-
99,586
(84,822)
-
1,072,835
(886,741)
-
86,003
(64,813)
-
54,905
(46,893)
-
-
(2,600)
502
-
(512)
-
-
(1,191)
-
119,999
(81,656)
(3,997)
-
-
-
1,608,089
(1,301,876)
502|**Movement in funds**
**Balance at**
**1 April 2022**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
-
237,602
(85,976)
13,455
7,353
(20,937)
42,183
80,000
(49,825)
1,723
32,117
(31,337)
12,797
40,905
(83,349)
14,764
99,586
(55,978)
283,899
987,204
(884,205)
21,190
86,003
(82,902)
16,603
52,984
(42,772)
5,957
-
-
9,082
-
-
3,201
-
-
50,146
182,335
(140,033)
-
3,500
-
475,000
1,809,589
(1,477,314)|
**Transfers**
**£**
**31**
-
129
-
-
29,647
(29,776)
400
-
-
-
-
-
-
-
400|**Balance at**
**March 2023**
**£**
151,626
-
72,358
2,503
-
28,596
387,298
24,291
26,815
5,957
9,082
3,201
92,448
3,500|
|---|---|---|---|---|---|
||||||807,675|
- 25 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **14 Restricted funds**
## **(Continued)**
Children's funding - Children's funding from donations is restricted to providing children's services.
Children In Need - Funding is restricted to the costs of employing a Children and Young Persons Co-ordinator.
EDAPP Project - Funding is restricted to proving services under the Essex Domestic Abuse Partnership Project in conjunction with Colchester and Tendring Women's Refuge.
ISAS Project - Funding received from the Big Lottery Fund is restricted to providing the Independent Stalking Advocacy Service.
Counselling - Funding used to help counselling services to support women affected by domestic violence.
Children & Young People - Funding received to help support children and young people who are affected by domestic violence.
Refuge - Funding from Thurrock, Basildon and Rochford Council is restricted to providing refuge services.
Brighter futures - Funding from Thurrock is restricted to early intervention of domestic abuse.
BME - Funding is restricted to providing support to black, minority and ethnic communities.
MHCLG - Funding received to provide domestic abuse safe accommodation.
Resettlement - Funding is restricted to support women affected by domestic violence to move on from refuge accommodation
Big Lottery - Funding used to deliver activities specifically aimed to support communities through COVID
MOJ - Funding for the delivery of services for domestic abuse and sexual violence services.
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## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **15 Designated funds**
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
|Capital
Rent
Contingency
Friends of refuge kids
EIDAS|**Movement in funds**
**Movement in funds**
**Balance at**
**1 April 2021**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Balance at**
**1 April 2022**
**£**
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
25,607
-
(3,500)
22,107
-
(2,625)
100,000
-
-
100,000
-
-
16,655
-
-
16,655
-
-
146,556
-
-
146,556
-
(36,792)
379,071
856,620
(563,411)
672,280
859,784
(595,655)
667,889
856,620
(566,911)
957,598
859,784
(635,072)|
**Transfers**
**£**
**Balance at**
**31 March 2023**
**£**
-
19,482
-
100,000
-
16,655
-
109,764
(64,885)
871,524
(64,885)
1,117,425|
**Transfers**
**£**
**Balance at**
**31 March 2023**
**£**
-
19,482
-
100,000
-
16,655
-
109,764
(64,885)
871,524
(64,885)
1,117,425|
|---|---|---|---|
||||1,117,425|
Designated capital fund - The balance represents a minibus fund. This fund is made up of two elements, a cash element and also a capital element. The cash element is a reserve that is built up to enable the organisation to purchase a new minibus when the need arises. The capital element is the written down value of the minibus.
Designated rent reserve fund - The rent reserve fund, transferred from Basildon Women's Aid, was set up in 2008 as a condition of a new lease agreement. It is intended that the fund hold at least a minimum of two months of operating costs in reserve at any one time. In view of rising costs, it has been decided by the Trustee Committee that the balance in this fund should not be less than £100,000.
Designated contingency fund - This fund is for any unforeseen and contingent events that may occur. It has been decided by the Trustee Committee that the balance in this fund should not be less than £15,000.
Designated Friends of Refuge Kids fund - This fund was set up to collect the income and cover the costs of charity events held to raise money primarily for, but not restricted to, the children at the refuge.
Essex Integrated Domestic Abuse Services - Funding to support victims of domestic abuse and their families, including provision of a family unit including offering life skills and resources to rebuild their lives.
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## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **16 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**2023**
**2023**
**2023**
**£**
**£**
**£**
Fund balances at 31 March 2023 are represented
by:
Tangible assets
46,349
7,875
14,991
Current assets/(liabilities)
(44,089)
1,109,550
792,684
2,260
1,117,425
807,675|**Total Unrestricted**
**funds**
**Designated**
**funds**
**Restricted**
**funds**
**Total**
**2023**
**2022**
**2022**
**2022**
**2022**
**£**
**£**
**£**
**£**
**£**
69,215
47,705
10,500
15,210
73,415
1,858,145
57,730
947,098
459,790
1,464,618
1,927,360
105,435
957,598
475,000
1,538,033|
|---|---|
- 28 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **17 Financial commitments, guarantees and contingent liabilities**
Multi-employer defined benefit pension scheme:
On 8/5/17 all pension schemes were transferred over from Basildon Women's Aid to Changing Pathways. Prior to May 2016, employees were entitled to join the defined benefit scheme operated by Essex County Council. Although the Pension Fund is a defined benefit scheme, because Basildon Women's Aid, as a Small Admitted Body, has been grouped together with other Small Admitted Bodies, it is not possible to separately identify its share of the underlying assets and liabilities and it is therefore accounted for as a defined contribution scheme. The assets of the scheme are held separately from those of the charity. The pension cost charge represents contributions payable by the charity to the fund.
The charity is required to pay additional contributions as required towards the charity's share of the deficit. These contributions are charged as an expense as they fall due.
From May 2016, membership of this scheme has ceased and employees are now entitled to join a defined contribution scheme.
## **18 Retirement benefit schemes**
The charitable company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charitable company in an independently administered fund.
The charge to the Statement of Financial Activities in respect of defined contribution schemes was £24,129 (2022: £22,405).
## **19 Key management personnel**
## **Remuneration of key management personnel**
The remuneration of key management personnel is as follows.
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|Aggregate compensation|84,930|73,514|
- 29 -
## **CHANGING PATHWAYS**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2023**_
## **20 Operating lease commitments**
At the reporting end date the charitable company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
|**2023**
**£**
Within one year
489,927
Between two and five years
161,442
651,369
**21**
**Cash generated from operations**
**2023**
**£**
Surplus for the year
389,327
Adjustments for:
Investment income recognised in statement of financial activities
(6,101)
Depreciation and impairment of tangible fixed assets
20,846
Movements in working capital:
(Increase)/decrease in debtors
(179,783)
(Decrease)/increase in creditors
(44,290)
**Cash generated from operations**
179,999|**2022**
**£**
43,156
73,026
116,182
**2022**
**£**
500,175
(98)
20,733
21,443
67,094
609,347|
|---|---|
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