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2020-12-31-accounts

Company Number: 03337853 Charity Number: 1063570

RE-CYCLE

Annual Report and Accounts

For the year ended 31 December 2020

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Contents of Annual Report & Accounts

PAGE
Charity & Company Information 2
Trustees Report 3
~~-~~
Introduction
3
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Structure, Governance and Management
3
~~-~~
Strategic Purpose and Principal Activities
5
~~-~~
Financial review
6
~~-~~
Reserves
6
~~-~~
Responsibilities of the trustees in relation
7
to the financial statements
Independent Examination Report and Statement 8
Statement of Financial Activities 9
Balance Sheet 10
Cashflow Statement 11
Notes to the Accounts 12

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Charity & Company Information

Trustees Merlin Matthews Christopher Davis Hannah Perrins-Hill - Chair Anna Goddard Kripa Dwarakanath (appointed October 2020) Company Secretary Steve Brown - Treasurer Merlin Matthews Director Claire Kettle Company number 03337853 Charity number 1063570 Registered office Unit 8 The Grove Estate Colchester Road Wormingford Colchester Essex CO6 3AJ Bankers CAF Bank (UK) Limited 25 Kings Hill Avenue Kings Hill West Malling Kent ME19 4JQ Triodos Bank Deanery Road Bristol BS1 5AS

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31 December 2020

The trustees are pleased to present their report together with the financial statements of the charity for the year to 31 December 2020.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

Structure, Governance and Management

Governing Document

Re-Cycle is a charitable company limited by guarantee, incorporated on 21 March 1997 and registered as a charity on 24 July 1997. The company is governed by its Memorandum and Articles of Association dated 4 March 1997 as amended by special resolution dated 18 March 2004.

The charitable company has a governance structure based on five tiers:

  1. The first tier are the members who vote at the AGM for the directors/trustees to run the organisation.

  2. The second tier is the Board of Trustees (who are also the directors for the purposes of company law) who have overall responsibility for and control of the charity/company and meet at regular intervals to discuss the performance to date and future plans. They are responsible for strategic direction and ensure that money is spent in accordance with the charities objectives in its constitution.

  3. The third tier is the day to day Re-Cycle operations with a team of 6 staff. Operational responsibility is overseen by the Director.

  4. The fourth (vital) tier is the volunteers and groups around the country who are involved in the collection, preparation, refurbishment and loading of bicycles,

  5. The fifth tier is our African partner organisations, who refurbish and distribute Re-Cycle bikes.

Directors

The Board of Directors of the charitable company are its trustees for the purpose of charity law. Throughout this report they are collectively referred to as the trustees.

The following individuals served as trustees during the period:

Merlin Matthews Christopher Davis Hannah Perrins-Hill Anna Goddard Kripa Dwarakanath

All trustees served for the full year unless otherwise stated above.

All the trustees resign at each AGM and are eligible for re-election by the members.

The trustees meet at least quarterly, with the Director, to review the activities and direction of the charity, and make medium-to long-term decisions. The day to day running of the charity is delegated to the Director who manages the staff team and reports directly to the trustees.

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31 December 2020

Risk Management:

As with any organisation, Rethe to ensure that these risks are managed, minimised and mitigated. To achieve this, the trustees have worked to identify and review the major strategic, business and operational risks that the charity faces. These are assessed against their possible likelihood of occurring and their possible impact on the organisation.

The major risks have been identified as:

Our finances:

Re-Cycle grew significantly in past years, and then due to financial difficulties faced at the end of 2018, the charity underwent a major re-structure in 2019. Growth and fluctuations carry significant risks especially in uncertain financial times and to manage this, the charity uses a charity-specialist accounting firm to manage the finance function, and support fundraising and operational personnel in the day to day running of the organisation.

Our partners:

Re-Cycle works at a grassroots level, at a geographic distance, often with community organisations that may have a weak organisational capacity. Being aware of this, we have been addressing this aspect for a few years now and are making progress in developing better relationships and supporting our partners to advance.

Given the nature of Rerecognise that some areas of our work require the acceptance and management of risk if our key objectives are to be achieved. The trustees have adopted, or are working to adopt, policies and frameworks to mitigate these risks. These include:

Public Benefit

The trustees confirm that they have complied with their duty under Section 4 of the Charities Act 2011 to have due regard to the Charity Commission's general guidance on public benefit.

Re-Cycle carries out a range of activities in furtherance of its charitable objectives, as detailed under activities and achievements below, which the trustees believe provide benefit to:

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31 December 2020

Strategic Purpose and Principal Activities

Our Vision: Africa unlimited by Transport. We envision a future where every person in Africa has access to quality, affordable, sustainable bike transport - reducing hours of walking each day to get to work, school or water source.

Our Mission: Improving lives through bike re-use

Our Values: Sustainability; Integrity; Quality; Open & honest dialogue; Inspiring Changing lives

Key achievements:

Priorities for 2021:

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31 December 2020

Financial review

After a year of recovery in 2019, the charity was faced with the impact of the global Covid-19 pandemic in 2020. It was able to adapt to a fall in income with a cost base that was flexible enough to allow the charity to continue to operate effectively, within its means. Total income of £325k (2019, £409k), meant a 21% drop in income over the prior year of £84k.

Beneath the headline level of income, donation income decreased by 35% (£24k), grant income decreased by 18% (£32k) and earned income decreased by 19% (£31k). In terms of the mix of income, donations made up 14% (2019, 17%), grants 44% (2019, 43%), earned 41% (2019, 40%) and other income 1% (2019, 0%) of total income.

The charity has worked to operate with a sustainable cost base that can be managed to weather shortfalls in income, and this proved valuable in 2020. Overall expenditure decreased by 11% (£32k) to £255k (2019, £287k). Expenditure on direct charitable activity fell by 24% (£57k) to £180k and represents 71% of total expenditure while fundraising costs increased by 48% (£24k) to £75k. Fundraising expenditure returned to a more normal level in 2020 after being under-resourced in 2019 with changes in staff. Charitable activity spend was reduced as a result of the restrictions placed on the charity by the pandemic, particularly with regards to working with African Partners.

As a result, the charity ended the year with net incoming resources of £70k (2019, £122k). This increased unrestricted reserves to £225k (2019, £166k) carried forward as at 31st December 2020.

The Covid-19 global pandemic affected investment plans and activities for 2020, but the charity has been able to maintain income levels and keep costs under control. The trustees are confident that, with the measures taken and the continued stability shown in 2020, the charity can continue operating beyond the next 12 months.

Reserves

Re~Cycle maintains reserves to protect the charity from short term fluctuations in income and to provide working capital for its project activities many of which are funded in arrears either by grants from donors or reimbursement from partners.

The policy has been reviewed to guard against after-effects of the Covid-19 global pandemic and protect the charity from a potential downturn in funding. The revised policy is to hold reserves equal to 9-12 months of expenditure on the core costs of running the charity and the cost of reimbursable project / partner expenses, which is seen by the trustees as prudent given the potential for large fluctuations in income.

The charity ended the year with reserves of £225k, which represent around 11 months of expenditure. The trustees consider the reserves in these accounts to be in line with policy.

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31 December 2020

Responsibilities of the trustees in relation to the financial statements

The trustees (who are also directors of Re-Cycle for the purposes of company law) are responsible for Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by the Board of Trustees on and signed on their behalf by:

Hannah Perrins-Hill Chair

Date: 5[th] July 2021

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Independent Examiner s Report for the year ended 31 December 2020

Re-Cycle charity

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2020.

Responsibilities and basis of report

As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the accounts of the charity are not required to be audited under Part 16 of the

accounts as carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Since the charit section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.

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

  1. accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or

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

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Louisa Tippett ACA 121 Colchester Road, West Bergholt, Colchester, CO6 3JX

Date:

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Statement of Financial Activities (incorporating the Income and Expenditure Account) for the year to 31 December 2020

Note
INCOMING RESOURCES
Incoming resources from generated funds:
Voluntary income:
Donations
Incoming resources from charitable activities:
Grants for project activities
Fees from bike sales & repairs
Investment income
Other income
Total incoming resources
RESOURCES EXPENDED
Charitable activities
2
Fund-raising
3
Total resources expended
Net incoming resources before transfers
Gross transfers between funds
Net income / (expenditure) in year
6
Total funds brought forward
Total funds carried forward
10
Unrestricted
Funds
2020
£
40,938
126,540
132,978
130
3,147
303,733
169,257
75,192
244,449
59,284
-
59,284
165,987
225,271
Restricted
Funds
2020
£
4,100
17,000
-
-
-
21,100
10,595
-
10,595
10,505
-
10,505
897
11,402
Total
Funds
2020
£
45,038
143,540
132,978
130
3,147
324,833
179,852
75,192
255,044
69,789
-
69,789
166,884
236,673
Unrestricted
Funds
2019
£
69,447
170,316
164,007
145
-
403,915
217,759
50,744
268,503
135,412
-
135,412
30,575
165,987
Restricted
Funds
2019
£
-
5,080
-
-
-
5,080
18,811
-
18,811
(13,731)
-
(13,731)
14,628
897
Total
Funds
2019
£
69,447
175,396
164,007
145
-
408,995
236,570
50,744
287,314
121,681
-
121,681
45,203
166,884

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Balance Sheet as at 31 December 2020

Note
FIXED ASSETS
Tangible Assets
7
CURRENT ASSETS
Debtors
8
Cash at bank and in hand
CREDITORS: Amounts falling due within one year
9
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CAPITAL AND RESERVES
Restricted Funds
Unrestricted Funds
10, 11
2020
£
11,507
13,255
220,523
233,778
(8,612)
225,166
236,673
11,402
225,271
236,673
2019
£
4,310
9,620
161,336
170,956
(8,382)
162,574
166,884
897
165,987
166,884

The Trustees are satisfied that the company is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Act.

The Trustees acknowledge their responsibilities for:

Approved by the Board and signed on their behalf by

Hannah Perrins-Hill Chair

Date: 5th July 2021

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Statement of Cash Flows for the year to 31 December 2020

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Notes to the accounts for the year ended 31 December 2020

1 Principal accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out below.

(a) Basis of accounting

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

(b) Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. 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.

(c) Fund accounting

(i) Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

(d) Incoming resources

All incoming resources are included in the statement of financial activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income.

(i) Voluntary income is received by way of grants, donations and gifts in kind and is included in full in the Statement of Financial Activities when receivable.

(e) Resources expended

Expenditure is recognised on an accruals basis as a liability is incurred, and includes any VAT which cannot be fully recovered.

(ii) Fund raising incorporates the salaries, direct expenditure and overhead costs of the staff who undertake fundraising work.

(iii) Governance costs are those costs incurred in the management of the charity's assets, organisation and compliance functions.

(iv) Support costs are those costs incurred by the company in support of its main charitable activities and projects. Where costs cannot be directly attributed, they have been allocated to activities on a basis consistent with the use of resources.

(f) Tangible fixed assets and depreciation

Tangible fixed assets costing over £500 (including any incidental expenses of acquisition) are capitalized. Depreciation is provided at rates calculated to write off the cost on a straight line basis over their expected useful economic life. The rate of depreciation is 33[1] /3 % per annum for all assets.

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Notes to the accounts for the year ended 31 December 2020

2 Charitable activities

Staff costs
Bike handling expenses
Africa Programming Spend
Premises
Volunteers expenses
Freelance staff and consultants
Other direct costs
Support costs
3
Fundraising
Staff costs
PR and advertising
Other direct costs
Support costs
4
Staff costs
Salary Costs
Gross wages and salaries
Employer's national insurance
Pension cost
The average staff headcount during the year was
Total
2020
£
75,330
18,584
6,394
24,371
1,616
1,804
2,978
48,775
179,852
2020
£
42,815
4,768
-
27,609
75,192
2020
£
129,884
7,284
6,279
143,447
4
Total
2019
£
107,448
21,462
13,315
30,158
4,589
6,804
3,273
49,521
236,570
2019
£
28,450
9,186
-
13,108
50,744
2019
£
142,983
8,884
6,849
158,716
6

No member of staff received emoluments of more than £60,000 during the year.

The key management personnel of the charity, comprise of the trustees and the Director. The total employee benefits of the key management personnel of the charity were £26,592 (2019: £26,693)

Staff costs have been analysed as:
Direct charitable expenditure
Costs of generating funds
Support
2020
£
75,330
42,815
25,303
143,448
2019
£
107,448
28,450
22,818
158,716

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Notes to the accounts for the year ended 31 December 2020

5 Support costs

Support costs are those that are incurred by the charity in support of, but cannot be directly attributed to, its main activities. Re~Cycle remains a small charity with minimal overheads and as such the support costs consist of only two broad elements; general office costs, and management staff time that cannot be directly attributed to direct charitable activities, fundraising or governance. These then have been allocated to activities on a basis consistent with the use of resources.

Support costs have been analysed as:
Direct charitable expenditure
Costs of generating funds
Net income (expenditure) for the year
This is stated after charging:
Depreciation
Governance
Function
£
920
-
920
General
Support
£
47,855
27,609
75,464
Total
2020
£
48,775
27,609
76,384
2020
£
8,357
Total
2019
£
49,521
13,108
62,629
2019
£
5,488

6 Net income (expenditure) for the year

7 Fixed assets

Cost
At 1 January 2020
Additions in year
At 31 December 2020
Depreciation
At 1 January 2020
Charge for the period
At 31 December 2020
Net Book Value
At 31 December 2020
At 31 December 2019
Computers &
Office
Equipment
£
25,689
559
26,248
21,379
3,359
24,738
1,510
4,310
Warehouse
equipment
£
33,892
-
33,892
33,892
-
33,892
-
-
Vehicles
£
2,100
14,995
17,095
2,100
4,998
7,098
9,997
-
TOTAL
£
61,681
15,554
77,235
57,371
8,357
65,728
11,507
4,310

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Notes to the accounts for the year ended 31 December 2020

Debtors:amounts falling due within one year
2020 2019
£ £
Trade debtors 1,920 440
Prepayments, accrued income & other debtors 5,695 7,052
VAT Debtor 5,640 2,128
13,255 9,620
Creditors:amounts falling due within one year
Trade Creditors 2020
£
4,416
2019
£
4,758
Accruals & other creditors 4,196 3,624
8,612 8,382
Movements in funds At 1 At 31
January Incoming Outgoing Transfers December
2020 Resources Resources in / (out) 2020
Restricted Funds: £ £ £ £ £
Fixed Assets 897 10,000 (5,895) - 5,002
UK Projects - 4,100 (2,700) - 1,400
HQ Running Costs - 7,000 (2,000) - 5,000
Total restricted funds 897 21,100 (10,595) - 11,402
Total unrestricted funds 165,987 303,733 (244,449) - 225,271
TOTAL FUNDS 166,884 324,833 (255,044) - 236,673
Fixed Assets This fund represents the net book value of fixed assets purchased with funds
restricted to capital purchases. When such assets are purchased the cost is
transferred into the fixed assets fund, and future depreciation is charged to the
fund. When the assets are donated the value of the donation is shown as income
in the Fixed Assets fund.

9 Creditors: amounts falling due within one year

10 Movements in funds

UK Projects

This fund is made up of donations and grants towards initiatives in the UK that help further the charitable aims of Re~Cycle in the UK and Africa, such as pop up bike servicing and repair or sales of donated bikes.

HQ Running Costs

This fund is made up of donations and grants towards specific core costs at the Re~Cycle facility in Colchester, such as premises or IT costs.

restrictions imposed by donors.

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Notes to the accounts for the year ended 31 December 2020

11 Analysis of net assets between funds

Fixed Assets
Current assets
Current liabilities
Net assets at 31 December 2020
£
6,505
227,378
(8,612)
225,271
Unrestricted
Funds
Restricted
Funds
£
5,002
6,400
-
11,402
Total
funds
£
11,507
233,778
(8,612)
236,673

12 Related parties

Re~Cycle is controlled by its Board of Trustees. No Trustees received any remuneration for their services to the Charity as trustees, and £19 (2019: £223) was claimed in expenses during the year.

During the year Re~Cycle received £nil (2019: £20) in donations from trustees.

13 Capital

The company is limited by guarantee and has no share capital. There are currently 5 members of the company and each member has undertaken to contribute up to £10 in the event of the company being wound up.

14 Reconciliation of net movement in funds to net cash flow from operating activities

----- Start of picture text -----
2020 2019
£ £
Net movement in funds 69,789 121,680
Add back depreciation charge 8,357 5,488
Deduct interest Income shown in investing activities (130) (145)
Decrease (increase) in debtors (3,635) 2,981
Increase (decrease) in creditors 230 (6,994)
Net cash used in operating activities 74,611 123,010
----- End of picture text -----

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