Big Issue North Trust Ltd (a company Ilmlted by guarantee) Annual Report Year Ended 31 March 2021 Company Number 03164559 Charlty Number 1056041
Big Issue North Trust Ltd Report and flnanclal statements for the year ended 31 March 2021 Contents Pagg.. Legal and administrative information Directors, and Iruslees, r6POrt Statement of Irusteos, responsibilities Independent audilorfs report 13 Statement of financial activities 14 Balance sheet 15 Notes to the financial slalemonls
Big Issue North Trust Ltd Legal and admlnlstrative Information forthe year ended 31 March 2021 Directors and Trustegs of the charlly: M Fitzgibbon F Selvan E Robinson S Islam A Rafferly L Symonds Secretary: M Filzgibbon Prlnclpal and Reglstered Office: 1S1 Floor 463 Slretford Road Manchester M16 9AB Company Number 03164559 Charlty Number 1056041 Website www.bigissuenorth.com Bankgrs Santander Bridle Road Boolle Merseyside L30 4GB External Audltor.. Beever and Slruthers Slatulory Auditor Sl George's House 215-219 Chester Road Manchester M154JE
Big Issue North Trust Ltd Dlrectors. and trustees, report for th¢ year gnded 31 March 2021 The dlreclors and trustees are pleased lo present their report together with the financial statements of the charity for the year ended 31 March 2021. Legal and administrative information sel out on page 1 forms parl of this report. The financial slalemenls comply with currenl stalulory requirements, the Memorandum and Articles of Association and the Slalemenl of Recommended Practice "Accounting and Reporting by Charities" 1 Structure, Governanog and Management Status Big Issue North Trust Ltd is a company limited by guarantee, (company number 03164559}, and a registered charity Icharity number 10560411 governed by ils memorandum and articles of association. Directors and Trustges The Trustees serving during the year were as follows. M Filzgibbon F Selvan E Robinson S Islam A Rafferty L Symonds Recruitment and Tralnlng of Trustees As sel out in the Articles of Association, the Chair and other Trustees are appointed by The Blg Llfe Company Limited by sending a notice in writing to the Charity. The training and induction of new Trustees is the responsibillty of the Chair and is tailored lo the individual needs of new appointees. All Trustees have a one lo one meeting wlth the Chair each year lo discuss training and development needs. The Standing Orders of the charity give details of the decisions which are made al Board level and the powers delegated to the management team. Organisational Management The Board of Truslees evaluate and agree the priorities of the organisalion as a whole as part of a comprehensive business plannin9 process undertaken by the Big Life Group as a whole Big Issue North Trust Ltd Is part of the Blg Life Group of social businesses and charities. 11 contracts with The Big Life Company Limited for the provislon of corporate services and for the delivery of services to vendors through a Service Level Agreement. Rlsk Management The directors have identified the risks that the charity may be exposed lo in the next financial year and have established strategies lo miligale those risks. A risk management process is in place whereby risks are identified and profiled against likelihood and consequence. with actions pul in place. Each risk is assigned lo a member of the Senior Management Team.
Big Issue North Trust Ltd Directors. and trustees, roport for the year endgd 31 March 2021 (contlnued) Key Management Personnel- Remuneration Blg Issue North Trust Ltd considers ils key management personnel lo be truslees and senior leadership of the group. Full costs are borne by The Big Life Company Limited and disclosed in those accounts. The costs of the charity's key management personnel relating lo Big Issue North Trust Ltd are paid for as parl of an overall service level agreement with The Big Life Company Limited that is annually agreed by Big Issue North Trust Ltd trustees. Remuneration of the senior leadership within the group is sel by the group's Audit & Remuneration Committee based on benchmarking against comparable external organisations. 2 Objects of the charity The objects of the Charity are to carry out activities that relieve poverty particularly in relation to the vendors of the Big Issue North magazine. The chartly's principle aims are.. To help vendors access employment. education and training opporlunilies, by working in partnership with local employment and training inilialives. To improve the health of vendors and to provide assistan lo end substance dependencies. To help vendors lo secure appropriate, accessible and affordable accommodallon. To help vendors lo access financial services. To promote the personal development, mental and emollonal well-being of vendors. Big Issue North Trust Ltd is a registered charity that raises funds to provide servlGes for vendors of the Big Issue North magazine lo help them move away from homelessness for good. 3 Statement of publlc beneflt The Trustees have given due consideration to Charity Commission published guidance on the operation of the public benefit requirement. Full details of the public benefit provided by the charity are detailed in the review of activities in section 4. 4 Review of activttles and future development Big Issue North Trust Ltd Is a Gharily which helps vendors who are selling the Big Issue North magazine through support and signposting. During the year the charity carried out 1,182 {2020'.1,5801 crisis interventions with vendors, assisted 41 {2020..121) clients into acoommodation, provided 3112020.'1561 vendors with employment support and supported 1 12020.'491 vendor to access training. The charity provided 802 {2020..1,267} inlervenlions around Health and Money issues. A total of 212020.. 15} vendors went into employment. During the year Magazine sales were significantly reduced and other sources of income increased including a donation from The Big Life Company Limited of £220k and Government Furlough income of £28k. Receipts of donations and grants increased lo support the Hardship Fund which was set up lo distribute support payments to vendors whose ability to sell magazines was limited due lo Covid lockdowns. The charity Is commissioned by Liverpool City Council lo deliver a user engagement project Community Voice. The project had 4 volunteers, engaged with a total of 14 external forums, networks or service people and delivered 3 commissioned reviews, 2 around the impact of service provision in the covid Pandemic and one in relation lo the Dame Carol Black review. This year Community Voice saw a decrease in the number of people engaging in monthly Servi meetings bul an increase in wellbeing support, supporting 120 people through 572 inlervenlions to ensure CV members were supported through varies barriers that the pandemic presented. Volunteers from the prevlous Waves of Hope project continued lo work with Community Voice, allending regional and national forums. All forums have been online over the year due lo the Pandemic
Big Issue North Trust Ltd Dlrector8' and trustees, report for the year end 31 March 2021 (¢ontlnued) The Covid 19 pandemic has severely Impacted on vendors as they have been unable lo sell the Big Issue North magazine due lo lockdown reslriclions. Thls has meant vendors have been unable lo earn an income and in response lo the situation the Charity established a hardship fund to support vendors with essential costs during this period. During the year vendor donations to the hardship fund amounted lo £107,808 and resulted in 2,300 payments being made lo over 300 vendors. Big Issue North wlll be developlng and launching Street News, a web-based news application in 2021-22 which will bring together international conlenl from over 150 street papers. 11 is envisaged that Street News app will give people the chance lo reach crucial stories from their own communities and every corner of the world, all on their mobile. The conlenl of the app will raise the voice and awareness of marginalised communilles around the world and Ihe issues they face, while delivering positive change in the North of England. Income generated from app subscriptions will be a new source of income for Big Issue North Trust and help vendors in the North of England lo make positive changes to their lives. The launch of Street News wlll mark 8 slgnlficant development in that11 will look from a global perspective al issues that affect people all over the world and give them the chance lo have their voice heard, whilst retaining our core principle of creating positive change here in the North of England. 5 Prlnclpal rlsks and uncertalntles A risk management process Is In place whereby risks are idenlrfied and profiled against likelihood and consequence with actions idenllfled. Each rlsk is assigned lo a member of Ihe Senior Management team. By far the biggest risk Ihls yearw88 the Coronavirus which impacted on both our ability lo deliver servlces safely for our staff and clients as well as our financial position. A Coronavirus Core Group was established and oversaw the managernenl of Health & Safely risk assessmenls and miligalions.. advlsed staff and managers.. and ensured clear communication. The group were able to delay planned investments and successfully secured grants and accessed government support lo manage the financial risks. Al an operational level, services provided by the Group are subject lo legislative and quality standards, including CHAS {Ihe Health and Safety Quality Standard), ISO 9001 and 14001. The Group also retained ils Best Companies 2 star accredilalion. {after narrowly missing out on the 3 star award) which ovidenced outstanding levels of staff engagement. The Group was placed 64th in the UK'S B881 Large Companies lo work for listing 2020-21. Failure lo maintain these standards Impacts on the Group's ability lo retaln and win conlracls, therefore services are constantly reviewed and audited. and appropriate action taken lo ensure largels are mel and exceeded.
Big Issue North Trust Ltd Dlrectors. and trustee$, report for the year ended 31 March 2021 (contlnued) 6 Related partigs The charity forms part of the 'Big Life Group. of social enterprises and Charities. The Big Life Company Limited is a not-for-profil company limited by guarantee, of which one of the company's directors, F Selvan, is the sole guarantor. The Group also includes Big Life Cenlres. Self Help Services Ltd. and Big Life Schools (formerly Longsighl Community Primary School). Big Life Centres is an independent charity which offers opporlunilies to people who have had a raw deal in life to change their lives for the beller. Self Help Servlces Ltd is a user led, primary care mental health service offering self- help groups, compulerised CBT, counselling, clinical IAPT services, training and volunteering. Big Life Schools Is a Mulli Academy Trust comprising of 2 free schools. 7 Grant Fundlng The charity receives small grants lo supwrt vendors of the Big Issue North. These monies are restricted in their use lo the purpose specified in the contract. 8 Flnanclal Review In 2020 income was £710,834 (2020 - £304.9271, the main reason for the increase in income was 2 donation from The Big Life Company Limited of £225,000. Additional inGome of £28,499 was also received under the Government's furlough scheme. Expenditure arnounled lo £420,285 (2020 £377,584). Staff who were furloughed during the year were paid their full salary with the company making up any shortfall. The nel incoming resources for the year amounted lo £290,54912020 Deficit £72,657). Al the year-end reslricled funds amounted to £43,85812020-£8,4031 and unreslricled funds total £420,24812020- £165,154). 9 Kgy Performance Indlcators Targets are sel and are monltored during the year. and their progress Is In¢luded within the Board Reports. They are calegorised under three key prioTily areas., To work with more people and places and Greate opportunities and inspire change To do good business with our social mission al the heart of all that we do To have an organisalion that enables us lo work In the Big Life Way 10 Reserves pollcy At the year end the Reserves Policy was reviewed for all companies in the Group. The aim of the Reserves is lo.. Reduce the risks to service dellvery and operations should income levels fall for a period. Allow entry into new projects and inilialives that require investment, be paid in arrears or that may not be profitable in the early periods. Ensure that, should a contract end, funds are available lo allow redeployment of staff.
Big Issue North Trust Ltd Directors. and trustg95' report for thg year ended 31 March 2021 (contlnued) Resetve Level Target levels for free reserves {Unreslricled Funds les5 Fixed Asselsl are based on three months, salary expenditure and free reserves should be built up to that level where possible. Should the level of free reserves at the end of a financial year exed largel then the charity should make plans lo utilise free reserves lo achieve largel reserves In the future. Following Trustee discussions in October 2019 il was agreed lo ulilise additional reserves and increase the level of support lo vendors and develop new projects {such as Street News). The current target level of reserves is £37k and the actual level of free reserves at 31 March 2021 was £298k 12020.. £89k}. 11 Future Developmgnts The Big Life Group is In the business of changing Ilves and we fight inequality by working wllh people and places lo create opporlunilies and inspire change. All our serVIS work with people to support areas of their lrfe and help remove obstacles which are barriers lo individuals in changing their life for the beller. We help people see the skills and support they already have so that they can bulld on il and reach their full potential. Our work is done in the Big Life Way and is underpinned by fivo principles.. We work with people on all areas of their lives and build on their ski115 and potential in everyone and value their life experience. We strive lo provide a first class service which develops a person's resilien and is led by them and responds to their priorities. We never give in and celebrate a person's achievemenl as we understand that everyone has the capacity for change. We tread new ground and learn from feedback and innovate lo respond to new challenges. We work in partnership with people and places lo achieve more together than we can achieve alone. The Group's Business Plan 2020-25 has identified three key work priorilles over the next five years which include 111 To work with more people and places lo create opporlunilies and inspire change.. To work with more people lo support them In all areas of their Ie. To have volunteer opporlunilies in every service. To increase the opporlunilios for people lo engage with our services through the use of technology, such as online chats, video conferencing and virtual reality. To develop place-based plans for every area we work in and develop partnerships and integrated working. (2) We will be a 'good' business with our social mission al the heart of all that we do: To grow in our existing geographies lo diversify our offer and move into new areas where there is an opportunity lo develop significant roots lo anchor ourselves in a community. To increase foedback lo continually improve the quality of what we do. To invest in our assets and technology and ensure we maximise efficiency and the Quality of our data lo drive service improvement. To reduce our carbon footprint and implement agile working. To ensure we have an appropriate legal structure that works for us and the people we work with.
Big Issue North Trust Ltd Directors, and trustees, report for the year ended 31 March 2021 (continued) 131 We will have an org2nisalion that enables us lo work in the Blg Life Way.. To have management slruclures, IT systems and change processes that facililale staff and services working together. To deliver our workforce slr21egy, ensuring we have diverse, Iralned and happy staff. as evidenced by achievement of Best Companies 3-Star accreditation. To have trained Mulli-modality Praclilioners In every service and ensure all staff will be trained in strengths based approaches. To develop tools for people lo have control of their own stories and data. To ensure Service user engagement shapes our services. To ensure all our services are informed by research and evaluallon, and to measure the impact of our work. 12 Inv05tment powers and pollcy All Investment5 are made in line with the terms laid out in the Articles of Association. Appropriate professional advice is taken on all investments. 13 Provision of Informatlon to auditor Each of the persons who are Directors al the time when this Directors, and Tfuslee8' Report is approved has confirmed that.. There is no relevant information, being information, needed by the auditor in connection with preparing their report, of which the company's auditor is unaware, and The Directors, having made enquiries of fellow Directors and the company's auditor that they ought to have Individually taken, have each taken all the steps that helshe is obliged lo lake as a director in order to make themselves aware of any relevant audit information and lo establish that the auditor is aware of that Information. The Slatulory Auditor, Beever and Slrulhers will be proposed for reappoinlmenl in accordance with section 485 of the Companies Act 2006. 14 Basls of praparatlon This report has been prepared in accordance with the special provisions relating lo companies subject to the small companies regime within Part 15 of the Companies Act 2006. As suGh, the Company is exempt from preparing a Strategic report. The Annual Report is signed by the Chair on behalf of the Board of Trustees. The Trustees also approve the directors, and trustees. report, which is contained within this report, in their capacity as Company Directors F Selvan Trustee Dale 15 November 2021
Big Issue North Trust Ltd Statgmgnt of trustees. rèsponsibllltles The Trustees (who are directors of Big Issue North Trust Ltd for the purposes of company law) are responsible for preparing the Trustees, Annual report and the financial statements in accordance with app5icable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting PraGlice). Company law requiies the Trustees lo prepare financial statements for each financial year which ghje a true and fair view of the stale of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing these financial slalemenls, the Trustees are requlred to.. select suitable accounting policies and then apply them consistently.. observe the methods and principles in the Charities SORP 2019 {FRS 102)., make judgements and accounting esllmales that are reasonable and prudent.. prepare the financial slalements on the going concern basls unless il is inappropriate lo presume that the charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy al any lime the financi81 position of the charity and enable them lo ensure that the financial slalemenls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other IegulaTI11e8. Financial slalemenls are published on the charity's website in accordance with legislation in the United Kingdom governing the preparation and dIssemnatIon of financial slalemenls, which may vary from legislation in other juri5diclions. The maintenance and integrity of the charity's website is the responsibility of the Iruslees. The Iruslees, responsibility also extends lo the ongoing integrity of the financial slalements contained therein. F Selvan Trusteg Date 15 November 2021
Big Issue North Trust Ltd Indgpendent auditor's report INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIG ISSUE NORTH TRUST LTD Opinion We have audited the financial statements of Big Issue North Trust Ltd 'the charitable company" for the year ended 31 March 2021 which comprise the Slalemenl of Financial Activities {combining income and expendllure accounll, the Balance Sheet and the notes lo the financial stalemenls, including a summary of significant accounting policies in note 1. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland" (United Kingdom Generally Accepted Accounting Practice}. In OUT opinion, the financlal $tslemenls.' give a true and fair view of the stale of the charitable company's affairs as at 31 March 2021 anij of its incoming resources and application of resources for the year then ended,. have been properly prepared in accordance wllh United Kingdom Generally Accepted Accounting Practice,. and have been prepared In accordance with the requirements of the Companles Act 2006. Basis for opinion We conducted our audit in ac¢ordance with International Standards on Auditing IUKI IISAS {UK)l and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate lo provide a basis for our opinion. Concluslons relatlng to going concern In auditing the financial slatemenls, we have concluded that the Irustee8' use of the going concern basis of accounting in the preparation of the financial slalemenls is appropriate. Based on the work we have performed, we have not identified any materlal uncertainties relating lo events or conditions that, inijividually or collectively, may cast significant doubl on the charitable company's ability lo continue as a going concern for a period of at least twelve months from when the financial slalemenls are aulhorised for issue. Our responslbllllies and the responslbllllles of the Iruslees with respect to going concern are described in the relevant sections of this report. Other Informatlon Th8 Other information comprises the information included in the annual report. other than the financial slalements and our auditor's report Ihereon. The Iruslees (who are also the directors of the charitable companyfor the purposes of company lawl are responsible for the other information. Our opinion on the financial slalements doos not cover the other information and, except lo the extent otherwise explicitly slated In our report, we do not express any form of assurance conclusion Ihereon. In connectlon with our audit of the financial statements our responsibility is lo read the other Information and. In doing so, consider whether the other information is materially inconsislenl with the financial slalemenls or our knowledge obtained in the audit or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent material misstalemenls, we are required lo determine whether there is a material misstalemenl in the financial slalemenls or a material misslalemenl of the other information. If, based on the work we have performed, we conclude that there is a material misslalemenl of this other information. we are required lo report Ihal fact. We have nothing to report in this regard.
Big Issue North Trust Ltd Indepèndgnt audltorfs report INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF BIG ISSUE NORTH TRUST LTD Oplnions on othgr matters prescrlbed by the Companles Act 2006 In our opinion, based on the work undertaken In the course of the audit.. the infomialion given in the trustees. report, which includes the directors, report prepared for the purposes ol company law, for the financial year forwhlch Ihe financial statements are prepare(J is consislenlwilh the finandal slalements., and the dlrectors, report included within the Iruslees, repgrt has been prepared in accordan with appllcable leg81 requirements. Matters on whSch we are required to rgport by exceptlon In the light of the knowledge and understanding of the char((able company and its environment obtalned in the course of the audit. we have not identified material misslalemenls in the directors, report included within the twslees, report. We have nothing lo report In respect of the following matters in relation lo which Companies Act 2006 requires us lo report lo you if, in oui opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been recoived from branches not visited by LJS-, or the financl81 statements are not in agreement with the accounting records and returns,. or certain disclosures of trustees, remuneration specified by law are not made,. or we have not received all the Informallon and explanations we require for our 2udil,' or the trustees were not entitled to prepare the financial statements in accordance with the small companies. regime and lake advantage of the small Companies, exemptions in preparing the trustees, report and from the requiremonl lo prepare a strategic report. Responsibilities of dlrectors As explained more fully in the Statement of Trustees, Responsibilities sel out on page 8, the trustees {who are also the directors of the charitable company for the purposes of company law} are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Iruslees determine is necessary lo enable the preparation of financial statements that are free from material mlsstatemenl, whether due to fraud or error. In preparing the fi'nancial slalements, the Iruslees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing. as applicable, mallers related lo going concern and using the going concern basis of accounting unless the Iruslees either intend lo liquidate the charitable Gompany or lo cease operallons, or have no realistic allernalive bul to do so. Audltor'8 responsibilities for the audit of the flnancial statements Our objectives are lo obtain reasonable assurance about whether the financlal slalemenls as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance. bul is not a guarantee that an audit conducted in accordance with ISAS {UKI will always delect a material misslalemenl when il exlsts. Misstalemenls can arise from fraud or error and are considered material rf. individually or in the aggregate, they could reasonably be expeoted to infiuence the economic decisions irf users taken orb the basis of these financial slatemenls. 10
Big Issue North Trust Ltd Independent audltor's report INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BIG ISSUE NORTH TRUST LTD Audltor's iesponslbllltles for the audlt of the financlal statements {continued} Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delecl material misstalemenls in respect of irregularilie5, including fraud. The specific procedures for Ihls engagement and the exlenl to which these are capable of detecting irregularities, incluéing fraud is detailed below.. Our approach to identifying and assessing the risks of material misslalemenl in respect of irregul8rilies, including fraud and non-compliance with laws and regulations. was as follows.. the engagement partner ensured that the engagement team collectively had the appTopriale competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. we identified the laws and regulations applicable to the charitable company through discussions with Iruslees and other management. and from our knowledge and experience of the charity sector. we focused on specific laws and regulations which we consldered may have a direct material effect on the financial statements or the operations of the charitable company, including the Companies Act 2006, the Charities Act 2011, laxalion legislation, data protection. anli-bribery, employment. environmental and health and safely legislation. we assessed the extent of compliance with the laws and regulations Identified above through making enquirles of management and inspecting legal correspondenoe. identified laws and regulations wore communicated within the audit team regularly and the team MaIned alert lo instances of non-mplIance throughout the audlt. We assessed the susceplibilily ofthe charitable company's financial statements lo material misstatement, including obtaining an understanding of how fraud might occur, by- making enquiries of management as lo where they considered there was susceptibility to fraud, Ihelr knowledge of actual, suspected and alleged fraud. considering the internal contro15 in place lo miligale risks of fraud and non-compliance with laws and regulallons. To address the rlsk of fraud through management bias and override of controls, we.. performed analytical procedures on income and salaries lo identify any unusual or unexpected relationships. lesled journal entrie5 10 identify unusual transactions. assessed whether judgements and assumptions made in determining the accounting eslimales sel out in note 1 were indicative of potential bias. investigated the rationale behind significant or unusual Iransaclions. There are inherent limitations in our audit procedures described above. The more removed that laws and regLJlalions are from financial transactions, the less likely il is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations lo enquiry of the directors and other management and the inspection of regulatory and legal Correspondence, if any. Material misstalemenls Ihal arise due lo fraud can be harder lo delecl than those that arise from error as they may involve doliberale concealment or collusion. 11
Big Issue North Trust Ltd Indopgndgnt audltor's report INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF BIG ISSUE NORTH TRUST LTD A further ¢Jescriplion of our responsibilities for the audit of the flnancial statements is located on the Financial Reporting Council's web-site al www.frc.or .uklaudilorsres onsibililies. This description forms part of our auditor's report. Use of our report This report is made solely lo the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate to the charitable company's members those mallers we are required lo slate lo them in an auditorfs reF)Ort and for no other purpose. To the fullest exlenl permilled by law, we do not accept or assume responslbilily lo anyone other than the charitable company and the charitable company's members as a body for OL+r audit work, for this POrt, or for the opinions we have formed. Sue Hutchinson FCCA {Senior Slalutory Auditor) For and on behalf of Beever and Slrulhers Slalulory Auditor St George's House 2151219 Chester Road Manchester M15 4JE Dale.. 20 December 2021 12
Big Issue North Trust Ltd Statement of financial actlvltles (Combining income and expendlture account) for the year ended 31 March 2021 Restricted Funds Unrèstricted funds Total 2021 Total 2020 Note Income and Endowments From: Donations and Legacies Charitable Activities Other Trading Activities Investments Other 99,671 71,640 396.688 97,190 15.580 163 29.902 496.359 168,830 15,580 163 29.902 91,093 182,425 3,200 200 28.009 Total Incomè 171,311 539,523 710.834 304,927 Expenditure On: Ralsing Funds Charitable activities 23.267 269,046 23.267 397.018 41,483 336,101 127,972 Total Expenditure 127,972 292,313 420,285 377.584 Net IncomellExpendlture) 10 43,339 247,210 290,549 172,6571 Transfers Between Funds 19 {7,884) 7,884 Net Movement In Funds 35,455 255,094 290,549 172,6571 Total funds brought forward at 1 Aprll 2020 8,403 165,154 173,557 246,214 Total funds carried forward at 31 March 2021 43,858 420.248 464,106 173,557 The slalemenl of financial activities includes all g2ins and losses recognised in the year. All amounts relate lo continuing aclivilies. The notes on pages 15 10 27 form parl of these flnancial slalements. 13
Big Issue North Trust Ltd Balance sheet at 31 March 2021 Note 2021 2021 2020 2020 Flxed assets Tangible assets Intangible fixed assets 13 14 56.322 65,520 76,359 121,842 76,359 Current assets Debtors Cash al bank an¢J in hand 15 73,520 280,926 14.995 110.267 Total Current Assets 354,446 125,262 Creditors.. amounts falllng due wlthin onè year 16 112,1821 128,0641 Net currènt assets 342,264 97,198 Total Not Assets 464.106 173,557 Thè Funds of the Charity Restricted income funds Unrestricted funds 18,19 18,19 43.858 420.248 8,403 165,154 Total Charity Funds 464,106 173,557 These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating lo small companies and conslilule the annual accounts required by the Companies Act 2006 and are for circulation lo members of the company. The financial slalemenls on pages 1310 27 were approved and aulhorised for i$sue by the board on 15 November 2021 and are signed on ils behalf by.. F Selvan Trustee, approved and authorised on behalf of the board Trustees Date 15 November 2021 The notes on pages 15 10 27 form part of these financial statements. Company Number 03164559 14
Big Issue North Trust Ltd Notes formlng part of the flnanclal statements for the year gnded 31 March 2021 Accounting policles General Informatlon Big Issue North Trust Ltd is a private company, limited by guarantee, incorporated in England and Wales under the Companies Act 2006 and Charities Act 2011. The address of the registered office is provided in Legal and administrative details. Details of the charity's operations are provided in the Directors, and Trustees, Report. AOUntIng pollcles The principal accounting policies adopted, judgements and key sources of eslimalion uncertainty in the preparation of financial statements are as follows.. al Basls of preparatlon The financial slalements have been prepared In aGGOTdance with Accountin9 and Reporllng by ChaTilies.' 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 1021{effeclive 1 January 20191- (Charities SORP {FRS10211, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021, the Companies AGt 2006 and the Charities Act 2011. Big Issue Norlh Trust Ltd meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised al their historic co81 or transaction value. The financial slalements are prepared in sterling which is the functional currency of the ¢harily. The financial slalemenls have been prepared on a going concern basis which assumes an ability lo continue operating for the foreseeable future. There are no material uncertainties about the charity's ability lo continue as a going concern and the level of reserves al 31 March 2021 exceeded target reserves by £261 K Ihereforo the Trustees consider il appropriate lo continue lo prepare the financial slalemenls on a going concern basis. With regard lo reserves Trustees have agreed lo ulllise additional reserves and increase the level of support lo vendors and develop new projects {such as Street News). COVID-19 is expected to conllnue lo have an impact on the Charity's activities however the pressure on expenditure from hardship payments to vendors may diminish as lock-downs cease. Trustees note the impact of Covid on operations however consider that Ihls impact is not SLtfficienl to Gasl doubl on the entity's ability lo continue as a going concern. bl Lggal status of the Charlty The charity is a company Ilrniled by guarantee and has no share capital. In the event of the charlty being wound up, the liability in respect of Ihe guarantee is limited lo £10 per member of the charity. G) Incomlng resources Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. Donations from other group companies are recognised when receivable. Grants, including grants for the purchase of fixed assets. are recognised in full in the Statement of Financlal Activities in the year in which they are 1vable. Government grant income recelved from the Coronavirus Job Retention Scheme I'Furlough income'l has been recognised on a receivable basis in the Slalemenl of Financial Activities over the same period as the costs lo which it relates. The government grant income is classified as unreslricled. Incoming resources from Investments is recognised when receivable. 15
Big Issue North Trust Ltd Notes forming part of the flnanclal statoments for the year ènded 31 March 2021 (continued) d) Resources expended and cost alloGation Resources expended are recognised in the period in whlch they are incurred. Resources expended are allocated to the particular activity where the cost relates directly lo that 8clivily. Certain other costs. which are allribulable to more than one activity, are apportioned across the cost categories on the basis of an estimate of the proportion of lirne spent by staff on those aclivilies. Costs allocated lo charitable activities are the wsts associated with achieving the charity's main objectives. Govornance costs represent expenditure related lo the governance of the charlty, to allow il lo operate and lo generate information for public accountability. e) Fund accountlng Unrestricted funds are donations and other incoming resources recoivable or generated for the oblecls of the charity wilhoul further specified purpose and are available as general funds. Restricted funds are lo be used for specific purposes as laid down by the donor. Expenditure which meets this criteria is charged lo the fund, together with a fair allocation of management and support costs. Penslons Big Issue North Trust Ltd is a member of the Big Life Group's definod contrlbulion pension scheme and the pension charge represents the amounts payable by the charity lo the fund in respect of the year. g) Corporatlon taxatlon The charity is exempt from 18x on income and gains under Section 202 of the Corporation Act 2010 to the exlenl that these are applied to its charitable objects. h) Tanglble flxed assets Individual fixed assels costing £2,000 OT more are capilalised al cost. Doprecialion 18 provlded lo write off the cost of tangible fixed assets over their expected normal lives as follows.. Computer equipment is depreciated on a straight line basis over 3 - 5 years. Fixtures and fillings are depreciated on a slraighl line basis over 5 years. Leasehold improvements are depreciated on a straight line basis over 5 years. 11 Intangible Flxed Assots Webslle appllcalions purchased and developed, or developed in house, are intangible assets. Cost is measured initially al acquisition cost or costs incurred lo develop the asset. Development expenditure incurred on an individual project is capilalised only if specific criteria are mel including that il Is probable that the asset created will generate future economic benefits. Amortisalion is provided to write off the cost of inlanglble flxed assets over their expected normal Ilves as follows.. Website applications are amortised on a slraighl line basis over 4 years. Webslte applications under development are not amortised until completed. 16
Big Issue North Trust Ltd Notes forming part of thè financial statements for the ygar gnded 31 March 2021 (Continued) AcGounting polleles (conlinued) J) Debtors Trade and other debtors are recognised at the selllemenl amount due after any trade discount offered. Prepayments are valued al the amount prepaid after taking account of any trade discounts due. k) Cash at bank and In hand Cash al bank and cash in hand includes cash and short term highly liquid investments with a short malurily of three months or less from the dale of aGquisilion or opening of the deposit or similar account. l) Credltors and provisions Creditors and provisions are recognised where the charlly has a present obligation resulting from a past event that will probably result in the transfer of funds lo a third party and the amount due lo settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised al their settlement amount after allowing for any trade discounts due. m) Flnanclal Instruments The ch8rily only has financial assets and financlal liabilities of a kind that qualify as basic financlal Instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured al their selllemenl value. n) Laases Rentals payable under operating leases are charged lo the Statement of Financlal A¢livilies on a slraighl- line basis over the lease term. Any premiums received al the inception of the lease are recognised on a slraighl-line ba8is over the life of the lease. o) Judgements In preparing these financial stalemenls, the DlreGlors have made the following judgements: Determine whether leases entered into by the charity either as 8 lessor or a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor lo the lessee on a lease by lease basis. DeleTmine whether there are indicators of impairment of the charity's tangible assets. Factors taken into consideration in reaching such a decision include the economic viabillly 2nd expected future financial performance of the asset and where it is a component of a larger cash-generating unil, the viability and expected future performance of that unil. Determine the probability of website applications purchased and develope(S, or developed in- house, generating future economic benefits in order lo judge whether the crilerla for capilalisalion are mel. 17
Big Issue North Trust Ltd Notes forming part of the flnanclal statgmgnts for the year ended 31 March 2021 (Gontinued) Accounting policles (continued) Other key sources of eslimalion uncertainty.. Tangible fixed assets (see note 131- Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product Ie cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining15fe of the asset and projected disposal values. Intanglble fixed assets (see note 14}- Intangible fixed assets are amortised over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed 8nnually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual valuo assessments consider issues such as future market conditions. the remaining life of the asset and projected dlsposal values. 18
Big Issue North Trust Ltd Notes formlng part of thg financlal statements for the year ended 31 March 2021 (continued) 2 Donatlons and Legacies Total funds 2021 Total Funds 2020 Rèstricted Unrestrlcted funds Funds RestriGted Unrestrlcted funds funds Donatlons Gifts and donations 99,671 396,688 496.359 91,093 91,093 99.671 396,688 496,359 91,093 91,093 Incomlng resourGgs from charltable acilvltlès Total funds 2021 Total Funds 2020 Rgstrlcted Unrestrlcted funds Funds Rostrictod Unrestrictod funds funds Contract Servlcès Funding for vartous small projects Community Voice Waves of Hope 9,401 9,401 74,930 74,930 13,158 77,277 77,277 72,507 13,158 72,507 Total Servlces Contract 13.158 74,930 88.088 81,908 77,277 159,185 Grants Zochonls Ch2rilable Trust Small Grants Community Voice 20,000 20,000 20,000 20,000 58.482 1,760 500 60.242 500 3,240 3,240 Total Grants 58,482 22,260 80,742 23,240 23.240 Total Income from Charitable Activities 71,640 97,190 168,830 81.908 100,517 182.425 19
Big Issue North Trust Ltd Notes formlng part of the flnanclal Statgmgnts for the year ended 31 March 2021 (continued) 4 Othèr Trading Activity Total funds 2021 Total Funds 2020 Restricted Unrestrleted funds Funds Restri¢tgd Unrestrlcted funds funds Hire of Rooms & Facilities App Development 5.580 5,580 3,200 3,200 10.000 10,000 15.580 15,580 3.200 3.200 5 Other Incomè Total funds 2021 Total Funds 2020 Restrlcted Unrestricted funds Funds Restrlcted Unrgstrlcted funds funds Lease Suffender Other Income Furlough Income 1,000 403 28,499 1,000 403 28,499 25,000 3,009 25,000 3,009 29,902 29,902 28,009 28,009 Expendlture on ¢haritablo activltles Total funds 2021 Total Funds 2020 Restrlcted Unrestricted funds funds Restrlcted Unrestrlcted funds Funds Fundra81n9 support and publicity 23,267 23.267 41,483 41.483 20
Big Issue North Trust Ltd Notes forming part of tho financlal statemgnts for the ygar ended 31 MarGh 2021 (continued) Expenditure on charltable activities Contract Servlces Other Governance 2021 2020 Staff Costs General Costs Room Hire Minor Equipment Recharges from Group Governance Costs.. audit fees 57,912 3,930 5,543 93,152 103,260 45.369 26,039 48,567 151.064 107,190 50,912 26,039 59,979 1,834 155,661 85,913 51,715 60 38,094 4,658 11,412 1,834 78,797 316,387 1,834 397,018 336.101 Restrlcted Unrestricted 5,274 73,523 122,698 193,689 127,972 269,046 77.012 259.089 1,834 78,797 316,387 1,834 397,018 336.101 Recharges from Group relate to Finance, HR , Payroll and other central support services provided by Blg Life Group. Total Rgsources Expendèd Staff Costs Other Costs Total 2021 Total 2020 Contract services and other Governance Costs.. audit fees Fundraising support and publicity {Note 61 146,243 248,941 1,834 9,350 395,184 1,834 23,267 331,443 4,658 41,483 13,917 160,160 260,125 420,285 377,584 Summary Analysis of gxpgnditure and related Incomo Income Expènditure Net Voluntary Contract Services Other Governance costs.. audit fees 4g6,359 88,088 126,387 23,267 78,797 316,387 1,834 473,092 9,291 1190,000) 11,834} 710,834 420,285 290,549 21
Big Issue North Trust Ltd Notes forming part of the flnanoial statements for the year gnded 31 March 2021 (contlnued) 10 Net Incomel{expendlturèl Nel incomellexpenditurel for the year is 51aled after charging.. 2021 2020 Rentals under operating leases - land and buildlngs Auditor's remL¢neration Depreciation 39.723 1,834 20.037 33,215 4,658 12,977 11 Staff costs and omoluments and key management personnel 2021 2020 The staff costs were as follows.. Wages and salaries Social security costs Pension 147.868 9,396 2,895 165,599 8,775 5,826 160.160 180,200 The average full lime equivalent number of persons employed (based on a 35 hour weekl and analysed by function was.. Number Number Services and projects The average monthly headcounl was 13 staff {2020'. 11 staff). No employee received emoluments of more than £60,000 in the current year or prior year. Key management personnel of the charity are the Trustees and senior leadership of the group. Costs are borne by the parent company, The Big Life Company Limited and are not recharged lo Big Issue North Trust Ltd. The total employee benefits paid lo key management personnel by The Big Life Company Limited was £409,631, comprised of salary of £352,000, pension Gonlribulions of £16.250 and employers national insurance contributions of £41,381 12020.. £390.827. comprised of salary of £338,000, pension contributions of £15,500 and employers national insLJrar)ce contributions of £37,327). The salary of the Chief Executive and Accounting Officer. a Trustee, is paid by The Big Life Company Limited. Employee benefits of £106.148. comprised of salary of £90,000, pension contributions of £4,250 and employers national insurance contributions of £11.898 12020.. £99,099 comprised of salary of £85,000, pension contributions of £4,250 and employers national insurance contributions of £9,849} wa8 paid by The Big Life Company Limited during the year. 12 Trustogs, remunoration and expenses During the year remuneration of £8.00012020'. £8,000) was pald lo E Robinson, a trustee, by The Big Llfe Company Limited for her role as chair of The Big Life Company Limited. Costs are borne by the parent company, The Big Life Company Limited and are not recharged to Big Issue North Trust Ltd. No other Iruslee received remuneration from the charity or a related enlily during the yoar12020'. £nil) other than as disclosed in note 11. No reimbursement of expenses has been made lo trustees during the year12020'. £nil). 22
Big Issue North Trust Ltd Notes formlng part of thg financlal statements for the year ended 31 March 2021 (continued) 13 Tangiblo fixed assets Lgasehold Improvemgnts Office equlpmgnt Computar Equlpment Total Cost At 1 April 2020 100,186 4,359 4,129 108,674 Al 31 March 2021 100.186 4,359 4,129 108,674 Depreciation At 1 April 2020 Charge for the year 23,827 20,037 4,359 4,129 32,315 20,037 Al 31 March 2021 43,864 4.359 4.129 52,352 Nel book value At 31 March 2021 56,322 56,322 Al 31 March 2020 76,359 76,359 14 Intangible fixed assgts Web Appllcatlon Software Development Total Cost Al 1 April 2020 Additions 65,520 65,520 Al 31 March 2021 65,520 65,520 Amortisation Al 1 April 2020 Charge for the year Al 31 March 2021 Nel book value At 31 March 2021 65,520 65,520 Al 31 March 2020 Intangible Fixed Assets relates lo the development of the web application Street News. The application was under development al the year end therefore no amortisalion was charged during the year. 23
Big Issue North Trust Ltd Notes formlng part of the financial statements for the y9ar ended 31 March 2021 (contlnued) 15 Dobtors (due wlthln one yearl 2021 2020 Trado Debtors Amounts owed by Group Undertakings Prepayments and accrued income Other Taxation and Soclal Security 11,000 10,851 38.565 13,104 2,347 12,648 73,520 14.995 16 Creditors: amounts falling dug Wlthin one year 2021 2020 Trade creditors Amounts owed lo group undertakings Accruals and deferred income 1.265 2.951 398 24,715 10,917 12.182 28,064 17 Deferred Income Deferred income represents services and recharge income received In advance Balance as al 1 April 2020 Amounts received and deferred in the year Amounts released to incoming resources in the year 16,224 259 115.178} Balance as at 31 March 2021 1.305 18 Analysis of net assets between funds Net current Assets Flxed assets Total Reslricled income funds UnreslriGted income funds 43,858 298,406 43,858 420,248 121,842 Total funds 121,842 342,264 464,106 24
Big Issue North Trust Ltd Notes forming part of tho financlal statemènts for the year gnded 31 March 2021 (contlnugd) 19 Movements In funds Balance At 1 Aprll 2020 Balanco At 31 March 2021 Incoming r8sources Outgoing rèsources Transfgrs Restrlcied funds Funding for small projects Waves of Hope 8,403 158,153 1122,698} 43,858 13,158 15,2741 17,884} Subtotal 8.403 171,311 {127,9721 17,8841 43,858 Unrestrirtgd funds General Funds 165,154 539,523 1292,313} 7,884 420,248 Subtotal 165,154 539.523 1292,3131 7,884 420,248 Total funds 173,557 710.834 {420,285) 464,106 Al 31 March 2021 Blg Issue North Trust Ltd held £43,85812020 - £8.403} in restricted funds for a number of small projects related lo the aims of the charity. General reserves amounted to £420,24812020- £165,154). 25
Big Issue North Trust Ltd Notgs forming part of the financial statements for the year ended 31 March 2021 (contlnued) 20 Related party transaGtions In accordance with FRS 102, the charity discloses related party transactions that were recognised in the Slalemenl of Flnancial Aclivilies. Remuneration of key management personnel is disclosed in note 11. Trustees, remuneration and expenses are disclosed in note 12. The charity is charged for direct salary costs, finance, HR. payroll and other central support services provlded by The Big Life Company Limited. Salary costs are recharged based on staff lime and other cos15 are recharged based on Q/0 of estimated income. The charity charges other group enlilies for sundry services such as room hire and training. The 2020121 amount charged to The Blg Life Company Limited of £254.085 Includes the donation from The Big Life Company Limited of £220,000. Related party transactions with other group entities during the year with were as follows.. Amounts charged to Amounts charged by group entitles group entltles 2021 2020 2021 2020 The Big Life Company Limited Self Help Services Ltd Big Life Cenlres Big Life Schools Wesley Furniture Resource Centre 254,085 220,139 216.320 1,974 254.085 220,139 218,294 The following amount8 were owed byllo group entities the year-end.. Amounts owed by group entlties 2021 2020 Amounts owed to group entitigs 2021 2020 The Big Life Company Limlled Self Help Services Ltd Big Life Centres Big Life Schoo15 Wesley Furniture Resource Centre 10,896 802 45 1,200 10,896 802 45 1,200 There were no other related party transactions during the year (2020.. none). 26
Big Issue North Trust Ltd Notes fomiing part of the flnancial statemènts for thè ygar ended 31 March 2021 (contlnuedj 21 Ultimate parènt undertaklng and controlllng party The ultimate parent company and controlling party is The Big Life Company Limited, a company limited by guarantee incorporated in England and Wales. The parent undertaking of the smallest and largest group for which consolidated accounts are prepared is The Big Life Company Limited. Consolidated accounts are available from Companies House, Crown Way, Cardiff, CF14 3UZ. The mission of The Big Lbfe Company Limited is lo create opportunities for the people who have the least lo change their lives. Two of the current directors of Big Issue North Trust Ltd are also directors of The Big Life Company Limited. Operational and strategic oversight of Big Issue North Trust Ltd is exerclsed by The 8ig Life Company Limited. 22 Operatlng Lease ¢ommltmènts The charity had lolal future mlnimum cornmilments under non-cancellable operating leases as sel out below.. 2021 2020 Land and Land and Bulldings Buildings Land and buildings Not later Ihan one year Later than one year and not later than five years Later than five years 32,114 55,000 25,048 33,376 55,000 36,547 112,162 124,923 27