Charity registration number 1172152
Company registration number 10238641 (England and Wales)
THE FRESHWATER FOUNDATION
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
THE FRESHWATER FOUNDATION
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Ms Charlotte Sims
Mr Manuel Casertano
Mr Mark Robbins
Mrs Juliet Hunt
Secretary
Mr Mark Robbins
Charity number
1172152
Company number
10238641
Registered office
14b Freshwater Court
Lady Margaret Road
Southall
Middlesex
United Kingdom
UB1 2NY
Independent examiner
Reddy Siddiqui LLP
183-189 The Vale
Acton
London
United Kingdom
W3 7RW
THE FRESHWATER FOUNDATION
CONTENTS
Page
Trustees' report
1 - 4
Independent examiner's report
5
Statement of financial activities
6
Balance sheet
7
Notes to the financial statements
8 - 12
THE FRESHWATER FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The trustees present their annual report and financial statements for the year ended 30 June 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).

Objectives and activities
Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Introduction

Overall, a very good year indeed, where we can finally say that in terms of our objects we are engaging in all the activities that we aimed to when we started up. That of course does not mean that we are doing them as well as we might – optimisation of our efforts is next on the agenda - but we are at least on all the right roads towards effective performance and the fulfilment of our vision to support and expand local civil society, and of the charitable objects that support this vision. We had also planned that all our activities should be mutually-supporting, each encouraging the others, and that has also been gratifyingly in evidence.

Our Activities

Grant-making

In the area of grant-making, we had a great increase in the number of groups supported, taking our total across both boroughs to around 140 groups so far assisted over the past 5 years. This increase was especially marked in the case with our Small Grants, up by 100%, and this is especially pleasing as these are the funds that are more likely to be going to the start-ups we are so keen to support (and which are so key to our core vision of a revitalised local civil society).

Our success is partly down to the vast increase in outside funding received, but is mainly due to our outreach activities and our ever-broadening engagement with all levels and areas of public life, a clear example of the mutually supporting nature of our activities.

Training & Support

Success in the area of training and support is also linked to our outreach activities, as there are now far more start-ups to support, and it was these that allowed us to run our first training and networking seminar in Management & Governance Basics. This went very well, with 20 groups attending (as did Rupa Huq, the local MP), and it was especially gratifying to see the extent of spontaneous networking that occurred.

We are very keen to build bridges between all areas of civic action in our boroughs, especially between established civil society and the new groups from the more marginalised areas, and this is precisely what happened; both sectors were well represented at the event and close communication between them was very evident.

We have been less successful with our management offerings for more advanced groups (Impact Assessment, Strategic Management, Business Planning), but we aim to promote these as part of our strategy for the next 2 years.

 

THE FRESHWATER FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

Outreach & Start-Ups

This has been the real jewel in the crown of our efforts this year. We are now supporting over 30 start-ups with their basic management and governance, far more than was planned, and as we have seen, this has been the real dynamo behind all our other activities. It has driven up grants, made us a fully-fledged management support and training organisation, and in terms of engagement with broader public life, this is the one activity that has really put us on the map as a dynamic and original contributor to local public life amongst the councils we work with, local MPs, other local support and umbrella groups and the larger funders. As we will see, it has also allowed us to expand our efforts to increase coordination and cooperation amongst local civil society groups.

To deal with this increased demand, we have taken on another volunteer, Rachit, and he has proved to be a most valuable addition to the charity.

Engagement with Public Life

In terms of engagement with broader public life, our efforts have greatly expanded as well. We are now well-known to and working with many council departments in both Ealing and Hounslow (Community Partnership, Regeneration, Children & Families) and are slowly working our way up the command chain (cabinet members and directorate heads). We have also formed strong relationships with two local MPs, Rupa Huq and James Murray, as well as key LIOs (Local Infrastructure Organisations – Ealing Community Network, the local CVS, the Young Ealing Foundation, Cultivate London) as well as developers such as A2Dominion and Greenford Quay and other key civil society actors, such as the Deputy Lieutenants in both of our boroughs.

We are keen that all this effort is not just networking for its own sake and we have successfully managed to avoid this trap. All our contacts have served to drive our core objects; they have driven the increase in grant-making and been highly instrumental in our outreach success. Our engagement efforts are also going to be key in furthering our future ambitions to be an ‘Honest Broker’ between councils and local civil society, starting to have an impact on policy (and more importantly, allowing our groups to have such impact as well), and of penetrating further into the more marginalised areas of our boroughs, those areas where organised civil society has little or no effective presence.

The broad range of contacts we have made will also provide an ideal audience for the research efforts we are making into key civil society academic and policy debates, and we will soon be able engage with them through a comprehensive briefing into neighbourhood regeneration and the future of civil society which is close to completion.

 

THE FRESHWATER FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

Encouraging Coordination & Cooperation

All of the above, and especially outreach to start-ups, has fuelled our coordination activities, where we aim to facilitate communications and cooperation amongst various local groups. Having now set up our Cooperation & Networking Directory, (currently with about 100 members), we are starting to develop its uses as a mutual support mechanism (all members can call upon all others for assistance), a way of disseminating information and best practice, and a means of bringing together groups around areas of common concern to make for more effective co-working in these areas, and to be able to potentially feed common concerns and ideas for more effective partnership upwards to local councils and others at the higher levels of local public life. Taking all these uses further will very much form part of our strategy for the immediate and intermediate future.

Charity Infrastructure

When it comes to developing the charity’s infrastructure, the emphasis currently very much has to be on fundraising. We had previously enjoyed a great deal of external funding, having received windfall grants of £67,000, half from the City Bridge Foundation and the other half from a philanthropically-oriented business. This was not only very useful, but highly gratifying as both grants were made spontaneously, without any effort on our part, simply because the funders were impressed by what they saw.

However, due to circumstances beyond our control, this funding has now dropped considerably (although both funders had made it abundantly clear that they were very happy with out performance). Therefore, since our internal source of funds (the CEO and founder) can only realistically last for another few years, we need to develop and implement a proper fundraising strategy as a matter of some urgency.

We have made a good start on this, by developing close collaborative relations with a number of larger funders and by reaching out to business. This has also supported our other activities, as many of our start-ups are now at the point where they too need to develop fundraising strategies, so our efforts can support theirs, especially when it comes to looking to business.

Summary & The Way Forward

Strong, mutually-supporting progress in all areas has therefore given us a very good platform from which to pursue all of our objects and the vision they support.

We now need to build on this by evaluating what we’ve been doing, making improvements, and then systemising our approaches so as to make them more broadly reproducible. We are also especially keen to act as an intermediary between local civil society and the local and national political spheres, to encourage a greater depth of cooperation within local civil society, to probe deeper into the marginal areas where effective civic action is weaker (but more urgently needed), contribute to local and national civil society debates, and to focus on financial sustainability, both our own and that of those we support.

Once we are well on the way to achieving all of these, we can then further promote the charity as a key partner for local councils and larger charities and funders in both the implementation and development of their plans and policies, to expand the charity’s activities and geographical scope, and most importantly to provide a conduit to local civil society to have a greater impact on the broader public arena. All of this forms the backbone of our strategy for the next few years.

Financial review
Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.

Structure, governance and management

The charity is a Private Limited Company by guarantee without share capital use of 'Limited' exemption.

THE FRESHWATER FOUNDATION
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Ms Charlotte Sims
Mr Manuel Casertano
Mr Mark Robbins
Mrs Juliet Hunt
Recruitment and appointment of trustees

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).

 

The company's current policy concerning the payment of trade creditors is to:

 

The trustees' report was approved by the Board of Trustees.

Mr Mark Robbins
Trustee
8 March 2024
THE FRESHWATER FOUNDATION
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF THE FRESHWATER FOUNDATION
- 5 -

I report to the trustees on my examination of the financial statements of The Freshwater Foundation (the charity) for the year ended 30 June 2023.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1

accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

2

the financial statements do not accord with those records; or

3

the financial statements 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 financial statements 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 financial statements to be reached.

Reddy Siddiqui LLP
183-189 The Vale
Acton
London
W3 7RW
United Kingdom
Dated: 8 March 2024
THE FRESHWATER FOUNDATION
STATEMENT OF FINANCIAL ACTIVITIES
INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -
Unrestricted
Unrestricted
funds
funds
2023
2022
Notes
£
£
Income from:
Donations and legacies
3
75,018
30,780
Investments
4
71
1
Total income
75,089
30,781
Charitable activities
5
53,419
41,169
Net income/(expenditure) and movement in funds
21,670
(10,388)
Reconciliation of funds:
Fund balances at 1 July 2022
3,093
13,481
Fund balances at 30 June 2023
24,763
3,093

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

THE FRESHWATER FOUNDATION
BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 7 -
2023
2022
Notes
£
£
£
£
Current assets
Cash at bank and in hand
26,743
4,173
Creditors: amounts falling due within one year
11
1,980
1,080
Net current assets
24,763
3,093
The funds of the charity
Unrestricted funds
24,763
3,093
24,763
3,093

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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

The financial statements were approved by the trustees on 8 March 2024
Mr Mark Robbins
Trustee
Company registration number 10238641 (England and Wales)
THE FRESHWATER FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
1
Accounting policies
Charity information

The Freshwater Foundation is a private company limited by guarantee incorporated in England and Wales. The registered office is 14b Freshwater Court, Lady Margaret Road, Southall, Middlesex, UB1 2NY, United Kingdom.

1.1
Accounting convention

The financial statements have been prepared in accordance with the charity's [governing document], the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

 

The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.
1.4
Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
THE FRESHWATER FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 9 -
1.5
Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

 

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.7
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

THE FRESHWATER FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
2
Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Income from donations and legacies
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Donations and gifts
75,018
30,780
4
Income from investments
Unrestricted
Unrestricted
funds
funds
2023
2022
£
£
Interest receivable
71
1
THE FRESHWATER FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
5
Expenditure on charitable activities
Expenditure
Expenditure
2023
2022
£
£
Direct costs

Insurances

711
-

Printing and stationery

96
96

Computer running costs

180
212

Training seminar expenses

344
-

Volunteer expenses

36
-

Sundry expenses

113
-

Bank charges

70
96
1,550
404
Grant funding of activities (see note 6)
50,969
39,685
Share of support and governance costs (see note 7)
Governance
900
1,080
53,419
41,169
Analysis by fund
Unrestricted funds
53,419
41,169
6
Grants payable
Expenditure
Expenditure
2023
2023
£
£
Grants to institutions:
Other
50,969
39,685
-
7
Support costs allocated to activities
2023
2022
£
£
Governance costs
900
1,080
Analysed between:
Expenditure
900
1,080
8
Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
THE FRESHWATER FOUNDATION
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
9
Employees

The average monthly number of employees during the year was:

2023
2022
Number
Number
Total
-
0
-
0
There were no employees whose annual remuneration was more than £60,000.
10
Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

11
Creditors: amounts falling due within one year
2023
2022
£
£
Accruals and deferred income
1,980
1,080
12
Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 July 2022
Incoming resources
Resources expended
At 30 June 2023
£
£
£
£
General funds
3,093
75,089
(53,419)
24,763
Previous year:
At 1 July 2021
Incoming resources
Resources expended
At 30 June 2022
£
£
£
£
General funds
13,481
30,781
(41,169)
3,093
13
Related party transactions

During the year, a total of £8,000 was received from Mr M Robbins, a trustee of the charity. (2022 - £28,500)

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