Community Sustainability Services - Charities report - 19.2
Community Sustainability Services - Charities report - 19.2
DRAFT |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
REPORT OF THE TRUSTEES AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED |
31 MARCH 2019 |
FOR |
COMMUNITY SUSTAINABILITY SERVICES |
DRAFT |
COMMUNITY SUSTAINABILITY SERVICES |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2019 |
Page |
Report of the Trustees | 1 to 6 |
Report of the Independent Auditors | 7 to 8 |
Statement of Financial Activities | 9 |
Balance Sheet | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 to 24 |
DRAFT |
COMMUNITY SUSTAINABILITY SERVICES |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2019 |
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 March 2019. 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 2015). |
OBJECTIVES AND ACTIVITIES |
Objectives and aims |
The principal activity of the Charity for the year 1st April 2018 to 31st March 2019 was that of providing |
services for vulnerable and disadvantaged people in the North East of England. |
The Charity's main objectives are: |
To relieve poverty in particular by supplying and renovating furniture and household goods to those in need in |
the North East of England. |
The relief of elderly or disabled people by participating in any charitable scheme or service intended to benefit |
such people in need. |
To protect and safeguard the environment for the public benefit particularly through the promotion of reuse |
and recycling as a means of waste disposal and the provision of recycling activities. |
We have worked towards our objectives by: |
Collecting, renovating and distributing furniture and household goods to those in need. |
Providing training and volunteering opportunities, in particular for the long term unemployed and people with |
learning disabilities and mental health problems. |
Providing garden and handyperson services for elderly or disabled people to help them to live comfortably, |
securely and safely in their own homes in the community. |
Public benefit |
The Charity's activities aim to help the most vulnerable people within our community. We act to alleviate |
poverty, maintain people's independence within their own homes and offer support to those in long term |
unemployment, people with learning disabilities and people with mental health problems. All of our activities |
are provided whilst ensuring that the service users have a sense of dignity and we are always aware of their |
emotional wellbeing. |
The Charity measures its success based on the number of service users helped, the feedback forms and |
reports received back from service users and targets being hit, and in some cases exceeded, within the |
relevant services. |
The Charity is a public benefit entity. The trustees have had regard to the Charity Commission's guidance on |
public benefit. |
The main activities and who the Charity helps are described below. |
COMMUNITY SUSTAINABILITY SERVICES |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2019 |
DRAFT |
ACHIEVEMENT AND PERFORMANCE |
Furniture Stores |
The Charity operated out of two premises across the City, each making a valuable contribution to its overall |
purpose and values. |
The first is based in Southwick on the North side of the River Wear and the second is in Thorney Close, on |
the South side of the River Wear. |
The furniture stores exist to make affordable, quality furniture available to those most in need in our |
community. The Charity collects donated furniture and passes it on to service users, for a small charge, |
ensuring that it is of good quality and re-usable. |
Volunteers help within the furniture stores by offering their free time to assist with serving customers and |
basic administration work. CSS and its board of trustees are very grateful for the amount of time which is |
donated to the charity throughout the year. |
During the period 1st April 2018 to 31st March 2019, the furniture stores have received over 4,000 visits with |
over 2,800 customers purchasing furniture, household items, clothing and bric a brac. |
The Charity received over 1,600 items of donated furniture, as well as clothing and small bric a brac items, |
the vast majority of which were sold. As a result, over 70 tonnes of bulky waste was diverted from landfill. |
Furniture Restoration Workshop |
The workshop at Thorney Close provides training and volunteering opportunities and supported placements |
for the long term unemployed, people with disabilities and people with mental health problems. Within the |
furniture restoration workshop service users and volunteers learn how to restore furniture and can also |
acquire basic craft skills. |
A Tutor is employed in the workshop to support the service users and participants and encourages them to |
bring out their true potential. With the tutors help and guidance the participants and service users develop |
their basic core work and life skills which they can then take with them in order to go into further training, find |
permanent employment or voluntary positions. Of course, they are more than welcome to continue to |
volunteer at CSS too. |
The workshop provides therapeutic learning; it allows the service users to obtain new skills through stress |
free training whilst they work. There is no better feeling to the service users than knowing that a piece of |
furniture they have been working on now takes pride of place in somebody's home. This greatly helps build |
people's confidence, which helps to improve their emotional wellbeing. |
Handyperson and Minor Alterations Service |
After providing a Handyperson and Minor Alterations (HPMA) Service on behalf of Sunderland Care and |
Support during the previous five years, a tender application was submitted and the decision was made to |
award the new contract to the Charity in 2013. |
The contract awarded was for three years running from July 2013 to June 2016. |
The Charity had been awarded with a further one-year extension which expired on 30th June 2017, and it was |
subsequently awarded a further one-year extension which expired on 30th June 2018. A further extension |
was granted which will expire on 31st March 2020. |
The HPMA service provides handyperson, gardening and minor alterations work to elderly or vulnerable |
people within the city. The service is accessed via referral only. The HPMA contract has targets set at the |
start of each contracted period. CSS is proud to state that all targets set are met and exceeded. |
Welfare Reform |
COMMUNITY SUSTAINABILITY SERVICES |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2019 |
ACHIEVEMENT AND PERFORMANCE |
DRAFT |
The Charity was approached by Sunderland City Council to deliver part of the Council's responsibilities under |
the Welfare Reform Act, which came into effect in April 2013. The Charity supplies low cost furniture to those |
who qualify under the Act. We also deliver energy and travel vouchers on their behalf. |
This project fits within the Charity's aims and objectives by providing and distributing furniture and household |
goods to those in need. |
The Welfare Reform project went out to tender during the accounting period. The contract was looked at |
in-depth, and due to the changes within the contract the trustees made the decision not to apply for the tender |
as it wouldn't have been feasible for the Charity. The Welfare Reform project ended in November 2018. |
ESF LA7 Training Funding |
The Charity made a successful funding application to the ESF LA7 Community Grant's team. This funding |
was to provide training placements at a pre-foundation level for preferably economically inactive people in the |
city who were either long term unemployed, had learning disabilities, were female or were lone parents. |
The funding meant we could provide four-week training placements to enable people to gain confidence and |
skills in order to help them enter the labour market. |
After completing the training, some of the participants went on to volunteer for the charity, something they |
never envisioned they would be able to do, therefore this is a great success. |
FINANCIAL REVIEW |
After the previous challenging year for the Charity, this financial year has been a lot more positive. The |
Charity has received funds from the European Social Fund (ESF), meaning we now have experience with |
European monies we will be able to apply for further funds when they are released. |
The Charity applied for back-dated gift aid money from previous donations and has received these funds |
during the accounting period. |
The charity would like to thank the following organisations for their contributions towards the costs of the |
charity: |
FUNDING | AMOUNT | FUNDING PURPOSE |
The 29th May 1961 Charitable Trust | £3,000 | Towards the salary of a tutor |
Sir James Knott Trust | £4,000 | Towards the salary of a tutor |
Reserves |
The Company has continued with its policy of maintaining reserves at a level approximating no more than six |
months unrestricted expenditure of the service. |
The reserves held at the end of the reporting period are £135,745 in unrestricted funds. |
This is in-line with the Charity's reserves policy and designated funds supplement for the financial year. |
COMMUNITY SUSTAINABILITY SERVICES |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2019 |
DRAFT |
FUTURE PLANS |
The Charity will continue to provide the Handyperson and Minor Alterations service on behalf of Sunderland |
Care and Support for the extended period. |
The Tutor's position will be further developed, and CSS will work towards having the training programmes that |
are being delivered accredited. This will help to secure further funding under training whilst ensuring we are |
working towards the aims and objectives of the Charity. This is one of the directions where the Charity is |
heading, and we are looking to source funds to enable us to move the project forward. |
The Charity will allocate time to developing the community garden, or at least applying for funding to enable |
us to develop the garden whilst creating opportunities for local residents to help us to mould the garden to |
what they feel they need in their neighbourhood. CSS wants to include the residents from the planning stage |
right through to the completion and grand opening stage, as it is their garden in their neighbourhood. |
CSS will look into the possibilities of partnership working with like-minded charities, particularly with those |
involved in the reuse and recycling of furniture and household goods. This will help us to reach a wider client |
base which in turn will help to reduce the effects of poverty within the city. |
The Charity will continue to seek funding for the core business to enable it to carry out the much-needed work |
that it does. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited |
by guarantee, as defined by the Companies Act 2006. |
The Charity is a company Limited by Guarantee and was incorporated on the 17 August 1994. The Charity is |
registered as a charity under the Charities Act 1960 and was registered on 25 January 1996. The Charity is |
governed by its Memorandum and Articles of Association. |
The Board of Trustees, whose members are Directors for the purpose of the Companies Act 2006, has |
overall responsibility for the direction, management and control of the Company and meets six times per year. |
The responsibility for the day to day operational and financial aspects of the Company has been delegated to |
the Chief Executive Officer. |
The Trustees aim is to ensure that they apply best practice and that they comply with the Charity |
Commission's guidelines. |
Recruitment and appointment of new trustees |
Application to become a Trustee is by means of personal invitation from the existing Trustees, who take into |
account the relevant skills and experience of those invited. |
New Trustees are invited to attend an induction for half a day at the charity in order to familiarise themselves |
with all aspects of the charity. |
The induction covers the following: |
- The obligations of the Trustees |
- The Memorandum and Articles of Association |
- The history of the charity |
- The services that the charity offers |
- The trading subsidiary company |
- The current financial position of the company |
- Future plans |
COMMUNITY SUSTAINABILITY SERVICES |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2019 |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
DRAFT |
Organisational structure |
Community Sustainability Services (formerly known as Sunderland Community Furniture Service) has a |
Board consisting of at least five Trustees. The Charity also has a Company Secretary who sits in on meetings |
but has no voting rights. |
The Directors have overall responsibility for the direction, management and control of the Charity and meet 6 |
times per year, while responsibility for the day to day operational and financial aspects of the Charity is |
delegated to the Chief Executive Officer. |
Related parties |
The Charity also operates a wholly owned subsidiary Company, SCFS Contracts Ltd., which carries out |
gardening, handyperson and decorating work but on a non-subsidised basis. During the coming year it is |
anticipated that the Company will expand further by offering services to businesses as well as continuing to |
offer a much valued service to domestic customers. Any profit accruing to the Company is pledged to the |
Charity. |
Risk management |
The Directors are responsible for assessing the major risks to which the Company is exposed, and for |
establishing systems to mitigate those risks. They have considered risks which could have a negative effect |
on the Company's ability to pursue its aims, both in terms of the likelihood of their occurring and the probable |
impact of such events. Risks identified include legal compliance, insurance, financial loss, continuity of |
personnel, accidents, property, IT and general governance. The Directors continue to review and monitor |
these risks and the adequacy of the systems in place to reduce them. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
Registered office |
Trustees |
P V Blyth |
G H Parr |
T Bowen |
D Cleghorn |
Company Secretary |
Auditors |
Statutory Auditor |
Fernwood Road |
Jesmond |
Newcastle upon Tyne |
Tyne and Wear |
NE2 1TJ |
COMMUNITY SUSTAINABILITY SERVICES |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2019 |
DRAFT |
STATEMENT OF TRUSTEES RESPONSIBILITIES |
The trustees (who are also the directors of Community Sustainability Services for the purposes of company |
law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with |
applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting |
Practice). |
Company law requires the trustees to prepare financial statements for each financial year which give a true |
and fair view of the state of affairs of the charitable company and of the incoming resources and application of |
resources, including the income and expenditure, of the charitable company for that period. In preparing |
those financial statements, the trustees are required to |
- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy |
at any time the financial position of the charitable company and to enable them to ensure that the financial |
statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of |
the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and |
other irregularities. |
In so far as the trustees are aware: |
- | there is no relevant audit information of which the charitable company's auditors are unaware; and |
- | the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. |
AUDITORS |
The auditors, Robson Laidler Accountants Limited, will be proposed for re-appointment at the forthcoming |
Annual General Meeting. |
Approved by order of the board of trustees on |
DRAFT |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COMMUNITY SUSTAINABILITY SERVICES |
Opinion |
We have audited the financial statements of Community Sustainability Services (the 'charitable company') for the year ended 31 March 2019 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the charitable company's affairs as at 31 March 2019 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and |
applicable law. Our responsibilities under those standards are further described in the Auditors |
responsibilities for the audit of the financial statements section of our report. We are independent of the |
charitable company in accordance with the ethical requirements that are relevant to our audit of the financial |
statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical |
responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained |
is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to |
report to you where: |
- | the trustees' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
Other information |
The trustees are responsible for the other information. The other information comprises the information |
included in the annual report, other than the financial statements and our Report of the Independent Auditors |
thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent |
otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, |
in doing so, consider whether the other information is materially inconsistent with the financial statements or |
our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such |
material inconsistencies or apparent material misstatements, we are required to determine whether there is a |
material misstatement in the financial statements or a material misstatement of the other information. If, |
based on the work we have performed, we conclude that there is a material misstatement of this other |
information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Trustees has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the charitable company and its environment obtained in the |
course of the audit, we have not identified material misstatements in the Report of the Trustees. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
COMMUNITY SUSTAINABILITY SERVICES |
Matters on which we are required to report by exception |
DRAFT |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to |
report to you if, in our opinion: |
- | adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of trustees' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. |
Responsibilities of trustees |
As explained more fully in the Statement of Trustees Responsibilities, the trustees (who are also the directors |
of the charitable company for the purposes of company law) are responsible for the preparation of the |
financial statements and for being satisfied that they give a true and fair view, and for such internal control as |
the trustees determine is necessary to enable the preparation of financial statements that are free from |
material misstatement, whether due to fraud or error. |
In preparing the financial statements, the trustees are responsible for assessing the charitable company's |
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using |
the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or |
to cease operations, or have no realistic alternative but to do so. |
Our responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free |
from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors |
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an |
audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. |
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, |
they could reasonably be expected to influence the economic decisions of users taken on the basis of these |
financial statements. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial |
Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our |
Report of the Independent Auditors. |
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. Our audit work has been undertaken so that we might state to the |
charitable company's members those matters we are required to state to them in an auditors' report and for |
no other purpose. 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 audit work, for |
this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
Fernwood Road |
Jesmond |
Newcastle upon Tyne |
Tyne and Wear |
NE2 1TJ |
DRAFT |
COMMUNITY SUSTAINABILITY SERVICES |
STATEMENT OF FINANCIAL ACTIVITIES |
FOR THE YEAR ENDED 31 MARCH 2019 |
2019 | 2018 |
Unrestricted fund |
Restricted funds |
Total funds |
Total funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 2 |
Charitable activities | 5 |
Other trading activities | 3 |
Investment income | 4 |
Other income |
Total |
EXPENDITURE ON |
Raising funds |
Other trading activities | 6 | 155,332 | - | 155,332 | 211,368 |
Charitable activities | 7 |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 161,314 |
DRAFT |
COMMUNITY SUSTAINABILITY SERVICES |
BALANCE SHEET |
AT 31 MARCH 2019 |
2019 | 2018 |
Unrestricted fund |
Restricted funds |
Total funds |
Total funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Stocks | 15 |
Debtors | 16 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 17 | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
NET ASSETS |
FUNDS | 19 |
Unrestricted funds | 135,745 | 120,823 |
Restricted funds | 40,491 |
TOTAL FUNDS | 161,314 |
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 on |
DRAFT |
COMMUNITY SUSTAINABILITY SERVICES |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2019 |
2019 | 2018 |
Notes | £ | £ |
Cash flows from operating activities: |
Cash generated from operations | 1 | 4,646 | (114,962 | ) |
Net cash provided by (used in) operating activities |
4,646 |
(114,962 |
) |
Cash flows from investing activities: |
Purchase of tangible fixed assets | (11,445 | ) | (20,672 | ) |
Sale of tangible fixed assets | 9,639 | 1,133 |
Net cash provided by (used in) investing activities |
(1,806 |
) |
(19,539 |
) |
Cash flows from financing activities: |
New loans in year | 2,949 | 2,205 |
Net cash provided by (used in) financing activities |
2,949 |
2,205 |
Change in cash and cash equivalents in the reporting period |
5,789 |
(132,296 |
) |
Cash and cash equivalents at the beginning of the reporting period |
148,096 |
280,392 |
Cash and cash equivalents at the end of the reporting period |
153,885 |
148,096 |
DRAFT |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2019 |
1. | RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES |
2019 | 2018 |
£ | £ |
Net income/(expenditure) for the reporting period (as per the statement of financial activities) |
9,525 |
(109,982 |
) |
Adjustments for: |
Depreciation charges | 11,762 | 12,773 |
Profit on disposal of fixed assets | (2,973 | ) | (1,130 | ) |
Decrease in stocks | 3,194 | 1,707 |
(Increase)/decrease in debtors | (17,568 | ) | 37,812 |
Increase/(decrease) in creditors | 706 | (56,142 | ) |
Net cash provided by (used in) operating activities | 4,646 | (114,962 | ) |
DRAFT |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2019 |
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 2015)', 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 with the exception of investments which are |
included at market value. |
The financial statements are prepared in sterling, which is the functional currency of the entity. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and |
assumptions that affect the amounts reported. These estimates and judgements are continually |
reviewed and are based on experience and other factors, including expectations of future events that |
are believed to be reasonable under the circumstances. |
Income |
All income is included in the statement of financial activities when the charity is entitled to the income, |
any performance related conditions attached have been met or are fully within the control of the |
charity, the income is considered probable and the amount can be quantified with reasonable |
accuracy. The following specific policies are applied to particular categories of income: |
Donations and legacy income is received by way of donations, legacies, grants and gifts and is |
included in full in full in the Statement of Financial Activities when receivable. Where legacies have |
been notified to the charity but the criteria for income recognition have not been met, the legacy is |
treated as a contingent asset and disclosed if material. Grants, where entitlement is not conditional on |
the delivery of a specific performance by the charity, are recognised when the charity becomes |
unconditionally entitled to the grant. |
Donated services and facilities are included at the value to the charity, being the amount the charity |
would have been willing to pay to obtain services or facilities of equivalent economic benefit on the |
open market. |
Investment income is included when receivable. |
Income from charitable trading activity is accounted for when earned. |
Income from grants, where related to performance and specific deliverables, are accounted for as the |
charity earns the right to consideration by its performance. |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
1. | ACCOUNTING POLICIES - continued |
DRAFT |
Expenditure |
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT |
which cannot be fully recovered, and is reported as part of the expenditure to which it relates: |
- Costs of raising funds comprise the costs associated with attracting donations, grants and legacies |
and the costs of trading for fundraising purposes. |
- Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities |
and services for its beneficiaries. It includes both costs that can be allocated directly to such activities |
and those costs of an indirect nature necessary to support them. |
- Other expenditure includes all expenditure that is neither related to raising funds for the charity nor |
part of its expenditure on charitable activities. |
All costs are allocated between the expenditure categories of the SOFA on a basis designed to reflect |
the use of the resource. Costs relating to a particular activity are allocated directly, others are |
apportioned on an appropriate basis, as set out in the notes to the accounts. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated |
useful life. |
Improvements to property |
Fixtures and fittings |
Motor vehicles |
Equipment |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for |
obsolete and slow moving items. |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the purposes |
of the charity. Unrestricted funds include a revaluation reserve representing the restatement of |
investment assets at market values. |
Designated funds are unrestricted funds earmarked by the Trustees for specific purposes. |
Restricted funds are subjected to restrictions on their expenditure imposed by the donor. |
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. |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
1. | ACCOUNTING POLICIES - continued |
DRAFT |
Going concern |
There are no material uncertainties about the charity's ability to continue. |
Consolidation |
The charity is not required to prepare consolidated accounts in accordance with the Charities Act 2011, |
and has taken advantage of the option not to prepare consolidated financial statements contained in |
Section 398 of the Companies Act 2006 on the basis that the charity and its subsidiary undertakings |
comprise a small group. |
Investments |
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If |
fair value cannot be reliably measured, assets are measured at cost less impairment. |
Listed investments are measured at fair value with changes in fair value being recognised in income or |
expenditure. |
Investments in associates |
Investments in associates accounted for in accordance with the cost model are recorded at cost less |
any accumulated impairment losses. |
Investments in associates accounted for in accordance with the fair value model are initially recorded |
at the transaction price. At each reporting date, the investments are measured at fair value, with |
changes in fair value taken through income or expenditure. Where it is impracticable to measure fair |
value reliably without undue cost or effort, the cost model will be adopted. |
Dividends and other distributions received from the investment are recognised as income without |
regard to whether the distributions are from accumulated profits of the associate arising before or after |
the date of acquisition. |
Financial instruments |
A financial asset or a financial liability is recognised only when the charity becomes a party to the |
contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the amount receivable or payable including |
any related transaction costs. |
Current assets and current liabilities are subsequently measured at the cash or other consideration |
expected to be paid or received and not discounted. |
Debt instruments are subsequently measured at amortised cost. |
Where investments in shares are publicly traded or their fair value can otherwise be measured reliably, |
the investment is subsequently measured at fair value with changes in fair value recognised in income |
and expenditure. All other such investments are subsequently measured at cost less impairment. |
Other financial instruments, including derivatives, are initially recognised at fair value, unless payment |
for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a |
market rate, in which case the asset is measured at the present value of the future payments |
discounted at a market rate of interest for a similar debt instrument. |
Other financial instruments are subsequently measured at fair value, with any changes recognised in |
the statement of financial activities, with the exception of hedging instruments in a designated hedging |
relationship. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of |
impairment at the end of each reporting date. If there is objective evidence of impairment, an |
impairment loss is recognised under the appropriate heading in the statement of financial activities in |
which the initial gain was recognised. |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
DRAFT |
2. | DONATIONS AND LEGACIES |
2019 | 2018 |
£ | £ |
Cash donations |
Management charges |
Sir James Knott Trust | 4,000 | 4,000 |
The Rothley Trust | - | 1,500 |
The ACT Foundation | - | 5,000 |
Sir John Priestman Charity Trust | - | 8,000 |
The 29th May 1961 Charitable Trust | 3,000 | 3,000 |
The Albert Hunt Trust | - | 5,000 |
The Joicey Trust | - | 2,000 |
3. | OTHER TRADING ACTIVITIES |
2019 | 2018 |
£ | £ |
Sale of donated goods | 57,432 | 75,957 |
Sale of new goods | 34,035 | 39,880 |
Delivery charges | 3,838 | 689 |
Sundry income | 1,741 | 1,590 |
4. | INVESTMENT INCOME |
2019 | 2018 |
£ | £ |
Bank interest receivable | 513 | 216 |
5. | INCOME FROM CHARITABLE ACTIVITIES |
2019 | 2018 |
Activity | £ | £ |
Provision of services to the disadvantaged and vulnerable | Provision of services to the disadvantaged and vulnerable |
291,064 |
225,531 |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
DRAFT |
6. | OTHER TRADING ACTIVITIES |
2019 | 2018 |
£ | £ |
Purchases |
Staff costs | 68,133 | 101,598 |
Rent | 20,238 | 28,546 |
Rates & water | 701 | 2,326 |
Light & heat | 3,098 | 9,405 |
Repairs & Maintenance | 3,143 | 6,444 |
Insurance | 6,004 | 7,083 |
Motor Vehicle expenses | 14,929 | 14,513 |
Telephone | 936 | 1,985 |
Printing, postage & stationery | 240 | 593 |
Canteen expenses | 15 | 98 |
Training & Travel | 2,339 | 2,347 |
Miscellaneous | 2,076 | 3,453 |
Bank charges | 768 | 1,041 |
Depreciation | 5,920 | 7,664 |
155,332 | 211,368 |
7. | CHARITABLE ACTIVITIES COSTS |
Direct costs |
Support costs |
Totals |
(See note 8) |
£ | £ | £ |
Provision of services to the disadvantaged and vulnerable | 139,158 |
172,798 |
311,956 |
8. | SUPPORT COSTS |
Other |
£ |
172,798 |
9. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2019 | 2018 |
£ | £ |
Depreciation - owned assets |
Surplus on disposal of fixed asset | ( |
) | ( |
) |
10. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 March 2019 nor for the |
year ended 31 March 2018. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 March 2019 nor for the year ended |
31 March 2018. |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
DRAFT |
11. | STAFF COSTS |
2019 | 2018 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
253,543 | 298,815 |
Key management personnel received remuneration of £40,705 (2018 : £40,746) in the year. |
The average monthly number of employees during the year was as follows: |
2019 | 2018 |
Managerial | 1 | 1 |
Administration | 2 | 3 |
Other staff | 7 | 10 |
No employees received emoluments in excess of £60,000. |
12. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted fund |
Restricted funds |
Total funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
Other trading activities |
Investment income |
Other income |
Total |
EXPENDITURE ON |
Raising funds |
Charitable activities |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
12. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
Unrestricted fund |
Restricted funds |
Total funds |
£ | £ | £ |
DRAFT |
RECONCILIATION OF FUNDS |
Total funds brought forward | 242,306 | 28,990 | 271,296 |
TOTAL FUNDS CARRIED FORWARD | 120,823 | 40,491 | 161,314 |
13. | TANGIBLE FIXED ASSETS |
Improvements to property |
Fixtures and fittings |
Motor vehicles |
Equipment |
Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2018 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2019 |
DEPRECIATION |
At 1 April 2018 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2019 |
NET BOOK VALUE |
At 31 March 2019 |
At 31 March 2018 |
14. | FIXED ASSET INVESTMENTS |
The investment relates to the purchase of 100% of the issued share capital of SCFS (Contracts) |
Limited for £60. SCFS (Contracts) Limited is a company registered in England and Wales (Company |
number 04300961), its principal activity being that of general building work, maintenance and recycling. |
Aggregate capital and reserves |
2019 | 2018 |
£ | £ |
SCFS (Contracts) Limited | 20,099 | 19,664 |
Profit and (loss) for the year |
2019 | 2018 |
£ | £ |
SCFS (Contracts) Limited | 435 | 799 |
Under the provision of section 398 of the Companies Act 2006 the company is exempt from preparing |
consolidated accounts and has not done so, therefore the accounts show information for the company |
as an individual entity. |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
DRAFT |
15. | STOCKS |
2019 | 2018 |
£ | £ |
Stocks |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
Prepayments |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
VAT | 6,951 | 187 |
Net wages | 33 | 29 |
Accruals and deferred income |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2019 | 2018 |
£ | £ |
Within one year |
Between one and five years |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
DRAFT |
19. | MOVEMENT IN FUNDS |
At 1.4.18 |
Net movement in funds |
At 31.3.19 |
£ | £ | £ |
Unrestricted funds |
General fund | 120,823 | 14,922 | 135,745 |
Restricted funds |
The Sobell Foundation | 4,785 | (1,595 | ) | 3,190 |
Handy Person and Minor Alterations | 18,610 | - | 18,610 |
Vehicle Fund | 17,096 | (4,099 | ) | 12,997 |
ESF Community Grant | - | 297 | 297 |
(5,397 | ) |
TOTAL FUNDS | 9,525 | 170,839 |
Net movement in funds, included in the above are as follows: |
Incoming resources |
Resources expended |
Movement in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 198,523 | (183,601 | ) | 14,922 |
Restricted funds |
Sir James Knott Foundation | 4,000 | (4,000 | ) | - |
Handy Person and Minor Alterations | 248,125 | (248,125 | ) | - |
Vehicle Fund | - | (4,099 | ) | (4,099 | ) |
Tutor fund | 3,000 | (3,000 | ) | - |
ESF Community Grant | 23,165 | (22,868 | ) | 297 |
The Sobell Foundation | - | (1,595 | ) | (1,595 | ) |
( |
) | (5,397 | ) |
TOTAL FUNDS | ( |
) | 9,525 |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
19. | MOVEMENT IN FUNDS - continued |
DRAFT |
Comparatives for movement in funds |
At 1.4.17 |
Net movement in funds |
At 31.3.18 |
£ | £ | £ |
Unrestricted Funds |
General fund | 242,306 | (121,483 | ) | 120,823 |
Restricted Funds |
The Sobell Foundation | 6,380 | (1,595 | ) | 4,785 |
Sir James Knott Foundation | 4,000 | (4,000 | ) | - |
Handy Person and Minor Alterations | 18,610 | - | 18,610 |
Vehicle Fund | - | 17,096 | 17,096 |
28,990 | 11,501 | 40,491 |
TOTAL FUNDS | 271,296 | (109,982 | ) | 161,314 |
Comparative net movement in funds, included in the above are as follows: |
Incoming resources |
Resources expended |
Movement in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 195,835 | (317,318 | ) | (121,483 | ) |
Restricted funds |
The Sobell Foundation | - | (1,595 | ) | (1,595 | ) |
Sir James Knott Foundation | 4,000 | (8,000 | ) | (4,000 | ) |
Handy Person and Minor Alterations | 198,500 | (198,500 | ) | - |
Vehicle Fund | 19,500 | (2,404 | ) | 17,096 |
Tutor fund | 3,000 | (3,000 | ) | - |
The Joicey Trust Fund | 2,000 | (2,000 | ) | - |
227,000 | (215,499 | ) | 11,501 |
TOTAL FUNDS | 422,835 | (532,817 | ) | (109,982 | ) |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
19. | MOVEMENT IN FUNDS - continued |
DRAFT |
A current year 12 months and prior year 12 months combined position is as follows: |
At 1.4.17 |
Net movement in funds |
At 31.3.19 |
£ | £ | £ |
Unrestricted funds |
General fund | 242,306 | (106,561 | ) | 135,745 |
Restricted funds |
The Sobell Foundation | 6,380 | (3,190 | ) | 3,190 |
Sir James Knott Foundation | 4,000 | (4,000 | ) | - |
Handy Person and Minor Alterations | 18,610 | - | 18,610 |
Vehicle Fund | - | 12,997 | 12,997 |
ESF Community Grant | - | 297 | 297 |
28,990 | 6,104 | 35,094 |
TOTAL FUNDS | 271,296 | (100,457 | ) | 170,839 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
Incoming resources |
Resources expended |
Movement in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 394,358 | (500,919 | ) | (106,561 | ) |
Restricted funds |
Sir James Knott Foundation | 8,000 | (12,000 | ) | (4,000 | ) |
Handy Person and Minor Alterations | 446,625 | (446,625 | ) | - |
Vehicle Fund | 19,500 | (6,503 | ) | 12,997 |
Tutor fund | 6,000 | (6,000 | ) | - |
ESF Community Grant | 23,165 | (22,868 | ) | 297 |
The Joicey Trust Fund | 2,000 | (2,000 | ) | - |
The Sobell Foundation | - | (3,190 | ) | (3,190 | ) |
505,290 | (499,186 | ) | 6,104 |
TOTAL FUNDS | 899,648 | (1,000,105 | ) | (100,457 | ) |
COMMUNITY SUSTAINABILITY SERVICES |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2019 |
19. | MOVEMENT IN FUNDS - continued |
DRAFT |
In a prior period the Sobell Foundation provided a grant of £10,000 towards the capital cost of a new |
van and associated costs. The balance at the year end of £4,785 (2017 : £6,380) is in respect of the |
net book |
value of the van in the accounts at 31 March 2018. |
The Sir James Knott Trust provided a grant of £4,000 towards the salary of a tutor at Thorney Close. |
The Handyperson and Minor Alterations (HPMA) funds relate to a three year service contract |
to provide handyperson and minor alterations service to the disadvantaged and vulnerable within |
Sunderland. The contract has specific targets that are to be met. |
The contractual amount relates to salaries of the handypersons, administration staff, management |
charges, materials for providing the service and a contribution towards the overheads. |
The Vehicle Fund relates to monies received from the funders below to purchase new vehicles for use |
within the charity. The balance at the year end relates to the net book value of the vans purchased. |
Funding received in earlier years |
Balance at 31.03.19 |
£ | £ |
The ACT Foundation | 5,000 | 2,848 |
The Albert Hunt Foundation | 5,000 | 2,848 |
Sir John Priestman Charity Trust | 8,000 | 7,301 |
The Tutors fund relates to monies received of £3000 from The 29th May 1961 Charitable Trust |
towards the salary of a tutor at Thorney Close. |
The ESF Community Grant was for the provision of pre foundation training courses for the |
disadvantaged and vulnerable. The balance of £297 relates to the net book value of a computer |
purchased. |
20. | RELATED PARTY DISCLOSURES |
During the year Community Sustainability Services received from SCFS (Contracts) Limited amounts |
relating to management charges of £50,800 (2018 - £48,700) and were charged direct costs of |
£48,378 (2018 - £45,419) from SCFS (Contracts) Limited. At 31 March 2019 Community Sustainability |
Services owed SCFS (Contracts) Limited the sum of £16,309 (2018 - £13,360). |
Mr G H Parr, a director of SCFS (Contracts) Limited is also a trustee/director within Community |
Sustainability Services . |
SCFS (Contracts) Limited is a wholly owned subsidiary of Community Sustainability Services. |
21. | LIMITED BY GUARANTEE |
The company is incorporated under the Companies Act 2006. The company has no share capital and |
is limited by guarantee. Therefore each member undertakes to contribute such amounts as may be |
required in the event of the company being wound up, for the purposes of payment of debts, liabilities |
and costs of winding up, not exceeding £1 per member. |