FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED (A company limited by guarantee)
ANNUAL REPORT AND FINANCIAL STATEMENTS
YEAR ENDED 31[st] MARCH 2021
Company number : 03731516 Charity Number : 1090034
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED (A company limited by guarantee)
Contents
| Page | |
|---|---|
| Report of the trustees | 1 - 5 |
| Report of the independent examiner | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Statement of Cash Flows | 9 |
| Notes to the financial statements | 10 - 14 |
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
1
Report of the trustees for the year ended 31 March 2021
The trustees are pleased to present their report together with the financial statements of the charity for the year ended 31 March 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.
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 2015). The organisation is a Public Benefit Entity within the definitions of s34 FRS 102.
Our purposes and activities
The objects are to provide furniture to new tenants and families on low income.
Achievements and performance
Our charity closed all face-to-face support from 23rd March 2020 to keep local residents, staff and volunteers safe during the coronavirus outbreak.
In preparation for non-essential retail to reopen in Summer 2020, we put our safety measures in place, and were relieved to open our doors to our community. In November, non-essential retail was part of local restrictions due to the number of cases in the North East rising significantly. We opened in December to support our community, but in January, a further national lockdown was put in place, and we were closed for the remainder of the financial year. Although the charity was closed to the public in the last month of the financial year, the team returned to provide crisis support to vulnerable households so that they could access the essential items they needed.
During the months the five months of the financial year that we were open, the charity helped more households in crisis who needed support to rebuild a safe, stable home life (after experiencing homeless or fleeing from domestic violence for example) compared to the previous year. Households referred for crisis support can access essential household items free of charge when funds allow.
“I was homeless and rehoused by Gateshead Council. They referred me to Foundations because I had no money to furnish my new home. The first thing I found was that the staff were so friendly and understanding at Foundations. The van crew were brilliant. They managed to get the furniture in, even though access was very awkward for them. They are great at helping people like me to get back on their feet. Foundations saved me and gave me hope! I have an ongoing mental health condition but I’m applying to be a volunteer, have had my friends visit me in my new home. I’m much more confident now that I have gained some independence.” (Crisis support beneficiary)
With a planned reopening date of 12th April 2021, we have been ensuring that our existing safety measures remain in place and meet the current requirements of the covid-safety guidance from public health so that people visiting our charity can feel safe and reassured.
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
2
Report of the trustees for the year ended 31 March 2021
Achievements and performance - continued
The year has been one of the most challenging we have faced in our 25 years of helping people affected by furniture poverty. There have been many funders and organisations who have given us their time, assistance, reassurance and understanding. We would like to say a heartfelt thank you to:-
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Gateshead Council
-
The Gateshead Housing Company
-
Nationwide Community Fund
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Community Foundation Tyne and Wear and Northumberland
-
Tracey Tait
Beneficiaries
By 31st March 2021 Foundations supported 688 Gateshead residents, from 312 households in hardship, of which 59 received furniture free of charge due to extreme disadvantage and/or crisis.
Environmental Impact
To ensure that the supply of furniture meets the needs of the people accessing our services we made 459 visits to our donors, an increase from 995 the previous year. Over 47 tonnes of furniture was collected and reused which has diverted thousands of items away from landfill that may have otherwise been sent there unnecessarily. This reduces CO2 emissions and eases pressure on our local authority waste removal services. Thanks to the kindness of local residents who have donated furniture to us, we have been able to maintain a good level of quality items for beneficiaries to choose from in times of hardship.
Fundraising
We continue to gain a steady growth in social media interest which has improved sales overall. When our charity was able to open in 2020/21 we achieved steady income generation for new beds, electrical items and pre-owned items on Facebook Marketplace which has supported the charity’s financial sustainability.
Foundations was awarded a combined total of £62,809 of generous funding support from Gateshead Council, The Gateshead Housing Company and other grant making organisations. Funding received in 2019/20 from the Nationwide Building Society continued to support the charity in 2020/21. We are carrying forward £16,382 into the current financial year.
Social Value
Foundations has a social return on investment of £3.22 for every £1 we receive, therefore we have been able to have a social, environmental and economic impact of £202,245 in 2020/21 thanks to the funding support we have received. When added to the income generated through our day to day activities, this impact increases to £540,825.
Working in Partnership
The Gateshead Housing Company and Gateshead Council continue to be strong supporters of the charity. We have featured in the Gateshead Housing Company News on several occasions to share our work with local tenants and this has helped to reach more people in financial hardship and our information has been shared frequently within the Anti-Poverty Network led by Gateshead Council. Foundations works closely with many third sector organisations in and around Gateshead so that an effective referral process is in place so that vulnerable residents can get access to a range of support quickly and easily.
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
3
Report of the trustees for the year ended 31 March 2021
The Team
We continue to have a strong, dedicated team who receive regular praise from local people about their approach and compassion, and the welcoming atmosphere they create for beneficiaries and volunteers. Our valued volunteers dedicated hundreds of hours per week to our charity to help deliver our activities.
Financial Review
The financial statements show a surplus of £15,544. The charity retains a cash balance of £120,510 which will assist running costs in these difficult financial times.
Reserves policy and going concern
The trustees consider that the ideal level of reserves as at 31 March 2021 would be £100,000. At this level of unrestricted reserves the charity could maintain operation for six months.
Current unrestricted reserves after adjusting for fixed assets amount to £103,580. The charity enjoys good liquidity and has no issue on meeting it’s liabilities when they are due. The trustees are confident for the next twelve months. Grant applications are being submitted and everyone is optimistic for their success in gaining funding.
Legal and administrative information
Constitution
Foundations Furniture and Gardening Project Limited is a company limited by guarantee and a registered charity governed by its memorandum and articles of association.
| Charity number : | 1090034 | |
|---|---|---|
| Company number : | 03731516 | |
| Directors and trustees | ||
| B Howell | E McMaster | |
| J Bush | L J O’Halleron | |
| H Hall | ||
| Registered office | Units 1 & 2 | |
| Teams Craft Workshops | ||
| Askew | ||
| Gateshead | ||
| Tyne & Wear | ||
| NE8 2PB | ||
| Independent | R A Page FCCA | |
| Examiner | 511 Durham Road | |
| Low Fell | ||
| Tyne & Wear | ||
| NE9 5EY |
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
4
Report of the trustees for the year ended 31 March 2021
Legal and administrative information - continued
Bankers NatWest Bank Metrocentre 103 Cameron Walk Metrocentre Gateshead Tyne & Wear NE11 9GA
Governing Document
The organisation is a charitable company limited by guarantee, incorporated on 11 March 1999 and registered as a charity on 10 January 2002. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
Recruitment and Appointment of Trustees
The directors of the company are also charity trustees for the purpose of charity law. The trustees continually audit the available skills of the board and look to acquire new trustees with different skills and experiences which can assist in the growth of the organisation. Recruitment is by approach and word of mouth.
Risk Management
The trustees and management have carried out an assessment of the major risks facing the charity.
Organisational Structure
The charity has a management committee of up to 6 members who meet monthly. Face to face meetings were not possible during 2020/21 however regular trustee and management updates were delivered by telephone and virtually. A scheme of delegation is in place and day to day responsibility for the provision of services rests with Linda Wild and Eric Hall who are managers.
Trustees’ responsibilities in relation to the financial statements
The charity trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing a trustees’ annual report and 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 that give a true and fair view of the state of affairs of the charity at the end of the financial year and of the incoming resources and application of resources.
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
5
Report of the trustees for the year ended 31 March 2021
Trustees’ responsibilities in relation to the financial statements - continued
In doing so the trustees are required to:
Select suitable accounting policies and then apply them consistently
Observe the methods and principles in the Charities SORP
Make judgements and estimates that are reasonable and prudent
State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
Prepare the financial statements on a going concern basis unless it is inappropriate to assume that the charity will continue in business.
The trustees are responsible for maintaining proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and enables 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 are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Signed on behalf of the trustees
B Howell - Chair
30 November 2021
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
6
Report of the Independent Examiner to the trustees of Foundations Furniture And Gardening Project Limited
I report on the financial statements of Foundations Furniture and Gardening Project Limited for the year ended 31 March 2021 which are set out on pages 6 to 14.
Respective responsibility of trustees and examiner
The charity’s trustees are responsible for the preparation of the financial statements. The charity’s trustees consider that an audit is not required for this year under section 144 of the Charities Act 2011(the 2011 Act) and that an independent examination is needed. Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, it is my responsibility to
Examine the accounts under section 145 of the 2011 Act
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 independent examiner’s report
My examination was carried out in accordance with the General Directions given by the Charity Commissioners. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from the 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 statement below.
Independent examiner’s statement
In connection with my examination, no matter has come to my attention :
-
(1) which gives me reasonable cause to believe that in any material respect the requirements
-
. to keep accounting records in accordance with section 386 of the Companies Act 2006; and
-
. to prepare financial statements which accord with the accounting records and to comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities,
have not been met ;or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
R A Page FCCA 511 Durham Road Low Fell Gateshead Tyne & Wear NE9 5EY
30 November 2021
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
7
Statement of financial activities (including Income and Expenditure Account) Year ended 31 March 2021
| Notes Income Income from charitable activities Grants 2 Furniture sales Electrical and white goods Income from other trading activities Delivery charges Employment allowance Ebay & Market Place Sales Other income 3 Total income Expenditure Charitable activities Support costs Total expenditure 4 Net income and net movement in funds Funds brought forward Funds carried forward |
Unrestricted Restricted 2021 2020 £ £ - 62,809 62,809 112,161 21,946 - 21,946 56,939 6,871 - 6,871 10,982 3,451 - 3,451 6,935 4,000 - 4,000 3,000 7,574 - 7,574 11,730 61,307 - 61,307 9,534 |
|---|---|
| 105,149 62,809 167,958 211,281 |
|
| 54,975 76,013 130,988 164,330 19,169 2,257 21,426 24,104 |
|
| 74,144 78,270 152,414 188,434 |
|
| 31,005 (15,461) 15,544 22,847 72,673 31,843 104,516 81,669 |
|
| 103,678 16,382 120,060 104,516 |
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
8
Balance sheet as at 31 March 2021
| Note Fixed assets Tangible fixed assets 6 Current assets Debtors 7 Cash at bank Creditors: amounts falling due within one year 8 Net current assets Total assets less current liabilities Funds 9 |
£ 575 120,510 |
2021 £ 98 119,962 |
£ 3,425 106,835 |
2020 £ 444 104,072 |
|---|---|---|---|---|
| 121,085 1,123 |
110,260 6,188 |
|||
| 120,060 | 104,516 | |||
| 120,060 | 104,516 |
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2021.
The trustees have not required the charitable company to obtain an audit of its financial statements for the year ended 31 March 2021 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Section 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
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 2015) – (Charities SORP (FRS 1023), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The financial statements were approved by the Board of Trustees on 30 November 2021 and were signed on its behalf by
B Howell - Chair
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
9
Statement of Cash Flows Year ended 31 March 2021
| Cash used in operations Net movement in funds Decrease (Increase) in debtors (Decrease)Increase in creditors Depreciation Net cash generated from operations Cash flows from investing activities Purchase of fixed assets Net cash provided Change in cash in the year Cash brought forward Cash carried forward |
2021 2020 £ £ 15,544 22,847 2,850 (2,695) (5,065) (47) 346 148 |
|---|---|
| 13,675 20,253 - - |
|
| 13,675 20,253 |
|
| 13,675 20,253 106,835 86,582 |
|
| 120,510 106,835 |
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED Notes to the financial statements Year ended 31 March 2021
10
1 Accounting policies
The principal accounting policies are summarised below. The accounting policies have been applied consistently throughout the year and the preceding year.
Basis of preparation
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 2015) – (Charities SORP (FRS 1023), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Grants
Grants for immediate expenditure are accounted on a receivable basis. Grants where related to performance and specific deliverables, are accounted for as the charity earns the right to consideration by its performance.
Expenditure
Resources expended are included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered.
Costs
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
All costs are allocated between the expenditure categories of the SoFA on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly and other are apportioned on an appropriate basis such as staff time.
Tangible fixed assets and depreciation
Fixed assets for charitable use are capitalised at cost where acquired or market value as determined by the trustees when donated. The assets are stated at cost or value less depreciation.
Depreciation is calculated to write off the cost or valuation of the fixed assets less their estimated residual value over their expected useful lives on the following bases:
Equipment 25% reducing balance
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED Notes to the financial statements Year ended 31 March 2021
11
2 Grants
| The National Lottery Community Fund Community Foundation Gateshead Housing Company Gateshead MBC Hadrian Trust Nationwide Building Society The P&G Fund Parochial Charity Pattinson Estate Agent Screwfix Fund Other income Donations Gateshead Housing Company Gateshead MBC COVID19 rates grant Job Retention Scheme Grants Expenditure Charitable activities Wages Travelling Telephone Postage and stationery Advertising Rent Rates and water Insurance Light and heat Repairs CLLD expenditure Flat pack furniture Local Sustainability Depreciation |
Unrestricted Restricted 2021 2020 £ £ £ £ - - - 10,000 - 4,000 4,000 - - 5,000 5,000 5,000 - 48,277 48,277 57,843 - 2,000 2,000 - - - - 35,068 - - - 3,500 - 250 250 250 - 500 500 500 - 2,782 2,782 - - 62,089 62,089 112,161 Unrestricted Restricted 2021 2020 £ £ £ £ 63 - 63 174 - - - 9,360 20,000 - 20,000 - 41,244 - 41,244 - 61,307 - 61,307 9,534 Un- restricted Restricted 2021 2020 £ £ £ £ 35,350 76,013 111,363 125,057 1,060 - 1,060 173 1,175 - 1,175 1,153 312 - 312 652 - - - 1,154 4,668 - 4,668 9,149 3,180 - 3,180 1,699 1,826 - 1,826 1,998 592 - 592 1,193 2,423 - 2,423 1,397 - 1,735 1,735 11,741 2,308 - 2,308 7,496 - - - 1,320 346 - 346 148 |
|
|---|---|---|
| 53,230 77,748 130,988 164,330 |
- 3 Other income
4 Expenditure
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
12
Notes to the financial statements Year ended 31 March 2021
4 Resources expended – continued
| Support costs Sundries Cleaning and refreshments Management fee Staff uniforms Sage costs IT Support Accountancy Bank charges Companies House fees IT Sapere System |
Unrestricted Restricted 2021 2020 £ £ £ £ 265 - 265 196 117 - 117 341 13,608 - 13,608 13,404 72 - 72 191 1,560 - 1,560 1,380 1,036 - 1,036 1,037 900 - 900 900 1,611 - 1,611 2,043 - - - 13 - 2,257 2,257 4,599 |
|---|---|
| 19,169 2,257 21,426 24,104 |
5 Trustees remuneration
No trustee received any remuneration during the year.
6 Fixed assets
| Cost As at 1 April 2020 and at 31 March 2021 Depreciation As at 1 April 2020 Charge for year As at 31 March 2021 Net book value As at 31 March 2021 As at 31 March 2020 |
Office equipment Total £ £ 2,014 2,014 |
|---|---|
| 1,570 1,570 346 346 |
|
| 1,916 1,916 |
|
| 98 98 |
|
| 444 444 |
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
13
Notes to the financial statements Year ended 31 March 2021
7 Debtors
| Amount due from associate Trade debtors Prepayments |
Unrestricted Restricted 2021 2020 £ £ £ £ 105 - 105 2,991 470 - 470 434 |
|---|---|
| 575 - 575 3,425 |
8 Creditors – amounts falling due within one year
| Grants in advance Other creditors Accrued expenses |
Unrestricted Restricted 2021 2020 £ £ £ £ - - - 5,000 223 - 223 288 900 - 900 900 |
|---|---|
| 1,123 - 1,123 6,188 |
9 Reserves
| Unrestricted General reserve Restricted Community Foundation Gateshead Housing Company Gateshead MBC Hadrian Trust Nationwide Building Society Parochial Charity Pattinson Estate Agent Screwfix Fund |
As at 1 April Income Expenditure As at 31 March £ £ £ £ 72,673 105,149 (74,144) 103,678 |
|---|---|
| - 4,000 (4,000) - - 5,000 (5,000) - - 48,277 (48,277) - - 2,000 (2,000) - 31,843 - (15,461) 16,382 - 250 250 - - 500 500 - - 2,782 2,782 - |
|
| 31,843 62,809 (78,270) 16,382 |
|
| 104,516 167,958 152,414 120,060 |
FOUNDATIONS FURNITURE AND GARDENING PROJECT LIMITED
14
Notes to the financial statements
Year ended 31 March 2021
10 Analysis of net assets by fund
| Fixed assets Debtors Cash at bank Creditors |
Unrestricted Restricted 2021 £ £ £ 98 - 98 575 - 575 104,128 16,382 120,510 (1,123) - (1,123) |
|---|---|
| 103,678 16,382 120,060 |
11 Related parties
Name of related party
Teamwork Development Trust CIC
Nature of relationship
B Howell and E McMaster are directors of both organisations
The charity paid £13,608 (2020 - £13,404) in management services to Teamwork Development Trust CIC.