## **Grace Enterprises** Annual Report 2023 For the period 1 January 2023 to 31 December 2023
Registered charity number: 1189538 Company number: 12579103
## **Transforming lives** through **supportive employment** in our **sustainable businesses**
2023 has been another year of growth for us, with the launch of our third social enterprise and hitting the milestone of 100 people employed to date. We also provided 25% more hours of real Living Wage work than in the previous year.
We started Grace Enterprises in 2017 to tackle one of the biggest challenges in our society: long-term unemployment. It has a detrimental effect on individuals, their families and our communities, and it is an even greater challenge for those who experience multiple barriers to work due to adverse life events.
We are looking forward to further growth in the year ahead, and to playing our part in seeing our employees living life to the full.
By running social enterprises which employ and support people who would otherwise struggle to find and keep a job, we are making a positive impact on those individual lives and to society at large.
Matt Parfitt **Founder & CEO**
02
## Contents
04. Trustees **’** Annual Report
04. Charitable objectives
05. Our businesses
06. Barriers to work
07. Employee journey
08. Employment overview
09. Supportive employment
12. 2023 focus
16. The future
17. Funders & partners
18. Structure, Governance & Management
19. Trustee responsibilities
20. Financial Review
21. Independent examiner **’** s report
22. Accounts
40. Legal & Administrative
03
## **’** Trustees annual report
## **Charitable Objectives**
Grace Enterprises works for the **relief of unemployment** for the public benefit in the United Kingdom by:
establishing and supporting **subsidiary companies** to provide **ethical employment opportunities** for the long-term unemployed and others facing barriers to work
providing assistance to individuals seeking employment and **ongoing support** to those who we employ
**influencing public policy** and social attitudes towards the long-term unemployed and advocating the benefits of supportive employment
- LIFE CHANGING JOBS
04
## The Grace Enterprises businesses
We run diverse businesses to create a variety of job opportunities to suit different people. These businesses have the same ethos:
**employing people with barriers to work paying the Real Living Wage providing holistic support**
Radiant Cleaners
**JUBILEE** EVENTS
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## BARRIERS TO WORK
## Barriers experienced by our team
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12% 28% 13%
Alcoholism English as a second Domestic
language Violence
17%
24%
Drug misuse
Homelessness
17% 11%
14%
In trouble with Learning
the police difficulties Refugees
**----- End of picture text -----**
Of employees suffer with **46%** mental health issues
**If it wasn't for this job I'd be back where I was - doing drugs or in prison**
HaD been unemployed for 1 year or more
**0** 62
_Figures relate to all employees up to December 2023._
## Employee Journey
We have a person-centred approach, so this journey looks different for each of our employees.
_“Brilliant supportive team – more like family.” Radiant Cleaners employee_
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## employment overview
## **Our employees are at the heart of Grace Enterprises.**
Since we began, **109 people** have been employed across our social enterprises (as of December 2023).
Our businesses require balanced teams to be able to operate successfully, but we track barriers to ensure that we are meeting our charitable objectives.
47 **%**
**Had major barriers to work**
31 **%**
**Had minor barriers or needed a supportive employer**
22 **% Did not have barriers to work**
Each of our employees has different needs and goals. For some, a job in a Grace Enterprises business provides the long-term stability they need. For others, we are a stepping stone to further employment or training.
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Left for health reasons
8%
Relocated
3%
Still employed
41%
New job
109
36%
Employees to date
Negative exit
Further training
4% e.g disciplinary
17%
**----- End of picture text -----**
_Employment statistics across Grace Enterprises, from the launch in 2017 to December 2023._
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## living life index
**----- Start of picture text -----**
We have developed the Living Life
Index (LLI) to enable us to effectively
support employees throughout their
time with us. This is one way we Physical PurposE
ensure that those with barriers to Health
work are able to thrive holistically and
Mental
move forward in their lives. Hope
Health
In regular one-to-one Living Life
Reviews, we ask employees to reflect
on how they currently feel about
Living
each of the twelve factors. Relationships
Life Self Esteem
Apart from in finances (+22%), we see Index
the most significant increases in the
areas of Purpose, Self Esteem, Hope,
and Mental Health. Finances
autonomy
19% 21% 12% 14%
Housing
Workplace
Skills
Self Mental Hope Drugs and transferable
Esteem Purpose Health Alcohol skills
**----- End of picture text -----**
We have developed the Living Life Index (LLI) to enable us to effectively support employees throughout their time with us. This is one way we ensure that those with barriers to work are able to thrive holistically and move forward in their lives.
In regular one-to-one Living Life Reviews, we ask employees to reflect on how they currently feel about each of the twelve factors.
Apart from in finances (+22%), we see the most significant increases in the areas of Purpose, Self Esteem, Hope, and Mental Health.
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## The living life index Helps us to:
**Facilitate transformation** through a process of reflection and action-planning, and providing a context to offer relevant advice and guidance.
**Monitor transformation** by enabling us to measure and assess the change in employee’s lives so that we can demonstrate our social impact.
**Increase our effectiveness at transformation** by showing us which aspects of life are tending to hold our employees back, providing insights that help us improve our employment model.
We tend to see improvement when comparing employees’ numbers from the start of their employment with their latest review.
Impact of Employment with Grace Enterprises
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85
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_Collated LLI scores for all employees, grouped by domain. Pale = average % of first LLI scores in the domain. Dark = average % of most recent LLI scores in the domain._
_Each of the twelve factors is self-scored out of 10 by employees, and average percentages are used for evaluation purposes._
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## employee
## PERCENTAGE OF EMPLOYEES WHO CONSIDER EMPLOYMENT WITH GRACE ENTERPRISES BENEFICIAL
## Attribution
While external factors have both positive and negative effects on our employees’ lives and wellbeing, 93% of our team agree that working for a Grace Enterprises business has a positive effect on their life.
Disagree Neutral 1% 6%
Strongly Agree Agree 39% 54%
## Mentoring
To complement the support given within work, we have a team of voluntary mentors who offer additional 1:1 encouragement and support to those who opt in to our mentoring programme.
**employees met regularly with a mentor in 2023**
_**“I can't believe the support I've had. That is more important to me than the job to be honest. It's good to have something to do with my time but the way I was supported through my relapse was amazing. I never thought I'd still have a job after that.” Radiant Cleaners employee**_
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## 2023 focus
In 2023 we provided employment to 61 people
**25 were new employees**
**36 continued working from the previous years**
6 of the new starters were Ukrainian refugees, who often face language barriers when looking for work in the UK, as well as overcoming the trauma of having had to leave a war zone.
_**“Thank you! I'm feeling better when I start to work.” Radiant Cleaners employee from Ukraine, December 2023**_
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## Radiant Cleaners **–** 2023 highlights
- LIFE CHANGING CLEANING
Radiant Cleaners was the first Grace Enterprises business, launched back in 2017. It grew by 16% (in terms of hours of cleaning done) in 2023.
Our team love:
**Consistent Hours Regular Routine Opportunities for Growth**
**hours of real Living Wage work employees at Dec 2023**
Dean* was referred to us by a local drug and alcohol service – he had maintained recovery for over two years and was keen to get back to work. He’d been unemployed for years and believed no-one would ever employ him again due to his background. Dean wanted a reason to get out of the house each day and to be a good role model to his young son. He needed an understanding and supportive employer to give him a chance.
Dean has gone from strength to strength at Radiant Cleaners, increasing his hours and gaining additional work alongside his cleaning. He has continued working with us for two years despite having some significant health issues.
_**”I hate to think what my life would have been like for the last two years without this job! It's not about the money or the hours. When someone asks me "What do you do?” I can say "I work, I'm a cleaner" instead of having nothing to say."**_
Dean has seen his relationships, autonomy and purpose improve since starting work. He decided to begin meeting with a mentor which has already improved his confidence and is helping him to overcome some social anxiety.
_* name changed for privacy_
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## Jubilee Events **–** 2023 highlights
- LIFE CHANGING EVENTS
Jubilee Events provides marquee hire and events services. It was launched in January 2022, and sales increased by 36% in 2023.
Our team love:
**Team Context Seeing New Places Satisfying Work**
**hours of real Living Wage work employees at Dec 2023**
Ben* was a regular volunteer at the Ben has now been working for 18 Grace Church food bank but had months and has seen his selfexperienced various barriers to paid esteem and work skills grow in that work, including complex mental time. health challenges. With support and encouragement, Ben joined the _**"I love working for Jubilee**_ Jubilee Events team in 2022, and _**Events, it's helped me so much**_ now also works for Radiant Cleaners.
_**"I love working for Jubilee Events, it's helped me so much with getting back into work - something that looked far away a year ago. It's allowing us all to build friendships by helping each other grow to become our best."**_
The team dynamics and practical _**a year ago. It's allowing us all to**_ logistics have been challenging at _**build friendships by helping each**_ times but Ben is continuing to _**other grow to become our best."**_ develop his insight and ability to communicate well with the wider team. _* name changed for privacy_
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## Half the Story **–** 2023 highlights
**LIFE-CHANGING BISCUITS**
Half the Story was developed in partnership with Green Pastures, a housing charity. It was launched in July 2023.
Our team love:
**Safe Environment Learning New Skills Working Together**
**hours of real Living Wage work**
**employees at Dec 2023**
Kat came to the UK from Ukraine due to the war. She was able to stay with a distant relative but struggled to find meaningful work. Back home in Ukraine she had been working as an architect but found herself simultaneously overqualified and under-experienced here:
_“I needed a job and a safe place to come to my senses from all those unexpected changes. I heard about Grace Enterprises as a company that cares about people. And now I see that it is so. People are treated as people and not as a resource._
_Finding a job can be a very mentally challenging task. This creates a closed circle: mental problems and anxiety did not allow me to present my capabilities in the labour market fully, and the lack of work creates greater pressure on my mental state. And Half of the Story broke that circle for me.”_
Kat has proven to be an invaluable member of the team and has been promoted to Bakery Supervisor. The job is helping her move towards her long-term goal of working in the field of architecture.
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## The Future
## **Over the next year we aim to:**
Develop our wider influence across society, in partnership with other organisations
Grow our businesses, particularly Half the Story, to create more employment opportunities and more hours of work
Strengthen our people-related processes to continually improve the experience for our employees
Looking further ahead, we plan to continue launching new businesses to provide more jobs and see more lives changed.
**“Next year I would like more hours of work” Radiant Cleaners employee, December 2023**
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## Funders & Partners
## **Funders**
We are so grateful to all the individual donors and organisations who support our ongoing work.
Some of our funders include:
## **Key Partners**
Grace Enterprises was launched by **Grace Church Nottingham** in 2017. They continue to provide invaluable support in a range of ways.
Our latest business, Half the Story, is a joint venture with **Green Pastures** , a homelessness charity. Their wider support has been highly significant.
We are proud to partner with the **Living Wage Foundation** , paying the real Living Wage across all our businesses.
Our businesses are all registered social enterprises, and we are grateful for the influential work done by **Social Enterprise UK** , who do so much to champion social value and a fairer world.
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## structure, governance and Management
**Trustees** Phil Collinge Graham Bowpitt Loyin Olutu-Umoren Selina Lee Duncan Miller Jeremy Dykes
**Nature of governing document:** Grace Enterprises was incorporated as a company limited by guarantee (England & Wales) on 29 April 2020 (registration number 12579103) and is governed by its Articles of Association. This company is registered with the Charity Commission in England and Wales under reference 1189538, with the registration completed on 18 May 2020. It has no share capital and the liability of each member in the event of winding-up is limited to £1.
**Small companies provision**
## **statement:**
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
## **Relationships with related parties:**
The charity wholly-owns two trading companies called Radiant Cleaners Limited (company # 11074139) and Jubilee Events Limited (company # 13708047). Both companies are registered Social Enterprise and have an asset-lock in place so that all profits will be re-invested in the company or gifted to Grace Enterprises. The charity also holds 50% of the voting rights in Half the Story LLP (company # OC448940).
## **Objectives and activities:**
Activities undertaken to further public benefit.
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
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## trustee responsibilities
The Trustees (who are also the directors of Grace Enterprises Nottingham Limited for the purposes 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland". The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.
Company law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they 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 its income and expenditure, of the charitable company for that period.
In preparing these financial statements, the Trustees are required to:
select suitable accounting policies and apply them consistently;
observe the methods and principles in the Charities SORP;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards, comprising FRS 102 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 business.
The Trustees are responsible for keeping proper accounting records that can 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 are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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## financial review
## **Financial Outcome & Reserves**
## **Reserves Policy**
For the 12 month period ending on The Trust aims to hold Reserves 31 December 2023, Grace (unrestricted liquid assets that are Enterprises had a surplus of not designated to any other purpose £16,969 (deficit of £20,011 for the 16 apart from as a reserve fund) that month financial period ended 31 equate to between 3 and 6 months of December 2022). the Charity’s salaries and fixed costs. This resulted in funds carried forward of £32,560 (31 December The Trustees believe that 3 months is 2022: £15,591). the correct minimum level of reserves to protect the charity, and Of the reserves held at period end, those who benefit from it, from the £32,560 were unrestricted in effects of the most likely financial nature. risks. The Trustees have reached this conclusion because it would enable **Financial Summary** employees to be made redundant, Grace Enterprises’ principal source paying them for their notice period of funds comes through and any Statutory Redundancy Pay management fees from its trading to which they were entitled. Reduced subsidiaries. This is supplemented operations could then be maintained by grants from trusts and by volunteers. The Trustees believe foundations, and monthly support that 6 months is the correct from independent donors. maximum level of reserves, because The main expenditure includes if more were held, this would salaries and the provision of holistic unnecessarily tie up donors’ money. support for our beneficiaries.
At 31 December 2023 the reserves were slightly below the lower limit, so the Trustees have approved budgets which would restore reserves to the level dictated by the policy in the next financial year.
The Trustees monitor the level of the Trust’s Reserves on a bi-monthly basis. The Trustees review the Reserves Policy on an annual basis and whenever a major change is made to the Risk Register.
## **Approval & Authorisation**
This report was approved and authorised for issue by the Board of Trustees on 7 May 2024 and signed on its behalf by:
Phil Collinge Chair of Trustees
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## **’** INDEPENDENT EXAMINER S REPORT
- 1.Accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
I report to the charity trustees on my examination of the accounts of Grace Enterprises Nottingham Limited (charity number 1189538, company number 12579103) for the year ended 31 December 2023.
- 2.The accounts do not accord with those records; or
- 3.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
## **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’).
- 4.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)).
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.
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.
## **Independent examiner’s statement**
John O’Brien MSc, FAIA, FCCA, FCIE Date: 7 May 2024
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 that in any material respect:
Community Accounting Plus, Units 1 & 2, North West 41 Talbot Street, Nottingham, NG1 5GL
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## Accounts
## **Statement of financial activities**
Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses For the year ended 31 December 2023 (16 month period to 31 December 2022)
**----- Start of picture text -----**
Unrestricted
Note Total 2023 (£) Total 2022 (£)
funds (£)
Income and Endowments from:
Donations and legacies 2 102,733 102,733 93,719
Charitable activities 3 77,588 77,588 109,900
Other income 5 473 473 -
Total income 180,794 180,794 203,619
Expenditure on:
Charitable activities 6 (163,825) (163,825) (223,630)
Total expenditure (163,825) (163,825) (223,630)
Net income/(expenditure) 16,969 16,969 (20,011)
Net movement in funds 16,969 16,969 (20,011)
Reconciliation of funds
Total funds brought forward 15,591 15,591 35,602
Total funds carried forward 12 32,560 32,560 15,591
**----- End of picture text -----**
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The notes on pages 26 to 39 form part of these financial statements.
## Accounts
## **Statement of financial activities**
Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses Figures for the previous accounting period (16 months to 31 December 2022), included for comparative purposes.
**----- Start of picture text -----**
Unrestricted Restricted funds
Note Total 2022 (£)
funds 2022 (£) 2022 (£)
Income and Endowments from:
Donations and legacies 2 93,719 - 93,719
Charitable activities 3 48,900 61,000 109,900
Other income 5 - - -
Total income 142,619 61,000 203,619
Expenditure on:
Charitable activities 6 (162,630) (61,000) (223,630)
Total expenditure (162,630) (61,000) (223,630)
-
Net income/(expenditure) (20,011) (20,011)
Net movement in funds (20,011) - (20,011)
Reconciliation of funds
-
Total funds brought forward 35,602 35,602
Total funds carried forward 12 15,591 - 15,591
**----- End of picture text -----**
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The notes on pages 26 to 39 form part of these financial statements.
## Accounts
Company number: 12579103 **Balance sheet** As at 31 December 2023
**----- Start of picture text -----**
Note 2023 (£) 2022 (£)
Fixed assets
Investments 8 2 2
Current assets
Debtors 9 30,736 1,277
Cash at bank and in hand 32,187 26,356
62,923 27,633
Creditors: Amounts falling due within one year 10 (29,365) (12,044)
Net current assets 33,558 15,589
Total assets less current liabilities 33,560 15,591
Creditors: Amounts falling due after more than one year 11 (1,000) -
Net assets 32,560 15,591
Funds of the charity:
Unrestricted income funds
Unrestricted funds 32,560 15,591
Total funds 12 32,560 15,591
**----- End of picture text -----**
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The notes on pages 26 to 39 form part of these financial statements.
## Accounts
## **Balance sheet continued**
Company number: 12579103
As at 31 December 2023
For the financial year ending 31 December 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
## **Directors’ responsibilities:**
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The financial statements on pages 22-39 were approved by the trustees, and authorised for issue on 7 May 2024 and signed on their behalf by:
Phil Collinge Chair of Trustees
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The notes on pages 26 to 39 form part of these financial statements.
## Accounts
## **Notes to the financial statements**
For the year ended 31 December 2023
## **1 Accounting Policies**
## **Accounting period**
The accounts are drawn up for the twelve month period ended 31 December 2023, with comparatives for the 16 month period ended 31 December 2022.
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Basis of preparation**
Grace Enterprises Nottingham Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
The functional currency of the charity is GBP and amounts in the financial statements are rounded to the nearest £.
## **Going concern**
## **Statement of compliance**
The financial statements have been prepared in accordance with 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)) (issued in October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The financial statements have been prepared on a going concern basis.
The trustees assess whether the use of going concern is appropriate i.e. whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern. The trustees make this assessment in respect of a period of one year from the date of approval of the financial statements.
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## Accounts
## **Exemption from preparing a cash flow statement**
Under the exemption available to smaller charities the Board of Trustees has chosen not to include a Statement of Cash Flows within the financial statements.
## **Income and endowments**
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability
## **Donations and legacies**
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
## **Notes to the financial statements**
For the year ended 31 December 2023
## **Grants receivable**
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
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## Accounts
## **Charitable activities**
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Notes to the financial statements**
For the year ended 31 December 2023
## **Fixed asset investments**
Fixed asset investments are measured at cost less impairment on the basis that they represent shares in entities that are not publicly traded and for which the fair value cannot otherwise be measured reliably.
## **Trade debtors**
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
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## Accounts
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
**Notes to the financial statements** For the year ended 31 December 2023
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees' discretion in furtherance of the objectives of the charity.
## **Pensions and other post-retirement obligations**
The charity operates a defined contribution pension scheme, which is a pension plan under which fixed contributions are paid into a pension fund. The charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
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## Accounts
## **Notes to the financial statements**
For the year ended 31 December 2023
## **2 Income from donations and legacies**
||**Unrestricted**
**funds General (£)**|**Total 2023 (£)**|**Total 2022 (£)**|
|---|---|---|---|
|**Donations and legacies;**||||
|Donations from companies, trusts and similar proceeds|29,236|29,236|-|
|Donations from individuals|13,897|13,897|37,219|
|**Grants, including capital grants;**||||
|Grants from other charities|59,600|59,600|56,500|
||102,733|102,733|93,719|
|**3 Income from charitable activities**||||
||**Unrestricted**
**funds General (£)**|**Total 2023 (£)**|**Total 2022 (£)**|
|Management fees|77,588|77,588|48,900|
|Donations|-|-|61,000|
||77,588|77,588|109,900|
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## Accounts
## **Notes to the financial statements**
For the year ended 31 December 2023
## **4 Grants & donations**
||**Unrestricted Funds (£)**|**Restricted Funds**|**Total (£)**|
|---|---|---|---|
|Bulldog Trust (The Fore)|17,000|-|17,000|
|The Bishop Radford Trust|20,000|-|20,000|
|The Trusted Executive Foundation|10,000|-|10,000|
|Cornerstone|5,000|-|5,000|
|Green Pastures|29,236|-|29,236|
|Governance Ministries|3,600|-|3,600|
|British Council of Offices|2,500|-|2,500|
|Regular giving|6,119|-|6,119|
|Sundry donations & gift aid|7,778|-|7,778|
|NG Church Network|1,500|-|1,500|
||102,733|-|102,733|
|**5 Other income**||||
||**Unrestricted Funds General (£)**|**Total 2023 (£)**|**Total 2022 (£)**|
|Gift aid from trading subsidiary|473|473|-|
||473|473|-|
## **5 Other income**
|||**Unrestricted Funds General (£)**|**Total 2023 (£)**|**Total 2022 (£)**||
|---|---|---|---|---|---|
||Gift aid from trading subsidiary|473|473|-||
|||473|473|-||
31
## Accounts
## **Notes to the financial statements**
For the year ended 31 December 2023
## **6 Expenditure on charitable activities**
|||**Unrestricted Funds General (£)**|**Total 2023 (£)**|**Total 2022 (£)**||
|---|---|---|---|---|---|
||Staff costs|130,257|130,257|132,079||
||Other direct costs and support to organisations
Rent
Business development & travel
Support costs|-
12,600
6,046
14,922
163,825|-
12,600
6,046
14,922
163,825|64,641
8,000
11,368
7,542
223,630||
## **Support costs include:**
||**Support costs include:**|||||
|---|---|---|---|---|---|
||Accountancy support||9,159|1,646||
||IT costs||771|1,246||
||Subscriptions||1,474|1,119||
||Governance||1,431|1,515||
||Other||2,087|2,016||
||||14,922|7,542||
32
## Accounts
**Notes to the financial statements**
For the year ended 31 December 2023
## **7 Staff Costs**
The aggregate payroll costs were as follows:
|The aggregate payroll costs were as follows:|||
|---|---|---|
||**Total 2023 (£)**|**Total 2022 (£)**|
|**Staff costs during the year were:**|||
|Wages and salaries|127,487|122,770|
|Social security costs|154|7,008|
|Pension costs|2,616|2,301|
|130,257
132,079
The monthly average number of persons (including senior management team) employed by the charity during
the year was as follows:
**2023**
**2022**|130,257|132,079|
||**2023**|**2022**|
|Average numbers of employees|6|5|
Social security costs appear significantly lower than before due to a catch up of Employer’s Allowance being applied in the period.
Contributions to the employee pension schemes for the year totalled £2,616 (2022: £2,301). No employee received emoluments of more than £60,000 during the year.
The total employee benefits of the key management personnel of the charity were £47,534 (2022: £58,556).
33
## Accounts
**Notes to the financial statements**
For the year ended 31 December 2023
## **8 Fixed asset investments**
Shares in group undertakings and participating interests:
||**Subsidiary Undertakings (£)**|**Total (£)**|
|---|---|---|
|**Cost**|||
|At 1 January 2023|2|2|
|At 31 December 2023|2|2|
|**Net book value**|||
|At 31 December 2023|2|2|
|At 31 December 2022|2|2|
## **Details of undertakings**
Details of the investments in which the charity holds 20% or more of the nominal value of any class of share capital or voting rights are as follows:
**----- Start of picture text -----**
Country of Proportion of voting rights and / or
Undertaking Holding
incorporation shares held
Subsidiary Undertakings 2023 2022
Radiant Cleaners Ltd England & Wales Ordinary share 100% 100%
Jubilee Events Ltd England & Wales Ordinary share 100% 100%
Joint Ventures 2023 2022
Half the Story LLP England & Wales Designated Member 50% -
**----- End of picture text -----**
34
## Accounts
## **Subsidiaries**
The above investments reflects a 100% holding in the ordinary share capital of Radiant Cleaners Limited (company number: 11074139) and Jubilee Events Limited (company number: 13708047). Both have their registered office as 1 Castle Boulevard, Nottingham, NG7 1FT.
Grace Enterprises Nottingham Limited is exempt from producing consolidated financial statements as the consolidated income figure across the group is below £1m
The principal activity of Radiant Cleaners is to see lives transformed through supportive employment, using commercial cleaning as the particular vehicle.
The principal activity of Jubilee Events is to see lives transformed through supportive employment, using marquee hire and event management as the particular vehicle.
## **Notes to the financial statements**
For the year ended 31 December 2023
The profit for the financial period for Jubilee Events was £1,364 (2022: £598) and the capital & reserves at the end of the period was £1,963 (2022: £599).
The profit for the financial period for Radiant Cleaners was £3,420 (2022: £(11,001)) and the capital & reserves at the end of the period was £6,246 (2022: £2,826).
## **Joint Ventures**
Grace Enterprises Nottingham Limited is a Designated Member of Half the Story LLP (company number: OC448940), holding 50% of the voting rights. Its registered office is 1 Castle Boulevard, Nottingham, NG7 1FT.
The principal activity of Half the Story is to see lives transformed through supportive employment, using biscuit baking as the particular vehicle.
Half the Story was incorporated on 4 September 2023, and it has not yet had a full financial period. The capital & reserves at 31 December 2023 was (£66,927), which includes £68,859 due to GP Biscuits, the other Designated Member of the LLP (2022: N/A).
35
## Accounts
## **Notes to the financial statements**
For the year ended 31 December 2023
**----- Start of picture text -----**
2023 (£) 2022 (£)
9 Debtors
Trade debtors 8,385 -
-
Due from group undertakings 21,473
Prepayments 878 1,277
30,736 1,277
10 Creditors: amounts falling due within one year
Trade creditors 1,353 2,735
Other loans 12,000 -
Other taxation and social security 3,031 5,977
Other creditors 1,833 2
-
Due to group undertakings 6,000
Accruals 5,148 3,330
29,365 12,044
11 Creditors: amounts falling due after one year
Other loans 1,000 -
**----- End of picture text -----**
## **Other loans**
Included in other loans is an amount due to Green Pastures CBS with a carrying amount of £13,000 (2002: £Nil), denominated in Sterling with a nominal interest rate of 0%. The final instalment is due on 1 January 2025. Repayment is by monthly instalments of £1,000 for 20 months from June 2023.
36
## Accounts
**Notes to the financial statements** For the year ended 31 December 2023
|**12 Funds**|||||
|---|---|---|---|---|
|**2023**|**Balance at 1 January**
**2023 (£)**|**Incoming**
**resources (£)**|**Resources**
**expended (£)**|**Balance at 31**
**December 2023 (£)**|
|**Unrestricted funds**|||||
|_General_|||||
|General fund|15,591|180,794|(163,825)|32,560|
|**2022**|||||
||**Balance at 1**
**September 2021 (£)**|**Incoming**
**resources (£)**|**Resources**
**expended (£)**|**Balance at 31**
**December 2022 (£)**|
|**Unrestricted funds**|||||
|_General_|||||
|General fund|35,602|142,619|(162,630)|15,591|
|_Restricted_|||||
|Jubilee Events|-|61,000|(61,000)|-|
|Total funds|35,602|203,619|(223,630)|15,591|
The specific purposes for which the funds are to be applied are as follows: In 2022 the restricted fund was to support the set up of Jubilee Events.
37
## Accounts
## **Notes to the financial statements**
For the year ended 31 December 2023
## **13 Analysis of net assets between funds**
**----- Start of picture text -----**
2023 Unrestricted Funds General (£) Total Funds 2023 (£)
Fixed asset investments 2 2
Current assets 62,923 62,923
Current liabilities (29,365) (29,365)
Creditors over 1 year (1,000) (1,000)
Total net assets 32,560 32,560
**----- End of picture text -----**
||**2022**
Fixed asset investments|**Unrestricted Funds General (£)**
2|**Total Funds 2022 (£)**
2||
|---|---|---|---|---|
||Current assets|27,633|27,633||
||Current liabilities|(12,044)|(12,044)||
||Total net assets|15,591|15,591||
38
## Accounts
## **Notes to the financial statements**
For the year ended 31 December 2023
## **14 Fees Payable to Independent Examiner**
During the period, the fees payable (excluding VAT) to the charity’s independent examiner Community Accounting Plus are analysed as follows:
||**2023 (£)**|**2022 (£)**|
|---|---|---|
|Independent Examination|1,080|900|
||1,080|900|
## **15 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **16 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year. No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
## **17 Related party transactions**
There were no related party transactions in the year.
39
## LEGAL & ADMINISTRATIVE INFORMATION
## **Trustees**
Phil Collinge Duncan Miller Jeremy Dykes Graham Bowpitt Selina Lee Loyin Olotu-Umoren
## **CEO**
Matt Parfitt
**Charity Number** 1189538
## **Registered Address**
The Ministry 1 Castle Boulevard Nottingham NG7 1FT
## **Accountants**
Beehive
The Barn, Kings Newton Hall Main Street Kings Newton DE73 8BX
## **Independent Examiner**
John O’Brien CA Plus Units 1 & 2 North West 41 Talbot Street Nottingham NG1 5GL
**Company Number** 12579103
40
## **Grace Enterprises**
info@graceenterprises.co.uk 0115 698 0224
@GraceEnts on social media
Registered charity number: 1189538 Company number: 12579103