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2022-09-30-accounts

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

REPORT AND ACCOUNTS

FOR THE YEAR ENDED

30 SEPTEMBER 2022

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

CONTENTS

Page
CHARITY DETAILS 1
TRUSTEES
REPORT		 2 - 4
INDEPENDENT EXAMINERS REPORT TO THE TRUSTEES 5
STATEMENT OF FINANCIAL ACTIVITIES 6
BALANCE SHEET 7
NOTES TO THE ACCOUNTS 8 - 14

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

CHARITY DETAILS

Trustees/ Executive Committee: Chairman P R Metcalf MBE, FCA, DChA Vice Chairman K Sedgewick Treasurer * Mrs A Metcalf FCA, DChA Secretary * P D Taylor JP Mrs B Rhodes B.A, ACMA app 13[th] Feb 2023 Alderman C Crompton Councillor J Saksena (Preston City Council) Councillor N Pomfret (Preston City Council) J Whittle (SVP) Mrs M Thompson - retired 13[th] February 2023 T Greaves retired 13[th] February 2023

* Finance & Executive Committee
President (ex officio): Mayor of Preston City Council
Warehouse / Office: Unit 2, off Boundary Road
Plungington
Preston
PR2 3DS
Tel: 01772 716572
Registered Office: 1 Yewlands Avenue
Fulwood
Preston
Lancashire
PR2 9QR
Charity Number: 1015952
Bankers: National Westminster Bank PLC
35 Fishergate
Preston
Lancashire
Independent Examiner: N Mason FCA DChA
Moore and Smalley LLP
Richard House
Winckley Square
Preston
PR1 3HP
Investment Advisers: Hedley & Company Stockbrokers Ltd
13b Winckley Square
Preston
PR1 3JJ
Website https://gift92.com/ https://www.facebook.com/Gift92

Page 1

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

TRUSTEES REPORT

The trustees present their report and the financial statements for the year ended 30 September 2022.

Objects and activities for the public benefit

The charity was established for the relief of poverty in the Preston area through reuse and recycling of household items. It was set up to collect donated items of furniture and household effects and delivers such items when requested to needy persons. In furtherance of these aims the charity co-operates with other outside bodies, statutory or voluntary, to assist in its objects and in particular Preston City Council, Lancashire County Council and the LCC Waste Group.

The trustees

Constitution

The charity is a registered charity governed by a scheme and constitution approved by the Charity Commission on 28 December 1992.

Trustees

The charity is managed by a Committee of Trustees. The members of the Committee are elected at the AGM for a period of three years. One-third of the membership retires annually but may offer themselves for re-election. The trustees who have served during the year are set out on page 1.

Recruitment, induction and training of trustees

The existing trustees accept the obligation to fully inform a new trustee of the duties and responsibilities of charity trustees by providing the new trustee with copies of the governing document, minutes of previous meetings of the trustees, recent annual accounts of the charity and the relevant Charity Commission publication relating to the responsibilities of trustees.

New trustees are also able to view the Power Point presentation which the charity uses for promotional purposes and to inform new Referral Agents, Churches, community, and social groups of how the charity operates and the valuable contribution made to the local community in the Preston area.

Key management

The trustees are the key management personnel of the charity with Mr P R Metcalf MBE in charge of directing and controlling daily operations.

All trustees give of their time freely, no trustee remuneration or expenses were paid in the year and there were no related party transactions.

Financial review

The accounts annexed to this report show a net surplus for the year of £26,374 including investment gains, which 283,127 to £309,501 of which £85,145 was held on the unrestricted income fund as at 30 September 2022

The value of the Investment fund has increased from £104,081 at 30 September 2021 to £110,882 at 30 September 2022. The fund generated £5,395 unrealised loss of £8,992 during the year, and a profit of £1,854 on investments sold during the year.

Page 2

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

TRUSTEES REPORT (CONTINUED)

Investment policy and performance

Our investment advisers are instructed to seek a return generating in excess of inflation over the long term, providing an income of 4% per annum with capital growth in excess of inflation through the use of gilts, unit trusts and common investment funds. At the year end the investment portfolio was yielding 5.38%. The trustees receive quarterly valuation reports from the investment advisers.

The management of risk

The trustees are mindful of potential risks to the charity and regularly review and evaluate policies and procedures. Due to other charities recycling furniture in the Preston area which they sell to generate funds for their cause, there is considerable competition for usable donated household items. The trustees are seeking to appoint to the post of operations manager who will initially share the role with our current postholder.

Reserves policy

The Trustees aim to maintain free reserves in the unrestricted general fund which equates to approximately 6 months of unrestricted general expenditure. The charity held £88,145 free reserves at the year-end which represents in excess of 5

In addition to the unrestricted general fund the charity held designated reserves totalling £66,328 as detailed in note 13, plus £110,882 in respect of the Investment fund, which is held to create income. We are also endeavouring to build reserves as the warehouse roof needs replacing and our long-term aim is to locate to a larger warehouse as our current building which we have occupied since inception is not large and hinders expansion of operation. Our current van bought in 2016 has had a few recent repairs and will need replacing.

Review of activities and achievements

During the charity's thirtieth year of operation Gift92 made 667 deliveries of furniture and household items, assisting 1723 people, of which 927 were dependent children, 53 referred clients were aged under 25 and 46 formerly homeless. Preston is a city with high levels of deprivation and our service helps mitigate this. Our referral agencies confirm the clients need of our help and support our service financially with a contribution to our running costs. These agencies include social services, housing associations, homeless charities, and local authority housing.

We made 1,119 collections of household furniture mainly from the general public whose support is vital to our success and diverted 70 tonnes from landfill.

The charity is one of four Lancashire reuse organisations that support Lancashire County Council Crisis Support st December 2021 supported by Selnet. The work was awarded the MRW National Recycling Partnership Award 2014. We serve west of Preston. South Ribble and the West Lancashire area including Chorley for the scheme.

In October 2021 Preston Council Household Assistance project was instigated and Gift92 delivery team are enabling referrals from the project to be delivered across Preston in a timely manner.

Page 3

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

TRUSTEES REPORT (CONTINUED)

The Trustees are grateful to: -

Our four long serving staff and 10 regular volunteers, who have enabled the charity to efficiently maintain its service to the community.

The general public who have again contributed with regular furniture donations without which we could not fulfil our aims.

Our service helps financially vulnerable persons avoid incurring crippling debt from expensive lenders when moving into empty properties. We have also signposted people to other agencies who can assist improving their circumstances.

We received funding this year from a number of charitable and statutory organisations recorded in the accounts for which we are extremely grateful (note 4). We continue not to charge for furniture as the people we serve are the neediest in Preston and have very limited resources.

Tax status

The charity is exempt from tax on income and gains to the extent that these are applied to its charitable objects

Independent examiner

Nicola Mason FCA, a Member of the Institute of Chartered Accountants, has kindly undertaken the examination of the accounts.

This report was approved by the Board of Trustees on 3[rd] April 2023 and signed on its behalf by:

P R Metcalf MBE FCA DChA Chairman of the Board of Trustees

Page 4

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

TO THE TRUSTEES

ON THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2022

I report to the charity trustees on my examination of the accounts of the charity for the year ended 30 September 2022 which are set out on pages 6 to 13.

Responsibilities and basis of report

the Act and in

carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

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

  1. accounting records were not kept in respect of the charity as required by section 130 of the Act; or

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

  3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the

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.

----- Start of picture text -----
Date:
Signed:
2023 25/07/
Name: Nicola Mason FCA DChA
----- End of picture text -----

Relevant professional Member of the Institute of Chartered Accountants qualification

Page 5

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 30 SEPTEMBER 2022

Unrestricted
general
income fund
Income
Note
£
Grants and other income 4
16,079
Income from charitable activities 5
209,241
Total income
225,320
Expenditure
Charitable activities 6
(204,657)
Investment management charges
-
Total expenditure
(204,657)
Net income/(expenditure) before
investment gains and losses
20,663
Realised investment gain/(loss)
-
Net unrealised investment (loss)/gain
-
Transfers between funds
Investment fund 14
(98)
Redundancy reserve fund
(3,877)
Net movement in funds
16,688
Reconciliation of funds
Total funds brought forward
68,457
funds carried forward
85,145		 Unrestricted
general
income fund
Income
Note
£
Grants and other income 4
16,079
Income from charitable activities 5
209,241
Total income
225,320
Expenditure
Charitable activities 6
(204,657)
Investment management charges
-
Total expenditure
(204,657)
Net income/(expenditure) before
investment gains and losses
20,663
Realised investment gain/(loss)
-
Net unrealised investment (loss)/gain
-
Transfers between funds
Investment fund 14
(98)
Redundancy reserve fund
(3,877)
Net movement in funds
16,688
Reconciliation of funds
Total funds brought forward
68,457
funds carried forward
85,145		 Design -
ated

funds

£
14,204
-
14,204

(833)

(363)

(1196)

13,008

1,854

(8,992)
98

3,877
9,845
167,365
174,210		 Restricted

funds

£
-

-
-

(159)

-

(159)
(159)
-
-
-
-

(159)

47,305

47,146
2022

Total

£

30,283
209,241
239,524
(205,649)
(363)
2021

Total

£

24,703
186,511
211,214
(184,705)
(400)
(185,105)
26,109
535

16,657

-
-

43,301
239,826
283,127

(206,012)
33,512
1,854

(8,992)

-

-
26,374
283,127

16,688
68,457
85,145

309,501

Page 6

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

BALANCE SHEET

AS AT 30 SEPTEMBER 2022

Note
Fixed assets
7
Investments
8
Current assets
Stock
Debtors
9
Cash at bank and in hand
10
Liabilities
Creditors falling due within one year
11
Net current assets
Creditors falling due after one year
11
Net assets
12
Funds of the charity:
General unrestricted funds
Designated funds
13
Designated Investment fund
14
Restricted funds 15
Total charity funds		 £
2,769
15,140
144,451
162,360
(10,399)		 2022
£
£
46,658
110,882
2,245
9,322
133,721
145,288
(13,734)
151,961
-
309,501
85,145
66,328
110,882
47,146
309,501		 2021
£
47,492
104,081
131,554
-
283,127
68,457
63,284
104,081
47,305
283,127

CERTIFICATE OF TRUSTEES

The accounts were approved by the trustees on 3[rd] April 2023 and signed on their behalf by:

...................................................................... P R Metcalf MBE - Chairman

The notes on pages 8 to 15 form part of these accounts.

Page 7

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

1. Accounting policies

The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and in the preceding year.

Basis of accounting

The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The charity constitutes a public benefit entity as defined by FRS 102. The accounts (financial This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Fund accounting

General unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity.

Designated funds comprise unrestricted funds that have been set aside and earmarked by the Trustees for particular purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors. The aim and use of each restricted fund is set out in the notes to the financial statements.

Income

All income is included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy.

Grants restricted by the terms of the grantor are shown under restricted funds.

No amount is included in the financial statements for volunteer time in line with SORP (FRS102) Further details are given in the Trustees Annual Report.

Page 8

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

Expenditure

The charity is registered for VAT. All expenditure is accounted for on an accruals basis and has been allocated between the different expenditure categories of the SOFA dependent on the fund financing those costs.

Support costs allocation

Support costs are those that assist the work of the charity but do not directly represent charitable activities and include governance costs and administrative costs. They are incurred directly in support of expenditure on the objects of the charity. Where support costs cannot be directly attributed to particular headings they have been allocated to cost of raising funds and expenditure on charitable activities on a basis consistent with use of the resources.

Going concern

The trustees are required to assess whether the use of going concern is appropriate, ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charitable company to continue as a going concern. The Trustees make this assessment in respect of a period of at least one year from the date of authorisation of the accounts. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Investments

Investments are initially recognised at their transaction value and subsequently measured at their fair value at the balance sheet date using the closing quoted market price.

Realised gains and losses

All gains and losses are taken to the statement of financial activities as they arise.

Realised gains and losses are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the previous year end and their carrying value.

Fixed assets and depreciation

The premises owned by the charity are shown at cost and are not depreciated. Depreciation has been charged at 25% on written down value of the van.

2. Employees

The average number of paid employees during the year was 4 full time and there were regularly ten volunteers who were unpaid. The role of Operations Manager has been undertaken by a trustee, an Operations Manager was appointed in May 2023 and this cost will be reflected in the accounts to 30[th] September 2023.

Page 9

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

3. remuneration and expenses No trustees or connected person has received or is due to receive any remuneration or other benefits

4.
Income
Grants
HMRC Furlough
Places for People
Arnold Clarke
PCC VCFS (to March 2022)
Total Grants
Donations
Unrestricted income
Preston Guild Rotary Club
Galloway Fund
Anonymous JW
Donations
Total Donations
Sundry income
The Thomas Parkinson Will Trust
HMRC Gift aid tax repayment
Investment Income
Bank interest
Total Grants and Other income
5.
Income from charitable activities
Landfill tax credits
Referral fees, admin /delivery charges
Sale of New appliances
Sale of Shand appliances & donated goods
Total
Total Income		 General
Investment
funds
fund
£
£
193
3,000
1,000
5,000
-
9,193
-
-
-
-
-
-
-
1,239
-
1,239
-
14,204
186
-
5,395
-
66
-
16,079
14,204
General
funds
4,593
17,636

162,900

24,112

209,241

225,320 14,204		 2022
Total
£
193
3,000
1,000
5,000
9,193
-
-
-
1,239
1,239
14,204
186
5,395
66
30,283
2022
Total
4,593
17,636
162,900

24,112

209,241

239,524
 2022
Total
£
193
3,000
1,000
5,000
9,193
-
-
-
1,239
1,239
14,204
186
5,395
66
30,283
2022
Total
4,593
17,636
162,900

24,112

209,241

239,524
 2021
Total
£
4,849
-
-
10,000
14,849
1,000
200
1,000
2,834

5,034
-
300
4,513
7
24,703
2021
Total
6,088
20,803
133,026
26,594
186,511
239,524
 211,214

Page 10

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

6.
Cost of charitable activities
Cost of Sales
Cost of appliances bought
Costs re sale of donated items
Salary costs(JRS funding £193)
Vehicle and travelling expenses
Office and support costs
Property costs (£159 from restricted funds)
Depreciation (£834 designated fund)
Investment Management charges
Total Expenditure
7.
Tangible fixed assets
Cost
As at 1 October 2021/30 September 2022
Depreciation
As at 1 October 2021
Charge for year
As at 30 September 2022
Written down value
30 September 2022
30 September 2021		 Unrestricted
117,347
1,703
119,050
68,737
7,615
5,459
3,955
-
204,657
-
204,657		 Freehold
property
£
44,157
-
-
-
44,157		 2022
Total £
117,347
1,703
119,050
68,737
7,615
5,459
3,955
834
205,650
362
206,012
Van
£
20,440
17,105
834
17,939
2,501		 2021
£
92,799
3,036



95,835
71,467
7,114
5,177
4,001
1,111


184,705
400
185,105
Total
£
64,597		 185,105
17,105
834
17,939
46,658
44,157 3,335 47,492

Page 11

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

8.
Fixed asset investments
Cash held on
Listed
investment
investment
portfolio
£
£
Market value at 1 October 2021
104,081
-
Disposals at carrying value
(16,250)
-
Income transferred
-
-
Investment income capitalised
-
172
Investments bought in year
19,890
(19890)
Net gains/(losses) on revaluation
(8,992)
-
Investment management charge
-
(437)
Sale proceeds
-
18,104
The Thomas Parkinson Will Trust
8,228
5,976
Market value at 30 September 2022
106,957
3,925		 Total
2022
£
104,081
(16,250)
-
172
-
(8,992)
(437)
18,104
14,204
110,882		 Total
2021
£
86,898
(4,492)
263
208
-
16,657
(480)
5.027
-
104,081
Investments
Cash on deposit
Total		 2022
Market
Cost
value
£
£
122,206
106,957
3,925
3,925
126,131
110,882
 2021
Market
Cost
value
£
£
109,619
104,081
-
-
109,619
104,081

All investments are carried at their fair value. Investments in equities and fixed interest securities are all traded on quoted public markets, primarily the London Stock Exchange.

Investments are valued using the mid-market value as at 30 September 2022 provided by the investment advisers Hedley and Company Stockbrokers Ltd.

9.
Debtors and accrued income
Debtors
Landfill tax credit
Sundry debtors
Prepaid expenses		 2022
2021
£
£
11,528
5,679
1,240
1,658
1,893
1,558
479
427
15,140
9,322

Page 12

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

2022
10.
Cash at bank
£
Cash
7
Paypal
68
Capital reserve
125,153
Current account
19,223
144,451
2022
11.
Creditors
falling due within one year
£
Referral fees in advance
2,290
Sundry creditors and accrued expenses
3,549
PAYE and NIC
1,583
NEST Pension
260
HMRC
Vat
1,776
Credit card
941
10,399
Unrestricted
2022
General Designated Restricted
Total
12.
Analysis of net assets between funds
£
£
£

Fixed assets
-
2,501
44,157
46,658
Investments
- 110,882
- 110,882
Net Current assets
85,145
63,827
2,989 151,961
Creditors due after one year
-
-
-
-
Net assets
85,145 177,210
47,146 309,501		 2021
£
37
85
100,087
33,512
133,721
2021
£
5,430
2,233
1,490
236
2,491
1,854
13,734

2021

Total
£
£
47,492
104,081
131,554
283,127

13. Designated funds

The balance on the warehouse roof replacement fund is £17,000.

The balance on the Redundancy Reserve Fund is £17,170. In accordance with recommended good employment practice the reserve is based on the age of each employee as well as their length of time employed plus £14,657 entitlement in lieu of notice.

The balance on the vehicle fund £17,501 and is vehicle. It comprises the written down value of the existing van £2,501 plus £15,000 designated from general funds.

The balance on the Investment Fund is £110,880 which is held to create income, and designated towards the purchase of a new warehouse.

Page 13

GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 30 SEPTEMBER 2022

14.

Designated funds
Warehouse roof replacement
Redundancy
New Vehicle
Investment fund
Total		 Brought
forward
£
17,000
27,950
18,334
63,284
104,081
167,365		 Transfers

£

-

3,877

-

3,877

14,204

18,081		 Expenses

£

-

-

(833)

(833)

(265)

(1,098)		 Net

Losses

£

-

-

-

-

(7,138)

(7,138)		 Carried
forward

£

17,000

31,827

17,501

66,328
110,882

177,210

The transfers on the Investment fund relate to £14,204 received from the Thomas Parkinson Will Trust.

15. Restricted funds

These are funds that can only be used for restricted purposes. Restrictions arise when specified by the donor. The restrictions are binding upon the Trustees of the charity.

Property
Warehouse maintenance
Access to volunteering		 Brought
forward
£
44,157
2,711
437
47,305
Income

£

-

-

-

-		 Expenses

£

-

(159)

-

(159)
Transfers

£

-

-

-

-		 Carried
forward

£

44,157

2,552

437
47,146

Property

The purchase of the property used as a warehouse was funded by a grant from National Lottery

Warehouse maintenance

The remaining balance on this grant is held towards ongoing alterations and repairs to the warehouse.

Access to Volunteering

The remaining balance on this grant is held in respect of future volunteering expenses.

Page 13