Rock Foundation UK Ltd - Charities report - 18.1

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 2018

FOR

ROCK FOUNDATION UK LTD

ROCK FOUNDATION UK LTD

CONTENTS OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

Page

Report of the Trustees

1 to 4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

Notes to the Financial Statements

8 to 13

ROCK FOUNDATION UK LTD (REGISTERED NUMBER: 06585052)

REPORT OF THE TRUSTEES

FOR THE YEAR ENDED 31 MARCH 2018

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 2018. The trustees have adopted the provisions of

Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their

accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)

(effective 1 January 2015).

OBJECTIVES AND ACTIVITIES

Objectives and aims

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.

d) Providing recreational and leisure time activity in the interests of social welfare for people living in the area of benefit

who have need by reason of their youth, age, infirmity or disability, poverty or social and economic circumstances, with a

view to improving the conditions of life of such persons.

Public benefit

We have referred to the guidance contained 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

We would firstly 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 young people

and adults who had reached their 18th birthday, 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 workshops so

that these people could achieve their full potential in life, and we now serve in excess of one hundred adults with

learning disabilities every week.

During the last financial year, Rock Foundation continued to expand its services to people with learning disabilities to

include a wide range of workshops, such as domestic hygiene, art and craft, woodwork, puppetry, laundry, cookery,

baking, computers, healthy living, needlework, model railway, furniture restoration, DIY, CAD CAM embroidery and

lasercraft, foodbank stock management, and horticulture, alongside a range of courses in independence and work skills,

community living and transportation.

Rock Foundation UK Ltd has continued to further its work with the local community by working with HIS CHURCH to

supply our food bank. We continue to be involved with the local food provider forum, acting in coalition to resolve food

poverty in North East Lincolnshire.

This year alone our foodbank provided nutrition for 1720 desperate people, of which 1152 were new referrals, with an

almost direct split of 75% adults to 25% children. To date our foodbank has now provided over 64,000 meals

representing a minimum of £128,214 in food to desperate families across North East Lincolnshire. This would not have

been possible without the help of HIS, and a wide variety of local businesses and supporters, many of whom do not wish

to be identified.

Rock continues to provide the fortitude club with space in our hall every Monday, to assist them in their excellent work

with blind and visually impaired people from the local area. We continue to run our luncheon club for the elderly, and our

community bingo continues to thrive on a weekly basis.

During this financial year we have also been able to reinforce some excellent business links with wholesalers and

retailers, allowing us to move more product than before to a wider range of markets and demographics, helping to

financially underpin our work. We are seeking to continue this in coming years and to achieve our goal of financial

independence and long term self-sustainability.

In particular we have been supplying a range of laser cut items to Potters House Ltd, a wholesaler providing product to

Christian bookshops. This continues to be an excellent source of income for us having produced and sold over 10,500

items this financial year.

Further grants have been obtained from Awards for All, HLC and the Screwfix Foundation, as well as Morrisons, The

Ulverston Foundation and Percy Bilton. We would like to thank all of 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.

VOLUNTEER REVIEW

We continue to be blessed with excellent volunteers, who help us to operate in all areas of our work. Our volunteers

come from a wide range of organisations, backgrounds and experience, representing a wide cross section of our

community.

Grimsby Institute and Franklin College alone have provided us with around 700 voluntary hours over the past year from

students allocated to us on placement, some of whom continued to attend and help after their placement finished.

Additionally our 22 regular volunteers contributed a total of around 9,728 hours across the last year, equating to roughly

187 hours per week in volunteered time, or 8.5 hours per person per week.

Our regular volunteers and College placements therefore contributed approximately 10,428 hours between them.

We also receive help from many casual volunteers throughout the year, whose valuable contribution is difficult to

quantify, but incredibly significant. These are 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 placements from training agencies. Considering the hours

they donate to us we estimate that we have received around 12,000 hours of donated time this year.

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 £44,000. 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 £448,514 (2017- £391,828) and resources expended £395,636

(2017-£340,072). Free Reserves at the year end were £63,609 (2017- £46,984).

FUTURE PLANS

As ever plans are in place to maximise the use of current resources, develop new resources and increase our intake of

service users.

At the time of publishing our last report we had been exploring the construction of a large extension to the South

Elevation of our main centre. We have commissioned plans for an addition which will be purpose-built to our needs

offering better service provision from our Grimsby base. In tandem with the extension we are also seeking to modernise

and adapt our current building to bring it up to the standard of excellence that we wish to offer our client group. Currently

however these plans are on hold as we are diverting all available resources into a new project.

During 2017-18 we will begin a new residential facility for adults with learning disabilities in the former Montessori

School in Caistor. This building ideally lends itself to this use and also to the provision of day activities, social enterprise

and community facilities. We have taken the bold step of attempting to purchase this property as a result of many of our

clients struggling in existing supported housing, which is generally run by companies who need to please shareholders.

We believe a non-profit approach, backed by social enterprise, and run purely for the benefit of residents is the only way

forward, and this expansion represents a different way of doing things, as well as another bold step forward in fulfilling

our charitable objectives.

In the same vein we also secured three years of funding from Lloyds Bank Foundation's Invest scheme, that will be

released next financial year, which is targeted at assisting those transitioning out of the family home, providing support,

advocacy and activities to secure a lasting transition, whilst maintaining and improving the welfare of transitioning

clients.

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.

Induction and training 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.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

06585052 (England and Wales)

Registered Charity number

1126626

Registered office

39-41 Heneage Road

GRIMSBY

DN32 9ES

Trustees

Miss. P. E. Hodge

Mr I Jones

Mr K J Smith

Mr P D Brown

Mr M Scarrott

- appointed 7.4.18

Mr H Wilkinson

- appointed 25.10.17

Mr R I Lewis

- appointed 21.5.18

Independent examiner

Paul Gallant

F.C.A.

12 Abbey Road

GRIMSBY

DN32 0HL

Bankers

National Westminster Bank plc

66 Victoria Street

GRIMSBY

DN31 1BP

Senior Staff

Miss. P. Hodge

STATEMENT OF TRUSTEES RESPONSIBILITIES

The trustees (who are also the directors of Rock Foundation UK Ltd 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.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating

to small companies.

Approved by order of the board of trustees on 26 July 2018 and signed on its behalf by:

Miss. P. E. Hodge - Trustee

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF

ROCK FOUNDATION UK LTD (REGISTERED NUMBER: 06585052)

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

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2018.

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 F.C.A. 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

Paul Gallant

F.C.A.

12 Abbey Road

GRIMSBY

DN32 0HL

26 July 2018

ROCK FOUNDATION UK LTD

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2018

31.3.18

31.3.17

Unrestricted funds

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

221,197

-

221,197

206,244

Charitable activities

2

Core Projects

154,878

72,439

227,317

185,584

Total

376,075

72,439

448,514

391,828

EXPENDITURE ON

Charitable activities

Core Projects

351,693

43,943

395,636

340,072

NET INCOME

24,382

28,496

52,878

51,756

Transfers between funds

14

17,257

(17,257

)

-

-

Net movement in funds

41,639

11,239

52,878

51,756

RECONCILIATION OF FUNDS

Total funds brought forward

313,055

-

313,055

261,299

TOTAL FUNDS CARRIED FORWARD

354,694

11,239

365,933

313,055

ROCK FOUNDATION UK LTD (REGISTERED NUMBER: 06585052)

BALANCE SHEET

AT 31 MARCH 2018

31.3.18

31.3.17

Unrestricted funds

Restricted funds

Total funds

Total funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

7

775,491

-

775,491

266,071

CURRENT ASSETS

Stocks

8

3,500

-

3,500

3,500

Debtors

9

28,854

-

28,854

30,407

Cash at bank and in hand

77,950

11,239

89,189

44,864

110,304

11,239

121,543

78,771

CREDITORS

Amounts falling due within one year

10

(34,684

)

-

(34,684

)

(8,537

)

NET CURRENT ASSETS

75,620

11,239

86,859

70,234

TOTAL ASSETS LESS CURRENT LIABILITIES

851,111

11,239

862,350

336,305

CREDITORS

Amounts falling due after more than one year

11

(496,417

)

-

(496,417

)

(23,250

)

NET ASSETS

354,694

11,239

365,933

313,055

FUNDS

14

Unrestricted funds

354,694

313,055

Restricted funds

11,239

-

TOTAL FUNDS

365,933

313,055

The charitable company is entitled to exemption from audit under

Section 477 of the Companies Act 2006 for the year ended 31 March 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended

31 March 2018 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

special provisions of Part 15 of the Companies Act 2006 relating to

charitable small companies.

The financial statements were approved by the Board of Trustees on 26 July 2018 and were signed on its behalf by:

Miss. P. E. Hodge -Trustee

ROCK FOUNDATION UK LTD

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2018

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 updated by bulletin 1) 'Accounting and Reporting by

Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance

with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 january,

2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic

of Ireland' and 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 has 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 and 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 a 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.

Freehold property

- 2% Straight Line

Fixtures and fittings

- 20% Straight Line

Motor vehicles

- 20% Straight Line

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 and services

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 in the statement of financial

activities. Further details of these are disclosed in the Trustees report.

Specific roles and services provided by volunteers and other organisations are recognised in the statement of

financial expenditure as 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.	INCOME FROM CHARITABLE ACTIVITIES

31.3.18

31.3.17

Activity

£

£

Charitable Activities

Core Projects

41,711

40,628

Service provisions

Core Projects

113,167

107,623

Grants

Core Projects

72,439

37,333

227,317

185,584

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

31.3.18

31.3.17

£

£

Lloyds

22,250

-

HLC Funding

9,242

5,928

Peoples Health Trust

-

500

NELC Foodbank Grant

5,000

-

Big Lottery Fund

4,152

-

Awards For All

-

9,360

Ulscroft

-

1,230

Screwfix

-

4,755

MSE Charity

-

2,700

Nottingham Building Society

-

2,000

Morissons

-

9,360

AGE Grant

-

1,500

Postcode Lottery Grant

19,850

-

West Lindsey Council

7,000

-

Percy Bilton

4,945

-

72,439

37,333

3.	SUPPORT COSTS

Other

Governance costs

Totals

£

£

£

Core Projects

13,935

3,358

17,293

Support costs, included in the above, are as follows:

31.3.18

31.3.17

Core Projects

Total activities

£

£

Wages

12,168

13,454

Social security

217

248

Rates and water

(25

)

51

Insurance

445

284

Carried forward

12,805

14,037

31.3.18

31.3.17

Core Projects

Total activities

£

£

Brought forward

12,805

14,037

Light and heat

980

547

Telephone

98

50

Postage and stationery

52

67

Accountancy

3,358

3,333

17,293

18,034

4.	NET INCOME/(EXPENDITURE)

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

31.3.18

31.3.17

£

£

Depreciation - owned assets

30,185

22,871

5.	TRUSTEES' REMUNERATION AND BENEFITS

Included in staff costs are salary and employers national insurance paid to and in relation to Trustee, Miss P. E.

Hodge of £29,507 (2017- £29,178).

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2018 nor for the year ended 31 March 2017.

6.	STAFF COSTS

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

31.3.18

31.3.17

Core

16

16

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

Included in Wages and salaries are contracted out Tutor and consultancy fees of £20,126 (2017- £20,756).

Included in staff costs are salary and employers national insurance paid to and in relation to key management of

£29,507 (2017- £29,178).

7.	TANGIBLE FIXED ASSETS

Freehold property

Fixtures and fittings

Motor vehicles

Totals

£

£

£

£

COST

At 1 April 2017

229,601

90,776

13,500

333,877

Additions

524,566

15,039

-

539,605

At 31 March 2018

754,167

105,815

13,500

873,482

DEPRECIATION

At 1 April 2017

12,247

51,734

3,825

67,806

Charge for year

11,500

15,985

2,700

30,185

At 31 March 2018

23,747

67,719

6,525

97,991

NET BOOK VALUE

At 31 March 2018

730,420

38,096

6,975

775,491

At 31 March 2017

217,354

39,042

9,675

266,071

8.

STOCKS

31.3.18

31.3.17

£

£

Stocks

3,500

3,500

9.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Other debtors

28,854

30,407

10.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.18

31.3.17

£

£

Bank loans and overdrafts (see note 12)

17,141

-

Social security and other taxes

1,353

931

Other creditors

16,190

7,606

34,684

8,537

11.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.18

31.3.17

£

£

Bank loans (see note 12)

473,167

-

Other loans (see note 12)

23,250

23,250

496,417

23,250

12.

LOANS

An analysis of the maturity of loans is given below:

31.3.18

31.3.17

£

£

Amounts falling due within one year on demand:

Bank loans

17,141

-

Amounts falling due in more than five years:

Repayable by instalments:

Bank loans more 5 yr by instal

473,167

-

Repayable otherwise then by instalments:

Other loans more 5yrs non-inst

23,250

23,250

13.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.18

31.3.17

£

£

Bank loans

490,308

-

CAF Bank Ltd have secured fixed charges over the freehold property 39-43 Heneage Road, Grimsby, DN32 9ES

and Top House Farm, Grimsby Road, Caistor, LN7 6RJ.

14.	MOVEMENT IN FUNDS

At 1.4.17

Net movement in funds

Transfers between funds

At 31.3.18

£

£

£

£

Unrestricted funds

General fund

313,055

24,382

17,257

354,694

Restricted funds

Core projects

-

28,496

(17,257

)

11,239

TOTAL FUNDS

313,055

52,878

-

365,933

Net movement in funds, included in the above are as follows:

Incoming resources

Resources expended

Movement in funds

£

£

£

Unrestricted funds

General fund

376,075

(351,693

)

24,382

Restricted funds

Core projects

72,439

(43,943

)

28,496

TOTAL FUNDS

448,514

(395,636

)

52,878