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2025-08-31-accounts

LITTLE GREEN SOCK PROJECT

LITTLE GREEN SOCK PROJECT

ANNUAL REPORT & FINANCIAL STATEMENTS

YEAR ENDED 31 AUGUST 2025

CHARITY NUMBER: 1200145

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LITTLE GREEN SOCK PROJECT

Reference and administrative information

Trustees Michele Simister (appointed March 2022)
Laurence Frys (appointed March2022,Resigned October 2024)
Cara Goldrick (appointed March 2022, Resigned October 2024)
Rebecca Thomson (appointed March 2022)
Lorna Sales (appointed July 2023, Resigned January 2026)
Rosalyn Wilde (appointed August 2023)
Lauren Chalmers (appointed August 2023)
Serena Smallman (appointed July 2024)
Sophie Ream (appointed July 2024)
Emma Budzynski (appointed July 2024)
Gerard Carter (appointed November 2024)
Charity Number 1200145
Administrative address 57 Roseneath Road
Urmston
Manchester
M41 5AY
Operational Base Unit 4/5 The Bridgewater Centre
Robson Avenue
Urmston
M41 7TE
Independent Examiner BWP-Inspire
Charter Buildings
9 Ashton Lane
Sale
M33 6WT
Bank
Lloyds BankPlc
PO Box 1000
BX1 1LT

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LITTLE GREEN SOCK PROJECT

CONTENTS Page
Trustees report 4
Statement of Trustees’ responsibilities 12
Independent examiner’s report 13
Statement of financial activities 14
Statement of financial position 15
Notes to the financial statements 16-24

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LITTLE GREEN SOCK PROJECT

TRUSTEES REPORT FOR THE YEAR ENDED 31 AUGUST 2025

Overview and Purpose of the Charity

Little Green Sock Project exists to ensure that children do not go without the essentials they need for their safety, comfort and wellbeing. The charity works to prevent harm caused by material deprivation by redistributing quality preloved and new items to babies and children living in poverty.

Operating primarily across Trafford, with increasing reach into Manchester and Salford, the charity supports families facing multiple disadvantages, including homelessness, domestic abuse, insecure immigration status, disability, poor mental health and low income. Support is delivered through trusted referral pathways with health, social care and voluntary sector professionals, enabling early, preventative intervention for families most at risk.

The charity’s work is grounded in dignity, safety and prevention, ensuring families receive practical support that reduces health inequalities and helps children get the best possible start in life.

The Objects of the charity as stated in its constitution dated 23[rd] August 2022 are:

the prevention or relief of poverty in Trafford, England and surrounding areas, by providing goods and services, particularly but not exclusively the provision of clothing and other goods for babies and children, to individuals in need and / or other charities or other organisations working to prevent or relieve poverty.

Activities During the Year Period: September 2024 – August 2025

During the reporting period, Little Green Sock Project experienced significant growth in demand for its services, reflecting increasing levels of child poverty, housing insecurity and financial hardship across Greater Manchester.

A year in numbers

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LITTLE GREEN SOCK PROJECT

Core Service Delivery

From its warehouse base in Trafford, the charity distributed 1,446 bundles of essential items to families, representing a 43% increase on the previous year (1,008 bundles). For impact monitoring purposes, the charity estimates that the items distributed during the year had a replacement value of approximately £158,428, an increase of 47% compared to the previous year (£107,935).

Bundles included a tailored combination of clothing, equipment and household essentials, quality-checked for safety and suitability. Key items distributed during the year included:

Support was provided entirely free of charge and delivered through professional referrals, ensuring families were reached at critical moments of need.

“Receiving these things for her children was the best thing that has happened to her in a long time. She was in tears, hugging me and expressing her gratitude over and over again.”

— Health Visitor

“Little green sock has literally been a life saver. Because of them, babies who may otherwise be sleeping in unsafe environments now have somewhere safe to sleep/correct bedding. This is huge.”

— Health Visitor, Manchester

“I was in tears opening the bundle — I finally felt someone cared.”

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LITTLE GREEN SOCK PROJECT

A significant proportion of the charity’s impact during the year was made possible through donations of goods, including new and preloved clothing, baby equipment, hygiene products and household essentials. These donations enabled the charity to respond quickly and effectively to rising demand, ensuring families received timely, practical support at moments of acute need.

While the charity monitors volumes and categories of items distributed to inform service planning and impact reporting, the majority of donated goods are not recognised within the financial statements due to the practical challenges of reliable and proportionate valuation. Their contribution to the charity’s work and the outcomes achieved for families is therefore reflected through narrative reporting and service outputs rather than financial values.

Targeted School Support

In partnership with local organisations, the charity delivered a school support pop-up at Stretford Public Hall, providing practical assistance to families ahead of the school year. Outcomes included:

This initiative addressed barriers to school attendance and inclusion, supporting children to start the academic year with dignity and confidence.

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LITTLE GREEN SOCK PROJECT

Growth and Demand

The Trustees note a sustained and accelerating increase in referrals, with demand continuing to rise across Trafford and neighbouring boroughs. This growth reflects both widening need and increased recognition of the charity as a trusted partner within local support systems.

The charity’s work is delivered by a small part-time staff team, supported by a large and committed volunteer base. Throughout the year, the organisation focused on maintaining service quality, responsiveness and safeguarding while scaling delivery to meet rising demand.

The Trustees remain proud of the charity’s ability to respond to growing need while upholding its commitment to dignity, prevention and community-led action.

While demand continues to rise, the charity’s ability to sustain existing provision and respond to further growth remains dependent on securing ongoing grant funding, as current reserves and designated funds provide only short-term stability rather than long-term security.

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LITTLE GREEN SOCK PROJECT

Volunteering

Volunteers are the backbone of Little Green Sock Project. Quite simply, we could not deliver our work without them. Between September 2024 and August 2025, 74 community volunteers donated 2,412 hours of their time, alongside a further 874 hours from corporate volunteer teams. Together, this contribution boosted our capacity to the equivalent of four additional staff members every working day, enabling us to sort, check, clean and prepare essential items at a scale that would otherwise be impossible.

Behind every bundle is the time, care and kindness of a volunteer. From quality-checking cots and prams, to sorting clothing by size and season, to packing bundles ready for families, their efforts ensure every child receives items that are safe, dignified and prepared with respect. Volunteers also play a vital role in creating a welcoming, supportive environment within our warehouse, where people from all walks of life come together around a shared purpose.

Volunteering is not only essential to our delivery, it also has a powerful impact on the wellbeing of those who take part. Many volunteers tell us that being part of the Little Green Sock community improves their confidence, reduces feelings of isolation, and gives them a sense of purpose. Research consistently shows that volunteering can improve mental health, reduce stress and increase feelings of connection and belonging, and we see these benefits reflected in the experiences of our own team.

As one volunteer shared:

“Volunteering here has given me a real sense of purpose. Knowing that the time I give each week helps a family who might be struggling makes me feel proud, and it’s done wonders for my confidence and mental wellbeing.”

We are deeply grateful to every person who gives their time, energy and compassion to support our work. Their contribution reaches far beyond the warehouse walls, helping to ensure thousands of children have the essentials they need for their safety, comfort and wellbeing.

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LITTLE GREEN SOCK PROJECT

Save Our Baby Bank Campaign

During 2024/25, the charity launched the Save Our Baby Bank appeal to secure the resources needed to obtain suitable premises and ensure the continuation of services due to the planned demolition of its previous location.

The campaign received strong public and community support and enabled the charity to secure a new premises in May 2025, from which it is now fully operational.

The trustees have designated a proportion of the funds raised through this campaign in line with the purpose communicated to donors. These designations support costs directly associated with securing and operating the new premises, including lease-related risks, essential infrastructure and transitional core costs during the period of relocation and stabilisation. This approach ensures that funds raised through the campaign continue to be applied in a manner consistent with donor intent while supporting the long-term sustainability of the charity.

As a one-off appeal, the Save Our Baby Bank campaign enabled the charity to secure premises and stabilise operations but does not remove the charity’s ongoing reliance on grant funding and other income to sustain existing services and respond to continued growth in demand.

Structure, Governance and Management

Little Green Sock Project is a Charitable Incorporated Organisation (CIO) registered with the Charity Commission for England and Wales. The charity is governed by its Board of Trustees, who are responsible for setting the strategic direction of the organisation, ensuring compliance with legal and regulatory requirements, and safeguarding the charity’s assets.

Trustees are appointed in accordance with the charity’s governing document and bring a broad range of skills and experience to the Board, including expertise in finance, health and safety, charity leadership and safeguarding. The Board meets regularly to review performance, manage risk and oversee the financial position of the charity. New trustees receive an induction to ensure they understand their duties and responsibilities.

The trustees delegate day-to-day operational management to a small staff team, led by the Chief Executive Officer, who is responsible for implementing the charity’s strategy, managing staff and volunteers, and delivering services in line with the charity’s charitable objectives. The Chief Executive Officer reports to the Board and works closely with trustees to support effective governance and organisational development.

The charity is supported by a committed volunteer base, whose contribution is essential to the delivery of services. Trustees ensure appropriate policies and procedures are in place to support safeguarding, health and safety, financial controls and good governance.

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LITTLE GREEN SOCK PROJECT

Designated Funds and Reserves Policy

In addition to maintaining free reserves, the trustees have designated certain unrestricted funds to address known risks, future commitments and strategic priorities arising from the charity’s recent growth and transition to leased premises. These designations reflect prudent financial planning and do not represent surplus funds.

The charity’s annual operating costs are approximately £155,000. The trustees have therefore set a target level of unrestricted free reserves of £60,000, equivalent to approximately 4.6 months of operating expenditure. This level of reserves is intended to buffer against funding delays, unsuccessful grant applications and income volatility and is not sufficient to sustain the charity’s existing services over the medium to long term without continued external funding.

Designated unrestricted funds at the year-end comprise the following:

These designations reflect known commitments and risk management rather than discretionary funding and will be drawn down over time as costs are incurred.

These designations are intended to provide transitional stability while the charity builds eligibility for multi-year funding and embeds longer-term sustainable income streams. The trustees wish to emphasise that designated funds are held to manage financial risk and protect existing services. They are not available to support service expansion and are not sufficient to maintain current provision without continued grant funding, corporate partnerships and other income sources, which remain essential to the charity’s sustainability.

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LITTLE GREEN SOCK PROJECT

Looking Forward

The year ahead marks an important period of consolidation and stabilisation for Little Green Sock Project. Following significant organisational growth and the successful relocation to our new premises, the charity is focused on creating a strong and sustainable operational foundation. Strengthening our core team is central to this work, ensuring we have the capacity to respond to rising levels of need across our community while maintaining the quality, safety and dignity that underpin our service.

To support this stability, the trustees are prioritising long-term, diverse and sustainable income generation. We have invested in expanding our fundraising capacity so that we can meet our higher cost base following relocation and build the financial resilience required to protect and sustain essential services. Over the coming year, we will continue to diversify our income through the development of meaningful corporate partnerships, alongside a greater emphasis on securing multi-year grant funding.

A further priority is strengthening our case for support through improved data, evidence and insight. By developing a more robust approach to data collection and impact measurement, we aim to more clearly demonstrate the difference our work makes, the depth of need we are responding to, and the ways in which we are embedded within local prevention pathways. This investment in evidence will support stronger funding applications, deepen collaboration with partners, and ensure our activities remain aligned with emerging community needs. Together, these strategic priorities—stabilising our operations, strengthening income resilience, and deepening our evidence base—position the charity to continue supporting families with compassion, dignity and effectiveness in the years ahead.

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LITTLE GREEN SOCK PROJECT

STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 AUGUST 2025

The trustees are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards.

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources of the Charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ascertain that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the constitution. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the trustees and signed on their behalf by:

Lauren Chalmers Chair of the Board of Trustees

12[th] May 2026

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LITTLE GREEN SOCK PROJECT INDEPENDENT EXAMINER'S REPORT Gtew Sot P4s115.23 Itth nty i•fdL¥ ￿prO(•9￿ OweLbJté•prn bytye Ch•My iSVbl of.htr 2011 Att ¥r Nt oxTh ) K£ofd•rtt kt avd V4• Dtx rnqL ¢t IZJ o••w ffi wo•its•Mr• ¢lll •X*ii•¥J b• D 1r 13

LITTLE GREEN SOCK PROJECT

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2025

Notes
Income from:
Donations and
grants
3
Other trading
activities
4
Total Income
Expenditure on:
Charitable
activities
5
Cost of raising
funds
6
Total
Expenditure
Net income for the
year
Funds brought
forward
Funds carried
forward		 2025
2025
2025
Unrestricted Restricted
funds
funds
Total
£
£
£

180,955
78,335 259,290

6,106-
6,106		 2024
2024
2024
Unrestricted Restricted
funds
funds
Total
£
£
£
51,837
97,884 149,721
7,770 -
7,770
187,061
78,335 265,396		 59,607
97,884 157,491
33,976
80,434
114,410

11,291
26
11,317		 28,932
88,540 117,472
700
364
1,064
45,267
80,460
125,727		 29,632
88,904 118,536
141,794
(2,125)
139,669		 29,975
8,980
38,955
64,343
34,341
98,684
34,368
25,361
59,729
206,137
32,216 238,353
64,343
34,341
98,684

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LITTLE GREEN SOCK PROJECT

BALANCE SHEET AT 31 AUGUST 2025

Fixed Assets
Tangible Assets
7
Current Assets
Cash at bank and in
hand
Current Liabilities
Total net assets
Funds
Restricted funds
8
Unrestricted funds
Total funds		 2025
£
£

7,474
269,971
269,971
(39,094)
230,877
238,351

32,216
206,137
238,353		 2025
£
£

7,474
269,971
269,971
(39,094)
230,877
238,351

32,216
206,137
238,353
2024
£
£

6,718
91,966
91,966

-
91,966

98,684

34,341

64,343

98,684
2024
£
£

6,718
91,966
91,966

-
91,966

98,684

34,341

64,343

98,684
238,351 98,684
32,216
206,137		 34,341
64,343
238,353 98,684

The notes on pages 17 to 25 form part of these accounts

The financial statements were approved by the Trustees on 12[th] May 2026

Lauren Chalmers Chair of the Board of Trustees

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LITTLE GREEN SOCK PROJECT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2025

1. Accounting policies

The principal accounting policies are set out below.

Basis of preparation

The financial statements have been prepared in accordance with the Charities Act 2011, FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and the Charities SORP ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102.

The financial statements have been prepared under the historical cost convention or transaction value unless otherwise stated in the relevant accounting policy note.

Going Concern

Following the success of the Save Our Baby Bank campaign, the charity was able to secure new premises and stabilise its operations. While the trustees have established limited reserves to manage short-term financial risk, the charity remains dependent on securing ongoing grant funding, fundraising income and donations to sustain existing services and meet rising demand.

The trustees have therefore prepared these financial statements on a going concern basis, having regard to current funding commitments, active funding applications, forecast income and expenditure, and the charity’s reserves and designation policies.

Fund Accounting

Unrestricted funds are general funds that are available for use at the trustees’ discretion in furtherance of any of the objectives of the charity.

Restricted funds are those donated for a specific purpose or project and cannot be utilised for an alternative purpose.

Incoming resources

All incoming resources are recognised once the charity has entitlement to the resources, it is probable that the resources will be received, and the monetary value of incoming resources can be measured with sufficient reliability.

Cash donations along with any sales income are recognised on receipt.

Income from grants is recognised when the charity has entitlement to the funds, any performance criteria has been met, and it is probable that the income will be received.

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LITTLE GREEN SOCK PROJECT

Donated facilities and donations in kind

Donated facilities are recognised as income when the charity has control over them, any conditions associated with the facility has been met, the receipt of economic benefit from the use by the charity is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP general volunteer time is not recognised.

The charity receives a wide range of donated goods, including both new and second-hand items, which are distributed free of charge to families in need. In accordance with the Charities SORP, donated goods are recognised only where valuation is practicable, reliable and proportionate.

In previous financial years, when the volume of donated goods was lower and more readily measurable, the charity recognised the estimated value of certain donated items as incoming resources. During the current financial year, the scale and variety of donated goods distributed by the charity increased significantly, making comprehensive and reliable valuation disproportionately burdensome relative to the benefit gained from inclusion in the financial statements.

The charity has therefore revised its approach and now recognises the value of certain standardised new consumable items only, where all items distributed within that category are new and a consistent valuation methodology can be applied. Donated second-hand items and mixed-category donations are not recognised in the financial statements due to the administrative burden of reliable valuation; their contribution is instead described narratively within the Trustees’ Annual Report.

The trustees consider this revised approach to provide a more appropriate and proportionate presentation of the charity’s activities, while remaining compliant with the Charities SORP and ensuring consistency and reliability in financial reporting.

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.

Cash and cash equivalents

Cash at bank and in hand is held to meet the day to day running costs of the charity as they fall due.

Pension

The charity participates in the NEST pension scheme which is open to all employees of the charity.

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LITTLE GREEN SOCK PROJECT

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 relevant. Actual results may differ from these estimates. The estimates and assumptions are reviewed on an ongoing basis.

3. Income from donations and grants

Donations and grants
Donated goods for
beneficiaries
Donated services and
facilities		 2025
2025
2025
Unrestricted Restricted Total
funds
funds
£
£
£
165,000
63,335 228,335
15,955
-
15,955
-
15,000
15,000		 2024
2024
2024
Unrestricted Restricted Total
funds
funds
£
£
£
39,751
65,826 105,577
12,086
-
12,086
-
32,058
32,058
180,955
78,335 259,290		 51,837
97,884 149,721

4. Income from other trading activities

Sales income
Corporate days
Recycling income
Other income		 2025
Total
£
869
4,268
969
-
6,106		 2024
Total
£
499
6,617
556
98
7,770

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LITTLE GREEN SOCK PROJECT

5. Charitable Activities

Charitable Activities
Staff costs
Rent and Rates
Donated goods for beneficiaries
Purchased goods for
beneficiaries
Consumables
Subscriptions
Equipment
Depreciation
Professional fees
Training & Development
IT & communications
Administration costs
Insurance		 2025
2025
2025
Unrestricted Restricted Total
funds
funds
£
£
£
9,038
42,736
51,774
1,570
30,209
31,780

15,955
-
15,955
1,114
3,876
4,990
217
28
245
-
-
-
-
-
-
2,177
211
2,389
554
1,386
1,940
520
379
899
18
126
144
2,008
866
2,874
804
618
1,422		 2024
2024
2024
Unrestricted Restricted Total
funds
funds
£
£
£
-
44,870 44,870
12,822
32,058 44,880
12,086
- 12,086
-
4,579
4,579
-
3,203
3,203
-
4
4
-
573
573
-
1,696
1,696
2,601
-
2,601
168
-
168
356
-
356
899
-
899
-
1,557
1,557
33,976
80,434 114,410
28,932
88,540 117,472

6. Cost of raising funds

6. Cost of raising funds
Cost of raising
funds
Fundraising
Marketing		 2025
2025
2025
Unrestricted Restricted Total
funds
funds
£
£
£
11,121
-
11,121
170
26
197		 2024
2024 2024
Unrestricted Restricted Total
funds
funds
£
£
£
700
-
700
-
364
364
11,291
26
11,318		 700
364 1,064

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LITTLE GREEN SOCK PROJECT

7. Tangible Assets

Fixed Assets
Cost
At 1 September 2024
Additions
At 31 August 2025
Depreciation
At 1 September 2024
Charge for the year
At 31 August 2025
NBV
At 31 August 2024
At 31 August 2025		 Furniture &
Fitting
Equipment
Total
7,890
1,642
9,532
2,866
279
3,145
10,756
1,921
12,677
1,987
827
2,814
1,678
710
2,389
3,666
1,537
5,203
5,903
815
6,718
7,090
384
7,474

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LITTLE GREEN SOCK PROJECT

8. Analysis of restricted funds

Restricted Funds – Movement During the Year Ended 31 August 2025

Restricted Fund Balance b/f
£		 Income £ Expenditure
£		 Balance c/f
£
ASDA Foundation 2024–25 –
2,000
628
1,372
ASDA Foundation 2023–24 640
–
640
–
Awards for All 2024–25 20,000
–
20,000
–
Brighter Futures 2024–25 3,560
–
3,560
–
CO-OP Local Community Fund 2023–24 1,258
–
1,258
–
CO-OP Local Community Fund 2024–25 –
2,663
24
2,639
Electrical Safety Fund –
547
547
-
Equilibrium –
500
–
500
GMCVO 6,241
1425
7,666
-
Recycle 4 Greater Manchester GMEF –
1,000
1,000
–
Islamic Relief UK –
17,178
8,220
8,958
Irwell Valley 2024 775
–
775
–
Irwell Valley 2025 –
500
63
437
J D 1000 1,000
Kershaw Donation 331
–
331
–
L&Q –
25,205
10,185
15,020
MSV Housing –
2,500
2,500
–
Neighbourly –
500
–
500
Onward Homes –
900
900
–
Sedulo Foundation –
2,000
928
1,072
Assura –
500
–
500
The Big Give 5,417
2,933
2,484
Trafford Housing Trust 1,037
–
1,037
–
Other/fixed asset transfer 499
-500
2,265
-2,266
Donated services -
15,000
15,000
-
Total Restricted Funds 34,341
78,335
80,460
32,216

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LITTLE GREEN SOCK PROJECT

Purpose of Restricted Funds

Safety equipment (stairgates).

Safer sleep provision (cots and cot mattresses).

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LITTLE GREEN SOCK PROJECT

In the prior financial year, the trustees identified sums of £30,000 and £26,000 within unrestricted funds and presented these amounts within the restricted funds section of the accounts, reflecting the trustees’ intention at that time to hold reserves equivalent to anticipated operational costs. These amounts were internally earmarked to support ongoing service delivery and to provide short-term financial resilience.

During the current year, the trustees reviewed their approach to reserves and fund classification in line with the Charities SORP and clarified that funds earmarked by the trustees for operational resilience should be treated as free reserves within unrestricted funds , rather than as restricted funds. Restricted funds are those subject to donor-imposed conditions, whereas trustee intentions do not create restrictions for accounting purposes.

As a result of this clarification, the balances previously presented as restricted funds have been reclassified and are now included within unrestricted free reserves. Where operational costs were incurred during the year, these were met from unrestricted funds in the normal course of business, with remaining balances contributing to the charity’s free reserves position at the year end.

This reclassification has no impact on the charity’s total funds, net assets or reported surplus for the year. The trustees consider that the revised presentation provides a clearer and more accurate reflection of the charity’s financial position and improves transparency in reporting.

Fixed Assets and Restricted Fund Movements

During the year, the charity invested in new tangible fixed assets with a total cost of £3,145, all of which were funded from restricted grants. These grants were awarded specifically for equipment or capital improvements. In accordance with the Charities SORP, these purchases have been capitalised as tangible fixed assets rather than recognised as restricted expenditure in the Statement of Financial Activities, as they provide benefit to the charity over more than one accounting period.

In addition to the current‑year additions, £5,331 of existing tangible fixed assets were recognised on the adoption of the new accounting system on 1 September 2024. These represent assets already owned by the charity and recorded at their depreciated carrying ‑ value. This adjustment reflects the correct brought forward fixed asset position and does not represent expenditure incurred during the financial year.

This treatment explains the difference between restricted income received in the year and restricted expenditure shown in the Statement of Financial Activities, as restricted grants used for capital purposes are reflected on the balance sheet rather than as revenue expenditure.

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LITTLE GREEN SOCK PROJECT

Reconciliation Explanation

During the year, restricted grants were applied both to revenue expenditure and to the purchase of capital items. Note 5 reports restricted expenditure of £80,434.44, which reflects only revenue costs charged to charitable activities. However, restricted grants totalling £3,145.09 were used to purchase tangible fixed assets, which have been capitalised in accordance with the Charities SORP and therefore do not appear as expenditure within the Statement of Financial Activities. In addition, the Restricted Funds movement in Note 9 reflects fund‑specific adjustments and timing differences which, taken together with the ‑ capitalised additions, reconcile the revenue only expenditure in Note 5 to the total restricted fund usage of £63,256.61 shown in Note 9. These adjustments ensure that restricted funds correctly reflect all amounts applied in the year, including amounts spent on capital assets that provide benefit over multiple accounting periods.

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