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2021-03-31-accounts

Company no. 03836786 Charity no. 1077575

Life Cycle UK

Report and Financial Statements 31 March 2021

Life Cycle UK

Contents

For the year ended 31 March 2021
Page
Reference and administrative details 1
Report of the trustees 2 - 8
Independent examiner's report 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 29

Life Cycle UK

Reference and administrative details

For the year ended 31 March 2021 Company number 03836786 Charity number 1077575 Registered office and The CREATE Centre operational address Smeaton Road Bristol BS1 6XN Tel: 0117 353 4580 Email: office@lifecycleuk.org.uk Website: www.lifecycleuk.org.uk Trustees Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows: S Mowl - Chair H Binley - Treasurer K Chaterjee C Keble S McMillan M Shepherd CBE A Webber E Williams Chief executive Edward Norton Company secretary Edward Norton Bankers Triodos Bank Deanery Road Bristol BS1 5AS Independent examiners Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor, Mariner House 62 Prince Street Bristol BS1 4QD

1

Life Cycle UK

Report of the trustees

For the year ended 31 March 2021

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2019).

Objectives and activities of the charity

Our Vision

A world with clean air and healthy people where cycling is the chosen mode of transport, for most people, for short daily journeys.

Our Mission

We help more people get cycling, to transform lives and the environment.

What we do

To achieve this, we:

  1. Offer people access to working bicycles

  2. Help people gain the skills and confidence to cycle wherever they want, whenever they want

  3. Offer extra support to anyone who faces barriers to unlock the benefits of cycling

  4. Strengthen the cycling sector: we train new bike mechanics, cycle instructors and partner with Local Authorities, businesses and other charities looking to boost cycling levels.

Our Approach

We work with people to offer practical support to help them cycle, in ways that can scale up and be replicated elsewhere. We want to build independence, not dependence, and help people continue to benefit from cycling beyond our direct involvement.

We are passionate about working in a way that maximises social value.

Our Values

Structure, governance and management

Life Cycle UK is a registered charity (number 1077575) and company limited by guarantee (registered number 3836786).

Life Cycle UK’s day-to-day operations are managed by the Charity’s Chief Executive. Each project has its own Co-ordinator. They are supported by a team of staff members, freelance cycle instructors and mechanics who help deliver cycle activities, as well as a growing number of volunteers.

2

Life Cycle UK

Report of the trustees

For the year ended 31 March 2021

Board of trustees

The directors and trustees of the charitable company during the period are listed on page 1.

A new governance structure to support senior staff in light of Life Cycle’s continued growth was implemented in 2019. There are two sub-committees covering Finance and Governance. Each committee meets up to four-times a year and is represented by three or more trustees. There is a limit to how long a trustee can serve on the Board in line with best practice, of three terms of three years each, except in exceptional circumstances. There is no AGM, which is not legally required because Trustees are both members and directors and can voice opinions and receive information throughout the year.

Achievements and performance (Public Benefit)

Despite the global COVID-19 pandemic, the charity continued to deliver its mission and helped 6,035 people to get cycling in 2020-21 – in spite of regular disruption from lockdowns. Public benefit was achieved in the West of England, Swindon, Hereford and Derby in the following ways:

1. Offer people access to working bicycles

Our bike recycling project, run in partnership with HM Prison Service, continued to help prisoners and ex-offenders to train as City & Guilds accredited cycle mechanics – albeit in reduced numbers due to lockdown restrictions and social-distancing. In our latest learner survey:

In the year, we also started offering bursaries for further training at our community bike workshop to prisoners after release. One man released during 2020 who returned to complete a Level 2 cycle mechanic qualification with us in the community told us:

“It has given me purpose and structure. I feel more confident in myself”

In the midst of a national bicycle shortage our prison learners, volunteers and mechanics got 607 bikes out and into use by people in need of cheap, reliable transport. We also serviced 1,035 bikes at our community workshop and fixed a further 1,117 bikes at external ‘pop-up’ events.

As well as our traditional charity focus on helping those on a low-income, many bikes or repairs this year were offered at a discount or free to Key Workers – helping them to travel safely during lockdown:

3

Life Cycle UK

Report of the trustees

For the year ended 31 March 2021

2. Help people gain the skills and confidence to cycle wherever they want, whenever they want

As with all registered Training Providers, our Bikeability cycle training for schoolchildren was heavily impacted by extended school closures. However, when rules allowed our team worked flat out to help 1,808 children learn the skills to cycle safely:

With many adults wary of using public transport, we also helped 574 adults to learn or refresh their cycling skills so they could take part in the COVID “cycling boom” of 2020. Over 80% of adult learners were women, helping to positively address the traditional gender imbalance of cyclists:

“My instructor was fantastic. He has turned me from a very anxious returner cyclist to someone who can now cycle with confidence and real enjoyment. The training has been great…I have really benefitted from it. Thank you.” – Denise

3. Offer extra support to anyone who faces barriers to unlock the benefits of cycling

Our award-winning “Inclusive Cycling Projects” traditionally run activities in groups, meaning activities this year were heavily impacted by lockdowns. But our dedicated staff and volunteers quickly adapted services to social-distancing rules, helping vulnerable people to access cycling, fresh air and company at exactly the time when many felt most isolated. Two examples:

▪ “Cycle Buddies”

We recruited new volunteers for our buddy scheme – a matching service that helps nervous or isolated people cycle 1:1 with a confident volunteer. 46 people benefitted, via a mixture of support worker referrals and self-registrations. Ricky’s story (name changed):

Before lockdown, Ricky hadn’t really thought about cycling. But when lockdown hit, he found himself with a lot of time on his hands. His partner broke up with him and it became more difficult to manage his Learning Disability and Asperger’s.

He started to go for rides, but always the same route – he didn’t have the confidence to try new ones. Ricky was matched with a Buddy who lived nearby and enjoyed his first ride so much he rang-up his support worker as soon as he got home! He was delighted to explore new places and loved stopping halfway for a coffee and a chat with his new Buddy.

▪ “Two’s Company”

This year our tandem cycling scheme for the visually-impaired and disabled also shifted to 1:1 rides, via a mixture of riders borrowing our tandems to cycle within their ‘bubble’ and a new offer of recumbent tandem rides, which offer a more spaced-out seating design.

With our partner “Ride Out Ride On” these provided liberating days out to people with epilepsy, Dyspraxia, Autistic Spectrum Disorder, Cerebral Palsy and someone recovering from a brain aneurysm. Here’s Lila’s mum:

4

Life Cycle UK

Report of the trustees

For the year ended 31 March 2021

“[It] enabled Lila to get on a bike and experience what most children accept as normal…being free, just to go where she wants to go and enjoy the fresh air on her own terms. Her wellbeing improved dramatically, her mental health improved as well. She cycled further and contributed to the effort more each time she went. She loved it!”

A further 58 people from our mental wellbeing and “Silver Cyclists” rider community benefitted from small group cycle rides under the “rule of six”:

“Cycling during the lockdown saved my life” – anonymous service user

Our Youth project helped 148 kids to get out, active and exercising. When rules allowed, we ran free ‘drop-in’ cycle activities at Adventure Playgrounds. In lockdown, we fixed-up kids bikes for free, specifically targeting those with least opportunities to exercise. A’s mum was really grateful when we fixed her son’s bike and told us:

“I’ve been meaning to do something about it [the bike] for ages but I didn’t know what to do… He has been bouncing off the walls in the flat. Now he can go down each day and tear about.”

4. Strengthen the cycling sector:

With cycling levels in England growing up to 200% during lockdown, there was a big spike in demand for accredited training for cycling professionals. In addition to our prisoner training programme, the charity this year:

We were contacted by numerous organisations seeking help to set-up or expand community cycling initiatives and expect some of these to develop into new partnerships in the year ahead.

Risk Statement

The trustees continue to consider and manage potential risks to the charity, including the ongoing impact of the COVID-19 pandemic. These risks include:

Risk : COVID-19: continued disruption to activity delivery and/or significant drops in income affect the charity’s ability to deliver its mission.

Mitigation : Staff adapted most services to social-distancing and/or limits on group size in 2020 – new risk assessments and safe systems of work reduce the risk of complete shutdown in future. Trustees have also re-balanced the charity’s work to focus more on activities that are less affected by lockdowns: for example, in 2020-21 the number of children we trained in schools dropped by 59% - but the number of bike repairs at our workshops increased by 469% year-on-year. This ability to quickly shift resources between a diverse work portfolio helps significantly reduce financial and operational risk.

5

Life Cycle UK

Report of the trustees

For the year ended 31 March 2021

Risk : The charity’s business plan and overall strategy are no longer suited to a COVID and postCOVID world.

Mitigation : Trustees have a new Business Plan Framework from April 2021 that clearly sets our direction of travel and guiding principles – but remains flexible on the exact timing and details of delivery. This will allow the charity to respond in an agile way to the challenges and opportunities of a COVID and post-COVID world, as recommended in the National Council for Voluntary Organisations’ 2021 “ Road Ahead ” report.

Risk : Staff are ineffective due to burnout, low morale and/or disconnect between geographically distant staff – all risks that are exacerbated by COVID restrictions.

Mitigation : The charity is actively monitoring staff wellbeing as a standing item at Senior Management meetings. We have paid the home working allowance since day 1 of lockdown, introduced financial support for staff to improve home workstations, maintained cost-of-living pay increases, embraced flexible working and continue to operate a generous Annual Leave policy. The Professional Development budget has been increased and we expect to run a mixture of in-person and virtual team meetings and socials in the year ahead under a supportive “hybrid working” regime. Trustees are investing in increased staff capacity for 2021-22 to ensure manageable workloads.

Future Plans

Whilst the continuing COVID-19 pandemic still creates risks as a cycling promotion charity it also creates significant opportunities to grow our work. We believe government plans to put active travel at the heart of long-term transport, decarbonisation and health strategies which will create opportunities in the following areas:

Thank you

After an extraordinary year, the trustees wish to thank the volunteers, freelancers and incredibly dedicated staff who have worked so hard to navigate the charity through the challenges of COVID-19. Staff wish to formally note their thanks to trustees for the exceptional levels of support, guidance and good governance they have shown. The charity especially wishes to thank our key partners and funders, whose generous support, pre-payments and flexibility during lockdowns has been invaluable. Thanks to you, Life Cycle UK is in a stable position and looks forward with confidence.

6

Life Cycle UK

Report of the trustees

For the year ended 31 March 2021

Financial review

The expenditure of the charity has grown by 11% (£81k) this year to £800k, (2020: £719k) Unrestricted general reserves, before unrealised investment gains, show a small surplus of £10k. The restricted fund shows an in year surplus of £94k. This is due to £40k of grants specifically for next year being received before year end and COVID delaying some restricted grants expenditure until 2021/22. We were grateful to receive a substantial unexpected legacy of £36k which is included in designated reserves.

The charity accessed government and sector support schemes to mitigate unexpected loss of income due to lockdowns. These grants, received at a time when we forecast a very significant financial loss, were vital in enabling the charity to adapt and re-open its services quickly. The government furlough scheme was particularly valuable in enabling us to retain all our staff during a very uncertain time.

Our restricted reserves are sufficient to keep grant funded projects operating for the agreed period.

Investments

The trustees Investment Policy seeks to improve the return on surplus cash balances to protect the value of reserves against inflation and earn unrestricted income which can help fund our work, whilst allowing quick access to a proportion of reserves to ease any temporary cash flow disruptions. Due to COVID-19 it has been a highly unusual year for the markets. There has been a lot of volatility. At the year end the value of our investments had recovered. Trustees review our investments regularly, which are held for medium to long term and for investment income. Currently trustees have agreed there is no need to sell.

Going Concern

The COVID-19 pandemic continues to have a profound impact on the global economy, and may in turn affect the charity. The trustees have considered the impact of this issue on the charity’s current and future financial position. The charity holds unrestricted general reserves of £249k and in addition designated funds that can be drawn down if necessary of £53k. The trustees consider that the charity has sufficient unrestricted reserves and cash flow to continue as a going concern for a period of at least 12 months from the date on which these financial statements are approved. For this reason, the accounts have been prepared on the going concern basis.

Reserves policy

The trustees have determined that the target level of general unrestricted reserves of the charity should be between 3 and 6 months of current operating costs. In the opinion of the trustees this makes prudent provision of unrestricted funds to cover management, administration, and support costs in the event of an unexpected reduction in funding. The unrestricted reserves need to be in line with growth of the charity's expenditure. We are pleased that we have been able to achieve this level at year end. The general unrestricted reserves are £250k representing approximately 3 months of next year's budgeted expenditure.

Designated Reserves: Any legacies received, because of their unpredictable nature, are recognised as designated income for development opportunities. This year £12k of the designated reserves have been used to develop City & Guilds accredited cycle mechanic courses in Derby, with a further £16k committed to this process in 2021/22 . The designated reserves have increased and will enable the charity to take advantage of new development opportunities.

7

Life Cycle UK

Report of the trustees

For the year ended 31 March 2021

Statement of responsibilities of the trustees

The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing these financial statements the trustees are required to:

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees 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 irregularities.

The trustees confirm that to the best of their knowledge there is no information relevant to the independent examination of which the examiners are unaware. The trustees also confirm that they have taken all necessary steps to ensure that they themselves are aware of all relevant information and that this information has been communicated to the examiners.

Members of the charitable company guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Independent examiner

Alison Godfrey of Godfrey Wilson Limited was re-appointed as independent examiner to the charitable company during the year and has expressed her willingness to continue in that capacity.

Approved by the trustees on 28 July 2021 and signed on their behalf by

Sarah Mowl - Chair

8

Independent examiner's report

To the members of

Life Cycle UK

I report on the accounts of the charitable company for the year ended 31 March 2021, which are set out on pages 10 to 29.

Responsibilities and basis of report

As the trustees of the charitable company (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 charitable company 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 the charitable company'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 charitable company’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 the Institute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.

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

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.

Alison Godfrey

Date: 2 August 2021 Alison Godfrey FCA Member of the ICAEW For and on behalf of: Godfrey Wilson Limited Chartered accountants and statutory auditors 5th Floor, Mariner House 62 Prince Street Bristol BS1 4QD

9

Life Cycle UK

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2021

Restricted
Note
£
Income from:
Donations and legacies
3
59,691
Charitable activities
4
289,932
Other trading activities
6
-
Investments
-
Total income
349,623
Expenditure on:
Raising funds
20,718
Charitable activities
234,811
Total expenditure
7
255,529
94,094
12
-
Net income / (expenditure)
94,094
Transfers between funds
-
Net movement in funds
8
94,094
Reconciliation of funds:
Total funds brought forward
73,920
Total funds carried forward
168,014
Net income / (expenditure)
before gains / (losses)
Net gains / (losses) on
investments		 Designated
£
35,714
-
-
-
35,714
-
12,365
12,365
23,349
-
23,349
-
23,349
30,000
53,349		 General
£
54,691
349,785
127,525
9,682
541,683
9,914
521,753
531,667
10,016
16,618
26,634
-
26,634
222,369
249,003		 2021
Total
£
150,096
639,717
127,525
9,682
927,020
30,632
768,929
799,561
127,459
16,618
144,077
-
144,077
326,289
470,366		 2020
Total
£
15,523
551,744
104,039
11,606
682,912
23,432
696,026
719,458
(36,546)
(24,976)
(61,522)
-
(61,522)
387,811
326,289

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 18 to the accounts.

10

Life Cycle UK

Balance sheet

As at 31 March 2021

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stock
13
Debtors
14
Cash at bank and in hand
Liabilities
Creditors: amounts falling due within 1 year
15
Net current assets
Net assets
17
Funds
18
Restricted income funds
Designated funds
General funds
Total charity funds		 £
20,334
41,879
271,199
333,412
101,149		 2021
£
294
237,809
238,103
232,263
470,366
168,014
53,349
249,003
470,366		 2020
£
5,353
221,191
226,544
15,784
42,439
101,480
159,703
59,958
99,745
326,289
73,920
30,000
222,369
326,289

The directors 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(2), and that no member or members have requested an audit pursuant to section 476 of the Act.

The directors acknowledge their responsibilities for:

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 28 July 2021 and signed on their behalf by

Sarah Mowl - Chair

11

Life Cycle UK

Statement of cash flows

As at 31 March 2021

Cash used in operating activities
Net movement in funds
Adjustments for:
Depreciation charges
(Gains) / losses on investments
Dividends and interest from investments
Decrease / (increase) in stock
Decrease / (increase) in debtors
Increase / (decrease) in creditors
Net cash provided by / (used in) operating activities
Cash flows from investing activities:
Dividends and interest from investments
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 year
Cash and cash equivalents at the end of the year		 2021
£
144,077
5,059
(16,618)
(9,682)
(4,550)
560
41,191
160,037
9,682
9,682
169,719
101,480
271,199		 2020
£
(61,522)
8,260
24,976
(11,606)
(6,784)
20,115
(11,216)
(37,777)
11,606
11,606
(26,171)
127,651
101,480

12

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in 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.

Life Cycle UK meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having regard to the current level of unrestricted reserves. Whilst the COVID-19 pandemic has impacted the delivery of some of the charity's services, the charity has taken to steps to mitigate the risk to the charity, and has identified opportunities to expand some of it's other services, as set out in the trustees' report. For this reason, the accounts have been prepared on the going concern basis.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. Grants are deferred where preconditions exist relating to programmes to be delivered in future accounting periods.

Contract and fee income is recognised when the services are delivered. Income received in advance of provision of service is deferred until criteria for income recognition are met.

d) Volunteers

The charity benefits from the services of volunteers. During the year 59 volunteers gave 989 hours of their time to support the charity. In accordance with the Charities SORP (FRS 102), general volunteer time is not given a value in the accounts.

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

13

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. These costs have been allocated to each of the charity's projects on the basis of staff time spent on those activities. All of the charity's projects are reported as "Charitable activities" in the Statement of Financial Activities. "Raising funds" includes relevant staff costs and direct expenses.

Governance costs are the cost associated with the governance arrangements of the charity, and consist of the independent examination fee and the freelance accountant's costs for preparing management and statutory accounts. Governance costs are apportioned on the following basis:

basis:
2021 2020
Raising funds 25% 25%
Charitable activities 75% 75%

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Plant and equipment 3-5 years straight line

Items of equipment are capitalised where the purchase price exceeds £2,500.

j) Investments

Investments held as fixed assets are carried at their fair value, and are revalued at market value at the balance sheet date. The gain or loss for the period is taken to the statement of financial activities.

14

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

k) Stock

Stock is included at the lower of cost or net realisable value.

Donated items of stock are recognised at fair value, which is deemed to be the average expected sale proceeds less the expected costs of sale. Donated stock represents second hand bicycles which are refurbished by the charity and then put up for sales. Donated stock is only recognised once the bicycle has been fully refurbished and is fit for sale.

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

m) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

n) Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

p) Pension costs

The charitable company pays into various defined contribution pension schemes on behalf of staff. The cost of providing pension and related benefits is charged to staff costs within the statement of financial activities.

q) Accounting estimates and key judgements

In the application of the charity's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only the period, or in the period of the revision and future periods if the revision affects both current and future periods.

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

15

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

1. Accounting policies (continued)

q) Accounting estimates and key judgements

Depreciation

As described in note 1(i) to the financial statements, depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. Depreciation rates in operation during the current and prior period were as follows:

Plant and equipment 3-5 years straight line

2. Prior period comparatives

The following note is required under the SORP FRS 102 to explain the breakdown of income and expenditure between restricted and unrestricted funds in the prior period.

Income from:
Donations
Charitable activities
Other trading activities
Investments
Total income
Expenditure on:
Raising funds
Charitable activities
Total expenditure
Net gains / (losses) on investments
Net income / expenditure
Transfers between funds
Net movement in funds
Net income / (expenditure) before
gains / (losses)		 Restricted
£
-
191,135
-
-
191,135
18,343
219,931
238,274
(47,139)
-
(47,139)
-
(47,139)		 Designated
£
-
-
-
-
-
2,166
2,166
(2,166)
-
(2,166)
850
(1,316)		 General
£
15,523
360,609
104,039
11,606
491,777
5,089
473,929
479,018
12,759
(24,976)
(12,217)
(850)
(13,067)		 2020
Total
£
15,523
551,744
104,039
11,606
682,912
23,432
696,026
719,458
(36,546)
(24,976)
(61,522)
-
(61,522)

16

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

3. Donations

Donations
Furlough scheme
Legacies
General donations
Donald Forrester Trust
Grants of less than £5,000
Total donations
Prior period comparatives
Grants of less than £5,000
General donations
Total donations
Bristol City Council Additional
Restrictions Grant
Bristol City Council Small Business
Discretionary Grant
Derby City Council Business Support
Grant
Quartet Community Foundation -
Coronavirus Recovery & Stabilisation
Fund
Sport England Grant - Community
Emergency Fund		 Restricted
£
-
-
-
5,900
5,000
10,000
5,000
10,000
9,896
13,895
59,691
Restricted
£
-
-
-		 Designated
£
-
35,714
-
-
-
-
-
-
-
-
35,714
Designated
£
-
-
-		 General
£
43,430
-
9,761
-
-
-
-
-
-
1,500
54,691
General
£
5,250
10,273
15,523		 2021
Total
£
43,430
35,714
9,761
5,900
5,000
10,000
5,000
10,000
9,896
15,395
150,096
2020
Total
£
5,250
10,273
15,523

17

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

4. Income from charitable activities

Income from charitable activities
Grants of £5,000 or more:
AB Charitable Trust
BUPA Foundation
Derby City Council Connected Grant
Foundation Derbyshire
Great Western Railway
John James Bristol Foundation
Newby Trust
The Singer Foundation
Working Young
Grants of less than £5,000
Restricted donations
Fees for services
Total charitable activities
The National Lottery Community Fund
BBC Children in Need
Bristol City Council Travelwest
Community Grant
James Tudor Foundation
The Ratcliff Foundation
Sport England Grant - Return to Play
National Grid Community Grant
Programme
The Chartered Accountants' Livery
Charity
HPC Community Fund / Somerset
Community Foundation		 Restricted
£
10,000
19,331
5,000
46,872
20,000
5,000
13,500
15,000
10,000
19,535
12,000
5,000
20,000
5,000
5,000
10,000
5,400
5,090
56,739
1,465
-
289,932		 Designated
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 General
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
349,785
349,785		 2021
Total
£
10,000
19,331
5,000
46,872
20,000
5,000
13,500
15,000
10,000
19,535
12,000
5,000
20,000
5,000
5,000
10,000
5,400
5,090
56,739
1,465
349,785
639,717

In addition to the funders listed, Life Cycle UK would like to thank the following funders for their support: Wesport, Quartet Community Foundation - MegaWatt Fund, Clothworkers Foundation.

18

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

4.
Income from charitable activities
Prior period comparatives
Grants of £5,000 or more:
Alec Van Berchem Charitable Trust
The Burden Trust
The Clare Milne Trust
Medlock Charitable Trust
The Singer Foundation
Anonymous
Working Young
Grants of less than £5,000
Restricted donations
Fees for services
Total charitable activities
Quartet Community Foundation -
James Tudor Foundation
National Grid Community Grants
Programme
The Sobell Foundation
St Monica Trust Community Impact
BBC Children in Need
Derby City Council
Aubrey Orchard-Lisle Charitable Trust		 Restricted
£
6,500
5,000
18,996
7,500
5,000
31,481
5,000
5,000
10,000
5,000
12,658
5,000
8,719
5,000
10,024
29,967
20,290
-
191,135		 Designated
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 General
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
360,609
360,609		 2020
Total
£
6,500
5,000
18,996
7,500
5,000
31,481
5,000
5,000
10,000
5,000
12,658
5,000
8,719
5,000
10,024
29,967
20,290
360,609
551,744

5. Government grants

The charity receives government assistance, in the form of grants from Bristol City Council and Derby City Council to fund a variety of the charity's projects and COVID business support. In addition, they have received government support via the Coronavirus Job Retention Scheme during the year. The total amount of such grants in the year ended 31 March 2021 was £82,830 (2020: £31,481). There are no unfulfilled conditions or contingencies attaching to these grants. In addition the charity receives fees for services from various different local authorities.

19

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

6. Other trading activities

Restricted
£
Sale of goods and services:
-
Bike sales and servicing -
Bristol		 Designated
£
-		 General
£
127,525		 2021
Total
£
127,525		 2020
Total
£
104,039

All income from other trading activities in the prior year related to unrestricted general funds.

7. Total expenditure

Total expenditure
Projects and services
Publicity and marketing
IT costs
Staff costs (note 9)
Depreciation
Insurances
Professional fees
Support costs
Total expenditure
Support costs detail
Governance
Office rent
Accountancy services
Home working allowance and equipment
Computers
General office
Total support costs		 £
-
-
402
26,858
-
-
50
3,322
30,632
2,926
-
-
-
-
396
3,322
Raising
funds		 £
210,986
7,113
9,228
474,485
5,059
8,456
1,082
52,520
768,929
8,809
6,808
20,111
2,886
5,916
7,990
52,520
Charitable
activities		 2021
Total
£
210,986
7,113
9,630
501,343
5,059
8,456
1,132
55,842
799,561
11,735
6,808
20,111
2,886
5,916
8,386
55,842

20

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

7. Total expenditure (continued) Prior period comparatives

Projects and services
Publicity and marketing
IT costs
Staff costs (note 9)
Depreciation
Insurances
Professional fees
Support costs
Total expenditure
Support costs detail
Governance
Office rent
Accountancy services
Computers
General office
Total support costs		 £
-
-
-
20,538
-
-
250
2,644
23,432
1,899
-
-
-
745
2,644
Raising
funds		 £
222,816
7,475
4,241
402,553
8,260
7,014
2,096
41,571
696,026
5,728
6,744
17,142
1,638
10,319
41,571
Charitable
activities		 2020
Total
£
222,816
7,475
4,241
423,091
8,260
7,014
2,346
44,215
719,458
7,627
6,744
17,142
1,638
11,064
44,215

21

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

8. Net movement in funds

This is stated after charging:

Depreciation
Independent examiners' remuneration (including VAT)
Trustees' remuneration
Trustees' reimbursed expenses		 2021
£
5,059
Nil
Nil
1,350		 2020
£
8,260
Nil
150
1,320

No trustee received reimbursed expenses for travel to trustee meetings/business (2020: three).

9. Staff costs and numbers

Staff costs were as follows:

Salaries and wages
Social security costs
Pension costs
Average staff head count
Full time equivalent staff		 2021
£
454,951
27,240
19,152
501,343
2021
No.
28
19		 2020
£
384,897
21,678
16,516
423,091
2020
No.
26
16

No employee earned more than £60,000 during the year (2020: none).

The key management personnel of the charitable company comprise the Chief Executive, Training Manager and Bike Back Manager. Total employee benefits paid to key management personnel were £89,244 (2020: £83,753).

10. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

22

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

11. Tangible fixed assets

**11. ** Tangible fixed assets
Plant and
equipment
£
Cost
At 1 April 2020 26,446
Additions in year -
At 31 March 2021 26,446
Depreciation
At 1 April 2020 21,093
Charge for the year 5,059
At 31 March 2021 26,152
Net book value
At 31 March 2021 294
At 31 March 2020 5,353
**12. ** Investments
2021 2020
£ £
Market value at 1 April 2020 221,191 246,167
Unrealised gains / (losses) 16,618 (24,976)
Market value at 31 March 2021 237,809 221,191
Historical cost:
At 31 March 241,000 241,000
Investments comprising more than 5% of the total investment valuation are as follows:
COIF Fixed Interest Fund 32% 34%
COIF Property Fund 30% 32%
M&G Charifund 39% 34%

23

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

13. Stock

Refurbished bicycles
New bikes
Parts and accessories		 2021
£
6,170
4,415
9,749
20,334		 2020
£
10,470
-
5,314
15,784

The charity received donated stock in the form of second hand bicycles which are refurbished by the charity and subsequently sold. Bicycles are included as stock at the point when they have passed a final safe for sale check.

14. Debtors

Trade debtors
Prepayments
Other debtors		 2021
£
31,505
4,733
5,641
41,879		 2020
£
35,208
4,276
2,955
42,439

15. Creditors : amounts due within 1 year

Trade creditors
Other taxation and social security
VAT
Other creditors and accruals
Deferred income (note 16)		 2021
£
21,505
12,178
3,927
7,527
56,012
101,149		 2020
£
12,286
14,405
4,814
7,259
21,194
59,958

24

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

16. Deferred income

Deferred income
Balance brought forward
Amount released to income
Amount deferred in year
Balance carried forward		 2021
£
21,194
(20,362)
55,180
56,012		 2020
£
40,178
(32,931)
13,947
21,194

Deferred income comprises grants and fees received which are for specific future work. This is comprised of the following:

Take a Stand
1st 4 Sport
Maintenance Courses
Bike Back Bristol
Bike Hanger
Pedal2 Project
Aylesbury Prison
Cycle Lessons
City of Bristol College
Other
Total		 2021
£
3,199
7,370
10,500
-
-
-
18,154
1,954
14,304
531
56,012		 2020
£
3,894
-
6,380
8,000
1,000
1,920
-
-
-
-
21,194

25

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

17. Analysis of net assets between funds
Restricted
funds
£
Tangible fixed assets
294
Investments
-
Current assets
168,311
Current liabilities
(591)
Net assets at 31 March 2021
168,014
Restricted
funds
£
Tangible fixed assets
4,350
Investments
-
Current assets
81,425
Current liabilities
(11,855)
Net assets at 31 March 2020
73,920
Prior period comparatives		 Designated
funds
£
-
-
53,349
-
53,349
Designated
funds
£
1,003
-
28,997
-
30,000		 General
funds
£
-
237,809
111,752
(100,558)
249,003
General
funds
£
-
221,191
49,281
(48,103)
222,369		 Total
funds
£
294
237,809
333,412
(101,149)
470,366
Total
funds
£
5,353
221,191
159,703
(59,958)
326,289

26

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

18. Movements in funds

Restricted funds
Two's Company
Bike Back Bristol
Bike Back Derby
Youth Project
Youth Project BBC CiN
Bike Minded
Over 55s
Electric Bikes
Core Funding
Health
Fixx
Somerset Cycling
Other
Total restricted funds
Designated funds:
Development
Total designated funds
General funds
Total funds		 At 1 April
2020
£
19,964
34,157
2,460
-
-
3,948
9,386
791
-
2,380
834
-
-
73,920
30,000
30,000
222,369
326,289		 Income
£
£
£
5,000
(15,507)
-
46,992
(55,149)
-
99,297
(68,469)
-
6,162
(6,162)
-
19,331
(12,887)
-
9,313
(13,261)
-
32,911
(18,718)
-
-
(791)
-
59,692
(49,274)
-
-
(2,380)
-
5,090
(5,924)
-
39,535
-
-
26,300
(7,007)
-
349,623
(255,529)
-
35,714
(12,365)
-
35,714
(12,365)
-
541,683
(531,667)
16,618
927,020
(799,561)
16,618
Gains /
(losses) on
investment
Expenditure		 Transfer
between
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 £
9,457
26,000
33,288
-
6,444
-
23,579
-
10,418
-
-
39,535
19,293
At 31
March
2021
168,014
53,349
53,349
249,003
470,366

27

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

18. Movements in funds (continued)

Purposes of restricted funds

Two's Company – tandem rides for people who are blind, sight-impaired or have other disabilities. Bike Back Bristol – bike recycling project in Bristol.

Bike Back Derby - bike recycling and maintenance training projects in Derby.

Youth Project – after school and holiday activities for young people.

Youth Project BBC CIN – the part of the youth project funded by BBC Children in Need.

Bike Minded - cycle project for people with mental health problems.

Over 55s - cycle project for older riders.

Electric Bikes - funds for provision of electric bikes.

Core – restricted funding specifically for core costs to support projects.

Health – targeted support for those with specific health issues.

Fixx - supporting young people to refurbish bikes in Hartcliffe.

Somerset Cycling - for cycling initiatives in Somerset.

Other - Restricted funds to support Cycle Training, cycle stands and maintenance.

Purpose of designated funds

Development - funds earmarked for the development of projects and services.

28

Life Cycle UK

Notes to the financial statements

For the year ended 31 March 2021

18. Movements in funds (continued)

Prior period comparatives

Restricted funds
Two's Company
Bike Back Bristol
Bike Back Derby
Youth Project
Youth Project BBC CiN
Bike Minded
Silver Cyclists
Electric Bikes
Core Funding
Health
Fixx
Intern
Total restricted funds
Designated funds:
Development
Bike Back Derby
Bike Back Bristol
Total designated funds
General funds
Total funds
Social Investment
Business Grant		 At 1 April
2019
£
9,195
20,999
12,998
17,305
1,580
25,257
7,358
2,690
16,667
5,236
240
-
1,534
121,059
3,171
10,494
17,651
31,316
235,436
387,811		 Income
£
£
£
33,544
(22,775)
-
40,273
(27,115)
-
45,481
(56,019)
-
1,500
(18,805)
-
18,996
(20,576)
-
16,510
(37,819)
-
23,907
(21,879)
-
-
(1,899)
-
-
(16,667)
-
-
(2,856)
-
10,024
(9,430)
-
900
(900)
-
-
(1,534)
-
191,135
(238,274)
-
-
(2,166)
-
-
-
-
-
-
(2,166)
-
491,777
(479,018)
(24,976)
682,912
(719,458)
(24,976)
Gains /
(losses) on
investment
Expenditure		 Transfer
between
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
28,995
(10,494)
(17,651)
850
(850)
-		 £
19,964
34,157
2,460
-
-
3,948
9,386
791
-
2,380
834
-
-
At 31
March
2020
73,920
30,000
-
-
30,000
222,369
326,289

19. Related party transactions

There were no related party transactions during the year (2020: none).

29