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 2023

for

Rock Foundation UK Limited

Page

Report of the Trustees

1

to

5

Independent Examiner's Report

6

Statement of Financial Activities

7

Balance Sheet

8

to

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

to

20

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 2023. 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 more than ninety adults with learning disabilities every week.

During the last financial year, 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 etc, alongside courses in independence and work skills, community living and transportation. We were also able to take our students to Leeds to see Charlie and the Chocolate Factory which was kindly funded for us. Our annual awards evening at the Town Hall was a great success with the Rock Choir making a special performance. With great remarks from our Deputy Mayor and other guests.

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 have now moved to our new premises in Garibaldi Street and have been very busy this year doing much needed building repair. Unfortunately, vandals had destroyed the interior of the building and the roof and all the utilities. We are extremely grateful to Morrisons who paid for new electrics, Tronox who gave us a kitchen and did a lot of other building repairs and CPO who helped with the decorating. Other volunteers also gave so much of their time.

Over the past year's our food bank has experienced increasing levels of need. It was decided to set up a separate charity for the foodbank and the extra wrap around services we would be providing. The events of the last year have compounded our conviction that the help our community needs go way beyond a food parcel. 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 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. Cadent have also agreed to fund us for two part time benefit advisors over the next two years.

We have also continued to wholesale our laser products through Potter's House; however, this has dropped to so many shops closing. 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 at our Caistor site. We are seeking to continue to grow this in coming years to increase our financial resilience, and service sustainability.

Our supported housing at Caistor with 7 residents as well as intermittent respite placements. Caistor Day services are doing well with 18 service users and now have increased the days from three to five per week.

Tea Room has continued to grow, and we are very proud of our team, as of all of our workers in Caistor and Grimsby.

We also have a community allotment at Caistor ran by our fantastic volunteers. The produce from our allotment is also providing produce for our tearoom and a small income with the sale of plants as well.

This year we are planning to put in a planning application for solar panels.

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

Very big thank you to all our Volunteers as without them it would be impossible to continue the work of Rock Foundation.

Volunteer review

We continue to be blessed by excellent volunteers; many have worked for the charity for many years.

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

Our regular 46 volunteers contributed a total of around 12,958 hours across the last year, equating to roughly 249 hours per week in volunteer time, or 5.4 per person per week.

Our regular volunteers therefore contributed approximately £142,538 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 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 of 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 £700,364 (2022:£723,640) and resources expended £665,359 (2022: £593,494). Free reserves at the year-end were £922,561 (2022:£887,556).

FUTURE PLANS

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

Our aim is to continue to move our supported living facility towards being fully occupied. This year we have had more respite clients use our services. 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 for our Grimsby site with funding being sort for new windows and doors. As well as the ongoing expansion of our gardening project at Grimsby and Caistor on growing high-quality produce for our residents, tearooms, and the public. Whilst providing an excellent set of training opportunities for our members.

We are looking for funding for a sensory room for our members and are in the process of putting in for planning for solar panels.

We have now completed the transfer of assets for Garibaldi Street for our new food bank. This year we will be looking at the refurbishment of the site, and the expansion of the services we offer.

This year present climate

At present our reserves are good. But as a board this is something that needs to be looked at on a regular basis.

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 day students. Financial loss of income due to another lock down and 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.

Risk management

The 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

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 31 October 2023 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 2023.

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 member of the Institute of Chartered Accountants in England and Wales, 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

31 October 2023

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

2

484,028

-

484,028

573,786

Charitable activities

3

Core projects

156,491

-

156,491

37,427

General

2,940

-

2,940

-

Core projects-Restricted

-

68,125

68,125

17,003

Other income

8,372

-

8,372

95,424

Total

651,831

68,125

719,956

723,640

EXPENDITURE ON

Charitable activities

4

Core projects

615,435

-

615,435

571,491

General

2,421

-

2,421

-

Core projects-Restricted

-

68,125

68,125

22,003

Total

617,856

68,125

685,981

593,494

NET INCOME

33,975

-

33,975

130,146

RECONCILIATION OF FUNDS

Total funds brought forward

887,556

48,377

935,933

805,787

TOTAL FUNDS CARRIED FORWARD

921,531

48,377

969,908

935,933

31.3.23

31.3.22

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

10

778,075

48,377

826,452

835,999

CURRENT ASSETS

Stocks

11

6,000

-

6,000

6,000

Debtors

12

143,044

-

143,044

168,368

Cash at bank and in hand

335,482

-

335,482

340,263

484,526

-

484,526

514,631

CREDITORS

Amounts falling due within one year

13

(37,632

)

-

(37,632

)

(34,423

)

NET CURRENT ASSETS

446,894

-

446,894

480,208

TOTAL ASSETS LESS CURRENT LIABILITIES

1,224,969

48,377

1,273,346

1,316,207

CREDITORS

Amounts falling due after more than one year

14

(303,438

)

-

(303,438

)

(380,274

)

NET ASSETS

921,531

48,377

969,908

935,933

FUNDS

17

Unrestricted funds

921,531

887,556

Restricted funds

48,377

48,377

TOTAL FUNDS

969,908

935,933

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 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 31 October 2023 and were signed on its behalf by:

P E Hodge - Trustee

Cash flows from operating activities

Cash generated from operations

1

109,340

85,815

Interest paid

(16,285

)

(16,285

)

Net cash provided by operating activities

93,055

69,530

Cash flows from investing activities

Purchase of tangible fixed assets

(21,000

)

(14,063

)

Net cash used in investing activities

(21,000

)

(14,063

)

Cash flows from financing activities

Loan repayments in year

(93,121

)

(43,684

)

Loan interest

16,285

16,285

Net cash used in financing activities

(76,836

)

(27,399

)

Change in cash and cash equivalents in the reporting period

(4,781

)

28,068

Cash and cash equivalents at the beginning of the reporting period

340,263

312,195

Cash and cash equivalents at the end of the reporting period

335,482

340,263

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

31.3.23

31.3.22

£

£

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

33,975

130,146

Adjustments for:

Depreciation charges

30,547

29,180

Interest paid

16,285

16,285

Decrease in stocks

-

1,000

Decrease/(increase) in debtors

25,324

(75,138

)

Increase/(decrease) in creditors

3,209

(15,658

)

Net cash provided by operations

109,340

85,815

2.	ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.4.22

Cash flow

At 31.3.23

£

£

£

Net cash

Cash at bank and in hand

340,263

(4,781

)

335,482

340,263

(4,781

)

335,482

Debt

Debts falling due within 1 year

(27,399

)

-

(27,399

)

Debts falling due after 1 year

(380,274

)

76,836

(303,438

)

(407,673

)

76,836

(330,837

)

Total

(67,410

)

72,055

4,645

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

31.3.23

31.3.22

£

£

Donations and gifts

484,028

573,786

3.	INCOME FROM CHARITABLE ACTIVITIES

31.3.23

31.3.22

Activity

£

£

Charitable activities

Core projects

7,863

6,912

Service provisions

Core projects

123,244

30,515

Grants

Core projects

25,384

-

Grants

General

2,940

-

Grants

Core projects-Restricted

68,125

17,003

227,556

54,430

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

31.3.23

31.3.22

£

£

Bernard Sunley Foundation

4,000

-

WRAP

-

7,461

NELC Hardship

30,000

-

The Morrisons Foundation

22,000

-

Sainsburys

385

1,000

North Bank Forum

-

4,042

Groundwork UK

1,125

1,000

Carried forward

57,510

13,503

31.3.23

31.3.22

£

£

Brought forward

57,510

13,503

Good Things Foundation

-

3,500

Garfield Weston

25,000

-

The National SW, NGS CG & Award

5,000

-

Arnold Clark Automotive

1,000

-

Luncheon Club

5,000

-

93,510

17,003

4.	CHARITABLE ACTIVITIES COSTS

Support

Direct

costs (see

Costs

note 5)

Totals

£

£

£

Core projects

595,007

20,428

615,435

General

2,421

-

2,421

Core projects-Restricted

68,125

-

68,125

665,553

20,428

685,981

5.	SUPPORT COSTS

Governance

Other

costs

Totals

£

£

£

Core projects

17,542

2,886

20,428

6.	NET INCOME/(EXPENDITURE)

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

31.3.23

31.3.22

£

£

Depreciation - owned assets

30,547

29,180

7.	TRUSTEES' REMUNERATION AND BENEFITS

31.3.23

31.3.22

£

£

Trustees' salaries

42,400

40,000

Trustees' social security

4,835

4,300

Trustees' pension contributions to money purchase schemes

1,085

1,013

48,320

45,313

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2023 nor for the year ended 31 March 2022.

8.	STAFF COSTS

31.3.23

31.3.22

£

£

Wages and salaries

310,868

342,802

Social security costs

12,121

12,183

Other pension costs

3,462

3,074

326,451

358,059

Included in wages and salaries are contracted out Tutor and consultancy fees of £8,127 (2022:£14,810).

Included in staff costs are salary and employers national insurance paid to and in relation to key management of £42,400 (2022:£40,000).

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

31.3.23

31.3.22

Core

26

26

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

573,786

-

573,786

Charitable activities

Core projects

37,427

-

37,427

Core projects-Restricted

-

17,003

17,003

Other income

95,424

-

95,424

Total

706,637

17,003

723,640

EXPENDITURE ON

Charitable activities

Core projects

571,491

-

571,491

Core projects-Restricted

-

22,003

22,003

Total

571,491

22,003

593,494

NET INCOME/(EXPENDITURE)

135,146

(5,000

)

130,146

RECONCILIATION OF FUNDS

Total funds brought forward

752,410

53,377

805,787

TOTAL FUNDS CARRIED FORWARD

887,556

48,377

935,933

10.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Motor

property

fittings

vehicles

Totals

£

£

£

£

COST

At 1 April 2022

870,155

124,617

24,840

1,019,612

Additions

-

-

21,000

21,000

At 31 March 2023

870,155

124,617

45,840

1,040,612

DEPRECIATION

At 1 April 2022

74,020

97,587

12,006

183,613

Charge for year

17,403

8,176

4,968

30,547

At 31 March 2023

91,423

105,763

16,974

214,160

NET BOOK VALUE

At 31 March 2023

778,732

18,854

28,866

826,452

At 31 March 2022

796,135

27,030

12,834

835,999

11.

STOCKS

31.3.23

31.3.22

£

£

Stocks

6,000

6,000

12.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Other debtors

143,044

168,368

13.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.23

31.3.22

£

£

Bank loans and overdrafts (see note 15)

27,399

27,399

Social security and other taxes

2,608

3,617

Other creditors

7,625

3,407

37,632

34,423