The Directors present their report and financial statements for the year ended 30 June 2022.
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 Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) 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)".
The charitable objectives are as follows
a) The advancement of health, mental and physical.
b) The advancement of citizenship and community development, by encouraging volunteering, community engagement and regeneration through physical, social and economic infrastructure improvements.
c) The provision of recreational facilities and activities with the object of improving the conditions of life for members of the public at large, but with a special emphasis on persons who have need of them through disability.
d) Promotion of equality and diversity through campaigning on behalf of disabled people for better access to the outdoor environment.
The charity's principal activities are cycling projects either facilitating and running cycling activity, or advisory, working with local authorities and cycling organisations to bring about changes that improve walking and cycling infrastructure.
Challenging times for Free Wheel North has meant that of March 2023 we are now a volunteer run organisation. All of our projects continue to operate with the inclusive cycling centre at Glasgow Green remaining the jewel in the crown; with ever-growing demand from schools and disability organisations who prize the service as unique and inspiring.
Especially encouraging as we traverse troubled waters is the fact that none of our partners in this mission to transform Glasgow into the healthy and safe city have deserted us. On the contrary there is an ever-growing list of partners, for example Mary Russell school, whose pupils combine enjoying cycling with volunteering to restore our office cabin and maintain bikes. Glasgow Women’s Aid and Glasgow Women’s library have enjoyed days of cycling. The Love and Care Group, Geezabreak and Citywise are groups helping young people. They love the Cycling Centre. The Glasgow School of Art have brought along artists to experience creative cycling and to plan murals and sculptures. Many new schools have joined, for example Annette Street Primary.
Alongside these new groups are our stalwarts, for example East Park Home and Linburn Academy, both of whom have been bringing people to the Cycling Centre since 2011. Their reviews are heart warming.
"We want to give the staff at Glasgow Green a big thank you for supporting our pupils' cycling experience. Each week, the bikes are prepared and ready to go. The staff often go out of their way to cater to the needs of our students. Today, they were very patient with a nervous girl who, over weeks, was building up the courage to approach the track. They offered ideas, support and even set aside a suitable bike in a quieter part of the area for her first ride. Not long after, she was singing around the track."
Class Teacher Linburn Academy
We have many such reviews .
The outreach programme was relaunched in the summer with roadshows at Queens Cross Housing, Claypits Nature reserve and the Cadder Gala, all preludes to resume the FWN plan to replicate the Cycling Centre across Scotland. Every one of these events is met with great joy and enthusiasm. All communities need and want a Centre, consistent with tackling the nation’s deep health inequalities and FWN’s constitution.
The Café at the Cycling Centre, Coffee on the Green, has recovered from Covid and is working in harmony with Cycling.
" The café is a lovely place to come to, the surroundings are lovely. It’s therapeutic looking out to the park. It’s a great service and a life-line to the local community and further afield.
Many people come to the café to meet other people and try the lovely food. The homemade soup is particularly nice made by a member of the family. What amazing commitment these staff have, and their family for contributing to an essential service – long may it continue. "
Customers
The Whitehouse, a historic building on the Forth and Clyde Canal is FWN’s community centre in Maryhill, with a bike shop and cafe. A major refurbishment was accomplished by volunteers and at no cost to the charity during the summer. It has hosted many events including meetings of the National Park City, Claypits Nature reserve and a BBC filmed show featuring a Chewing the Fat celebrity and musical performances. A gallery has been developed with shows featuring local artists.
"I t is wonderful to have this resource on our doorstep. The amount of sheer hard work which has gone in to improving the space is quite a thing to witness: we now have an art gallery in Maryhill which is really exciting. In the last few months I have been at two exhibition openings and also heard wonderful live music for free. The atmosphere is so relaxed and friendly and everyone is made to feel welcome and included. I know there are plans to introduce more events like this. Aside from all the internal works, the building looks much better from the outside having been painted and planted up.
The Whitehouse is a fantastic community hub. Since November there are monthly litter-picks along the canal which are very well attended and are making a real difference to the look and feel of the area. I had been depressed about the litter problem for a long time and it is great to join with like-minded others to improve things. There are regular community meals and there seems to be plenty of opportunities for local people to get involved and make new friends. I also rely on the Whitehouse for my regular bike tune up and repairs. "
A local resident
The Boomerang woodwork project in Maryhill, addressing mental health issues, continues despite no funding. As for everyone in the organisation the commitment to volunteer is amazing. Many workshops, outreach and classes combine recycling with design and helping people integrate into society. Communities across the city buy products from Boomerang, including projects of Queen’s Cross Housing and Glasgow University.
Free Wheel North will continue to support its oldest project as long as it can and is optimistic it can weather a storm and emerge as a social enterprise charity that continues its mission to regenerate communities, advance mental and physical health, and transform the conditions under which people live.
The Statement of Financial Activities on page 5 indicates both Net Expenditure (i.e. a Deficit ) and negative Net Movement in Funds for the year of £ 90,615 . Additions to Fixed Assets during the year of £15,545 as per Note 10 were financed by Restricted Funds (£14,000) and the General Fund (£1,545). At 30 June 202 2 , the charity had total funds of £ 331,398 (20 21 - £422,013 ) of which £2 05,815 ( 62 %) were tied up in fixed assets.
Reserves Policy
It is the policy of the charity to maintain Unrestricted Funds (i.e. funds not committed or invested in fixed assets) at a level which equates to approximately three months of unrestricted expenditure. Unrestricted Funds per the General Fund (page 5 ) at 30 June 20 22 amounted to £ 81,075 (20 21 - £ 94,640 ) which was acceptable to the Directors.
Risk Management
The Directors have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
Free Wheel North, ("the charity") was incorporated on 13 June 2008 as a company limited by guarantee, (No. SC344339), governed by its Memorandum and Articles of Association and is a Scottish Charity (No. SC039789).
The Directors who served during the year and up to the date of signature of the financial statements were:
Appointment of Directors
New Directors are elected annually. New Directors take part in an induction programme which aims to familiarise them with the charity's values, aims and objectives together with its day-to-day operations, in addition to clarifying their statutory responsibilities as Directors of a company limited by guarantee and Trustees of a charity.
Organisational structure
The Directors are responsible for the overall direction of the charity and serve voluntarily. See also Note 7.
Key management personnel and remuneration
The Directors consider themselves as the charity's key management personnel in charge of directing and controlling the charity and overseeing its daily activities. Details of remuneration paid to Norman Armstrong, Director, are provided in Note 7.
Kevin Booth , FC CA, succeeded Alan Cunningham, CA, as independent examiner of the Charity as the designated Partner of Alexander Sloan, Accountants & Business Advisers responsible for this engagement. The Directors recommend that he remain in office as independent examiner until further notice.
The Directors' r eport was approved by the Board of Directors.
I report on the financial statements of the charity for the year ended 30 June 2022, which are set out on pages 5 to 24.
The charity’s Directors, who also act as Trustees for the charitable activities of Free Wheel North, are responsible for the preparation of the financial statements in accordance with the terms of the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006. The Directors consider that the audit requirement of Regulation 10(1)(a) to (c) of the 2006 Accounts Regulations does not apply. It is my responsibility to examine the financial statements as required under section 44(1)(c) of the Act and to state whether particular matters have come to my attention.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the T rustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
d esignated
Donations
Income from charitable activities
Income from o ther trading activities
C ost of c haritable activities
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
d esignated
Donations
Income from charitable activities
Income from o ther trading activities
C ost of c haritable activities
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Free Wheel North is a private company limited by guarantee and incorporated in Scotland. The registered office is 3/1 47 Braeside Street, Glasgow, G20 6QT. The principal place of activities is Glasgow Green, Templeton Street, Glasgow, G40 1AT.
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended), Companies Act 2016 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)". 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 applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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. The Trustees consider there are no material uncertainties about the charity's ability to continue as a going concern. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the Directors in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the Directors for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors 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.
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 is recognised at the time of the donation.
Income from Charitable Activities
Income from charitable activities includes income earned both from the supply of goods or services under contractual arrangements and from performance-related grants which have conditions that specify the provision of particular goods or services to be provided by the charity. Income from charitable activities is recognised as earned (as the related goods or services are provided).
Grants receivable
Income from government and other grants, whether 'capital' or 'revenue' in nature, are recognised when the charity has unconditional entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Unconditional entitlement will be achieved once any performance or other conditions attached to the grants have been met, or fulfilment of those conditions is wholly within the control of the charity.
Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released .
Other trading activities
Income from other trading activities includes income earned from both trading activities to raise funds for the charity and income from fundraising events and is recognised when the charity has entitlement to the funds, it is probable that these will be received and the amounts can be measured reliably.
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 settlement will be required and the amount of the obligation can be measured or estimated reliably.
Liabilities are measured on recognition at historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date. The exception is that certain financial instruments must be adjusted to their present value; these include financial liabilities where settlement is deferred for more than 12 months after the reporting date.
All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
Expenditure on Charitable Activities
Expenditure on charitable activities includes all costs incurred by the charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. The costs of charitable activities presented in the Statement of Financial Activities includes the costs of both direct service provision and the payments of grant awards if applicable.
Governance costs
Governance costs (which are included as a component of support costs in accordance with SORP) comprise all costs involving the public accountability of the charity and its compliance with regulation and good practice. These costs include those related to constitutional and statutory requirements, external scrutiny (audit or independent examination), strategic management, and other legal and professional fees.
Activity based reporting
To comply fully with the Statement of Recommended Practice would require income and expenditure to be reported by activity. The Directors are of the opinion that the activities of the charity are inter-linked, therefore this would be impractical to calculate and would provide no additional benefit to the users of these financial statements. Therefore no further analysis of income and expenditure is provided within these financial statements.
Irrecoverable VAT
Irrecoverable VAT is charged against the expenditure heading for which it was incurred.
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
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 ) .
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.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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, 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 p aymen ts 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.
Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
In the application of the charity’s accounting policies, the Directors 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.
Donations
Grants
Income from charitable activities
Income from o ther trading activities
Commissioned Events
Bike Repairs
Group Cycle Training
Venue Hire
Bespoke Cycle Training
Wood Classes
Café income
Income from o ther trading activities
C ost of c haritable activities
Premises costs
Running costs
Legal and professional
Governance costs
Remuneration of £10,126 (Per Note 8 ) (2021 - £7,260) was paid to Norman Armstrong, Director, in his role as the charity 's Development Worker and in accordance with Sections 50 to 52 of the charity's Articles of Association.
No Director was reimbursed expenses during the year (20 21 - £Nil). See also Note 18 .
The average monthly number of employees during the year was:
The remuneration of key management personnel during the year including employer's contributions to national insurance and pensions was £35,623 (2021 - £30,824).
Income
Expenditure
Income
Expenditure
Purposes of Restricted Funds
Smarter Choices, Smarter Places Fund
Represents grant funding received from Paths for All via Glasgow City Council to encourage active travel. The fund was expended at 30 June 2022.
Boomerang Project Fund
Represents grant funding received from The Robertson Trust and the National Lottery Community Fund (Medium Grant Scotland) towards the operating costs of the Boomerang Project supplemented by income arising from Wood Classes and Commissioned Projects.
Glasgow Green Staffing Fund
Represents grant funding received from BBC Children in Need and the National Lottery Community Fund (Medium Grants Scotland) to finance the employment costs of Project staff at the charity's Glasgow Green site. During the year ended 30 June 2022, £440 was transferred from the General Fund (Unrestricted) to absorb the deficit on this fund. The fund was expended at 30 June 2022.
Glasgow Green Transport Fund (Capital)
Represents grant funding from Glasgow City Council towards capital projects at the charity's Glasgow Green site including portacabin cycle repair, shop cabin and equipment, toilet cabin, office cabin, cycle track widening and extension and various inclusive cycles. The fund was expended at 30 June 2021.
Adaptive Bike Pilot Scheme Fund
Represents grant funding received during the year ended 30 June 2022 from Scottish Government towards the operating costs of an Adaptive Bike Pilot scheme to refurbish abandoned adaptive bikes and develop a hub where young people can come to use the bikes in a save environment. The fund was expended at 30 June 2022.
Cycling Repair Scheme Fund
Represents funding received from Cycling UK to finance the charity’s participation in the Big Bike Revival for Key Workers (Scotland). During the year ended 30 June 2022, £40 was transferred from the General Fund (Unrestricted) to absorb the deficit on this fund. The fund was expended at 30 June 2022.
Job Retention Scheme Fund
Represents furlough funding from the UK Government to support salary costs during the Covid-19 pandemic. This fund was expended at 30 June 2021.
Time to Shine Fund
Represents grant funding received from Rank Foundation to employ a media development officer. The fund was expended at 30 June 2022.
Woodland Cycle Fund
Represents funding received from Scottish Forestry to finance the 'Woodland activities for human and nature connection' project. The fund was expended at 30 June 2022.
Glasgow Green Café Fund (Revenue)
Represents funding from Tesco Community Grant to fund the day to day running of the café.
Glasgow Green Café Fund (Capital)
Represents funding from Scotland's Towns Partnership to fund the purchase of equipment for the Glasgow Green Café. This fund was expended at 30 June 2021.
Whitehouse Café Fund
Represents funding from Communities Recovery Fund to fund the day to day running of the café including staff costs. The fund was expended at 30 June 2021.
Glasgow Green Bike Shop Fund
Represents funding from Cycling Scotland to fund the promotion and enablement of cycling within the local community. The transfer of £14,000 during the year ended 30 June 2022 to the Designated Assets Fund (Unrestricted) related to the financing of fixed assets during the year. The fund was expended at 30 June 2022.
Step Up Apprentice Fund
Represents funding from Step Up Glasgow (Glasgow City Chambers of Commerce) to finance the employment of an apprentice bike mechanic. The negative income amount occurred due to over accrual of income in the year ended 30 June 2021. During the year ended 30 June 2022, £732 was transferred from the General Fund (Unrestricted) to absorb the deficit on this fund. The fund was expended at 30 June 2022.
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the Directors for specific purposes:
Expenditure
Expenditure
Purposes of Designated Funds
Designated Assets Fund
The Designated Assets Fund represents the net book value of the charity's fixed assets which would not be readily convertible into cash . During the year ended 30 June 2022 the transfer of £15,545 related to the purchase of fixed assets as financed (1) £1,545 from the General Fund (Unrestricted), (2) £14,000 from the Glasgow Green Bike Shop Fund (Restricted).
Unrestricted General funds
Unrestricted Designated funds
Restricted funds
Unrestricted General funds
Unrestricted Designated funds
Restricted funds
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
There were no disclosable related party transactions during the year (2021 - none) .