Company registration number: 11360911 Charity registration number: 1195634
## Bridge2 (Liverpool) Limited
(A company limited by guarantee)
Annual Report and Financial Statements for the Year Ended 31 May 2023
Mrs Karen Owen ACA McParland Williams 13 Liverpool Road North Maghull Merseyside L31 2HB
## **Bridge2 (Liverpool) Limited**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 8|
|Independent Examiner's Report|9|
|Statement of Financial Activities|10 to 11|
|Balance Sheet|12 to 13|
|Notes to the Financial Statements|14 to 28|
## **Bridge2 (Liverpool) Limited**
## **Reference and Administrative Details**
|**Secretary**|Mr David Mark Lake|
|---|---|
|**Charity Registration Number**|1195634|
|**Company Registration Number**|11360911|
||The charity is incorporated in England and Wales.|
|**Registered Office**|36 Windsor Street|
||Liverpool|
||Merseyside|
||L8 1XF|
|**Independent Examiner**|Mrs Karen Owen ACA|
||McParland Williams|
||13 Liverpool Road North|
||Maghull|
||Merseyside|
||L31 2HB|
|**Accountants**|McParland Williams Limited|
||Maghull Business Centre|
||1 Liverpool Road North|
||Maghull|
||Merseyside|
||L31 2HB|
Page 1
## **Bridge2 (Liverpool) Limited**
## **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 31 May 2023.
## **Objectives and activities**
## _**Objects and aims**_
An introduction to Bridge2 (Liverpool) Limited
2022-23 has been our second year operating as a registered charity, following our conversion from Community Interest Company (CIC) status in August 2021. The company was incorporated as a company limited by guarantee, and registered as a Community Interest Company, in May 2018. This report outlines our aims and objectives as a charity, how we implemented these during the year, and our community impact.
The primary aims of Bridge2 (Liverpool) Limited are:
1. The promotion of social inclusion for the public benefit among people who are refugees and asylum seekers who are socially excluded on the grounds of their social and economic position, by providing:
1) education and training in the English language and in vocational skills;
2) social and recreational facilities and events involving the local community.
2. The prevention or relief of poverty or financial hardship anywhere in the world by providing or assisting in the provision of education, training and all the necessary support designed to enable individuals to generate a sustainable income and be self-sufficient.
3. The relief of unemployment of those granted refugee status and those seeking asylum in the United Kingdom, and in particular Liverpool, by the provision of vocational and skills training, advice and support.
Page 2
## **Bridge2 (Liverpool) Limited**
## **Trustees' Report**
## _**Objectives, strategies and activities**_
## _Plans for the future_
Our main area of planning for the coming 12 months is to establish organisational sustainability. We want to explore and nurture ways to create sustainable projects that can eventually fund themselves. We want to look to increase tenancy use of the building to generate rental income. Work around marketing to promote the building, and improvements to the facilities, is a priority. We have now completed the basement renovation which provides more opportunities for projects. In the basement we will start games club, with pool tables and gaming.
The art gallery has potential to become a sustainable project through selling art and associated services, such as printing for artists, art classes, and exhibitions for established artists. We recently employed someone to help develop this project.
We will continue to offer support through our English classes, art therapy sessions, garden and skills workshops. These community support elements are predominately dependent on volunteers, and requires good community relationships and partnerships. A large part of this work is managing referrals and ensuring asylum seekers are aware of services available. Having staff available to keep up-to-date to government changes, local council services and other organisations is crucial. The need for our services continue to increase and therefore our need for consistent staff becomes more and more evident.
## _**Public benefit**_
Bridge2 is a charity working with asylum seekers and refugees across Liverpool, with a particular focus on those local to our premises in Toxteth, Merseyside, one of the most socio-economically deprived areas of the UK. Our vision is to build bridges between cultures and languages.
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.
Page 3
## **Bridge2 (Liverpool) Limited**
## **Trustees' Report**
## **Achievements and performance**
Overview New service users registered during the year 790
Nationalities we have served Afghan-43 Albenia-1 Algeria-3 Bangldesh-1 Botswana-11 Cameron-5 Côte d'Ivoire-1 Democratic Republic of Congo-1 Egyptian-21 Elsalvador-1 Eritrean-55 Ethiopia-10 Honduras-1 India-1 Iran-107 Iraq-47 Kuwait-17 Libya-14 Nambia-15 Pakistan-7 Saudi Arabia- 8 Somali-11 Spain-1 Sudan-79 Syria- 58 Tajikistan-2 Turkey-7 Ukraine-20 Yemen-18 Zimbawe-1 Other/did not say-212
Gender Total female-160 Total male-630
Page 4
## **Bridge2 (Liverpool) Limited**
## **Trustees' Report**
## Community Support groups
We have weekly welcome mornings which have been attend by 670 people over the year. We offer free English sessions for refugees and asylum seekers to build more confidence in using English to overcome language barriers, access vital services, and to build community networks where they have resettled. While loneliness and uncertainty are common issues for asylum seekers, our sessions are designed for people to meet one another and build friendships while gaining a greater understanding of language and culture in Liverpool.
During December, we have enjoyed preparation for Christmas, putting up decorations and celebrating our Christmas parties. At the Christmas party we distributed 100 gifts to asylum seekers and refugees, many donated by our volunteers, their work colleagues and wider community.
We have worked with partners to provide extended services for those we work with. Through the year we hosted 2 Well being walks with partner organisation TLC who focus on employability.
Women’s activities
We offer a number of activities for women only, to allow women from certain communities and faith groups to feel comfortable. This year we have provided weekly women’s support groups. Women’s conversation and craft sessions, women’s only English classes and women’s health workshops delivered by NHS community staff. Garden Project
In 2023 through funding from the National Garden Trust we built a living wall. We also worked with partners Gateway Collective to deliver garden workshops. We grew fruit and vegetables and distributed them to our beneficiaries.
## Culture and Arts Project
In February and May 2023 our gallery project had an exhibition which saw over 250 attend. The community art gallery and exhibition space on the ground floor of our building supports new and emerging artists, provides a space for creativity to flourish, and promotes cultural diversity in our brilliant city. The art gallery also acts as an avenue to raise money to support our other work with refugees, asylum seekers, and the local community.
To celebrate Eurovision being in Liverpool we celebrated Eurovision week and included art workshops and using music to tell stories of culture and home.
We also work with Chester University to provide a placement for a qualifying art therapist. The art therapist offers 2 sessions a week to asylum seekers.
Throughout the year we have run a number of free art workshops open to asylum seekers and refugees and the local community.
## Community Care
We engage community partners which includes organisations, businesses, faith groups and individuals to collect clothes and toiletries to stock our pop up ‘shop’. Asylum seekers have opportunity to come choose items from the shop for themselves and their families. Additionally, we work with Fareshare, a food waste organisation which gives us 40kg of food each week to distribute to asylum seekers. We also delivered warm clothes to asylum seeker men arriving and staying in hotels in the city.
## **Financial review**
The Trustees have examined the charity’s requirements for reserves in light of the main risks to the organisation, and have taken note of the guidance available from the Charity Commission. The Trustees have established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should be approximately 6 months of expenditure, excluding projects fully funded by restricted grant funding and capital expenditure. The trustees have determined this to require approximately £10,000 in general funds.
## **Trustees and officers**
The trustees and officers serving during the year and since the year end were as follows:
Page 5
## **Bridge2 (Liverpool) Limited**
## **Trustees' Report**
Trustees:
Mr Samuel James Hayes Mr Rauni Da Mota Mrs Sanaz Ghafari-Movahead Mr Merfyn Huw Vaughan Cave (appointed 30 December 2022)
Secretary: Mr David Mark Lake
## **Structure, governance and management**
## _**Major risks and management of those risks**_
_Health and Safety_ A Health and Safety Policy has been adopted.
Work has been carried out on risk assessments of all existing and new activities and new risk assessments are undertaken as required. Health and Safety induction and training is provided for all involved in project work.
## _Vulnerable Adults_
A Safeguarding Vulnerable Adults policy is in place. The Trustees take seriously their responsibility to protect and safeguard vulnerable adults using Bridge2’s services.
All those involved are briefed on their responsibilities and are made fully aware of the organisation’s safeguarding policy and procedures. Training is provided, and the policy and procedures are regularly to ensure they remain effective and up to date.
## _Financial Risks_
Financial risk
Guidelines are issued to all on proper cash handling procedures. Instructions are issued to avoid making purchases in cash unless it is unavoidable. Departmental records and central accounts are monitored regularly. We receive regular guidance on financial risks from our company secretary, the Charity Commission, HMRC and third sector agencies. This helps us to keep up to date with newer areas of risk. Our independent examiner advises us of any specific areas of weakness that may be identified during the annual independent examination.
## **Financial instruments**
## _**Objectives and policies**_
The charity's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity’s policies approved by the board of trustees, which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes.
## _**Cash flow risk**_
The charity’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contracts and interest rate swap contracts to hedge these exposures.
Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows.
Page 6
## **Bridge2 (Liverpool) Limited**
## **Trustees' Report**
## _**Credit risk**_
The charity’s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charity’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies.
The charity has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.
## _**Liquidity risk**_
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance.
Further details regarding liquidity risk can be found in the Statement of accounting policies in the financial statements.
## **Statement of Trustees' Responsibilities**
The trustees (who are also the directors of Bridge2 (Liverpool) Limited 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. 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 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.
## **Small companies provision statement**
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
Page 7
## **Bridge2 (Liverpool) Limited**
## **Trustees' Report**
The annual report was approved by the trustees of the charity on 28 February 2024 and signed on its behalf by:
......................................... Mr Samuel James Hayes Trustee
Page 8
## **Bridge2 (Liverpool) Limited**
## **Independent Examiner's Report to the trustees of Bridge2 (Liverpool) Limited ("the Company")**
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 May 2023.
## **Responsibilities and basis of report**
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of Bridge2 (Liverpool) Limited are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner’s statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of Bridge2 (Liverpool) Limited as required by section 386 of the 2006 Act; or
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
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)].
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.
...................................... Karen Owen ICAEW
McParland Williams 13 Liverpool Road North Maghull Merseyside L31 2HB
28 February 2024
Page 9
## **Bridge2 (Liverpool) Limited**
## **Statement of Financial Activities for the Year Ended 31 May 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Investment income
5
Other income
6
Total income
**Expenditure on:**
Raising funds
7
Charitable activities
8
Other expenditure
9
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
19
**Note**
**Income and Endowments from:**
Donations and legacies
3
Charitable activities
4
Other income
6
Total income
**Expenditure on:**
Raising funds
7
Charitable activities
8
Other expenditure
9
Total expenditure
Net income
Net movement in funds|**Unrestricted**
**funds**
**£**
21,058
-
335
27,798
49,191
(542)
(20,653)
(4,365)
(25,560)
23,631
23,631
45,732
69,363
**Unrestricted**
**funds**
**£**
4,439
-
25,019
29,458
(240)
(5,550)
(2,925)
(8,715)
20,743
20,743|**Restricted**
**funds**
**£**
27,146
33,309
-
-
60,455
-
(53,529)
-
(53,529)
6,926
6,926
118
7,044
**Restricted**
**funds**
**£**
22,920
90,617
-
113,537
-
(106,627)
-
(106,627)
6,910
6,910|**Total**
**2023**
**£**
48,204
33,309
335
27,798|
|---|---|---|---|
||||109,646|
||||(542)
(74,182)
(4,365)|
||||(79,089)|
||||30,557|
||||30,557
45,850|
||||76,407|
||||**Total**
**2022**
**£**
27,359
90,617
25,019|
||||142,995|
||||(240)
(112,177)
(2,925)|
||||(115,342)|
||||27,653|
||||27,653|
The notes on pages 14 to 28 form an integral part of these financial statements. Page 10
## **Bridge2 (Liverpool) Limited**
## **Statement of Financial Activities for the Year Ended 31 May 2023 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
19|**Unrestricted**
**funds**
**£**
25,916
46,659|**Restricted**
**funds**
**£**
(7,718)
(808)|**Total**
**2022**
**£**
18,198|
|---|---|---|---|
||||45,851|
All of the charity's activities derive from continuing operations during the above two periods. The funds breakdown for 2022 is shown in note 19.
The notes on pages 14 to 28 form an integral part of these financial statements. Page 11
## **Bridge2 (Liverpool) Limited**
## **(Registration number: 11360911) Balance Sheet as at 31 May 2023**
|**Note**
**Fixed assets**
Tangible assets
15
**Current assets**
Cash at bank and in hand
16
**Creditors: Amounts falling due within one year**
17
**Net current assets**
**Total assets less current liabilities**
**Creditors: Amounts falling due after more than one year**
18
**Net assets**
**Funds of the charity:**
**Restricted income funds**
Restricted funds
**Unrestricted income funds**
Unrestricted funds
**Total funds**
19|**2023**
**£**
89,947
57,807
(41,852)
15,955
105,902
(29,495)
76,407
7,044
69,363
76,407|**2022**
**£**
91,831
66,658
(48,738)|
|---|---|---|
|||17,920|
|||109,751
(63,900)|
|||45,851|
|||(808)
46,659|
|||45,851|
For the financial year ending 31 May 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 notes on pages 14 to 28 form an integral part of these financial statements. Page 12
## **Bridge2 (Liverpool) Limited**
## **(Registration number: 11360911) Balance Sheet as at 31 May 2023**
The financial statements on pages 10 to 28 were approved by the trustees, and authorised for issue on 28 February 2024 and signed on their behalf by:
.........................................
Mr Samuel James Hayes Trustee
The notes on pages 14 to 28 form an integral part of these financial statements. Page 13
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## **1 Charity status**
The charity is limited by guarantee, incorporated in England and Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.
The address of its registered office is: 36 Windsor Street Liverpool Merseyside L8 1XF
These financial statements were authorised for issue by the trustees on 28 February 2024.
## **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)) (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.
## **Basis of preparation**
Bridge2 (Liverpool) 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.
## **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.
## **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 14
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## _**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.
## _**Deferred income**_
Deferred income represents amounts received for future periods and is released to incoming resources in the period for which, it has been received. Such income is only deferred when:
- The donor specifies that the grant or donation must only be used in future accounting periods; or - The donor has imposed conditions which must be met before the charity has unconditional entitlement.
## _**Investment income**_
Interest is regonised as received.
## **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.
Page 15
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## **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.
## **Tangible fixed assets**
Individual fixed assets costing £250 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
|**Asset class**|**Depreciation method and rate**|
|---|---|
|Freehold buildings|2% per annum on a straight line basis|
|Fixtures, fittings and equipment|25% per annum on a straight line basis|
|Computer equipment|25% per annum on a straight line basis|
## **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.
## **Borrowings**
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the charity has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Page 16
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## **Foreign exchange**
Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.
The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).
Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for:
1) exchange differences on transactions entered into to hedge certain foreign currency risks (see above);
2) exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and
3) in the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.
## **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.
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.
## **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 and 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.
Page 17
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## **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.
Page 18
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## _**Debt instruments**_
Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:
(a) The contractual return to the holder is (i) a fixed amount; (ii) a positive fixed rate or a positive variable rate; or (iii) a combination of a positive or a negative fixed rate and a positive variable rate.
(b) The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.
(c) The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that (i) the new rate satisfies condition (a) and the variation is not contingent on future events other than (1) a change of a contractual variable rate; (2) to protect the holder against credit deterioration of the issuer; (3) changes in levies applied by a central bank or arising from changes in relevant taxation or law; or (ii) the new rate is a market rate of interest and satisfies condition (a).
(d) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(e) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.
(f) Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).
Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.
With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.
Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.
## _**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 19
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## _**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.
## _**Fair value measurement**_
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.
## **3 Income from donations and legacies**
|Donations and legacies;
Donations from companies, trusts and similar proceeds
Donations from individuals
Donations and legacies;
Donations from companies, trusts and similar proceeds
Donations from individuals
**4**
**Income from charitable activities**
Performance related grants provided by other charities
DWP Kickstart grants provided by government|**Unrestricted**
**funds**
**General**
**£**
833
20,225
21,058
**Unrestricted**
**funds**
**General**
**£**
-
4,439
4,439|**Restricted**
**funds**
**£**
23,462
3,684
27,146
**Restricted**
**funds**
**£**
10,780
12,140
22,920
**Restricted**
**funds**
**£**
24,955
8,354
33,309|**Total**
**2023**
**£**
24,295
23,909|
|---|---|---|---|
||||48,204|
||||**Total**
**2022**
**£**
10,780
16,579|
||||27,359|
||||**Total**
**2023**
**£**
24,955
8,354|
||||33,309|
Page 20
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
|Performance related grants provided by other charities
DWP Kickstart grants provided by government|**Restricted**
**funds**
**£**
59,747
30,870
90,617|**Total**
**2022**
**£**
59,747
30,870|
|---|---|---|
|||90,617|
The breakdown of the Charitable Activity income in 2023 is as follows:
DWP Kickstart Initiative Grant £8,354
Reimagine Grants Dulverton Trust £1,162 Merseyside R&W £153
Art Project Grants LCVS Art Workshops £486
Basement Renovation Grants J Murphy & Sons £153
Kellogg's Breakfast Club Grant £287
Community Support Grants Albert Hunt £1,557 LCVS £1,500 Merseyside CIF Support Group £1,023 The National Lottery £10,000 Alchemy £500 Skelton £1,500 Astor Foundation £2,000
Covid Relief Grants LCVS £78 Garden Project Grants Elizabeth Rathbone £312 Eleanor Rathbone £3,000 Alpkit £44 Finniss Scott £177
Page 21
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## **5 Investment income**
|Interest receivable and similar income;
Interest receivable on bank deposits
**Total for 2023**
**6**
**Other income**
Fees and supplies
Rental income
Fees and supplies
Rental income
**7**
**Expenditure on raising funds**
Costs of generating donations and legacies
**Total for 2023**
**Total for 2022**|**Unrestricted**
**funds**
**General**
**£**
335
335
**Unrestricted**
**funds**
**General**
**£**
2,261
24,700
26,961
**Unrestricted**
**funds**
**General**
**£**
2,337
22,375
24,712
**Direct costs**
**£**
542
542
240|**Total**
**funds**
**£**
335|
|---|---|---|
|||335|
|||**Total**
**2023**
**£**
2,261
24,700|
|||26,961|
|||**Total**
**2022**
**£**
2,337
22,375|
|||24,712|
|||**Total**
**costs**
**£**
542|
|||542|
|||240|
Page 22
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## **8 Expenditure on charitable activities**
|Staff costs
Project purchases
Premises expenses
Office expenses
Sundry expenses
Professional fees
Staff costs
Project purchases
Premises expenses
Office expenses
Sundry expenses
**9**
**Other expenditure**
Independent examiner fees
Examination of the financial statements
Depreciation, amortisation and other similar costs
**Total for 2023**
**Total for 2022**|**Unrestricted**
**funds**
**General**
**£**
9,946
-
6,725
109
913
2,960
20,653
**Unrestricted**
**funds**
**General**
**£**
340
255
3,089
453
1,413
5,550
**Note**|**Restricted**
**funds**
**£**
33,651
9,030
10,848
-
-
-
53,529
**Restricted**
**funds**
**£**
64,321
36,716
5,590
-
-
106,627
**Unrestricted**
**funds**
**General**
**£**
1,440
2,925
4,365
2,925|**Total**
**2023**
**£**
43,597
9,030
17,573
109
913
2,960|
|---|---|---|---|
||||74,182|
||||**Total**
**2022**
**£**
64,661
36,971
8,679
453
1,413|
||||112,177|
||||**Total**
**funds**
**£**
1,440
2,925|
||||4,365|
||||2,925|
Page 23
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## **10 Net incoming/outgoing resources**
Net incoming resources for the year include:
|Depreciation of fixed assets|**2023**
**£**
2,925|**2022**
**£**
2,925|
|---|---|---|
## **11 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.
## **12 Staff costs**
The aggregate payroll costs were as follows:
|**Staff costs during the year were:**
Wages and salaries
Pension costs|**2023**
**£**
43,176
421
43,597|**2022**
**£**
64,661
315|
|---|---|---|
|||64,976|
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
||**2023**||**2022**||
|---|---|---|---|---|
||**No**||**No**||
|Charitable||-||7|
The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independantly administered fund.
No employee received emoluments of more than £60,000 during the year.
## **13 Independent examiner's remuneration**
|Examination of the financial statements|**2023**
**£**
1,440|
|---|---|
Page 24
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
## **14 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **15 Tangible fixed assets**
|**Cost**
At 1 June 2022
Additions
At 31 May 2023
**Depreciation**
At 1 June 2022
Charge for the year
At 31 May 2023
**Net book value**
At 31 May 2023
At 31 May 2022
**16 Cash and cash equivalents**
Cash on hand
Cash at bank|**Land and**
**buildings**
**£**
95,546
-
95,546
5,733
1,911
7,644
87,902
89,813|**Furniture and**
**equipment**
**£**
4,057
1,041
5,098
2,039
874
2,913
2,185
2,018|**Furniture and**
**equipment**
**£**
4,057
1,041
5,098
2,039
874
2,913
2,185
2,018|**Computer**
**equipment**
**£**
-
-
-
-
140
140
(140)
-
**2023**
**£**
1,009
56,798
57,807|**Computer**
**equipment**
**£**
-
-
-
-
140
140
(140)
-
**2023**
**£**
1,009
56,798
57,807|**Total**
**£**
99,603
1,041
100,644
7,772
2,925
10,697
89,947
91,831
**2022**
**£**
646
66,012|
|---|---|---|---|---|---|---|
|||5,098|||||
|||2,039
874|||||
|||2,913|||||
|||2,185|||||
|||2,018||-|||
|||||**2023**
**£**
1,009
56,798
57,807|||
|||||||66,658|
**17 Creditors: amounts falling due within one year**
Page 25
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
|Other loans
Other taxation and social security
Other creditors
Pension scheme creditor
Accruals
Deferred income
Deferred income at 1 June 2022
Resources deferred in the period
Amounts released from previous periods
Deferred income at year end
**18 Creditors: amounts falling due after**
Other loans
**19 Funds**
**Unrestricted funds**
General
**Restricted funds**
**Total funds**|**one year**
**Balance at 1**
**June 2022**
**£**
45,732
118
45,850|**Incoming**
**resources**
**£**
49,191
60,455
109,646|**2023**
**£**
4,234
(1,340)
1
81
825
38,051
41,852
**2023**
**£**
(39,710)
(47,540)
49,199
(38,051)
**2023**
**£**
29,495
**Resources**
**expended**
**£**
(25,560)
(53,529)
(79,089)|**2022**
**£**
7,530
190
(1)
-
1,310
39,709|
|---|---|---|---|---|
|||||48,738|
|||||**2022**
**£**
(21,276)
(90,217)
71,783|
|||||(39,710)|
|||||**2022**
**£**
63,900|
|||||**Balance at 31**
**May 2023**
**£**
69,363
7,044|
|||||76,407|
Page 26
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
|**Unrestricted funds**
General
**Restricted funds**
**Total funds**
**20 Analysis of net assets between funds**
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Creditors over 1 year
Total net assets|**Balance at 1**
**June 2021**
**£**
25,916
(7,718)
18,198|**Incoming**
**resources**
**£**
29,458
113,537
142,995
**Unrestricted**
**funds**
**General**
**£**
89,829
19,756
(3,801)
(29,495)
76,289
**Unrestricted**
**funds**
**General**
**£**
91,713
26,948
(9,029)
(63,900)
45,732|**Resources**
**expended**
**£**
(8,715)
(106,627)
(115,342)
**Restricted**
**funds**
**£**
118
38,051
(38,051)
-
118
**Restricted**
**funds**
**£**
118
39,710
(39,709)
-
119|**Balance at 31**
**May 2022**
**£**
46,659
(808)|
|---|---|---|---|---|
|||||45,851|
|||||**Total funds at**
**31 May**
**2023**
**£**
89,947
57,807
(41,852)
(29,495)|
|||||76,407|
|||||**Total funds at**
**31 May**
**2022**
**£**
91,831
66,658
(48,738)
(63,900)|
|||||45,851|
## **21 Related party transactions**
Page 27
## **Bridge2 (Liverpool) Limited**
## **Notes to the Financial Statements for the Year Ended 31 May 2023**
During the year the charity made the following related party transactions:
## **Rebecca Da Mota**
(The wife of a trustee of the charity)
The Trustee's wife supplied services to the charity on a contractor basis in the amount of £5,148 (2022:£1,550).. At the balance sheet date the amount due to/from Rebecca Da Mota was £Nil (2022 - £Nil).
## **Rauni Da Mota**
(Trustee of the Charity)
Interest free loan provided to the charity. At the balance sheet date the amount due to/from to Rauni Da Mota was £Nil (2022 - £896).
## **David Skews**
(Trustee of the Charity until 30 December 2022)
Interest free loan provided to the charity. At the balance sheet date the amount due to David Skews was £4,234 (2022 - £6,634).
Page 28
## **Bridge2 (Liverpool) Limited**
## **Statement of Financial Activities by fund for the Year Ended 31 May 2023**
## **Unrestricted Funds**
|**Income and Endowments from:**
Donations and legacies
Investment income
Other income
Total income
**Expenditure on:**
Raising funds
Charitable activities
Other expenditure
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward|**Total**
**Unrestricted**
**Funds**
**2023**
**£**
21,058
335
27,798
49,191
(542)
(20,653)
(4,365)
(25,560)
23,631
23,631
45,732
69,363|**Total**
**Unrestricted**
**Funds**
**2022**
**£**
4,439
-
25,019|
|---|---|---|
|||29,458|
|||(240)
(5,550)
(2,925)|
|||(8,715)|
|||20,743|
|||20,743
25,916|
|||46,659|
This page does not form part of the statutory financial statements. Page 29
## **Bridge2 (Liverpool) Limited**
## **Statement of Financial Activities by fund for the Year Ended 31 May 2023**
## **Restricted Funds**
|**Restricted Funds**|||
|---|---|---|
|**Income and Endowments from:**
Donations and legacies
Charitable activities
Total income
**Expenditure on:**
Charitable activities
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward|**Total**
**Restricted**
**Funds**
**2023**
**£**
27,146
33,309
60,455
(53,529)
(53,529)
6,926
6,926
118
7,044|**Total**
**Restricted**
**Funds**
**2022**
**£**
22,920
90,617|
|||113,537|
|||(106,627)|
|||(106,627)|
|||6,910|
|||6,910
(7,718)|
|||(808)|
This page does not form part of the statutory financial statements. Page 30
## **Bridge2 (Liverpool) Limited**
## **Detailed Statement of Financial Activities for the Year Ended 31 May 2023**
|**Income and Endowments from:**
Donations and legacies (analysed below)
Charitable activities (analysed below)
Investment income (analysed below)
Other income (analysed below)
Total income
**Expenditure on:**
Raising funds (analysed below)
Charitable activities (analysed below)
Other expenditure (analysed below)
Total expenditure
Net income
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward|**Total**
**2023**
**£**
48,204
33,309
335
27,798
109,646
(542)
(74,182)
(4,365)
(79,089)
30,557
30,557
45,850
76,407|**Total**
**2022**
**£**
27,359
90,617
-
25,019|
|---|---|---|
|||142,995|
|||(240)
(112,177)
(2,925)|
|||(115,342)|
|||27,653|
|||27,653
18,198|
|||45,851|
This page does not form part of the statutory financial statements. Page 31
## **Bridge2 (Liverpool) Limited**
## **Detailed Statement of Financial Activities for the Year Ended 31 May 2023**
|**_Donations and legacies_**
Afghan Response donations
Donations and gifts
People's Lottery
Overhead Grants
Other Grants
Other Donations
**_Charitable activities_**
DWP Kickstart Initiative Grant
Reimagine grant
Art Projects grants
Basement Renovation grants
Kellogg's Breakfast Club grant
Community Support grants
Covid Relief Grants
Garden Project grants
**_Investment income_**
Interest on cash deposits
**_Other income_**
Sale of artwork
Rental income
Other income
**_Raising funds_**
Advertising
**_Charitable activities_**
Rent and rates (Restricted funds)|**Total**
**2023**
**£**
50
3,634
9,173
14,289
833
20,225
48,204
8,354
1,314
486
153
288
18,080
78
4,556
33,309
335
335
2,261
24,700
837
27,798
(542)
(542)
(1,164)|**Total**
**2022**
**£**
11,780
360
-
10,780
-
4,439|
|---|---|---|
|||27,359|
|||30,871
10,906
5,787
6,842
19
20,471
1,370
14,351|
|||90,617|
|||-|
|||-|
|||2,337
22,375
307|
|||25,019|
|||(240)|
|||(240)|
|||(293)|
This page does not form part of the statutory financial statements. Page 32
## **Bridge2 (Liverpool) Limited**
## **Detailed Statement of Financial Activities for the Year Ended 31 May 2023**
|Light, heat and power (Restricted funds)
Light, heat and power (Unrestricted funds)
Telephone and fax (Restricted funds)
Trade subscriptions (Unrestricted funds)
Hire of other assets (Unrestricted funds)
Legal and professional fees (Unrestricted funds)
Bank charges (Unrestricted funds)
Wages and salaries (Restricted funds)
Wages and salaries (Unrestricted funds)
Staff pensions (Unrestricted funds)
Travelling (Unrestricted funds)
Premises expenses (Unrestricted funds)
Insurance (Restricted funds)
Office expenses (Unrestricted funds)
Project purchases (Restricted funds)
Project purchases (Unrestricted funds)
Sundry expenses (Unrestricted funds)
**_Other expenditure_**
Accountancy fees (Unrestricted funds)
Depreciation of fixtures and fittings|**Total**
**2023**
**£**
(7,264)
-
(72)
(237)
(73)
(2,960)
(43)
(33,651)
(9,525)
(421)
(48)
(6,724)
(2,348)
(110)
(9,030)
-
(512)
(74,182)
(1,440)
(2,925)
(4,365)|**Total**
**2022**
**£**
(3,313)
(336)
(34)
(103)
-
-
(342)
(64,636)
(25)
(315)
(179)
(3,089)
(1,950)
(453)
(36,401)
(255)
(453)|
|---|---|---|
|||(112,177)|
|||-
(2,925)|
|||(2,925)|
This page does not form part of the statutory financial statements. Page 33