Community Sustainability Services - Charities report - 20.2

REGISTERED COMPANY NUMBER: 02959482 (England and Wales)

REGISTERED CHARITY NUMBER: 01052262

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

FOR

COMMUNITY SUSTAINABILITY SERVICES

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

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 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The principal activity of the Charity for the year 1st April 2019 to 31st March 2020 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.

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 2019 to 31st March 2020, the furniture stores have received over 4,000 visits with over 2,500 customers purchasing furniture, household items, clothing and bric a brac.

The Charity received over 2,000 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.

Unfortunately due to the expiration of funding for the position, the post was made redundant in January 2020. Participants can still attend the workshop and volunteer their time, however some of the work has had to be scaled back inline with the demise of the Tutor position. It is hoped that funds to secure the position again can be sought in the future.

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 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 expired on 30th June 2019, and the current extension will expire in April 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.

FINANCIAL REVIEW

From January 2020, at the same time as the world was becoming aware of coronavirus, the charity had begun to witness a decline in the number of customers in the furniture stores, and in the number of service users who would allow services to be completed in their homes (both the HPMA customers, and the private customers from SCFS Contracts Ltd).

Due to the Covid-19 pandemic and the resulting countrywide lockdown from March 2020, the furniture stores had to close, and works couldn't be completed in customers homes, resulting in a lack of income for the month of March. This, as well as the early completion of a contract during the last financial year meant the charity has made a loss during the year in review.

A lot of groundwork was put into the creation of a Multi-Purpose Hub which was to be located at the Thorney Close site. The aim was to apply for funding to create this social hub, a place for neighbours and visitors to come together to meet and shape Thorney Close into a place they would like to see, with events running to aid their local community. Due to the lockdown and uncertainty around social gatherings, the project has been put on hold until a) the charity can apply for funds within this theme and b) the rules on socialising etc have been relaxed enough so that works that are required can be completed in the way we initially intended.

CSS would like to thank the following for their contributions towards the costs of the charity:

FUNDING

AMOUNT

FUNDING PURPOSE

Aspire Fund (Gentoo)

£1,000

Training Course

Inman Charity

£5,000

Running Costs of Furniture Sales

Milltech

£500

Modern Apprenticeship Grant

The 29th May 1961 Charitable Trust

£3000

Tutor costs

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 £116,099 in unrestricted funds.

This is in-line with the Charity's reserves policy and designated funds supplement for the financial year.

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 charity will look at ways in order to continue providing its services under the new way of living and working under Covid-19. This may include creating an online shop in order to sell furniture online.

The trustees and CEO are working on initiatives in order to secure the future sustainability of the charity post Covid-19. This will include looking at the current mechanisms of how the charity currently operates, any changes that could be made to ensure the continuity of services as well as systems and new ways of working which will be beneficial for the charity and its service users.

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

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, decorating and metal fabrication 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

02959482 (England and Wales)

Registered Charity number

01052262

Registered office

Unit 13c, Southwick Ind. Estate

North Hylton Road

Southwick

Sunderland

Tyne and Wear

SR5 3TX

Trustees

P V Blyth

G H Parr

T Bowen

D Cleghorn

G Lawson (Appointed 1st Oct 2019)

Company Secretary

M I Cleghorn

Auditors

Robson Laidler Accountants Limited

Statutory Auditor

Fernwood House

Fernwood Road

Jesmond

Newcastle upon Tyne

Tyne and Wear

NE2 1TJ

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, have indicated that they are willing to be re-appointed at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 24 November 2020 and signed on its behalf by:

Mrs P V Blyth - Trustee

Opinion

We have audited the financial statements of Community Sustainability Services (the 'charitable company') for the year ended 31 March 2020 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 2020 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.

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.

M Moran (Senior Statutory Auditor)

for and on behalf of Robson Laidler Accountants Limited

Statutory Auditor

Fernwood House

Fernwood Road

Jesmond

Newcastle upon Tyne

Tyne and Wear

NE2 1TJ

25 November 2020

2020

2019

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

72,253

3,001

75,254

85,217

Charitable activities

5

Provision of services to the disadvantaged and vulnerable

2,998

216,947

219,945

291,064

Other trading activities

3

60,682

-

60,682

97,046

Investment income

4

563

-

563

513

Other income

-

-

-

2,973

Total

136,496

219,948

356,444

476,813

EXPENDITURE ON

Raising funds

Other trading activities

6

141,031

-

141,031

155,332

141,031

-

141,031

155,332

Charitable activities

7

Provision of services to the disadvantaged and vulnerable

15,111

244,032

259,143

311,956

Total

156,142

244,032

400,174

467,288

NET INCOME/(EXPENDITURE)

(19,646

)

(24,084

)

(43,730

)

9,525

RECONCILIATION OF FUNDS

Total funds brought forward

135,745

35,094

170,839

161,314

TOTAL FUNDS CARRIED FORWARD

116,099

11,010

127,109

170,839

2020

2019

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

13

9,542

3,341

12,883

23,404

Investments

14

60

-

60

60

9,602

3,341

12,943

23,464

CURRENT ASSETS

Stocks

15

4,599

-

4,599

4,895

Debtors

16

45,888

-

45,888

38,265

Cash at bank and in hand

99,097

31,007

130,104

153,885

149,584

31,007

180,591

197,045

CREDITORS

Amounts falling due within one year

17

(43,087

)

(23,338

)

(66,425

)

(49,670

)

NET CURRENT ASSETS

106,497

7,669

114,166

147,375

TOTAL ASSETS LESS CURRENT LIABILITIES

116,099

11,010

127,109

170,839

NET ASSETS

116,099

11,010

127,109

170,839

FUNDS

19

Unrestricted funds

116,099

135,745

Restricted funds

11,010

35,094

TOTAL FUNDS

127,109

170,839

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

The financial statements were approved by the Board of Trustees and authorised for issue on 24 November 2020 and were signed on its behalf by:

P V Blyth - Trustee

Cash flows from operating activities

Cash generated from operations

1

(24,112

)

4,646

Net cash (used in)/provided by operating activities

(24,112

)

4,646

Cash flows from investing activities

Purchase of tangible fixed assets

-

(11,445

)

Sale of tangible fixed assets

-

9,639

Net cash provided by/(used in) investing activities

-

(1,806

)

Cash flows from financing activities

New loans in year

331

2,949

Net cash provided by financing activities

331

2,949

Change in cash and cash equivalents in the reporting period

(23,781

)

5,789

Cash and cash equivalents at the beginning of the reporting period

153,885

148,096

Cash and cash equivalents at the end of the reporting period

130,104

153,885

1.	RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

2020

2019

£

£

Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities)

(43,730

)

9,525

Adjustments for:

Depreciation charges

10,520

11,762

Profit on disposal of fixed assets

-

(2,973

)

Decrease in stocks

296

3,194

Increase in debtors

(7,623

)

(17,568

)

Increase in creditors

16,425

706

Net cash (used in)/provided by operations

(24,112

)

4,646

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.19

Cash flow

At 31.3.20

£

£

£

Net cash

Cash at bank and in hand

153,885

(23,781

)

130,104

153,885

(23,781

)

130,104

Total

153,885

(23,781

)

130,104

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

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

-

10% straight line basis

Fixtures and fittings

-

15% on cost

Motor vehicles

-

20% on cost

Equipment

-

33% on cost

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.

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.

2.	DONATIONS AND LEGACIES

2020

2019

£

£

Cash donations

6,552

27,417

Management charges

35,450

50,800

Sir James Knott Trust

-

4,000

The 29th May 1961 Charitable Trust

3,000

3,000

Inman Charity Trustees Limited

5,000

-

COVID 19 grants

25,252

-

75,254

85,217

3.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Sale of donated goods

53,795

57,432

Sale of new goods

1,085

34,035

Delivery charges

4,620

3,838

Sundry income

1,182

1,741

60,682

97,046

4.	INVESTMENT INCOME

2020

2019

£

£

Bank interest receivable

563

513

5.	INCOME FROM CHARITABLE ACTIVITIES

2020

2019

Activity

£

£

Provision of services to the disadvantaged and vulnerable

Provision of services to the disadvantaged and vulnerable

219,945

291,064

6.	OTHER TRADING ACTIVITIES

2020

2019

£

£

Purchases

7,040

26,792

Staff costs

82,703

68,133

Rent

19,371

20,238

Rates & water

1,595

701

Light & heat

2,181

3,098

Repairs & Maintenance

3,159

3,143

Insurance

6,081

6,004

Motor Vehicle expenses

7,325

14,929

Telephone

962

936

Printing, postage & stationery

266

240

Canteen expenses

25

15

Training & Travel

3,526

2,339

Miscellaneous

1,521

2,076

Bank charges

598

768

Depreciation

4,678

5,920

141,031

155,332