Company registration number: CE022664 Charity registration number: 1190584
THE EMPOWERMENT GROUP
(A company limited by guarantee) Annual Report and Financial Statements
for the Year Ended 30 June 2022
GRC Accountants Limited 166 Banks Road West Kirby Wirral Merseyside CH48 0RH
THE EMPOWERMENT GROUP
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Strategic Report | 2 |
| Trustees' Report | 3 |
| Statement of Trustees' Responsibilities | 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 15 |
THE EMPOWERMENT GROUP
Reference and Administrative Details
Chairman
Mr Anthony Brathwaite
Trustees Mr Emmanuel Anthony Miss Abimbola Anyiam Mr Anthony Brathwaite Principal Office The Empowerment Group 86-90 Paul Street London EC2A 4NE Company Registration Number CE022664
Charity Registration Number 1190584 Independent Examiner GRC Accountants Limited 166 Banks Road West Kirby Wirral Merseyside CH48 0RH
Page 1
THE EMPOWERMENT GROUP
Strategic Report for the Year Ended 30 June 2022
The trustees, who are directors for the purposes of company law, present their strategic report for the year ended 30 June 2022, in compliance with s414C of the Companies Act 2006.
The strategic report was approved by the trustees of the charity on 12 September 2022 and signed on its behalf by:
......................................... Mr Anthony Brathwaite Chairman and Trustee
Page 2
THE EMPOWERMENT GROUP
Trustees' Report
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 30 June 2022.
The Empowerment Group is a registered charity (CIO) in England & Wales registration no: 1190584
The charity was formed to provide free and subsidised one-to-one online counselling for individuals of Black African and Caribbean heritage, aged 18 and over, living in the United Kingdom. The Charity is governed by a board of three unrelated Trustees with the president of BACP as its Patron.
The charity is led by Trustees and staff with lived experience in this field. Our team consists of several professional, qualified BACP and UKCP Black therapists and specialists with significant experience in delivering therapy. We continue to be an organisational member of the BACP, ensuring that our practice and policies are current and of the highest standard. We have developed a track record and built credibility with organisations and beneficiaries.
The charity specialises in offering a culturally appropriate service where this has not been prioritised within the field. It also offers significantly reduced waiting times to access the service compared to mainstream services. The team has expanded taking on further therapists, volunteers and a clinical supervisor to assist with the rapid growth of the organisation.
Demand for our therapy services continue to be very high often resulting in waiting lists being formed. As a result, more funding had been successfully sought. The charity extends its thanks to all its past and present supporters. These include but are not limited to: The National Lottery Community Fund, The Arnold Clark Fund and the National Emergencies Trust.
The charity continues to excel in its delivery of services. As a result, it has attracted pro bono support from organisations such as KPMG and Cooley LTD to ensure all practices and policies are sufficient for delivery and to consider viable sustainability options for the organisation. I am also delighted that the charity secured two of its first corporate sponsors this year and is seeking to create further partnerships.
Services further introduced this year included a student-in-training service, helping the development and professional training and experiences of Black therapists in the UK. With a lack of Black therapists in the sector, The Empowerment Group felt it important to be part of the solution in developing future therapists that would give back to the community it works to assist.
We are excited to be working in line with our vision to see culturally appropriate therapy made widely and easily accessible to individuals in the UK. We continue to build on our strategy and partnerships to successfully deliver on our mission and aims.
The annual report was approved by the trustees of the charity on 12 September 2022 and signed on its behalf by:
......................................... Mr Anthony Brathwaite Chairman and Trustee
Page 3
THE EMPOWERMENT GROUP
Statement of Trustees' Responsibilities
The trustees (who are also the directors of THE EMPOWERMENT GROUP for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
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 its incoming resources and application of resources, including its income and expenditure, 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 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 business.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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.
Approved by the trustees of the charity on 12 September 2022 and signed on its behalf by:
......................................... Mr Anthony Brathwaite Chairman and Trustee
Page 4
THE EMPOWERMENT CROUP Independent Examiner's Report to the trust¢e$ of THE EMPOWERMENT GROUP I rcpoit lo ilic LIILirily Ii'uqtLc8 On Illy ¢xoinii)alioii of Ihc acLoutil$ E)fili¢ charily for Ilic ycthr cnded 30 JiiiK 2022 wliicli iiic $e(' out on Pllg¢b 6 tv 15. RL¥peetlvt rtspoiisibilltics ol'trii¥tocJ oxftrniner A% the cliarity's tiiisiees of Tl.IE EMPOWERMENT GROUP laiKI also its dircclor.% for tlie purposcs of coinpaHy law) you llre ro8poiisiblc for Ilie preparatioii of the g¢counls in accordHnce with tl)o requireimeiits of th¢ Coii)panies A¢1 20001'tli¢ 2006 ALt'). Ilaviiig %oii$fierf Ixy.%clf tliiL t tlie *Lccounls of THE EMPOWERMENT GROUP ai¢ not required lo be aLidited Iin(ILI' Pklft 16 of tli¢ 20111) Act lind arc cligible for sndci)LndLnl CXli11natl0ll, L Ilpoil in IcsPCCt of ii)y Acl'l. In cdnying oui 11)y cxamiiigilioii I liov¢ followcd thb Dii'eclitsns &TiVCJi by IliL Cli&i'ity Comini&iioi) undcr 8cGlion 145(51{b) of iliL 2011 Act. Iiidtp¢ndcnt ¢xamlntr'$ stAt¢in¢nt L l)avo colnplcled iny exa1Inallon. I coiifinn tl)ul no Mall¢1 liav¢ coine 10 Iny thttCl)li0ii in coiiii¢¢tioii with the CKJlllllllltioi) giviiig Inc cause io bcliev¢'. LLouiIIiTibT IiLaiKl% K'ic not kepl ii) fLispeL'L ()r THE EMPOWERMENT GROUP ns rcqLllI'cd by s¢clioii 386 of 111¢ 2006 A¢i' oi, 2. Ihc #lLL(Truiilli do not a¢¥oixl willi th05C IYbor(Is,' oi. 3. th¢ aCCOLints do Iioi coinply witli ilic nccTruiiling requireincni% tsf S¢10n 39(? of Ilic 2006 Aci (Jtl)¢r ilifin ny Ltqiiii'cincnl Iliat Ili¢ iic¢oiinls give i 'li'u¢ lind fair vi¢w' wliich is not 11 miittci. con8id¢r¢d as paii of #n 4. th¢ Iicc011t)ts liThve not bc¢ii iii occoixlancc witli tli¢ iii¢tliod8 Iiiid PTincipl¢s of th¢ Siateincnl of Rcconiincndcd Pr#c¢i¢¥ for uccoiiiitiiig and rcp0rtlt) by cl)ai'iLic.41.Apr>licAblc 10 clii¢ rilics prcpai'iilg Ihoir I l)avc 110 coiicerii% fiiid Iillve coille a¢ro$,Y no olh¢i' In%illers iii coi)n¢ctioii with the exaniiJ741ti0i1 lo wl)ich u(t¢iitioii sliould be drnwn in this rcporl iii oi'dcr lo cncibl¢ a pi'op¢i' undei%iAI)dittg oftlie #ccouTr15 to bc I'cacli¢d. 6'1h co()1. ACCA 16CI T3Dnk$ Rnjl(I Wcst Kirby Wirral MLI'S¢yS1(IL CI-148 OR 13 Septeinber 2022 Page 5
THE EMPOWERMENT GROUP
Statement of Financial Activities for the Year Ended 30 June 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)
| Note Income and Endowments from: Donations and legacies 3 Other trading activities 4 Total income Expenditure on: Raising funds Charitable activities 5 Other expenditure 6 Total expenditure Net income Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward 12 Note Income and Endowments from: Donations and legacies 3 Other trading activities 4 Total income Expenditure on: Charitable activities 5 Other expenditure 6 Total expenditure Net income Reconciliation of funds Total funds carried forward 12 |
Unrestricted funds £ 18,330 11,981 30,311 (3,270) (961) (1,413) (5,644) 24,667 24,667 5,595 30,262 Unrestricted funds £ - 6,075 6,075 (480) - (480) 5,595 5,595 |
Restricted funds £ 55,584 - 55,584 - (30,072) (20,966) (51,038) 4,546 4,546 31,288 35,834 Restricted funds £ 64,276 - 64,276 (28,634) (4,354) (32,988) 31,288 31,288 |
Total 30 June 2022 £ 73,914 11,981 |
|---|---|---|---|
| 85,895 | |||
| (3,270) (31,033) (22,379) |
|||
| (56,682) | |||
| 29,213 | |||
| 29,213 36,883 |
|||
| 66,096 | |||
| Total 30 June 2021 £ 64,276 6,075 |
|||
| 70,351 | |||
| (29,114) (4,354) |
|||
| (33,468) | |||
| 36,883 | |||
| 36,883 |
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2021 is shown in note 12.
Page 6
THE EMPOWERMENT GROUP
(Registration number: CE022664) Balance Sheet as at 30 June 2022
| Note Current assets Cash at bank and in hand Creditors: Amounts falling due within one year 11 Net assets Funds of the charity: Restricted funds Unrestricted income funds Unrestricted funds Total funds 12 |
30 June 2022 £ 66,576 (480) 66,096 35,834 30,262 66,096 |
30 June 2021 £ 37,363 (480) |
|---|---|---|
| 36,883 | ||
| 31,288 5,595 |
||
| 36,883 |
For the financial year ending 30 June 2022 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
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 6 to 15 were approved by the trustees, and authorised for issue on 12 September 2022 and signed on their behalf by:
......................................... Mr Anthony Brathwaite Chairman and Trustee
Page 7
THE EMPOWERMENT GROUP
Notes to the Financial Statements for the Year Ended 30 June 2022
1 Charity status
The charity is limited by guarantee, incorporated in , and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £Nil towards the assets of the charity in the event of liquidation.
The address of its registered office is: The Empowerment Group 86-90 Paul Street London EC2A 4NE
These financial statements were authorised for issue by the trustees on 12 September 2022.
2 Accounting policies
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.
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) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
Basis of preparation
THE EMPOWERMENT GROUP 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.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Income and endowments
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Page 8
THE EMPOWERMENT GROUP
Notes to the Financial Statements for the Year Ended 30 June 2022
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.
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.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
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.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
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.
Page 9
THE EMPOWERMENT GROUP
Notes to the Financial Statements for the Year Ended 30 June 2022
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.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Financial instruments
Classification
Financial assets and financial liabilities are recognised when the charity becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the charity after deducting all of its liabilities.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the charity intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the charity transfers to another party substantially all of the risks and rewards of ownership of the financial asset, or c) the charity, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Investments
Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.
Investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.
Page 10
THE EMPOWERMENT GROUP
Notes to the Financial Statements for the Year Ended 30 June 2022
Derivative financial instruments
The charity uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The charity does not hold or issue derivative financial instruments for speculative purposes.
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in statement of financial activities immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in statement of financial activities depends on the nature of the hedge relationship.
3 Income from donations and legacies
Unrestricted funds
| Donations and legacies; Donations from individuals Grants, including capital grants; Grants from other charities |
General £ 18,330 - 18,330 |
Restricted funds £ - 55,584 55,584 |
Total 30 June 2022 £ 18,330 55,584 73,914 |
Total 28 July 2020 to 30 June 2021 £ 8,142 56,134 |
|---|---|---|---|---|
| 64,276 |
- 4 Income from other trading activities
Unrestricted funds
| Events income; Other events income 5 Expenditure on charitable activities Counselling |
General £ 11,981 11,981 Restricted funds £ 30,072 |
Total 30 June 2022 £ 11,981 11,981 Total 30 June 2022 £ 30,072 |
Total 28 July 2020 to 30 June 2021 £ 6,075 |
|---|---|---|---|
| 6,075 | |||
| Total 28 July 2020 to 30 June 2021 £ 28,634 |
Page 11
THE EMPOWERMENT GROUP
Notes to the Financial Statements for the Year Ended 30 June 2022
£Nil (2021 - £Nil) of the above expenditure was attributable to unrestricted funds and £30,072 (2021 - £28,634) to restricted funds.
In addition to the expenditure analysed above, there are also governance costs of £961 (2021 - £480) which relate directly to charitable activities. See note 7 for further details.
6 Other expenditure
Unrestricted funds
| Unrestricted funds |
||||
|---|---|---|---|---|
| Note Allocated support costs 7 |
General £ 1,413 1,413 |
Restricted funds £ 20,966 20,966 |
Total 30 June 2022 £ 22,379 22,379 |
Total 28 July 2020 to 30 June 2021 £ 4,354 |
| 4,354 |
Page 12
THE EMPOWERMENT GROUP
Notes to the Financial Statements for the Year Ended 30 June 2022
7 Analysis of governance and support costs
Support costs allocated to charitable activities
| Advertising Consultancy Fees Travelling Donations Computer software and maintenance costs Sundry Governance costs Independent examiner fees Examination of the financial statements Other governance costs |
Administration costs £ 373 20,966 38 118 806 79 22,380 Unrestricted funds General £ 480 481 961 |
Total 30 June 2022 £ 373 20,966 38 118 806 79 22,380 Total 30 June 2022 £ 480 481 961 |
Total 28 July 2020 to 30 June 2021 £ 244 4,010 100 - - - |
|---|---|---|---|
| 4,354 | |||
| Total 28 July 2020 to 30 June 2021 £ 480 - |
|||
| 480 |
8 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.
9 Independent examiner's remuneration
Examination of the financial statements
| 28 July 2020 | |
|---|---|
| Year ended 30 | to 30 June |
| June 2022 | 2021 |
| £ | £ |
| 480 | 480 |
Page 13
THE EMPOWERMENT GROUP
Notes to the Financial Statements for the Year Ended 30 June 2022
10 Taxation
The charity is a registered charity and is therefore exempt from taxation.
11 Creditors: amounts falling due within one year
| Accruals 12 Funds Balance at 1 July 2021 £ Unrestricted funds General (5,595) Restricted funds (31,288) Total funds (36,883) Unrestricted funds General Restricted funds Total funds 13 Analysis of net assets between funds |
Incoming resources £ (30,311) (55,584) (85,895) Incoming resources £ (6,075) (64,276) (70,351) |
30 June 2022 £ 480 Resources expended £ 5,644 51,038 56,682 Resources expended £ 480 32,988 33,468 |
30 June 2021 £ 480 |
|---|---|---|---|
| Balance at 30 June 2022 £ (30,262) (35,834) |
|||
| (66,096) | |||
| Balance at 30 June 2021 £ (5,595) (31,288) |
|||
| (36,883) | |||
| Current assets Current liabilities Total net assets |
Unrestricted funds General £ 66,576 (480) 66,096 |
Total funds £ 66,576 (480) |
|---|---|---|
| 66,096 |
Page 14
THE EMPOWERMENT GROUP
Notes to the Financial Statements for the Year Ended 30 June 2022
| Current assets Current liabilities Total net assets 14 Analysis of net funds At 1 July 2021 £ Cash at bank and in hand 37,363 Net funds 37,363 At 28 July 2020 £ Cash at bank and in hand - Net funds - |
At 1 July 2021 £ 37,363 |
Unrestricted funds General £ Total funds £ 37,363 37,363 (480) (480) 36,883 36,883 Cash flow £ At 30 June 2022 £ 29,213 66,576 29,213 66,576 Cash flow £ At 30 June 2021 £ 37,363 37,363 37,363 37,363 |
Unrestricted funds General £ Total funds £ 37,363 37,363 (480) (480) 36,883 36,883 Cash flow £ At 30 June 2022 £ 29,213 66,576 29,213 66,576 Cash flow £ At 30 June 2021 £ 37,363 37,363 37,363 37,363 |
|
|---|---|---|---|---|
| 37,363 | ||||
| 37,363 |
Page 15