NETWORK_OF_WELLBEING - Accounts

The Trustees present their report and accounts for the year ended 31 March 2022.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Charity's Memorandum & Articles of Association dated 4 April 1984, the Companies Act 2006 and the Statement of Recommended Practice for charities applying FRS102.

The Charity’s objects are to advance education, research and practice for the benefit of the public in the fields of health, wellbeing and the environment.

The Trustees have paid due regard to guidance issued by the Charity Commission on public benefit in deciding what activities the Charity should undertake.

The Charity's principal activity remains a wellbeing project, the aims of which were reviewed in 2019-20. New aims were set to:

• compose and present a clear vision of what a society based around wellbeing would look like and how it would differ from the present;

• to build a deeply interconnected network of people and organisations who are passionate about this vision of wellbeing;

• to establish and promote activities and projects to demonstrate this vision, on our own and in partnership with others;

• to broaden our funding base by attracting grant funding and by developing other sources of income.

Specific objectives have been set up to 2022 to underpin these aims.

To meet these ends, the Charity carries out awareness-raising activities, principally online, focussing on active professionals in the UK. It also runs two projects – the Share Shed, which helps people to live better by borrowing things they cannot buy or store and Eden Rise, a retreat centre, three miles to the west of Totnes, which is used for a range of wellbeing-related activities.

The Charity started the year in a challenging position. Both of its projects were closed due to Covid restrictions and its offer to its beneficiaries was entirely online. Meanwhile a reduction in funding had necessitated a review that eventually led to the closure of its office and a redundancy. It ended the year in a much better state.

Two programmes of online events were offered over the year.

• A free offer, entitled ‘Do Good Lives have to cost the Earth?’, in partnership with Eden Project Communities which focused on how wellbeing can be maintained in the face of environmental crisis. This explored the question in three webinars at three levels – from an individual perspective, in terms of communities and as an issue for global society. Speakers included Mukti Mitchell (Carbon Savvy), Teresa Belton (author), Emma Tolley (the Eden Project), Andrew Simms (the Rapid Transition Alliance), Nicola Round (AdBlock), Fiona Dear (the Eden Project), Chris Hellawell (Edinburgh Tool Library), Judy Ling Wong (Black Environment Network), Nic Marks (Friday), Amanda Janoo (the Wellbeing Economy Alliance) and Ali Skeats (Cool Earth). This was followed by an online workshop to help participants put their ideas into practice.

• A paid-for offer (with concessions), in partnership with the Resurgence Trust, entitled Hope in Action. This focused on supporting the wellbeing of changemakers and other wellbeing professionals. It comprised three sessions featuring speakers including Jen Gale (Sustainabl-ish), Amisha Ghadiali (The Future is Beautiful), Alex Nunn (Action for Happiness), the writer Alnoor Ladha, Ruby Reed (Advaya), Asad Rehman (War on Want), Jyoti Fernandez (Landworkers Alliance) and the authors, Tamsin Omond and Charles Eisenstein.

There was also a webinar Less is more: rethinking consumption for a wellbeing economy with Andrew Simms (Rapid Transition Alliance), Ugo Vallauri (the ReStart Project) and Malin Leth (of Circulous) and a Christmas special on Wellbeing and Everyday Activism with the US vlogger, Rob Greenfield.

Over 2000 people registered to attend and participants rated the events at 4.5/5.

Through these events and associated social media, the reach of the Charity grew to include more than 30,000 people including 19,100 on Twitter, 6,200 on Facebook, 1,800 on Instagram and 5,000 who subscribed to the Charity’s newsletter.

Meanwhile, staff worked behind the scenes to review the Charity’s vision, mission and values, including through in-depth interviews with nine key partners and a survey of its followers to gauge their views. The new texts were finalised shortly after the year end.

The Share Shed – a travelling library of things - reopened on 15th April, serving Ashburton, Buckfastleigh, South Brent and Totnes with over 300 items, on a weekly basis. Demand continued to grow, with trade almost doubling over the previous year. Increased demand and grants enabled two new stops – at Bridgetown and Dartington - to be added to the weekly route.

The Charity successfully secured funding to run a series of promotional activities alongside the Share Shed service, in association with other local projects. Extra services offered included tool sharpening, bike maintenance and repair cafes as well as children’s activities including ‘Make a Bug Hotel’ and ‘Games in the Park’.

The Charity also helped in the formation of a UK-wide network of libraries of things, including by participating in two ‘Ask the Share Shed’ webinars to help groups in other parts of the UK set up their own libraries. This led to the Charity being commissioned by the Bude Climate Partnership to undertake a feasibility study into setting up a library of things in North Cornwall.

Eden Rise, the Charity’s centre for wellbeing retreats, finally reopened on 17th May but uncertainty over Covid-risks continued to deter many bookers from organising retreats until September. The Trustees therefore allowed staff to open the venue to AirBnB bookings until the demand for retreats picked up. Even so, the centre was booked for charitable residential events for over 150 nights in the year.

Late in 2021, one of the co-founders of the Charity, Satish Kumar, decided to retire as a Trustee. However, he agreed to become the Charity’s first Patron. As a result, after carrying out a skills audit, the Charity advertised for new Trustees. Four candidates applied and were interviewed by the existing Trustees. Three were appointed shortly after the year end.

There was a surplus of income over expenditure for the year of £56,597 (2021: £11,234).

The Charity started the year in a challenging position. A reduction in funding from its core funder had forced it to close its office and make one staff member redundant. Its reserves were relatively low.

The position at the end of the year has markedly improved. Reduced costs, higher trading revenue and an increase in grant funding from sources other than the Brownswood Trust led to a much higher level of reserves, some of which are in a designated fund, to cover liabilities should the Charity ever be forced to cease its operations.

Unrestricted reserves are held pending the identification of suitable projects for funding. Restricted reserves are held for the specified projects. The reserves position is to be reviewed at the end of each year.

The Charity’s main funder further reduced its grant for 2022-23 (by £30,000). The Trustees therefore reviewed its operations in the light of the level of reserves and agreed to run a deficit budget (of about £40,000) in 2022-23 in the expectation that fundraising over the year will meet the shortfall.

The Charity is a company limited by guarantee (registered number 01806096) having no share capital. It is also a registered charity (number 295976). Under the provisions of Section 60 of the Companies Act 2006, the company is entitled to omit the word ‘Limited’ from its name. It is governed by its Memorandum and Articles of Association, with its registered office being C/O Eden Rise, Sandwell Barns, Harberton, Totnes, Devon, TQ9 7LJ. Members of the Trustee Board are all Directors of the company. In the event of the company being wound up the liability of the members is limited to £1 each.

The Trustees who served during the year and since the year end are:

Recruitment and appointment of Trustees

Trustees are appointed by approval at general meetings.

Organisational structure

The Board of Trustees administers the Charity and meets at least once a year to review grants and fundraising policies.

Trustees induction and training

New Trustees are explained the nature of their role by the Chairman.

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

On behalf of the Board of Trustees.

I report to the Trustees on my examination of the financial statements of Network of Wellbeing (the Charity) for the year ended 31 March 2022.

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

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

Since the Charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England & Wales, which is one of the listed bodies.

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

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

the financial statements do not accord with those records; or

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

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

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

Donations

Sundry income

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2022.

The Trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the 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 company.

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

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

Network of Wellbeing is a private company limited by guarantee incorporated in England and Wales. The registered office is C/O Eden Rise, Sandwell Barns, Harberton, Totnes, Devon, TQ9 7LJ.

These accounts have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), “Accounting and Reporting by Charities” the Statement of Recommended Practice for charities applying FRS 102, the Companies Act 2006 and UK Generally Accepted Accounting Practice as it applies from 1 January 2019. The Charity is a Public Benefit Entity as defined by FRS 102.

The Charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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

The financial statements have been prepared using the historical cost convention. The principal accounting policies adopted are set out below.

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the accounts.

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

Income from donations and grants, including capital grants, is included in incoming resources when these are receivable, except as follows:

• when donors specify that donations and grants given to the Charity must be used in future accounting periods, the income is deferred until those periods.

• when donors impose conditions which have to be fulfilled before the Charity becomes entitled to use such income, the income is deferred and not included in incoming resources until the pre-conditions for use have been met.

Interest receivable

Interest receivable is included in investment income when it is receivable by the charitable company.

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on the accruals basis and includes irrecoverable VAT. Expenditure is allocated to categories either on a direct or a usage basis.

Expenditure attributable to meeting the aims and objectives, including the support costs, is included in charitable activities.

Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include the costs related to the independent examination and legal fees.

Overhead costs incurred wholly or mainly in support of generating funds, or in support of expenditure on the objects of the Charity and being an integral part of the costs of carrying out those activities, are separately analysed within Costs of Generating Funds or Charitable Expenditure in the Statement of Financial Activities as appropriate.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the Charity transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Financial liabilities classified as payable within one year are not amortised.

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

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

The Charity operates a defined contributions pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Donations

Grants receivable

Sundry income

Solar panels at Eden Rise

SHDC COVID business support grants

Coronavirus Job Retention Scheme

Green Books Funders Ltd

Wellbeing - Legal and professional

Eden Rise - Bank charges

Eden Rise - Administrative costs

Share Shed - Bank charges

Independent Examiners fees - external scrutiny

Independent Examiners fees - other services

Governance payments include payments to the Independent Examiner for external scrutiny of £1,920 (2021: £1,800) and for other services of £727 (2021: £1,020).

None of the Trustees (or any persons connected with them) received any remuneration during the year (2021: £nil), and none were reimbursed any expenses (2021: £nil).

Redundancy totalling £2,852 was paid to one member of staff in the year (2021: £-).

All staff were employed on a part-time basis.

Freehold land and buildings at Eden Rise, Sandwell, Totnes have a disclosed nominal value of £1 due to a covenant that if they were disposed they must be gifted to another charity. If the covenant was not in place, the property was valued at an open market value of £600,000 on 23 August 2019 by CSS Complete Surveying Services.

The loan to Totnes Community Development Society is interest free, unsecured and with no fixed terms of repayment. Repayment is anticipated to take place on the commencement of the development to be undertaken.

Accruals and deferred income includes deferred rental income of £36,744 (2021: £7,877) and deferred grant income of £20,000 (2021: £-) with an overall increase in the year of £48,867.

The income funds of the Charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Income

Expenditure

Income

Expenditure

The restricted income funds of the Charity arising through its activities are as follows:

Wellbeing Project

To research and educate with the aim of improving the wellbeing of individuals, communities and the environment.

ATMOS funding

To fund the development of the former Dairy Crest site in Totnes by Totnes Community Development Society.

Green Books Ltd funders

To fund environmental research and education.

Share Shed and Mobile Share Shed

Funding received from the National Lottery, Dartington School for Social Entrepreneurs, Totnes Town Council, the Postcode Local Trust and the Co-operative Local Fund to create a Share Shed, or Library of Things, whereby members of the community can borrow, for a fee, tools and other equipment they might otherwise have to buy. Funding includes amounts received to create a travelling library of things that are stored in the Sharemobile, which is a converted van.

The cost of the Sharemobile has been capitalised and is included within fixed assets. This cost is being charged in the Statement of Financial Activities over the useful economic life of the Sharemobile and expensed as depreciation.

Sufficient resources are held in an appropriate format to enable each fund to be applied in accordance with any restrictions.

Grants of £125,000 (2021: £159,997) were received in the year from the Brownswood Trust of which Mr Nigel Woodward and Mrs Margaret Woodward are also Trustees.

In the previous year £8,000 was donated to the Resurgence Trust. Satish Kumar, then Trustee, is company secretary of the Resurgence Trust.