Rock Foundation UK Limited - Charities report - 22.2

REGISTERED COMPANY NUMBER: 06585052 (England and Wales)

REGISTERED CHARITY NUMBER: 1126626

Report of the Trustees and

Unaudited Financial Statements for the Year Ended 31 March 2022

for

Rock Foundation UK Limited

Page

Report of the Trustees

1

to

6

Independent Examiner's Report

7

Statement of Financial Activities

8

Balance Sheet

9

to

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

to

21

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 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

To act as a resource for people with learning difficulties and the disadvantaged by providing advice, assistance and organising programmes of physical, educational and other activities as a means of:-

a) Helping them to advance in life and helping to develop their skills, capacities and capabilities to enable them to participate in society as independent, mature and responsible individuals.

b) Advance education.

c) Relieving unemployment.

Public benefit

Providing recreational and leisure time activity in the Charity Commission's general guidance on public benefit and complied with section 17(5) of the 2011 Charities act when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

Charitable activities We would first like to thank all our funders for their support and all our volunteers and staff who without everybody's help, it would not have been possible. Rock was started by a parent of a special needs child who, having explored the availability of training for over 18's discovered that very little was available. She subsequently decided to start Rock Foundation to provide young people and adults, and the disadvantaged, work experience and supported workshops so that they could achieve their potential in life, and we now serve in excess of ninety adults with learning disabilities every week.

During the last financial year, despite significant operating challenges due to coming back after COVID and the national lockdown, Rock Foundation continued to provide support services to its targeted client groups. These included a wide range of workshops such as, art and craft, woodwork, puppetry, cookery, baking, computers, healthy living, needlework, furniture restoration, horticulture, DIY, baking, and laser craft, food bank stock management etc, alongside courses in independence and work skills, community living and transportation. Returning after COVID hasn't been easy, with parents and careers still anxious about their children returning. Some of our service user's having passed away while others lost close family members. It has been a difficult time for many. Rock Foundation UK Ltd has continued to further its work with the local community by working with a network of local and regional companies and donors to supply our food bank.

We have continued to be involved with the local food provider forum, acting in coalition to resolve food poverty in Northeast Lincolnshire. We currently operate from the former Holme Hill School in Heneage Road. However, we received news this was being negotiated for sale, and we have since secured a property from North East Lincolnshire Council via a Community Asset Transfer for a nominal amount as a freehold disposal. At time of writing, we are in the final stages of legal negotiation around terms, and we hope to have completed within the next couple of months. Over the past year our food bank has experienced increasing levels of need. As always, this would not have been possible without the help of Morrison, Tesco, Aldi, Lidl, Greggs and HIS, and a wide variety of other local businesses and supporters, many of which prefer to remain anonymous. The events of the last year have compounded our conviction that the help our community needs goes way beyond a food parcel. We commissioned an independent review of our foodbank provision, as well as undertaking a data capture exercise utilising a database to understand the needs of those accessing our foodbanks. Furthermore, we are a Fuel Bank partner for the Fuel Bank Foundation. With the successful acquisition of a new site for our Foodbank, the time seems right to use the learning from these exercises to expand our service to a Foodbank Plus model, which will seek to provide a more holistic service offering life skill, recovery, and employment sessions alongside our more practical support.

We have also continued to wholesale our laser products through Potter's House, however this has dropped due to so many shops closing down. But it does help to financially underpin our work. This accompanies our ongoing work in utilising online sales avenues such as Etsy, and physical retail spaces on the High St. We are seeking to continue to grow this in coming years to increase our financial resilience, and service sustainability. We would like to thank all our supporters for their continued assistance by way of donations, and all individuals, faith groups and other organisations who have supported Rock Foundation UK Ltd. Our supported housing at Caistor with the initial three residents rising to 7 as well as intermittent respite placements. Caistor Day services are doing well with 17 service users and looking now at increasing the days from three to four per week. We also saw the start of our community allotment at Caistor ran by our volunteers and the planting up of our new orchard.

Volunteer review

We continue to be blessed with excellent volunteers, many of whom have worked within the charity for many years, and many of whom continued to support us through the challenges of the past year and the return to some sort of normality since COVID and lockdown.

Our volunteers come from a wide range of organisations, backgrounds and experience, representing a wide cross section of our community.

Our regular 42 volunteers contributed a total of around 11,648 hours across the last year, equating to roughly 235 hours per week in volunteered time, or 5.6 per person per week.

Our regular volunteers therefore contributed approximately £134,420 between them at a combined value of around £11 per hour.

We also receive help from many casual volunteers throughout the year, whose valuable contribution is difficult to quantify, but incredibly significant. These people that come to help with a specific short-term projects or events, offer a few days when they are available, or attend on short term placement from training agencies. We estimate to have received approximately 484 such volunteering hours, placing our grand total at around £5,324.

FINANCIAL REVIEW

Reserves policy

It is the policy of the charity to monitor unrestricted funds which are free reserves of the charity to achieve a minimum level of £95,000. This will provide sufficient funds to cover management, administration, support costs and to respond to emergency applications for grants which arise from time to time.

Incoming resources for the year amounted to £723,640 (2021:£991,841) and resources expended £593,494 (2021: £717,742). Free reserves at the year-end were £882,556 (2021:£752,410)

FUTURE PLANS

As always plans are in place to maximise the use of our current resources, develop new services and increases our intake of service users.

Our aim in the last year was to continue to move our supported living facility towards being fully occupied. However, we have been very careful as we wanted the right mix for the house. At present, we have 7 with others who also attend for respite. Our aim in the upcoming year is to continue to increase our number of residents.' The aim of the service is to provide excellent care for adults with learning disabilities. This is a non-profit venture which stands in contrast to the commercialised provision of care and support that proliferates locally, and places shareholders before clients. Our aim is to continue to build positive relationships with funders, as well as diversifying our social enterprise output from the site, to build further resilience into the project.

Further developments include an ongoing maintenance project to bring our Grimsby site to a higher standard of facilities as well as the ongoing expansion of our gardening project at Caistor and Grimsby to focus on growing high quality organic produce for our residents, tearooms, and the public, whilst providing an excellent set of training opportunities for our members. This year we saw the start of our new Polytunnel going up on our Grimsby site which we will continue to develop. We are also hoping to start a Rock Social Club for our service users during the evening. The community allotment at Caistor has been established which we are very proud of. An orchard was planted in Caistor which in time will produce some good crops. Five freshwater springs have been landscaped with a further two to find.

Finally, we are looking toward the handover of our new site for our foodbank provision, and the expansion to a Foodbank Plus model, this will entail refurbishment of the site, relocation of our current service and expansion of our service offer. We have a robust plan, which has been well received by our local authority and we are confident will lead to the formation of positive funding relationships in the coming year.

This year's present climate

Our foodbank remained open and busier than normal.

Fortunately, we have received several grants which has enabled the charity to be financially stable.

We rely very much on our volunteers, and it was great to see so many back with us again this year. We appreciate their hard work so much.

There will always be a risk and uncertainties. As a charity I feel we are in a good place. Mainly because of the increase of service users using our supported housing accommodation and the grants we have been fortunate to receive.

At present our reserves are good. But as a board this is something that needs to be looked at on a regular basis. This is something again that we will take advice from our accountant.

As a charity we feel confident about the future, but we are aware this can change. We feel we have tried to look at every eventuality.

Some concerns: - Lack of volunteers. Lack of food donations. Day Students. Financial loss of income if another lock down. Economic cost of utilities and fuel.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is governed by its Memorandum and Articles of Association incorporated 6 May, 2008 as amended by written resolution dated 22 October, 2008 and 29 July, 2014 respectively.

Recruitment and appointment of new trustees

The charity seeks to appoint trustees from persons who share the same ethos. It seeks to identify those most suitable to bring a balance of skills and strengths to the board. Each trustee is given a job description which utilises their skills.

Organisational structure

The CEO makes day to day decisions with regards to the general running of the charity. Trustees make decisions on management salaries, development and expansion and any other major decisions.

Induction and training of new trustees

We have a policy for induction and training of trustees. As stated in our policy each trustee receives a training pack and will also spend a day with our CEO explaining the role of the trustee.

Related parties

Rock Social Enterprise and Rock Casitor Enterprise are trading companies and all profits go to Rock Foundation.

Risk management

The Directors/Trustees have examined the major strategic, business and operational risks that the charity faces and confirms that systems are in place to monitor and control these risks and ensure that the necessary steps can be taken when appropriate.

Any major risks to which the charity is exposed will be reviewed in an emergency trustees meeting.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

06585052 (England and Wales)

Registered Charity number

1126626

Registered office

39-41 Heneage Road

Grimsby

North East Lincs

DN32 9ES

Trustees

R J K Burrell Director

Ms P E Hodge Director

Miss S Howard Director

K J Smith Director (resigned 1.2.22)

R I Lewis Director (resigned 9.5.22)

M Scarrott Director

Independent Examiner

Mark Stothard

FCA

Haines Watts, Chartered Accountants

117 - 119 Cleethorpe Road

Grimsby

North East Lincs

DN31 3ET

Bankers

National Westminster Bank Plc

66 Victoria Street

Grimsby

DN32 9ES

Senior staff

Miss P E Hodge

Approved by order of the board of trustees on 18 October 2022 and signed on its behalf by:

Ms P E Hodge - Trustee

Independent examiner's report to the trustees of Rock Foundation UK Limited ('the Company')

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

Responsibilities and basis of report

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

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

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

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

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

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Mark Stothard

FCA

Haines Watts, Chartered Accountants

117 - 119 Cleethorpe Road

Grimsby

North East Lincs

DN31 3ET

18 October 2022

31.3.22

31.3.21

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

573,786

-

573,786

734,965

Charitable activities

Core projects

37,427

-

37,427

72,265

Core projects-Restricted

-

17,003

17,003

96,232

Other income

95,424

-

95,424

88,379

Total

706,637

17,003

723,640

991,841

EXPENDITURE ON

Charitable activities

4

Core projects

571,491

-

571,491

717,742

Core projects-Restricted

-

22,003

22,003

-

Total

571,491

22,003

593,494

717,742

NET INCOME/(EXPENDITURE)

135,146

(5,000

)

130,146

274,099

RECONCILIATION OF FUNDS

Total funds brought forward

752,410

53,377

805,787

531,688

TOTAL FUNDS CARRIED FORWARD

887,556

48,377

935,933

805,787

31.3.22

31.3.21

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

11

787,622

48,377

835,999

851,116

CURRENT ASSETS

Stocks

12

6,000

-

6,000

7,000

Debtors

13

168,368

-

168,368

93,230

Cash at bank and in hand

340,263

-

340,263

312,195

514,631

-

514,631

412,425

CREDITORS

Amounts falling due within one year

14

(34,423

)

-

(34,423

)

(50,081

)

NET CURRENT ASSETS

480,208

-

480,208

362,344

TOTAL ASSETS LESS CURRENT LIABILITIES

1,267,830

48,377

1,316,207

1,213,460

CREDITORS

Amounts falling due after more than one year

15

(380,274

)

-

(380,274

)

(407,673

)

NET ASSETS

887,556

48,377

935,933

805,787

FUNDS

18

Unrestricted funds

887,556

752,410

Restricted funds

48,377

53,377

TOTAL FUNDS

935,933

805,787

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

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

The trustees acknowledge their responsibilities for

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

(b)

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

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

The financial statements were approved by the Board of Trustees and authorised for issue on 18 October 2022 and were signed on its behalf by:

P E Hodge - Trustee

Cash flows from operating activities

Cash generated from operations

1

85,815

222,946

Interest paid

(16,285

)

(14,269

)

Net cash provided by operating activities

69,530

208,677

Cash flows from investing activities

Purchase of tangible fixed assets

(14,063

)

(5,774

)

Sale of tangible fixed assets

-

4,300

Net cash used in investing activities

(14,063

)

(1,474

)

Cash flows from financing activities

Loan repayments in year

(43,684

)

(34,104

)

Loan interest

16,285

14,269

Net cash used in financing activities

(27,399

)

(19,835

)

Change in cash and cash equivalents in the reporting period

28,068

187,368

Cash and cash equivalents at the beginning of the reporting period

312,195

124,827

Cash and cash equivalents at the end of the reporting period

340,263

312,195

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.3.22

31.3.21

£

£

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

130,146

274,099

Adjustments for:

Depreciation charges

29,180

27,433

Profit on disposal of fixed assets

-

(3,175

)

Interest paid

16,285

14,269

Decrease/(increase) in stocks

1,000

(2,950

)

Increase in debtors

(75,137

)

(56,374

)

Decrease in creditors

(15,659

)

(30,356

)

Net cash provided by operations

85,815

222,946

2.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.21

Cash flow

At 31.3.22

£

£

£

Net cash

Cash at bank and in hand

312,195

28,068

340,263

312,195

28,068

340,263

Debt

Debts falling due within 1 year

(27,399

)

-

(27,399

)

Debts falling due after 1 year

(407,673

)

27,399

(380,274

)

(435,072

)

27,399

(407,673

)

Total

(122,877

)

55,467

(67,410

)

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.

Income

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

Donation and legacy income is received by way of donations and gifts is included in full in the statement of Financial Activities when receivable. The value of services provided by volunteers has not been included in these accounts.

Grants, where entitlement is not conditional on the delivery of specific performance by the charity, are recognised when the charity becomes entitled to the grant. Grants received in relation to capital expenditure are recognised in the Statement of Financial Activities when the charity becomes entitled to the grants.

Expenditure

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

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixture and fittings 20% Straight Line

Motor Vehicles 20% Straight Line

Freehold property

-Building 2% Straight Line

-Commercial Kitchens 5% Straight Line

-Public Toilet Facilities 6.67% Straight Line

-Residential Kitchens 10% Straight Line

-Residential Bathrooms 10% Straight Line

-Heating Systems 10% Straight Line

-Alarm Systems 10% Straight Line

Land is not depreciated.

Fixed assets are stated at cost less accumulated depreciation. The cost of minor additions under £250 are not capitalised.

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

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

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

Pension costs and other post-retirement benefits

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

Donated goods

Donated goods are recognised in income at sales value when they are sold.

General services provided by volunteers and organisations are not recognised in the statement of financial activities. Further details of these are disclosed in the trustees report.

Specific services provided by other organisations are recognised in the statement of financial expenditure ad donations and charitable expenditure.

Donated goods for distribution are recognised in the statement of financial activities when distributed at market value as donations and charitable expenditure.

2.	DONATIONS AND LEGACIES

31.3.22

31.3.21

£

£

Donations and gifts

573,786

734,965

3.	INCOME FROM CHARITABLE ACTIVITIES

31.3.22

31.3.21

Activity

£

£

Charitable activities

Core projects

6,912

6,728

Service provisions

Core projects

30,515

50,537

Grants

Core projects

-

15,000

Grants

Core projects-Restricted

17,003

96,232

54,430

168,497

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

31.3.22

31.3.21

£

£

Screwfix

-

5,000

WRAP

7,461

58,988

Crisis

-

5,000

NELC Hardship

-

12,000

The Morrisons Foundation

-

3,744

North East Lincs

-

5,000

DISA

-

1,500

Longhurst Group Community

-

5,000

Carried forward

7,461

96,232

31.3.22

31.3.21

£

£

Brought forward

7,461

96,232

Martin Lewis

-

15,000

Sainsburys

1,000

-

North Bank Forum

4,042

-

Groundwork UK

1,000

-

Good Things Foundation

3,500

-

17,003

111,232

4.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 5)

Totals

£

£

£

Core projects

551,630

19,861

571,491

Core projects-Restricted

22,003

-

22,003

573,633

19,861

593,494

5.	SUPPORT COSTS

Governance

Other

costs

Totals

£

£

£

Core projects

18,121

1,740

19,861

6.	NET INCOME/(EXPENDITURE)

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

31.3.22

31.3.21

£

£

Depreciation - owned assets

29,180

27,433

Surplus on disposal of fixed assets

-

(3,175

)

7.	TRUSTEES' REMUNERATION AND BENEFITS

31.3.22

31.3.21

£

£

Trustees' salaries

40,000

37,621

Trustees' social security

4,300

3,980

Trustees' pension contributions to money purchase schemes

1,013

-

45,313

41,601

Trustees' expenses

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

8.	STAFF COSTS

31.3.22

31.3.21

£

£

Wages and salaries

342,802

235,353

Social security costs

12,183

7,276

Other pension costs

3,074

1,938

358,059

244,567

Included in wages and salaries are contracted out Tutor and consultancy fees of £14,083 (2021:£8,751).

Included in staff costs are salary and employers national insurance paid to and in relation to key management of £58,383 (2021:£50,351).

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

31.3.22

31.3.21

Core

26

24

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

9.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

fund

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

734,965

-

734,965

Charitable activities

Core projects

72,265

-

72,265

Core projects-Restricted

-

96,232

96,232

Other income

88,379

-

88,379

Total

895,609

96,232

991,841

EXPENDITURE ON

Charitable activities

Core projects

606,469

111,273

717,742

NET INCOME/(EXPENDITURE)

289,140

(15,041

)

274,099

RECONCILIATION OF FUNDS

Total funds brought forward

463,270

68,418

531,688

TOTAL FUNDS CARRIED FORWARD

752,410

53,377

805,787

10.	FOODBANK DONATIONS

Included within donations and gifts during the year in income and also charitable activity expenditure gifts and donations is £48,222 (2021:£258,188).

This has been calculated based on 3,572 food parcels distributed during the year estimated at a fair value of £13.50 per parcel.

On 1 June 2021 the food bank donations were transferred to a separate "Rock" company (Rock Community Hub Ltd) to enable it to receive the dedicated support it requires to continue to grow and prosper.

11.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Motor

property

fittings

vehicles

Totals

£

£

£

£

COST

At 1 April 2021

870,155

110,554

24,840

1,005,549

Additions

-

14,063

-

14,063

At 31 March 2022

870,155

124,617

24,840

1,019,612

DEPRECIATION

At 1 April 2021

56,617

90,778

7,038

154,433

Charge for year

17,403

6,809

4,968

29,180

At 31 March 2022

74,020

97,587

12,006

183,613

NET BOOK VALUE

At 31 March 2022

796,135

27,030

12,834

835,999

At 31 March 2021

813,538

19,776

17,802

851,116

12.

STOCKS

31.3.22

31.3.21

£

£

Stocks

6,000

7,000

13.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.22

31.3.21

£

£

Other debtors

168,368

93,230