Charity registration number 1192800
THE BESOM NETWORK
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
THE BESOM NETWORK
LEGAL AND ADMINISTRATIVE INFORMATION
| Trustees | Mr A Hewat | |
|---|---|---|
| Ms J Winks | ||
| Mr S Winks | ||
| Ms J Brand | ||
| Ms A Emmins | ||
| Mr R Habgood | (Appointed 13 March 2023) | |
| Charity number | 1192800 | |
| Principal address | 3 NEWHOUSE BUSINESS CENTRE | |
| OLD CRAWLEY ROAD | ||
| FAYGATE | ||
| HORSHAM | ||
| WEST SUSSEX | ||
| UK | ||
| RH12 4RU | ||
| Independent examiner | Nicholas M Baldwin BA(Econ) FCA DChA | |
| Baldwin Scofield Accountancy LLP | ||
| 3 Newhouse Business Centre | ||
| Old Crawley Road | ||
| Horsham | ||
| West Sussex | ||
| RH12 4RU |
THE BESOM NETWORK
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 2 |
| Independent examiner's report | 3 |
| Statement of financial activities | 4 |
| Balance sheet | 5 |
| Notes to the financial statements | 6 - 11 |
THE BESOM NETWORK
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MAY 2023
The trustees present their annual report and financial statements for the year ended 31 May 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 charity's constitution, the Charities Act 2011 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
The charity’s objectives are the relief of those in need, by reason of age, ill health, disability, financial or other social disadvantage and the advancement of the Christian religion, in particular, but not exclusively, by facilitating, supporting, equipping and resourcing the network of Besoms, and any other charitable initiatives that further the fulfilment of the charity’s objects, in the UK and overseas.
The principle reason for the creation of The Besom Network was to facilitate and continue the work originally started in 2014 by The Besom charity which supported and encouraged individual Besoms across the UK to enable Christians to be a bridge between people who wished to give and those on the margins of society who needed items to live in accommodation. In addition The Besom also carried out projects in poorer parts of the world. In 2019 the founder of The Besom decided to step down and so a new charity was needed.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
2023 has been largely spent developing a new organisational structure: reallocating responsibilities and deciding where our immediate focus should be to future proof the charity, encourage the other Besom charities, and provide effective support thereof. The vision to grow the network remains the central to the trustees. To this end a Communications Lead was recruited for 2023/24, with the objective to raise the profile of the refreshed "Vision and Mission" and spread our message more effectively to a wider audience. In keeping with our core values no grant applications or direct fundraising has taken place, we continue to pray for what is needed.
There are currently 20 Besoms in England and it is anticipated that this will grow throughout 2023 and 2024.
Financial review
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Structure, governance and management
The charity is a charitable incorporated organisation (CIO).
The trustees who served during the year and up to the date of signature of the financial statements were: Mr A Hewat
Ms J Winks Mr S Winks Ms J Brand Ms A Emmins Mr R Habgood (Appointed 13 March 2023)
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THE BESOM NETWORK
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023
The trustees are all drawn from existing Besoms and have many years of experience in the running and needs of those Besoms in the UK. In January 2023 an additional trustee joined the charity with the view of taking of the Chair, which took place at the beginning of the 2023/24 period. The charity also employed a National Adviser from the 1st of June 2022 to 31st of December 2022. However, the position ended by way of mutual agreement primarily due to insufficient funds and the need to change the internal operational structure.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees' report was approved by the Board of Trustees.
Mr A Hewat Trustee
27 November 2023
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THE BESOM NETWORK
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE BESOM NETWORK
I report to the trustees on my examination of the financial statements of The Besom Network (the charity) for the year ended 31 May 2023.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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:
-
1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
-
2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
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 financial statements to be reached.
Nicholas M Baldwin BA(Econ) FCA DChA Baldwin Scofield Accountancy LLP
3 Newhouse Business Centre Old Crawley Road Horsham West Sussex RH12 4RU
Dated: 27 November 2023
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THE BESOM NETWORK
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MAY 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 29,816 | 52,977 |
| Charitable activities | 4 | 31,426 | 57,035 |
| Net expenditure and movement in funds | (1,610) | (4,058) | |
| Reconciliation of funds: | |||
| Fund balances at 1 June 2022 | (4,058) | - | |
| Fund balances at 31 May 2023 | (5,668) | (4,058) |
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
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THE BESOM NETWORK
BALANCE SHEET
AS AT 31 MAY 2023
| Notes Current assets Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current assets/(liabilities) Creditors: amounts falling due after more than one year 11 Net liabilities The funds of the charity Unrestricted funds |
2023 £ £ 3,232 900 2,332 (8,000) (5,668) (5,668) (5,668) |
2022 £ £ 529 4,587 (4,058) - (4,058) (4,058) (4,058) |
|---|---|---|
The financial statements were approved by the trustees on 27 November 2023
Mr A Hewat Trustee
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THE BESOM NETWORK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2023
1 Accounting policies
Charity information
The Besom Network is a charitable incorporated organisation (CIO) registered and regulated by the Charity Commission in England and Wales.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's [governing document], the Charities Act 2011, 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 charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. 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
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity 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.
Restricted funds are subject to specific conditions by donors or grantors 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.
Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity 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.
Cash donations are recognised on receipt. Other donations are recognised once the charity 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.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
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THE BESOM NETWORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.
1.6 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.
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.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans 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 charity’s contractual obligations expire or are discharged or cancelled.
1.7 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 charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.8 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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THE BESOM NETWORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023
2 Critical accounting estimates and judgements
In the application of the charity’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.
3 Income from donations and legacies
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 26,579 | 52,977 |
| Gift aid income | 3,237 | - |
| 29,816 | 52,977 |
4 Expenditure on charitable activities
| Direct costs Staff costs Travel & other associated expenses Motor expenses Phone & Broadband Office, IT & consumables Web, hosting & Domains Training & Conferences BST / Trustee retreat meetings Payroll, Accounting & Reg. Office Sundry expenses Professional fees Share of support and governance costs (see note 5) Governance Analysis by fund Unrestricted funds |
2023 £ 27,847 579 654 161 147 720 - - 91 292 35 30,526 900 31,426 31,426 |
2022 £ 47,274 236 1,494 284 425 247 154 428 387 4 - |
|---|---|---|
| 50,933 6,102 |
||
| 57,035 | ||
| 57,035 |
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THE BESOM NETWORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023
5 Support costs
| Support costs | ||||
|---|---|---|---|---|
| Support Audit fees Legal and professional Analysed between Charitable activities |
costs Governance £ - - - - |
costs £ 900 - 900 900 |
2023 £ 900 - 900 900 |
2022 £ 1,080 5,022 |
| 6,102 | ||||
| 6,102 |
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THE BESOM NETWORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MAY 2023
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
7 Employees
The average monthly number of employees during the year was:
| 2023 | 2022 | |
|---|---|---|
| Number | Number | |
| 1 | 1 | |
| Employment costs | 2023 | 2022 |
| £ | £ | |
| Wages and salaries | 26,775 | 45,897 |
| Other pension costs | 1,072 | 1,377 |
| 27,847 | 47,274 |
There were no employees whose annual remuneration was more than £60,000.
8 Taxation
The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.
9 Loans and overdrafts
| Loans and overdrafts | ||
|---|---|---|
| Other loans Payable after one year |
2023 £ 8,000 8,000 |
2022 £ - |
| - |
The long term loans are agreed as per the signed conditions and terms regarding loans document held by The Besom Network.
The long term loans are both repayable on demand and interest free as per the signed agreements.
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THE BESOM NETWORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
10 Creditors: amounts falling due within one year
| Other taxation and social security Other creditors Accruals and deferred income 11 Creditors: amounts falling due after more than one year Notes Other loans 9 |
2023 £ - - 900 900 2023 £ 8,000 |
2022 £ 615 2,789 1,183 |
|---|---|---|
| 4,587 | ||
| 2022 £ - |
12 Unrestricted funds
The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.
| At General funds Previous year: At General funds |
1 June 2022 Incoming resources Resources expended At 31 May 2023 £ £ £ £ (4,058) 29,816 (31,426) (5,668) 1 June 2021 Incoming resources Resources expended At 31 May 2022 £ £ £ £ - 52,977 (57,035) (4,058) |
|---|---|
13 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
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