GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)
GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)
REPORT AND ACCOUNTS
FOR THE YEAR ENDED
30 SEPTEMBER 2023
APPROVED by the TRUSTEES on 4[th] December 2023
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 Honorary Alderman C Crompton Honorary Alderman N Pomfret (Preston City Council) Councillor J Saksena (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 | |
| Operations Manager: | G Moss – appointed 15thMay 2023 | |
| 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 2023.
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 confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning future activities.
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 and website 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, assisted by an Operations Manager appointed on 15[th] May 2023.
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 £37,004 including investment gains, which increased the charity’s total funds from £309,501 to £346,505 of which £93,860 was held on the unrestricted general income fund as at 30 September 2023.
The value of the Investment fund has increased from £110,882 at 30 September 2022 to £118,506 at 30 September 2023. The fund generated £5,118 investment income to support the charity’s operational costs. There was a net unrealised gain of £7,537 during the year, and a profit of £629 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 4.87%. 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 sought to appoint to the post of operations manager to enhance the charity’s work in the community and review our procedures.
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 £93,860 free reserves at the year-end which represents 8 month’s budgeted expenditure in the coming financial year.
In addition to the unrestricted general fund the charity held designated reserves totalling £87,092 as detailed in note12, plus £118,506 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 thirty first year of operation Gift92 made 780 deliveries of furniture and household items, assisting 1,818 people, of which 929 were dependent children. 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 984 collections of household furniture mainly from the general public whose support is vital to our success and diverted 74,711 tonnes from landfill.
The charity is one of four Lancashire reuse organisations that support Lancashire County Council Crisis Support Scheme renamed “Under One Roof” from 1[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.
Gift92 also supports referrals from the Preston Council Household Assistance 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, plus a newly appointed operations manager who have enabled the charity to efficiently maintain its service to the community.
The general public who has again contributed with regular furniture donations without which we could not fulfil our aims.
St Clare’s Catholic Church who enables our van to be parked overnight in a secure area.
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 as shown in note 4, for which we are extremely grateful. 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 4[th] December 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)
INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES
ON THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
I report to the charity trustees on my examination of the accounts of the charity for the year ended 30 September 2023 which are set out on pages 6 to 13.
Responsibilities and basis of report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of 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:
-
accounting records were not kept in respect of the charity as required by section 130 of the Act; or
-
the accounts do not accord with those records; or
-
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 accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
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 -----
17/05/2024
Date:
Signed:
2024
Name: Nicola Mason FCA DChA
Relevant professional Member of the Institute of Chartered Accountants
qualification
----- End of picture text -----
Page 5
GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)
STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 30 SEPTEMBER 2023
| Note Income Grants and other income 4 Income from charitable activities 5 Expenditure Charitable activities 6 Investment management charges Total Expenditure Net income(/expenditure) before investment gains/losses Realised investment gains/losses Net unrealised investment gains/losses Transfers between funds 12 Net movement in funds Total funds brought forward Total funds carried forward |
Unrestricted general income fund Designated funds Restricted funds 2023 Total 2022 Total £ £ £ £ £ 9,698 - 7,500 17,198 30,283 264,159 - - 264,159 209,241 |
|---|---|
| 273,857 - 7,500 281,357 239,524 |
|
| (243,846) (625) (7,599) (252,070)(205,659) - (473) - (473) (363) |
|
| (243,846) (1,098) (7,599) (252,543) (206,012) |
|
| 30,011 (1,098) (99) 28,814 33,512 - 629 - 629 1,854 - 7,561 - 7,561 (8,992) (21,296) 21,296 - - - |
|
| 8,715 28,388 (99) 37,004 26,374 85,145 177,210 47,146 309,501 283,127 |
|
| 93,860 205,598 47,047 346,505 309,501 |
Page 6
GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)
BALANCE SHEET
AS AT 30 SEPTEMBER 2023
| Note Fixed assets Tangible fixed assets 7 Investments 8 Total fixed assets Current assets Stock Debtors 9 Investments 10 Cash at bank and in hand 10 Total current assets Liabilities Creditors falling due within one year 11 Net current assets/liabilities Total assets less current liabilities Creditors falling due after one year Net assets Funds of the charity: Unrestricted General funds Designated funds 12 Designated Investment fund Restricted funds 13 Total charity funds 13 |
£ 5,565 16,121 50,101 142,316 214,103 (32,137) 87,092 118,506 |
2023 £ £ 46,033 118,506 164,539 2,769 15,140 - 144,451 162,360 (10,399) 181,966 346,505 - 346,505 93,860 66,328 205,598 110,882 47,047 346,505 |
2022 £ 46,658 110,882 157,540 151,961 309,501 - 309,501 85,145 177,210 47,146 309,501 |
|
|---|---|---|---|---|
CERTIFICATE OF TRUSTEES
The accounts were approved by the trustees on 4[th] December 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 2023
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 statements) have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. 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 2023
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, i.e. 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 are 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, assisted by an Operations Manager appointed in May 2023, this cost is 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 2023
3. Trustees’ remuneration and expenses
No trustees or connected person has received or is due to receive any remuneration or other benefits directly or indirectly from the charity’s funds.
4. Income
| Grants HMRC Furlough Places for People Arnold Clarke PCC – Operations Manager post PCC VCFS (to March 2022) Barrat Developments Subtotal Grants Donations and legacies The Thomas Parkinson Will Trust HMRC Gift aid tax repayment Donations Other Income 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 funds Restricted income 2023 Total 2022 Total £ £ £ £ - - - 193 - - - 3,000 - - - 1,000 - 7,500 7,500 - - - - 5,000 1,500 - 1,500 - 1,500 7,500 9,000 9,193 - - - 14,204 217 - 217 186 1,503 - 1,503 1,239 5,118 - 5,118 5,395 1,360 - 1,360 66 9,698 7,500 17,198 30,283 General funds 2023 Total 2022 Total 4,021 4,021 4,593 14,983 14,983 17,636 216,204 216,204 162,900 28,951 28,951 24,112 |
|
|---|---|---|
| 264,159 264,159 209,241 |
||
| 273,857 7,500 281,357 239,524 |
Page 11
GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
6. Charitable activities and support costs
| 6. Charitable activities and support costs |
||
|---|---|---|
| Cost of Sales Cost of appliances bought Costs re sale of donated items Salary costs(£7,500 grant funded) Vehicle and travelling expenses Office and support costs Property costs (£99 from restricted funds) Depreciation (£625 designated fund) Total Charitable Expenditure Employees Salary Employer’s Pension contributions 7. Tangible fixed assets Cost As at 1 October 2022/30 September 2023 Depreciation As at 1 October 2022 Charge for year As at 30 September 2023 Written down value 30 September 2023 30 September 2022 |
Freehold Property £ 44,157 |
2023 2022 Total Total £ £ 148,348 117,347 919 1,703 |
| 149,267 119,050 81,319 68,737 10,787 7,614 6,717 5,459 3,355 3,955 625 834 |
||
| 252,070 205,649 |
||
| £ £ 78,044 65,764 3,275 2,973 81,319 68,737 |
||
Van Total £ £ 20,440 64,597 |
||
| - - |
17,939 17,939 625 625 |
|
| - | 18,564 18,564 |
|
| 44,157 | 1,876 46,033 |
|
| 44,157 | 2,501 46,658 |
All the assets are used in direct furtherance of the charity’s objects.
Page 11
GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
8. Fixed asset investments
| Fixed asset investments | ||
|---|---|---|
| Market value at 1 October 2022 Disposals at carrying value Investment income capitalised Investments bought in year Net gains/(losses) on revaluation Management charges incl. Vat Sale proceeds Thomas Parkinson Will Trust Market value at 30 September 2023 Investments Cash on deposit Total |
Listed Investment Cash held on investment portfolio 2023 Total 2022 Total £ £ £ £ 106,957 3,925 110,882 104,081 (5,683) - (5,683) (16,250) - - - 172 9,263 (9,263) - - 7,537 24 7,561 (8,992) - (566) (566) (437) - 6,312 6,312 18,104 - - - 14,204 118,074 432 118,506 110,882 |
|
| 2023 2022 Cost Market value Cost Market value £ £ £ £ 123,588 118,074 122,206 106,957 432 432 3,925 3,925 124,020 118,506 126,131 110,882 |
||
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 2023 provided by the investment advisers Hedley and Company Stockbrokers Ltd.
9. Debtors
| Debtors Landfill tax credit Sundry debtors Prepaid expenses |
2023 £ 2022 £ 12,998 11,528 925 1,240 1,147 1,893 1,051 479 16,121 15,140 |
|---|---|
Page 12
GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 30 SEPTEMBER 2023
10. Cash at bank
11.
| Cash at bank | ||
|---|---|---|
| Cash Paypal Capital Reserve Current account Deposit account Creditors – falling due within one year Referral fees in advance Grant in Advance Sundry creditors and accrued expenses PAYE and NIC NEST Pension HMRC – Vat Credit card |
2023 2022 £ £ 11 7 374 68 100,413 125,153 41,518 19,223 |
|
| 142,316 144,451 50,101 - 192,417 144,451 |
||
| 2023 2022 £ £ 3,850 2,290 12,500 - 4,226 3,549 2,358 1,583 390 260 5,732 1,776 3,081 941 32,137 10,399 |
||
Creditors – falling due within one year
12. Designated funds
| Designated funds | ||
|---|---|---|
| Warehouse roof replacement Redundancy New Vehicle Investment fund |
Brought forward Transfe rs Expenses Net Gains Carried forward £ £ £ £ £ 17,000 5,000 - - 22,000 31,827 11,389 - - 43,216 17,501 5,000 (625) - 21,876 |
|
| 66,328 21,389 (625) - 87,092 110,882 (93) (472) 8,189 118,506 177,210 21,296 (1,097) 8,189 205,598 |
||
The Redundancy Reserve Fund is 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 and includes £17,696 entitlement in lieu of notice.
The balance on the vehicle fund is designated towards replacing the charity’s vehicle. It comprises the written down value of the existing van £1,876 plus £20,000 designated from general funds.
Page 13
GUILD INITIATIVE FOR FURNITURE TRUST (Gift92)
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Designated funds contd.
The Investment Fund is held to create income and designated towards the purchase of a new warehouse.
13. 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 Restricted income funds Warehouse maintenance Access to volunteering |
Brought forward Transfers Expenses Net Gains Carried forward £ £ £ £ £ 44,157 - - - 44,157 2,552 - (99) - 2,453 437 - - - 437 47,146 - (99) - 47,047 |
|---|---|
Property
The purchase of the property used as a warehouse was funded by a grant from National Lottery Charities Board in 1997. This fund represents the cost of the charity’s premises.
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.
14. Analysis of net assets between funds
| Tangible fixed assets Investments Net Current assets Creditors due after one year Net assets |
Unrestricted General Designated Restricted 2023 Total 2022 Total £ £ £ £ £ - 1,876 44,157 46,033 46,658 - 118,506 - 118,506 110,882 93,860 85,216 2,890 181,966 151,961 - - - - - 93,860 205,598 47,047 346,505 309,501 |
|---|---|
Page 14