The Loop Drug Checking Service
Charity Registration Number: 1200533
Trustees' Annual Report and Financial Statements for the period 29 September 2022 to 31 March 2023
Contents
Administrative Information ....................................................................................................................... 2 Trustees Annual Report .......................................................................................................................... 3 Review of Activities and Achievements .................................................................................................. 6 Future Plans ............................................................................................................................................ 8 Financial review ...................................................................................................................................... 9 Reserves Policy ...................................................................................................................................... 9 Trustees’ responsibilities in relation to the financial statements ........................................................... 10 Independent examiner’s report to the trustees of The Loop Drug Checking Service ........................... 11 Statement of Financial Activities for the period 29 September 2022 to 31 March 2023 ....................... 12 Balance Sheet as at 31 March 2023 ..................................................................................................... 13 Notes to the accounts ........................................................................................................................... 14
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Administrative Information
| Trustees: | Professor Fiona Measham | 3 September 2022 |
|---|---|---|
| (Chair) | ||
| Darren Knight | 3 September 2022 | |
| Jon Drape | 3 September 2022 | |
| Philip Kolvin KC | 14 January 2023 | |
| Chief Executive Officer: | Katy Porter BEM | |
| Charity Address: | George House Trust, | |
| 75-77 Ardwick Green North | ||
| Manchester | ||
| M12 6FX | ||
| Bankers: | Barclays Bank | |
| Accountant: | Beyond Profit Ltd | |
| G104 Bolton Arena | ||
| Arena Approach | ||
| Horwich | ||
| Bolton | ||
| BL6 6LB | ||
| Independent Examiner: | It Doesn’t Have to Cost the | Earth Ltd |
| 47 St Dunstans Close | ||
| Worcester | ||
| WR5 2AJ |
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Trustees Annual Report
The Loop Drug Checking Service is a Charitable Incorporated Organisation (CIO) with the Charity Registration Number 1200533. The governing document of the charity is a constitution dated 29 September 2022.
The Loop Drug Checking Service is a pioneering health service which exists to reduce the potential harms related to drug use and does so by generating and disseminating accurate information on substances of concern and in circulation, and providing advice, both direct and indirect, to the public.
Our Harm Reduction services bring together technologies and evidence-based interventions for the purpose to inform, prevent harm, and improve the health, well-being and safety of all in our communities and society.
What we do and why?
Drug-related deaths are at an all-time high in the UK[1] and associated harms have, and continue, to increase in the UK since 2012, with mis-sold drugs, as well as high and variable strength substances, as key contributing factors. There was a total of 4,907 drug-related deaths in England and Wales in 2022 (4,859 in 2021, 4,393 in 2019), almost half of which were for opiates. Total ecstasy-related deaths reported were 51, a decrease from a spike seen in 2018 (92 reported deaths), in part due to lower pill strength combined with post lockdown lowered footfall at nightclubs but remaining a significant increase from the 8 deaths reported in 2010. Cocaine-related deaths rose to 857 in 2022, which represents the 11[th] consecutive annual rise.[2] Hospital admissions for cocaine and MDMA are also rapidly escalating.
There is also greater potential exposure and access to an ever-increasing number of drugs[3] . In December 2021, the UK government published its 10-year Drug Strategy calling for 'innovation' to help reduce increasing drug harms. Drug checking and the work of The Loop is exactly that: an innovative healthcare response to the risks associated with drug use which is shown to reduce harm.
The Loop’s team of chemists, all volunteers, test substances of concern in mobile laboratories; these test results are then embedded in individually tailored healthcare consultations delivered by our volunteer health professionals to service users; and research and evaluation are conducted by our volunteer research academics/social scientists. Our drug checking can also contribute to the national surveillance of illicit drug markets, which allows more targeted interventions when responding to drug use and can be disseminated through social media to reach a wide audience.
More than 10 peer reviewed academic papers have been published which feature The Loop’s work (Publications — The Loop (wearetheloop.org)) evaluating its drug checking and associated harm reduction services, drug trends and broader socio-cultural and policy contexts.
1 Home Of�ice (2022), Drugs Misuse: Findings from the 2018/19 Crime Survey for England and Wales, Statistical Bulletin 21/19, London: Home Of�ice:
2 Of�ice for National Statistics, (2023), Deaths related to drug poisoning in England and Wales: 2019 registrations, Statistical Bulletin, London: ONS: https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/deaths/bulletins/ deathsrelatedtod rugpoisoninginenglandandwales/2022registrations
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There is a growing evidence base showing that drug checking:
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Leads to reduced drug use,
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Results in lower levels of polydrug use,
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Has a lasting, positive health impact on service users.
It is The Loop’s mission and vision to have far greater reach into communities and includes a commitment to equality and diversity. For us this means developing a nationwide network of drug checking services and related harm reduction hubs to distribute information that is nonjudgemental, accessible and available to all. This means services and information that is available throughout the year, freely available in local communities, and relevant to all people, whether they or others are considering taking drugs or are occasional, regular or dependent drug users, and in need of advice or support.
We are working to expand what we do to include regular community-based drug checking, additional to continued event-based testing. This is intended to be a change in reach, working within and with communities, and we anticipate reaching a diverse demographic and supporting them in access and use of drug checking services. In ensuring this can potentially be universally accessible in future, we are considerate of barriers, such as literacy levels, digital poverty, fear of stigma or arrest, and problematic social and community connections, which may mean that contacting and engaging those in most need our harm reduction services can be more challenging.
Who we are?
The Loop was the first organisation to deliver drug checking in the UK, first doing so as a Community Interest Company (CIC) in 2016 and has since gone on to deliver healthcare consultations to over 10,000 service users. We are now in a period of growth, having been granted charity status last year, and appointing the first staff member of the organisation, Katy Porter, as CEO, who joined in September 2022. Katy has been joined by another 2 staff members, an Administrator, and a Training Coordinator, with posts supported by grant funding. The Loop has a volunteer base of 285 people across the UK, and with 40 of these forming a senior team, focused across four workstreams (Healthcare, Chemistry, Research, Media and Communications).
The Chief Executive Officer (CEO) reports directly to the Board of Trustee. The Loop has a registered base in Manchester, is hosted by George House Trust, and operates across the UK in its delivery and development.
Structure, Governance and Management
The Charity’s governing body is the Board of Trustees, whose members are trustees under charity law. Trustees are appointed for a 3-year period following recruitment procedures, due diligence and ratification of appointment by the Board. Trustees meet at least 4 times per year. These will be a minimum of twice in-person, and with two meetings held online.
At year end, the Board comprised of four trustees, and with a commitment to grow the Board to seven trustees following a skills appraisal by the Board and CEO.
Conflicts, or declarations, of interest are requested and recorded through an annual declaration, and updates requested at each Board meeting. Any declared conflicts of interest would be recorded; these would then be monitored and managed as necessary.
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The Board is confident that the Charity conforms to and is compliant with the Charity Commission’s guidance, ‘The essential trustee: what you need to know, what you need to do’ (July 2015), and works under the Charity Governance Code (2018).
Objectives and Activities for the Public Benefit
The Loop complies with its governing document, charity law, company law and all other relevant legislation or regulations, and the Board operates to ensure that the organisation pursues its charitable objects as per constitution and ensures that it uses its resources in pursuance only of those objects being:
To protect and safeguard the health and promote the reduction of harm to the public who use psychoactive drugs in particular but not exclusively by;
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a. drug checking and the provision of non-judgemental harm reduction information and advice to individual service users;
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b. the provision of information on substances of concern and associated harm reduction information and advice to partner agencies, stakeholders and wider drug using communities, including through public health messaging, early warning systems and alerts;
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c. training for organisations in the education, health and events sectors in harm reduction, drugs awareness, responding to critical incidents and delivering support services;
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d. developing and promoting policy and strategies to reduce drug-related harm and promote health;
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e. participating in any other health promotion activities that contribute to the reduction of drug-related harm in the community.
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f. operating at all times in accordance with the law of England and Wales.
The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities and setting the grant making policy for the period.
Organisational Strategy and decision making
In 2022/23, the Board agreed the Strategy for the year ahead, and this was approved in December 2022. This built on consultation with volunteers, staff and partners in the preparation for charity status, and will be further reviewed in 2024.
The strategy informs strategic goals and provides a framework for growth, development and delivery. Operational and day-to-day decision making is delegated to the CEO and the staff and senior team.
Major new initiatives are considered with the Board for approval. Trustees receive in advance of each Board meeting comprehensive and detailed written reports from the CEO. These reports describe activities of the Charity, and inform for growth, stability, and future planning. Quality assurance, safeguarding, and risk management are essential considerations of the Board, and are captured in the Risk Register. The trustees regularly receive copies of management accounts, along with notes on variations between budgeted and actual expenditure, and any bad debts. At the meetings the CEO will guide the Trustees through these documents.
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Risk Management
Potential areas of risk to the Charity are identified, recorded and reviewed by the Board at every meeting, assisted by the CEO. The Risk Register incorporates financial, operational risk and external risk, assessing likelihood of occurring, impact, and mitigation to reduce likelihood and the impact. Whilst recognising that no organisation can ever be risk free, the Board of Trustees consider that the range of measures and controls in place continue to reduce to an acceptable level various risks faced by The Loop.
Review of Activities and Achievements
Healthcare and Harm Reduction
The Loop’s healthcare team, which is made up of medical practitioners, health professionals and substance misuse practitioners, delivered harm reduction services at four events across England in 2022/23. Harm reduction interventions are informed by the testing of The Loop, and are able to contextualise individualised and wider messaging in an understanding of drug trends and knowledge of substances of concern in circulation. The Loop typically reaches 10% of attendees at an event through direct contact; these will include consultations and informal conversations at a location within the event held over the course of 2-4 days.
Services are designed to emphasise that there is all drug use carries risk, there is no such thing as safe drug use, and to ensure instead that people engaged in drug use are able to make informed decisions and have access to confidential support if they need it.
Drug Checking and Drug Testing
Drug testing was completed by The Loop’s chemists at four events in 2022; the back of house testing analysed substances of concern obtained within festivals and was delivered with the police and in partnership with the event. In the delivery of our back of house drug testing services, the public cannot submit substances for testing. Instead, substances come from onsite agencies including from confiscations, seizures, ground finds and medical incidents which are prioritised. The results were able to be disseminated to support services and used for public-facing alerts or messaging. Our testing of nearly 2,000 substances of concern over the course of these events in 2022 resulted in four public facing alerts, disseminated through social media channels. These alerts inform stakeholders and members of the public, both attending the event and more widely, advising of significant threat posed by a substance and by providing factual information, including accurate image and related harm reduction advice. With a following of over 55,000 people on Instagram, over 35,000 on Facebook and over 32,000 on X (twitter), this assists in significant reach in messaging beyond each event.
Our aim through drug testing is to reduce drug-related harm in a number of ways, including to:
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a) identify adulterants to reduce the risk of poisoning from unknowingly consuming adulterated substances and by reducing the risk of combination consumption of contraindicated illicit or pharmaceutical drugs;
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b) assess strength to reduce the risk of overdose from unknowingly consuming high and variable strength substances;
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c) effectively communicate risk more broadly – eg. related to polydrug use, alcohol, dehydration, tolerance, medical conditions and other risk factors – through brief interventions with health professionals; and
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d) disseminate test results to onsite support services, offsite stakeholders, early warning systems, and wider drug using communities in the event of public-facing alerts and infographics.
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Our preparation for our first regular drug checking service, commissioned by Bristol City Council, continued. and with focus on the reapplication for a Home Office licence to possess controlled drugs. This was due to the Council stating that the previously obtained licence, could not be used and was required be re-issued in the contract holders name, The Loop Drug Checking Service. As an existing licence holder, the change in our legal entity also required us to re-apply for a new licence in the name of the new charity. We worked with the Home Office throughout this time in completing the application process and ensuring our proposed use of the licence, drug checking services, will operate in line with Government policy.
Research
The Loop is an evidence-making action research project, as well as an evidence-based health service. With a senior team of researchers and academics led by two university professors, our services are evaluated and produce peer-reviewed publications which contribute to the emerging international evidence base on drug checking and harm reduction more widely. Over the course of 2022/23, ethical approval was sought from the University of Liverpool for our research action project, and has subsequently been granted for a 5-year period (2023-28).
In November 2022, The Loop’s research was published in a special issue of the journal Drugs, Habits and Social Policy focused on drug checking (edited by Chair of the Board Professor Measham), and analysed the provision of drug checking services available to hundreds of thousands of festival-goers over three years (2016-2018). Our research[3] has found that drug checking services at festivals reduce the possibility of drug-related harm, provide opportunities for targeted health interventions amongst higher risk drug users and, on balance, do not result in increased quantities of drugs being consumed.
The landmark research found that, after people been given information by drug checking services, when the drug was not what they expected, nearly two thirds of people disposed of the drug. When the drug was what they expected, almost half of people said they would reduce the amount of the drug they consumed, placing them at reduced risk of harm.
The study was the first of its kind that assessed both the positive and negative impact of providing drug checking across a three-year period. The three-year research project found no evidence that drug checking provision increased drug-taking at festivals, with only 1.2% of respondents whose tested drug was identified as what they expected saying they intended to increase their dosage as a result of checking. In contrast, 48.7% said they would reduce their dosage, of those whose tested substance was as expected.
Training
The Loop has previously offered training to organisations and events, many of them outdoor events and music festivals, but has been limited in its time and capacity to offer or develop this in a significant way. In early 2023, The Loop was awarded a grant from EIF to support us in developing our training programme, ensuring the following:
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furthering our charitable aims of expanding knowledge and application of a harm reduction approach towards drug-related issues,
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this aspect of our charitable activity is sustainable in its delivery going forwards,
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training is accessible and affordable.
We have recruited a part-time training coordinator, to manage the enquiries, bookings, and promote our training courses to a wider audience, expand our training capacity, and develop and quality assure our training offer.
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All our courses have now had their content reviewed and updated, with a training brochure designed to include a summary of all courses. Flexibility, and the capacity, to deliver online or in-person, and to individuals or groups, is now in place, with significantly higher numbers to be trained in the future by The Loop.
3 Measham, F. and Simmons, H. (2022), Who uses drug checking services? Assessing uptake and outcomes at English festivals in 2018, Drugs, Habits and Social Policy , special issue on drug checking, 23(4). https://www.emerald.com/insight/content/doi/10.1108/DHS-02-2022-0008/full/html
Future Plans
We will deliver high quality, accessible, evidence-based and evidence-making drug checking services to disseminate harm reduction information to individuals, communities, service providers and commissioners, and policy makers.
This is for the following purpose:
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Early intervention and prevention : A national 'early warning system' is in place, alerting the public when substances of concern are identified, incorporating drug checking, preventing harm, and ensuring people who choose to take drugs can take them more safely.
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Community driven approaches: we understand and work alongside people to develop our work and expertise in person-centred interventions. People who take drugs, or have taken drugs in the past, can be honest about their experiences and not judged and assist in reducing stigma.
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Research & development for impactful response : we inform and develop our work and influence and effect wider system change and practice to ensure legislation and policy context allows ongoing drug checking, its expansion across the UK (in line with our mission statement), and national standards for drug checking are in place.
Our work will focus on drug checking being an established, recognised healthcare and harm reduction service, adequately funded in the UK. We plan to implement and commence a minimum of three commissioned regular, community based drug checking services during 2024, all Home Office-licenced, and for these to be funded for a minimum of 12 months.
We will deliver these by developing and supporting a dedicated team of professional chemists, healthcare staff, and researchers, guided by international expertise and experience, working to establish drug checking and harm reduction services, responsive to emerging concerns in the UK.
The Loop is a leading organisaton in the development and delivery of drug checking but cannot, and does not wish to, operate in isolation. We are more effective, have greater impact, and achieve better outcomes when working with others and we will continue to work in partnership and actively seek collaboration. Local Authorities, Public Health, and the police, are essential stakeholders in our work, alongside the alcohol and other drugs sector, higher education institutions, research, policy and practice NGOs, the night time economy and the events industry.
We will continue to review and develop our testing techniques and analytics, ensuring these continue to enable the mobile, rapid and accurate results we require. As our drug checking services and operations expand, as does the need for available equipment and the increased complexity of our logistics of our delivery. Investment will be required to expand
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our testing capacity as it relates to our resources, both in terms of personnel and our equipment and assets.
Fundraising will be a feature of our work in the coming year, ensuring we have the funds to expand our services. This will relate to our infrastructure and staffing, and our equipment. This will be completed by the organisation, and focus on individual giving and registration for gift aid, and seeking further charitable grants in support of our work.
More information about our current services and developments for the charity can be found on our website at www.weretheloop.org
Financial review
The Statement of Financial Activities (SoFA) including an Income and Expenditure account set out on page xx, shows total income of £29,679 and total expenditure £64,079. This resulted in deficit of £34,400. However the previous CIC had total funds of £136,872 which were brought into the charity. Part of these funds included a grant of £50,000 towards the costs of the Chief Executive.
Total funds of the charity at the end of the period were £102,472 which comprised of £69,409 of unrestricted funds and £33,063 of restricted funds.
Reserves Policy
The Board’s policy is to increase Revenue Reserves to ensure that fluctuations in future income do not threaten the financial stability of the organisation. The uncertainties include grants from statutory bodies.
Revenue Reserve is needed to provide funds which can be made available for specific projects, and to assist with unforeseen economic events. The Trustees recognise that a level of this reserve should be gradually increased to the equivalent of three months’ total expenditure calculated and reviewed annually.
Whilst outgoings are low, there is a need to consider the expansion of the organisation The reserve is being built up to the desired level in stages consistent with the Charity’s overall financial position and its need to maintain its activities.
At the end of the period the total funds of the charity were £102,472. Of this £69,409 was unrestricted with free reserves also being £69,409. This equates to just over 1 year of unrestricted expenditure.
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Trustees’ responsibilities in relation to the financial statements
The charity trustees are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each 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 the financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the applicable Charities SORP;
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make judgements and estimates that are reasonable and prudent
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state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and 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 in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements.
Approved by the trustees on 30 January 2024 and signed on their behalf by:
Fiona Measham Chair
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Independent examiner’s report to the trustees of The Loop Drug Checking Service
I report to the trustees on my examination of the accounts of The Loop Drug Checking Service (“the Charity”) for the year ended 31 March 2023.
Responsibilities and basis of report
As the charity’s trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“ the Act”).
I report in respect of my examination of the Charity’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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The accounting records were not kept in accordance with section 130 of the Charities Act; or
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The accounts did not accord with the accounting records; or
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The accounts did not comply with the applicable requirements concerning the form and content of the 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 accounts to be reached.
Teresa Fennell, ACMA CGMA It Doesn’t Have to Cost the Earth Ltd 47 St Dunstans Close, Worcester, WR5 2AJ
Date: 31/01/2024
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Statement of Financial Activities for the period 29 September 2022 to 31 March 2023
| Unrestricted funds |
Restricted funds | Total funds 31 March 2023 |
Total funds 31 March 2023 |
||
|---|---|---|---|---|---|
| Notes | |||||
| £ | £ | £ | |||
| Income and endowments from: | |||||
| Donations and legacies | 2 | 6,345 | 14,500 | 20,845 | |
| Charitable activities | 2 | 8,798 | - | 8,798 | |
| Other income | 2 | 36 | - | 36 | |
| Total | 15,179 | 14,500 | 29,679 | ||
| Expenditure on: | |||||
| Raising funds | 188 |
- | 188 | ||
| Charitable activities | 3 | 32,454 | 31,437 | 63,890 | |
| Total | 32,642 | 31,437 | 64,079 | ||
| Net income/(expenditure) before transfers | (17,463) | (16,937) | (34,400) | ||
| Transfer between funds | 0 | 0 | 0 | ||
| Net movement in funds | (17,463) | (16,937) | (34,400) | ||
| Reconciliation of funds: | |||||
| Total funds brought forward from CIC | 86,872 | 50,000 | 136,872 | ||
| Total funds carried forward | 69,409 | 33,063 | 102,472 |
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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Balance Sheet as at 31 March 2023
| Balance Sheet as at 31 March 2023 | ||
|---|---|---|
| Notes 31 March 2023 | ||
| £ | ||
| Current assets | ||
| Debtors | 7 |
60,208 |
| Cash at bank and in hand | 9 |
82,357 |
| Total current assets | 142,565 | |
| Creditors: amounts falling due within one year | 8 |
40,092 |
| Net current assets/(liabilities) | 102,472 | |
| Total net assets / (liabilities) | 102,472 | |
| Funds of the Charity | ||
| Restricted funds | 10 |
33,063 |
| Unrestricted funds | 10 |
69,409 |
| Total funds | 102,472 |
Signed on behalf of the Trustees of The Loop Drug Checking Service on 30 January 2024.
Fiona Measham Chair
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Notes to the accounts
Note 1: Accounting Policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:
a) Basis of preparation
The financial statements have been prepared in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), second edition - October 2019 (Charities SORP (FRS 102)),the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
The charity has applied the exemption available to small charities in the Charities SORP (FRS 102) and does not include a Statement of Cash Flows in these Financial Statements.
The Loop Drug Checking Service 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 notes.
b) Preparation of the accounts on a going concern basis
The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern. The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.
c) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be reliably measured.
Income for government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions have been met, it is probable that the income will be received the account can be measured reliably and is not deferred.
Donations are recognised when the charity receives the funds.
Legacies are recognised on receipted or otherwise if the charity has been notified of an impending distribution, the amount is known and the receipt is expected. If the amount is not known the legacy is treated as a contingent asset.
d) Fund accounting
Unrestricted funds are available to spend on activities that further any of the purposes of the charity.
Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.
Restricted funds are funds which the donor has specified are solely to be used for particular activities.
e) Interest receivable
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Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.
f) Expenditur
e
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be recognised reliability.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
All expenditure is shown inclusive of VAT.
g) Allocation of support
costs
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs. Support costs have been allocated between governance costs and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.
h) Operating
Leases
The charity classifies the lease of photocopying and printing equipment as operating leases; the title to the equipment remains with the lessor. Rental charges are charged on a straight line basis over the term of the lease.
i) Tangible Fixed
Assets
Individual assets costing £550 or more are capitalised at cost and are depreciated evenly over their estimated useful economic lives, as follows:
Leasehold improvements 10% straight-line Fixtures and fitting 33% reducing balance Computers 33% reducing balance
Tangible fixed assets are initially measured at cost and subsequently measure at cost or valuation, net of depreciation and any impairment losses.
The gain or less arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the assets, and is recognised in net income/(expenditure) for the year.
j) Impairment of fixed
assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss(if any).
k) Debtors
Debtors (including trade debtors and loans receivable) are measured on initial recognition at settlement amount after any trade discounts or amount advanced by the charity. Subsequently, they are measured at the cash or other consideration expected to be received.
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l) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provision re normally recognised at their settle met amount after allowing for any trade discounts due.
m) Corporation Tax
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
n) Key estimates and accounting judgements
In applying the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The Trustees’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates ad assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of revision and future periods, if the revision affects both current and future periods.
Note 2: Analysis of income
| Donations and legacies: Donations Grants Purple Guide Total Charitable activities Miscellaneus income Total income |
Unrestricted funds Restricted funds Total funds £ £ £ 6,345 - 6,345 -14,500 14,500 29 September 2022 to 31 March 2023 |
|---|---|
| 6,345 14,500 20,845 | |
| 8,798 -8,798 36 - 36 |
|
| 15,179 14,500 29,679 |
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Note 3: Analysis of expenditure
| Staff costs | 29 September 2022 to 31 March 2023 £ 37,260 |
|---|---|
| Consultancy/Professional Fees | 3,282 |
| Travel and subsistence Volunteer Expenses Equipment Freelance Staff Other Service Delivery Costs Bad debts Miscellanous cost Insurance Share of support costs (see note 4) Share of governance costs (see note 4) Analysis by fund Unrestrcited funds |
2,180 422 2,175 4,750 - 2,430 36 7,631 |
| 60,165 | |
| 3,226 500 |
|
| 63,890 | |
| 32,454 | |
| Restricted funds | 31,437 |
| 63,890 |
Note 4: Allocation of Governance and Other Support
The total support costs and overheads attributable to charitable activity is apportioned as shown below:
| Accountancy Fees Office costs Governance Costs Independent Examinition |
Support Costs Total £ £ 2,589 2,589 637 637 |
|---|---|
| 3,226 3,226 |
|
| 29 September 2022 to 31 March 2023 £ 500 500 |
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Note 5: Details of certain items of expenditure
| 2023 | ||
|---|---|---|
| £ | ||
| Independent examiner’s fees | 500 | |
| Total | 500 |
Note 6: Employees
| 29 September 2022 | 29 September 2022 | |
|---|---|---|
| to 31 March | 2023 | |
| £ | ||
| Salaries and wages | 36,788 | |
| Social security costs | 3,801 | |
| Pension costs (defined contribution scheme) | 395 | |
| Total staff costs | 40,983 |
No employees received employee benefits (excluding employer pension costs) for the reporting period of more than £60,000
8.2 Average head count in the year
| 29 | |
|---|---|
| Septemb | |
| er 2022 | |
| to 31 | |
| March | |
| 2023 | |
| 3 | |
| Total | 3 |
8.3 Key Management Personnel
The Trustees consider its key management personnel to comprise of the Trustees and the Chief Executive. The Chief Executive started their role on 12 September 2022.
The remuneration of the key management personnel is:
29 September 2022 to 31 March 2023
| £ | ||
|---|---|---|
Salaries and wages |
27,180 | |
Social security costs |
3,193 | |
Pension costs (defined contribution scheme) |
328 | |
Total staff costs |
30,701 |
18
Note 7: Debtors
Amounts falling due within one year
| Amounts falling due within one year | |
|---|---|
| Trade debtors Prepayments Total |
29 September 2022 to 31 March 2023 £ 52,152 8,056 |
| 60,208 |
Note 8: Creditors & Accruals
Analysis of creditors: falling due within one year
| 29 September 2022 | 29 September 2022 | |
|---|---|---|
| to 31 March | 2023 | |
| £ | ||
| Trade creditors |
1,666 | |
| Accruals |
500 | |
| Taxation and social security costs | (2,706) | |
| Deferred income | 32,547 | |
| VAT Liability | 8,085 | |
| Total |
40,092 | |
| £ | ||
| Balance at 29 September 2022 |
- |
|
| Amounts released to income earned from charitable activitie | - | |
| Amount deferred in period | 32,547 | |
| Balance at 31 March 2023 | 32,547 |
Note 9: Cash at bank and in hand
| Current Account Paypal Total |
29 September 2022 to 31 March 2023 £ 71,720 10,636 |
|---|---|
| 82,357 |
19
Note 10: Charity funds
| Restricted Funds Tudor Trust Events Industry Forum (EIF Pruple Guide Grant) Unrestricted Funds Total Funds |
Balance at 29 September 2022 Income Expenditure Balance at 31 March 2023 £ £ £ £ 50,000 - (30,701) 19,299 - 14,500 (736) 13,764 |
|---|---|
| 50,000 14,500 (31,437) 33,063 |
|
| 86,872 15,179 (32,642) 69,409 |
|
| 86,872 15,179 (32,642) 69,409 |
|
| 136,872 29,679 (64,079) 102,472 |
The opening funds are the funds that were carried forward from the CIC when in coverted to the charity on 29 Septemeber 2022.
Tudor Trust
The Tudor Trust is supporting the organisation over a period of three years, commencing in 2022, and with provision of funding for core costs towards the salary of the CEO. This is to enable the development and growth of The Loop as a national charity over this time period.
Events Industry Forum (EIF Pruple Guide Grant)
The Events Industry Forum supports the promotion of good practice within the events industry, and through the Purple Guide grants invests in projects that the EIF Board considers will benefit the industry, and in turn members of the public. The Loop has received funding for one year to increase our capacity and resources to deliver training and equip members of the workforce within the events industry with knowledge and understanding of drug use and related harm reduction.
Note 11: Analysis of net assets between funds
| Unrestricted funds |
Restricted funds |
Total | |
|---|---|---|---|
| Fund balances at 31 March 2023 represented by: | |||
| Cash at bank and in hand | 49,294 | 33,063 | 82,357 |
| Current assets/(liabilities) | 20,115 | - | 20,115 |
| 69,409 | 33,063 | 102,472 |
Note 12: Trustees remuneration and expenses
The trustees, nor any persons connected with them received no remuneration or benefits for the performance of their duties.
No Trustees received any expenses during the period.
20
Note 13: Related party transactions
There was one related party transaction during the period as detailed below:
Darren Knight is a Trustee of the Charity and also the Chief Executive of the George House Trust. The George House Trust provided registered office services for the period and charged the charity £60 for this service.
Note 14: Donated facilities and services
Volunteers
Our volunteer team is comprised of 40 senior team members, and c.250 general volunteers. Volunteers work across our 4 workstreams; Healthcare, Chemistry, Research and Media/Communications. Our volunteers provide direct support (in-person) in relation to our service activity and delivery, and support. This includes undertaking drug testing and drug checking, harm reduction interventions and messaging, outreach and engagement through our social media platforms and profile, and all compliant to regulatory requirements. In addition, and often remote and project related, our volunteers assist in our organisational development.
21
Statutory Report FYE 31 March 2023 - SIGNED
final
Final Audit Report 2024-01-31
Created: 2024-01-31 By: Emma Willder (emma@beyondprofituk.co.uk) Status: Signed Transaction ID: CBJCHBCAABAAX3egZLddlns7kO4yMXdBv_Ax4E86AR-8
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