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2021-12-31-accounts

DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

Company Number: 03337853

Charity Number: 1063570

RE-CYCLE

Annual Report and Accounts

For the year ended 31 December 2021

DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

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Contents of Annual Report & Accounts

PAGE
Charity & Company Information 2
Trustees Report 3
- Introduction 3
- 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 (resigned 04/08/2021) Kripa Dwarakanath 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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DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

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Trustees’ report for the year ended 31 December 2021

The trustees are pleased to present their report together with the financial statements of the charity for the year to 31 December 2021.

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. They are not involved on a regular basis, other than as ‘advocates’.

  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 (resigned 04/08/2021) 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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Trustees’ report for the year ended 31 December 2021

Risk Management:

As with any organisation, Re-Cycle’s work involves some risk. It is the trustees’ responsibility 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 Re-Cycle’s work, the trustees recognise 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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Trustees’ report for the year ended 31 December 2021

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:

Like every organisation, Re-Cycle has been impacted significantly by the Covid-19 pandemic. Various lockdowns and ongoing restrictions have created difficulties in receiving donated bicycles, resulting in a downturn of numbers being received into the charity. This has also affected the number of bikes and containers that we sent to Africa partners in 2021, which were lower than forecast.

Priorities for 2022:

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Trustees’ report for the year ended 31 December 2021

Financial review

After 2020, the charity was still faced with the impact of the global Covid-19 pandemic in 21. 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 £304k (2020, £325k), meant a 6% drop in income over the prior year of £21k.

Beneath the headline level of income, donation income decreased by 18% (£8k), grant income decreased by 4% (£5k) and earned income decreased by 12% (£16k). In terms of the mix of income, donations made up 13% (2020, 14%), grants 47% (2020, 44%), earned 40% (2020, 41%) and other income 0% (2020, 1%) 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 2021. Overall expenditure increased by 4.7% (£12k) to £267k (2020, £255k). Expenditure on direct charitable activity raised by 6% (£6k) to £186k and represents 70% of total expenditure as well as fundraising costs increased by 8% (£6k) to £81k. Fundraising expenditure keep in normal level in 2021. Charitable activity spend was increased as a result of the release of restrictions placed on the charity by the pandemic, particularly with regards to working with African Partners in late 2021.

As a result, the charity ended the year with net incoming resources of £25k (2020, £70k). This increased unrestricted reserves to £256k (2020, £225k) carried forward as at 31st December 2021.

The Covid-19 global pandemic affected investment plans and activities for 2021, 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 2021, 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 £256k, which represents around 12 months of expenditure. The trustees consider the reserves in these accounts to be in line with policy.

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 preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of

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Trustees’ report for the year ended 31 December 2021

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: 13 June 2022

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Independent Examiner’s Report for the year ended 31 December 2021

Independent examiner’s report to the trustees of Re-Cycle (‘the charity’)

I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2021.

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 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner’s statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in 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

13 June 2022 Date:

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DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

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Statement of Financial Activities (incorporating the Income and Expenditure Account) for the year to 31 December 2021

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
2021
£
36,203
130,380
116,850
21
96
283,550
172,123
80,695
252,818
30,732
-
30,732
225,271
256,003
Restricted
Funds
2021
£
600
8,000
-
-
-
8,600
14,248
-
14,248
(5,648)
-
(5,648)
11,402
5,754
Total
Funds
2021
£
36,803
138,380
116,850
21
96
292,150
186,371
80,695
267,066
25,084
-
25,084
236,673
261,757
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
Total
Funds
2020
2020
£
£
4,100
45,038
17,000
143,540
-
132,978
-
130
-
3,147
21,100
324,833
10,595
179,852
-
75,192
10,595
255,044
10,505
69,789
-
-
10,505
69,789
897
166,884
11,402
236,673

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Company No:03337853 / Charity No:1063570

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DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

RE-CYCLE Balance Sheet as at 31 December 2021

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
2021
£
5,548
21,806
246,101
267,907
(11,698)
256,209
261,757
5,754
256,003
261,757
2020
£
11,507
13,255
220,523
233,778
(8,612)
225,166
236,673
11,402
225,271
236,673

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

13 June 2022

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Company No:03337853 / Charity No:1063570

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DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

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Statement of Cash Flows for the year to 31 December 2021

Note
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in ) operating activities
14
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest income
Purchase of tangible fixed assets
Net cash provided by (used in ) investing activities
Increase (decrease) in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
2021
2020
£
£
26,092
74,611
21
130
(535)
(15,554)
(514)
(15,424)
25,578
59,187
220,523
161,336
246,101
220,523

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Company No:03337853 / Charity No:1063570

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DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

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

(ii) Restricted funds are subject to specific conditions imposed by the donor as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.

(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.

(e) Resources expended

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

(i) Expenditure on Charitable activities comprises those costs incurred on projects undertaken in pursuance of the charitable aims of the company.

(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.

DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

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
2021
Total
2020
£
£
79,162
75,330
15,184
18,584
(828)
6,394
27,913
24,371
2,964
1,616
6,353
1,804
2,619
2,978
53,004
48,775
186,371
179,852
2021
2020
£
£
44,407
42,815
6,606
4,768
-
-
29,682
27,609
80,695
75,192
2021
2020
£
£
144,356
129,884
8,611
7,284
7,218
6,279
160,185
143,447
5
4

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 £29,842 (2020: £26,592)

Staff costs have been analysed as:
Direct charitable expenditure
Costs of generating funds
Support
2021
2020
£
£
79,162
75,330
44,407
42,815
36,616
25,303
160,185
143,448

DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

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
Governance
Function
£
1,060
-
1,060
General
Support
£
51,944
29,682
81,626
Total
2021
Total
2020
£
£
53,004
48,775
29,682
27,609
82,686
76,384

6 Net income (expenditure) for the year

Net income (expenditure) for the year
2021 2020
£ £
This is stated after charging:
Depreciation 6,494 8,357
Cost
At 1 January 2021
Additions in year
At 31 December 2021
Depreciation
At 1 January 2021
Charge for the period
At 31 December 2021
Net Book Value
At 31 December 2021
At 31 December 2020
Computers &
Office
Equipment
£
26,248
535
26,783
24,738
1,495
26,233
550
1,510
Warehouse
equipment
£
33,892
-
33,892
33,892
-
33,892
-
-
Vehicles
TOTAL
£
£
17,095
77,235
-
535
17,095
77,770
7,098
65,728
4,999
6,494
12,097
72,222
4,998
5,548
9,997
11,507

DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

8 Debtors:[amounts falling due within one year]

Trade debtors
Prepayments, accrued income & other debtors
VAT Debtor
9
Creditors:amounts falling due within one year
Trade Creditors
Accruals & other creditors
2021
2020
£
£
12,840
1,920
6,854
5,695
2,112
5,640
21,806
13,255
2021
2020
£
£
6,042
4,416
5,656
4,196
11,698
8,612

10 Movements in funds

Movements in funds
At 1 At 31
January Incoming Outgoing Transfers December
2021 Resources Resources in / (out) 2021
£ £ £ £ £
Restricted Funds:
Fixed Assets 5,002 - (4,998) - 4
UK Projects 1,400 600 (1,650) - 350
HQ Running Costs 5,000 8,000 (7,600) - 5,400
Total restricted funds 11,402 8,600 (14,248) - 5,754
Total unrestricted funds 225,271 283,550 (252,818) - 256,003
TOTAL FUNDS 236,673 292,150 (267,066) - 261,757

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.

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.

In the Trustees’ opinion, there are sufficient resources held to enable each fund to be applied in accordance with the restrictions imposed by donors.

DocuSign Envelope ID: 6ABA5094-9E80-4DD2-AECB-508E278D3137

11 Analysis of net assets between funds

Fixed Assets
Current assets
Current liabilities
Net assets at 31 December 2021
£
5,544
262,157
(11,698)
256,003
Unrestricted
Funds
Restricted
Funds
Total
funds
£
£
4
5,548
5,750
267,907
-
(11,698)
5,754
261,757

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 £65 (2020: £19) was claimed in expenses during the year.

During the year Re~Cycle received £nil (2020: £nil) 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 -----
2021 2020
£ £
Net movement in funds 25,084 69,789
Add back depreciation charge 6,494 8,357
Deduct interest Income shown in investing activities (21) (130)
Decrease (increase) in debtors (8,551) (3,635)
Increase (decrease) in creditors 3,086 230
Net cash used in operating activities 26,092 74,611
----- End of picture text -----