Warning Zone Limited - Charities report - 22.2

REGISTERED COMPANY NUMBER: 05304570 (England and Wales)

REGISTERED CHARITY NUMBER: 1113659

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2022

FOR

WARNING ZONE LIMITED

Page

Report of the Trustees

1

to

3

Independent Examiner's Report

4

Statement of Financial Activities

5

Balance Sheet

6

to

7

Notes to the Financial Statements

8

to

19

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

The Trustees present their report with the financial statements of the Charity for the year ended 31 August 2022. The Trustees have adopted the provisions of the Financial Reporting Standard 102, the Charities Act 2011 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.

OBJECTIVES AND ACTIVITIES

Significant activities

Objectives

The charity strives to maintain its position as the leading organisation delivering safeguarding programmes to children and young people in the East Midlands.

Activities

With lockdown restrictions lifted, the team were able to resume activities and school visits began again from the beginning of the new academic year. There was still caution around Covid transmission and so the number of places available at any one session were reduced. However, schools had been keen to return to Warning Zone and all sessions were fully booked and attended throughout the year. This popularity continued and bookings for 2022/23 academic year stood at 75% by the end of the 2021/22 academic year.

There has also been an increased uptake in Road Crew sessions with safety sessions delivered to over 5,000 young people throughout AY 2021/22.

The charity recognises the critical importance of remaining current with regards to the ever-changing nature of risks which can have such a negative impact on children and young people and has been working to update some of the zones to reflect a more contemporary and reflective approach to dangers and risks, including a recent refreshment of the personal safety zone. This now allows for direct reference to issues such as County Lines involvement which is real and present threat to young people in our region.

The charity remains indebted to its volunteers without whose dedication and professionalism our programmes could not be delivered. Volunteer numbers have reduced as a result of Covid and, although many loyal individuals continue to give excellent service and despite regular and ongoing recruitment activity, there is a need to review the delivery model to see if any changes can be made to the large number of volunteers needed to run operations at its optimal rate.

FINANCIAL REVIEW

Financial review

At the start of the period under review the charity held an outstanding debt of £100,000 in the form of an interest free, unsecured loan to be repaid over 5 years at £20,000 per year. Trustees were confident that the charity could continue to meet its repayment obligations.

Frog Island school visits were severely impacted during lockdown, but the new academic year brought fewer restrictions and the centre has been fully booked for the entire academic year.

Fundraising activity has resumed and some of the charity's traditional and well-attended fundraising events have taken place again. Corporate fundraising has continued to be slow to gain momentum but plans are in place to continue to work with the local business community in order to maintain an upward trajectory.

In June 2020 Warning Zone was successful in its application for a government Coronavirus Bounce Back loan of £50,000 and the charity is on target to meet its repayment obligations.

Whilst the net assets of the charity have increased it should be remembered that its main asset, namely the building it owns and occupies, is fully utilised to deliver the safeguarding programmes to visitors. In other words, it is designed and equipped with the sole purpose in mind of carrying out the business of the charity.

Reserves policy

The charity requires General Reserves, that is, funds that are freely available for the Trustees to spend in furtherance of the objects, in order to bridge the funding gap between spending on the operational activities and receiving resources through grants that provide funding.

The Trustees believe that an ideal level of General Reserves, excluding those designated for fixed assets, would be equivalent to approximately three months fixed expenditure which, based on existing budgets, will be approximately £90,000 but this figure is kept under review annually.

At 31 August 2022, the General Reserves were £168,242 which is sufficiently higher than the agreed reserves figure. The Trustees will continue to monitor the level of reserves to ensure that they remain adequate for the charity's needs.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity was incorporated on 3rd December 2004 as a company limited by guarantee, not having a share capital, and is governed by its Memorandum and Articles of Association of that date. It was registered as a charity by the Charity Commissioners for England and Wales on 6th April 2006.

Each of the members has agreed to contribute the sum of £1 in the event of the charity being wound up.

Recruitment and appointment of new trustees

Trustees are nominated from persons who through residence, occupation, employment or otherwise have special knowledge of the area of benefit, or who are otherwise able, by virtue of their personal or professional qualifications, to make a significant contribution to the pursuit of the objects or the management of the charity.

Induction and training of new trustees

New trustees are briefed on their legal obligations under charity and company law, the contents of the Memorandum and Articles of Association, the committee and decision making processes, the business plan and recent financial performance of the company. During the briefing they are also given a tour of the charity's premises and are introduced to the employees and other trustees. All trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05304570 (England and Wales)

Registered Charity number

1113659

Registered office

30 Frog Island

off North Bridge Place

Leicester

Leicestershire

LE3 5AG

Trustees

Mrs H L Johnson

Mr A M Kapur

Mr G D Arthur

Mr C Mitchell

Mrs L H Foulkes-Arnold

Colonel R C J Martin

Independent Examiner

Mark J Rees LLP Chartered Accountants

Granville Hall

Granville Road

Leicester

Leicestershire

LE1 7RU

Bankers

HSBC Bank plc

2-6 Gallowtree Gate

Leicester

LE1 1DA

Honorary Treasurer

Mr A M Kapur is the Honorary Treasurer of the charity.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 19 January 2023 and signed on its behalf by:

Mrs L H Foulkes-Arnold - Trustee

Independent examiner's report to the trustees of Warning Zone Limited ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2022.

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 the Company 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

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of Institute of Chartered Accountants in England and Wales which is one of the listed bodies.

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 the Company 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.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our work, for this report, or for the opinions we have formed.

Mr P Bott FCA

Institute of Chartered Accountants in England and Wales

Mark J Rees LLP Chartered Accountants

Granville Hall

Granville Road

Leicester

Leicestershire

LE1 7RU

9 February 2023

2022

2021

Unrestricted

Designated

Restricted

Total

Total

fund

Funds

funds

funds

funds

Notes

£

£

£

£

£

INCOME AND

ENDOWMENTS FROM

Donations and legacies

2

216,436

-

68,517

284,953

310,772

Charitable activities

5

Contribution Towards Programme Delivery

99,058

-

-

99,058

17,482

Other trading activities

3

57,248

-

-

57,248

30,757

Investment income

4

27

-

-

27

7

Total

372,769

-

68,517

441,286

359,018

EXPENDITURE ON

Raising funds

6

5,855

-

-

5,855

790

Charitable activities

Programme Delivery

340,332

15,908

104,339

460,579

353,878

Total

346,187

15,908

104,339

466,434

354,668

NET INCOME/(EXPENDITURE)

26,582

(15,908

)

(35,822

)

(25,148

)

4,350

Transfers between funds

17

2,000

-

(2,000

)

-

-

Other recognised gains/(losses)

Gains on revaluation of fixed assets

-

298,000

-

298,000

-

Net movement in funds

28,582

282,092

(37,822

)

272,852

4,350

RECONCILIATION OF

FUNDS

Total funds brought forward

139,660

810,908

59,810

1,010,378

1,006,028

TOTAL FUNDS CARRIED FORWARD

168,242

1,093,000

21,988

1,283,230

1,010,378

2022

2021

Unrestricted

Designated

Restricted

Total

Total

fund

Funds

funds

funds

funds

Notes

£

£

£

£

£

FIXED ASSETS

Tangible assets

11

10,178

1,043,000

21,988

1,075,166

835,254

Investment property

12

-

150,000

-

150,000

125,000

10,178

1,193,000

21,988

1,225,166

960,254

CURRENT ASSETS

Debtors

13

57,728

-

-

57,728

151

Cash at bank and in hand

150,008

-

-

150,008

206,606

207,736

-

-

207,736

206,757

CREDITORS

Amounts falling due within one year

14

(21,401

)

(20,000

)

-

(41,401

)

(38,554

)

NET CURRENT ASSETS

186,335

(20,000

)

-

166,335

168,203

TOTAL ASSETS LESS CURRENT LIABILITIES

196,513

1,173,000

21,988

1,391,501

1,128,457

CREDITORS

Amounts falling due after more than one year

15

(28,271

)

(80,000

)

-

(108,271

)

(118,079

)

NET ASSETS

168,242

1,093,000

21,988

1,283,230

1,010,378

FUNDS

17

Unrestricted funds:

General fund

168,242

139,660

Scenarios

-

741

Operational Freehold Property

774,392

789,559

Revaluation reserve

293,608

20,608

Fair value reserve

25,000

-

1,261,242

950,568

Restricted funds

21,988

59,810

TOTAL FUNDS

1,283,230

1,010,378

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2022 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 19 January 2023 and were signed on its behalf by:

Mrs L H Foulkes-Arnold - Trustee

Mr A M Kapur - Trustee

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.

Financial reporting standard 102 - reduced disclosure exemptions

The charitable company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland':

•

the requirements of Section 7 Statement of Cash Flows.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Expenditure of a capital nature is capitalised at cost (or at value to the charity in the case of donated assets) as fixed assets within the relevant fund. Depreciation is provided on a straight-line basis so as to write off fixed assets over their anticipated useful economic lives and is charged to the relevant fund as follows:

Operational freehold property

At 2% per annum

Scenarios

At 20% per annum

Fixtures & fittings

At 20% per annum

Office and I.T. equipment

At 33% per annum

Motor vehicles

At 20% per annum

Scenarios includes all expenditure incurred, including the purchase of equipment, in creating life like simulations to educate visitors to the safety centre in personal safety and social responsibility issues in the home and the community.

No depreciation is provided on assets which are in the course of construction, prior to being brought into operational use, or on freehold land.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is included within the SOFA and a fair value reserve as part of unrestricted funds.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds which the Trustees have earmarked for particular purposes.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors

Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Going Concern

The trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.

Government Grants

Government grants received under the job retention scheme are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate.

2.	DONATIONS AND LEGACIES

2022

2021

£

£

Donations

114,743

113,027

Grants

151,080

131,921

Donated services and facilities

19,130

14,925

Government Grants

-

50,899

284,953

310,772

Donated services and facilities, included in the above, are as follows:

Year Ended

Year Ended

31.8.22

31.8.21

£

£

Services of a seconded Fire Officer

14,412

12,170

Notional interest on interest-free/preferential loans

4,250

2,600

Miscellaneous

468

155

19,130

14,925

Grants received, included in the above, are as follows:

2022

2021

£

£

Office of the Police and Crime Commissioner

50,000

50,000

Leicester, Leicestershire and Rutland Road Safety Partnership

-

12,500

The Rank Foundation

-

43,199

St Philip's Centre

16,080

19,250

Randal Charitable Foundation

68,517

-

Other grants

16,483

6,972

151,080

131,921

3.	OTHER TRADING ACTIVITIES

2022

2021

£

£

Fundraising events

29,223

9,036

Rental income

28,025

21,721

57,248

30,757

4.	INVESTMENT INCOME

2022

2021

£

£

Deposit account interest

27

7

5.	INCOME FROM CHARITABLE ACTIVITIES

2022

2021

Activity

£

£

Direct income from schools

Contribution Towards Programme Delivery

99,058

17,482

6.	RAISING FUNDS

Raising donations and legacies

2022

2021

£

£

Fundraising events

5,855

790

7.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

2022

2021

£

£

Independent examiners remuneration

3,575

3,402

Depreciation - owned assets

36,468

61,560

8.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2022 nor for the year ended 31 August 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2022 nor for the year ended 31 August 2021.

9.	STAFF COSTS

2022

2021

£

£

Wages and salaries

237,498

198,663

Social security costs

7,455

13,765

Other pension costs

4,053

3,509

249,006

215,937

The average monthly number of employees during the year was as follows:

2022

2021

Employees

14

12

No employees received emoluments in excess of £60,000.

Included within staff costs is £14,412 (2021: £12,170) being the deemed expense in relation to the donated services of the seconded Fire Officer(s).

10.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - 31 AUGUST 2021

Unrestricted

Designated

Restricted

Total

fund

Funds

funds

funds

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

290,772

-

20,000

310,772

Charitable activities

Contribution Towards Programme Delivery

17,482

-

-

17,482

Other trading activities

30,757

-

-

30,757

Investment income

7

-

-

7

Total

339,018

-

20,000

359,018

EXPENDITURE ON

Raising funds

790

-

-

790

Charitable activities

Programme Delivery

270,217

42,756

40,905

353,878

Total

271,007

42,756

40,905

354,668

NET INCOME/(EXPENDITURE)

68,011

(42,756

)

(20,905

)

4,350

Transfers between funds

6,252

-

(6,252

)

-

Net movement in funds

74,263

(42,756

)

(27,157

)

4,350

RECONCILIATION OF FUNDS

Total funds brought forward

65,397

853,663

86,968

1,006,028

TOTAL FUNDS CARRIED FORWARD

139,660

810,907

59,811

1,010,378

11.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

property

Scenarios

fittings

£

£

£

COST OR VALUATION

At 1 September 2021

875,000

405,693

56,130

Additions

-

-

672

Revaluations

175,000

-

-

At 31 August 2022

1,050,000

405,693

56,802

DEPRECIATION

At 1 September 2021

89,833

368,731

46,363

Charge for year

15,167

14,457

3,189

Revaluation adjustments

(98,000

)

-

-

At 31 August 2022

7,000

383,188

49,552

NET BOOK VALUE

At 31 August 2022

1,043,000

22,505

7,250

At 31 August 2021

785,167

36,962

9,767

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST OR VALUATION

At 1 September 2021

7,800

45,578

1,390,201

Additions

-

2,708

3,380

Revaluations

-

-

175,000

At 31 August 2022

7,800

48,286

1,568,581

DEPRECIATION

At 1 September 2021

6,240

43,780

554,947

Charge for year

1,560

2,095

36,468

Revaluation adjustments

-

-

(98,000

)

At 31 August 2022

7,800

45,875

493,415

NET BOOK VALUE

At 31 August 2022

-

2,411

1,075,166

At 31 August 2021

1,560

1,798

835,254