The Life and Soul Kitchen Ltd
Report of the Trustees and Unaudited Financial Statements For the Year Ended 31[st] March 2021
Registered Company Number: 03455469 Registered Charity Number: 1065618
## **Contents of the Financial Statements**
For the year ended 31[st] March 2021
||Page|
|---|---|
|Report of the Trustees|1 to 4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6|
|Balance Sheet|7|
|Notes to the Financial Statements|8 to 14|
|Detailed Statement of Financial Activities|15|
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **REPORT OF THE DIRECTORS AND TRUSTEES**
For the year ended 31[st] March 2021
The directors and the trustees present their report with the financial statements of the charity for the year ended 31 March 2021. The accounts have been prepared in accordance with the provisions applicable to the small companies regime and in accordance with FRS102 Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard (FRS) 102.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
03455469
## **Registered Charity number**
1065618
## **Principal Office**
Unit 1 Three Elms Trading Estate Hereford HR4 9PU
## **Registered office**
1A The Homend Ledbury Herefordshire HR8 1BN
## **Directors**
A C Featherstone (Resigned 20[th] May 2021) S Badham B Morris (Appointed 23[rd] June 2021)
## **Trustees**
A C Featherstone (Resigned 20[th] May 2021) JC Morris AP Taylor B Morris AJ Evans B Edwards (Appointed 4[th] September 2020)
## **Independent examiner**
Luke Keegan Chartered Management Accountant 1A The Homend, Ledbury, Herefordshire, HR8 1BN
1
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The charity is controlled by its Memorandum and Articles of Association and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The liability of each member is limited to £10.
## **Charity Structure**
The charity has 6 serving trustees at the close of the financial period.
It holds 4 general meetings per year, one of which is the AGM. Any other business is conducted via supplementary, special or extra-ordinary general meetings as required.
Note on Business arrangements during 20/21 under covid restrictions. Due to the Coronavirus pandemic and its attendant lockdown restrictions, face to face meetings have not been possible. In 2 cases shielding has prevented Trustees visiting the café for most of the year. One full Trustee meeting took place under social distancing arrangements in October 2020, when 2 substantial decisions were made. Throughout the remainder of the year, decisions were taken by group email seeking individual responses to the secretary.
The day to day management of the business was undertaken by 2 directors. A Featherstone (voluntary) and S Badham (salaried) who report to the full board.
The charity recruits its trustees mainly from approaches to stakeholders from the community who possess skills pertinent to the management and furtherance of the charity’s objectives. Any interested parties are interviewed by the existing trustees and their appointment ratified at the next formal general meeting. They are given induction training by the Secretary to the Trustees.
## **OBJECTIVES AND ACTIVITIES**
## **Objectives and Purpose**
- To promote the relief and education of persons who are disabled by the provision, equipping, operation and maintenance of a catering workshop and ancillary facilities for the employment or vocational training of such persons.
- The relief of the disabled by the provision of specialised information, counselling and or advice to disabled persons seeking employment and or vocational training.
## **Activities When not under lockdown or social distancing restrictions**
- The operation of a full café service Monday to Friday from 9.00am to 4.30pm.
- The provision of a skills and vocational training service for adults with learning disabilities (When the café reopens, it will have capacity to offer 15 sessions initially, rising to 25 or more when restrictions are fully lifted).
- The employment of part time staff and volunteers to assist with the running of the business and to support the service users.
- Partnering with other local charities and local suppliers to provide a programme to regular activities to enhance the experiences for the both the trainees and the general public.
- Pursuing external funding to help with the expansion of the service offer, the ongoing refurbishment of the facility and to enable replacement of capital equipment.
2
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **ACHIEVEMENTS AND PERFORMANCE**
## **Main Achievements**
- This financial year, the café was unable to trade at all due to a combination of the Government’s restrictions upon the hospitality industry and the need to undertake a comprehensive refurbishment to ensure it could comply with the new safety restrictions required to make the premises ‘covid secure’.
- In October 2020, the charity was successful in securing £49,202 from the National Lottery Communities Fund to enable it to undertake all of the necessary refurbishment works, not only to make it become ‘covid secure’ but also to future proof the business until the end its current lease in 2026.
- In addition, the charity attracted a further £65,650 from other grants and donations to enable the café to continue trading post lockdown, and to support its extensive refurbishment programme.
- The securing of additional space for enhanced trading capacity in November 2020 through a deed of variation to the original lease agreement. The agreement provides for an additional 100 square metres of flexible activity space.
- The establishment of the café as a ‘Talk Community Hub’ in partnership with Herefordshire Council. The initiative, aimed at an expansion of the café’s inclusion offering is due to go live in the early Summer of 2021.
- The development of an approved Reserves Policy for 21/22 and the allocation of an allocated reserve in accordance with its proposals. This will hedge against the risk of a potentially slow take up of trade following the easement of lockdown, and any other events adversely impacting on trade next year.
- The retention of 5 service users going forward into the next year. Attempts were made to keep all existing engaged with the refurbishment by inviting them to make socially distanced visits during the Autumn of 2020 when there was a slight temporary relaxation of the restrictions. Unfortunately, this had to be withdrawn on the second lockdown. Those able to, could continue to follow on Facebook.
- An application to the Department of Work and Pensions to offer 2 x unemployed young people, 16-24 years a 6 month training programme under the Government’s Kick Start scheme.
- Finally, the development of a preferred contractor and supplier base to enable the café to provide enhanced business continuity in the event of stock shortages of unexpected system failures. In addition to this new resilience measure, over the Autumn and Winter periods, the café benefitted from the gifting of over 2,000 hours of volunteer time which enabled the refurbishment works to be completed both to time and to budget. Many of these volunteers were professionally qualified practitioners and/or tradesmen.
## **FINANCIAL REVIEW**
## **Review of the charity’s financial position at the end of the year**
- During the year, there was limited trading in the café due to coronavirus restrictions/
- Grant funding did help to pay salaries and to allow for refurbishment and capital equipment purchases.
- There are no debts owed by the charity at the year end and the charity is in a position to meet it’s outstanding liabilities.
3
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **Reserves Policy**
The Trustees aim to maintain free reserves in unrestricted funds at a level that equates to approximately three months of unrestricted expenditure. This level is not a fixed amount, and it must reflect the changing business environment and the circumstances to which the business may be required to respond, especially at very short notice.
The Trustees review the reserves level on a regular basis and have concluded that given inflationary pressures on utilities, services and stock purchases and the additional risk of further closures for the 2021/22 financial year an unrestricted reserve figure of £14,000 should be set for the year.
On the 31st March 2021, the charity had unrestricted reserves of £31,363.
The Trustees have considered the financial position of the charity and consider that the charity has been able to and remains able to fulfil its obligations for the foreseeable future.
## **DECLARATIONS**
The company has taken advantage of the small companies’ exemption in preparing the report above. The trustees declare that they have approved the trustee’s report (including director’s report) above.
## **ON BEHALF OF THE BOARD:**
B Morris
Date:
4
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **Independent Examiner’s Report to the trustees of the Life and Soul Kitchen Ltd**
I report on the accounts for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet and the related notes.
## **Respective responsibilities of trustees and examiner**
The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year (under Section 144(2) of the Charities Act 2011 (the 2011 Act)) and that an independent examination is required.
Having satisfied myself that the charity is not subject to audit under the requirements of the Companies Act 2006 and is eligible for independent examination, it is my responsibility to:
- examine the accounts under Section 145 of the Charities Act 2011
- to follow the procedures laid down in the General Directions given by the Charity Commission (under Section 145(5)(b) of the 2011 Act); and
- to state whether particular matters have come to my attention.
## **Basis of the independent examiner's report**
My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a 'true and fair view ' and the report is limited to those matters set out in the statements below.
## **Independent examiner's statement**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
- the accounting records were not kept in accordance with section 386 of the Companies Act 2006 or section 130 of the Charities Act 2011; or
- the accounts did not accord with the accounting records; or
- the accounts did not comply with the relevant accounting requirements under section 396 of the Companies Act 2006 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;
- the accounts have not been prepared in accordance with the Charities SORP (FRS102).
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.
Luke Keegan, Chartered Management Accountant
1A The Homend Ledbury Herefordshire, HR8 1BN
Date: 8[th] November 2021
5
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **Statement of financial activities (including summary income and expenditure account)**
|**Recommended categories by**
**activity**
Notes
**Income**
**Income and endowments from:**
Donations and legacies
3
Charitable activities
3
Investments
3
Other
3
**Total**
**Expenditure**
Raising funds
4
Charitable activities
4
Administration and Governance
4
**Total**
Net gains on investments
**Net income (expenditure)**
Transfers between funds
**Net expenditure before other**
**gains/(losses)**
**Other gains and losses:**
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**funds**
**Restricted**
**funds**
**Total**
**funds**
**2021**
**Total**
**funds**
**2020**
**£**
**£**
**£**
**£**
66,588
49,202
115,790
16,423
14,540
-
14,560
43,315
-
-
-
-
115
-
115
194|
|---|---|
||81,242
49,202
130,444
59,932|
||-
-
-
-
51,785
31,152
82,936
52,581
1,060
-
1,060
1,166|
||52,845
31,152
83,996
53,747|
||-
28,397
18,050
46,448
6,185
(3,935)
3,935
-
-|
||24,462
21,985
46,448
6,185|
||24,462
21,985
46,448
6,185
11,749
-
11,749
5,564|
||36,211
21,985
58,196
11,749|
6
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **Statement of Assets and Liabilities**
|Notes
**Fixed assets**
Tangible assets
7
**Total fixed assets**
**Current assets**
Stocks
8
Debtors
9
Cash at bank and in hand
12
**Total current assets**
**Creditors: amounts falling due**
**within one year**
10
**Net current assets**
**Total net assets**
**Funds of the Charity**
Restricted income funds
13
Unrestricted funds
13
**Total funds**|**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2020**
**£**
**£**
**£**
**£**
4,848
21,985
26,833
5,623|
|---|---|
||**4,848**
**21,985**
**26,833**
**5,623**|
||-
-
-
1,812
2,712
-
2,712
2,579
31,324
-
31,324
3,871|
||**34,036**
**-**
**34,036**
**8,263**|
||(2,672)
-
(2,672)
(2,137)
**31,363**
**-**
**31,363**
**6,126**|
||**36,211**
**21,985**
**58,196**
**11,749**|
||21,985
21,985
-
36,211
36,212
11,749|
||**36,211**
**21,985**
**58,196**
**11,749**|
The company was entitled to exemption from audit under s477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.
Signed by
B Morris
Date:
7
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **NOTES TO THE ACCOUNTS**
## **Note 1 Basis of preparation**
## **1.1 Basis of accounting**
These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts.
The accounts have been prepared in accordance with:
the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
## **Note 2 Accounting policies**
## **2.1 Income**
|**Recognition of income**|These are included in the Statement of Financial Activities (SoFA) when:|
|---|---|
||• the charity becomes entitled to the resources;|
||• it is more likely than not that the trustees will receive the resources;|
||• the monetary value can be measured with sufficient reliability.|
|**Offsetting**|There has been no offsetting of assets and liabilities, or income and|
||expenses, unless required or permitted by the FRS 102 SORP or FRS 102.|
|**Grants and donations**|Grants and donations are only included in the SoFA when the general|
||income recognition criteria are met (5.10 to 5.12 FRS102 SORP).|
||In the case of performance related grants, income must only be recognised|
||to the extent that the charity has provided the specified goods or services|
||as entitlement to the grant only occurs when the performance related|
||conditions are met (5.16 FRS 102 SORP).|
|**Contractual income and**|This is only included in the SoFA once the charity has provided the related|
|**performance related**|goods or services or met the performance related conditions.|
|**grants**||
|**Support costs**|The charity has incurred expenditure on support costs.|
|**Volunteer help**|The value of any voluntary help received is not included in the accounts but|
||is described in the trustees’ annual report.|
|**Income from interest,**|This is included in the accounts when receipt is probable and the amount|
|**royalties and dividends**|receivable can be measured reliably.|
8
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **2.2 Expenditure and Liabilities**
|**Liability recognition**|Liabilities are recognised where it is more likely than not that there is a|
|---|---|
||legal or constructive obligation committing the charity to pay out resources|
||and the amount of the obligation can be measured with reasonable|
||certainty.|
|**Governance and support**|Support costs have been allocated between governance costs and other|
|**costs**|support. Governance costs comprise all costs involving public|
||accountability of the charity and its compliance with regulation and good|
||practice.|
|**Redundancy cost**|The charity made no redundancy payments during the reporting period.|
|**Deferred income**|No material item of deferred income has been included in the accounts.|
|**Creditors**|The charity has creditors which are measured at settlement amounts less|
||any trade discounts|
|**Provisions for liabilities**|A liability is measured on recognition at its historical cost and then|
||subsequently measured at the best estimate of the amount required to|
||settle the obligation at the reporting date|
|**2.3 Assets**||
|**Tangible fixed assets for**|These are capitalised if they can be used for more than one year, and cost|
|**use by charity**|at least|
||They are valued at cost.|
|**Stocks and work in**|Stocks held for sale as part of non-charitable trade are measured at the|
|**progress**|lower or cost or net realisable value.|
|**Debtors**|Debtors (including trade debtors and loans receivable) are measured on|
||initial recognition at settlement amount after any trade discounts or amount|
||advanced by the charity. Subsequently, they are measured at the cash or|
||other consideration expected to be received.|
9
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **Note 3 Income**
|**Analysis of income**
**Donations**
**and**
**legacies:**
Donations and gifts
Grants provided by
government/other charities
**Total**
**Charitable**
**Activities**
Café
Service Users
**Total**
**Other**
**Income**
Other
**Total**
**TOTAL INCOME**|**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2020**
**£**
**£**
2,750
-
2,750
2
63,838
49,202
113,040
16,421|
|---|---|
||66,588
49,202
115,790
16,423|
||151
-
151
31,405
14,389
-
14,389
11,910|
||14,540
-
14,540
43,315|
||115
-
115
194|
||115
-
115
194|
||81,242
49,202
130,444
59,932|
## **Note 4 Expenditure**
|**Expenditure**
**on raising**
**funds:**
**Analysis of expenditure**
Advertising, marketing, direct
mail and publicity
**Total expenditure on raising**
**funds**
**Expenditure**
**on**
**charitable**
**activities**
Café
Administration costs
Governance Costs
**Total expenditure on**
**charitable activities**
**TOTAL EXPENDITURE**|**Unrestricted**
**funds**
**Restricted**
**funds**
**2021**
**2020**
**£**
**£**
-
-
-
-|
|---|---|
||-
-
-
-|
||51,785
31,152
82,936
52,581
460
460
545
600
-
600
621|
||52,845
31,152
83,996
53,747|
|||
||52,845
31,152
83,996
53,747|
10
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **Note 5 Details of certain types of expenditure**
|Independent examiner’s fees
**Note 6 Staff costs**
Wages and salaries
Pension Costs
No employee received emoluments in excess of £60,000
The average monthly number of full time equivalent employees
during the year was as follows:
Café
**Total**
**Note 7 Tangible fixed assets**|**2021**
**2020**
**£**
**£**
600
621
**2021**
**2020**
**£**
**£**
25,665
24,869
577
-
**2021**
**Number**
**2020**
**Number**
1
2|
|---|---|
||1
2|
|||
## **Cost or valuation**
|**Cost or revaluation**
At 1 April 2020
Additions
At 31 March 2021
**Depreciation and impairments**
At 1 April 2020
Depreciation charge for the
year
At 31 March 2021
**Net book value**
At 31 March 2020
At 31 March 2021|**Land and**
**buildings**
**Furniture**
**&**
**Equipment**
**Total**
**£**
**£**
**£**
8,253
3,644
11,897
18,852
12,324
31,176|
|---|---|
||27,105
15,968
43,072|
||4,875
1,398
6,274
6,136
3,829
9,966|
||11,012
5,228
16,239|
||3,378
2,245
5,623|
||16,093
10,740
26,833|
## **Basis for Depreciation**
Leasehold Land and Buildings Depreciated over the lifetime of the lease on a straight line basis Furniture & Equipment Depreciated over 4 years on a straight line basis
11
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **Note 8 Stocks**
|Raw materials and consumables
**Total**|**2021**
**2020**
**£**
**£**
-
1,812|
|---|---|
||-
1,812|
## **Note 9 Debtors and prepayments**
## **Analysis of debtors**
|Trade debtors
Prepayments and accrued income
Other debtors
**Total**|**2021**
**2020**
**£**
**£**
2,712
2,579
-
-
-
-
2,712
2,579|
|---|---|
## **Note 10 Creditors and accruals**
## **Analysis of creditors**
|Trade creditors
Accruals and deferred income
Taxation and social security
Other creditors
**Total**|**Amounts falling due**
**within one year**
**2021**
**2020**
**£**
**£**
114
409
640
600
1,918
1,128
-
-|
|---|---|
||2,672
2,137|
## **Note 11 Commitments**
|**Commitments**|||||||
|---|---|---|---|---|---|---|
|**Operating lease commitments**|||||||
|Annual commitments under non-cancellable|||||||
|operating leases are as follows:-|**2021**|**2021**||**2020**|**2020**||
||**Land and**|||**Land and**|||
||**Buildings**|**Other**||**Buildings**|**Other**||
||**£**|**£**||**£**|**£**||
|Operating leases with expiry date:|||||||
|In the second to fifth years inclusive|10,800||-|4,695||-|
|Over five years|||-|-||-|
||10,800||-|4,695||-|
12
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **Note 12 Cash at bank and in hand**
|**Note 12 Cash at bank and in hand**||
|---|---|
|Cash at bank and on hand
**Total**|**2021**
**2020**
**£**
**£**
31,324
3,871|
||31,324
3,871|
## **Note 13 Charity funds**
## **13.1 Details of material funds held and movements during the CURRENT reporting period**
|**Fund names**
**Type**
National Lottery
Community
Fund
R
General
U
**Total Funds as per balance**
**sheet**|**Fund**
**balances**
**brought**
**forward**
**Income**
**Expenses**
**Transfers**
**Fund**
**balances**
**carried**
**forward**
**£**
**£**
**£**
**£**
**£**
-
49,202
(31,152)
3,935
21,985
11,749
81,242
(52,845)
(3,935)
36,212|
|---|---|
||11,749
130,444
(83,996)
-
58,196|
## **13.2 Details of material funds held and movements during the PREVIOUS reporting period**
|**Fund names**
**Type**
National Lottery
Community Fund
R
General
U
**Total Funds as per balance sheet**|**Fund**
**balances**
**brought**
**forward**
**Income**
**Expenses**
**Transfers**
**Fund**
**balances**
**carried**
**forward**
**£**
**£**
**£**
**£**
**£**
-
-
-
-
-
5,564
59,932
(53,747)
-
11,749|
|---|---|
||5,564
59,932
(53,747)
-
11,749|
13
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **Note 14 Transactions with trustees and related parties**
## **14.1 Trustee remuneration and benefits**
None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity
S Badman, as a director of the company receives a salary for her role as manager of the café.
## **14.2 Trustees' expenses**
No trustee expenses have been incurred other than re-imbursement of out of pocket expenses
## **14.2 Transactions with related parties**
There were no transactions with related parties
## **Note 15 Company limited by guarantee**
The company is limited by guarantee and has no share capital.
Every member of the company undertakes to contribute to the assets of the company, in the event of winding up, such an amount as may be required, not exceeding £10.
## **Note 16 General Information**
The Life and Soul Kitchen Ltd is a private company, limited by guarantee, incorporated in England and Wales, registered number 03455469. The registered address is 1A The Homend, Ledbury, Herefordshire, HR8 1BN
14
The Life and Soul Kitchen Ltd For the Year Ended 31[st] March 2021
## **Detailed Statement of Financial Activities**
|**Income and endowments from:**
Donations and legacies
Donations
Grants from government / charitable bodies
**Charitable activities**
Café
Service Users
**Other**
**Total income and endowments**
**Expenditure on:**
Costs of generating donations and legacies
Grants from charitable bodies
**Total of expenditure on raising funds**
Cafe
Purchases
Salaries
Employer Pension Contributions
Sub Contract Labour
Lease of equipment
Credit card and finance costs
Rent and rates
Gas and electricity
Repairs and maintenance
Waste disposal
Sundry
Insurance
Depreciation of premises
Depreciation of catering equipment
Depreciation of other fixtures and fittings
General Administrative Expenses
Telephone
Administration support costs
Professional fees
Bank charges
Charitable Donations
Governance Costs
Accountancy
**Total expenditure**
**Net movement in funds**|**2021**
**2020**
**£**
**£**
2,750
2
113,040
16,421|
|---|---|
||115,790
16,421|
||151
31,405
14,389
11,910|
||14,540
43,315|
||115
194|
||130,444
59,932|
||-
-|
||-
-|
||8,179
13.969
25,665
24,869
577
-
300
761
-
874
786
827
8,050
4,380
2,463
1,964
23,823
1,266
903
596
521
245
1,233
658
6,136
1,423
3,364
748
466
-|
||82,936
52,581
100
305
130
-
-
190
230
-
-
50|
||460
545
600
621|
||600
621|
||**83,966**
**53,747**|
||**46,448**
**6,185**|
15
Thè Lifè and Soul Kitchèn Ltd
For thÈ Yèar EndÈd 31 Mareh 2021
16