**Charity Registration No. 1090090**
**Company Registration No. 4178817 (England and Wales)**
## **KEIGHLEY FURNITURE PROJECT**
## **TRUSTEES’ REPORT AND UNAUDITED ACCOUNTS**
# **FOR THE YEAR ENDED 31 MARCH 2021**
**KEIGHLEY FURNITURE PROJECT**
**LEGAL AND ADMINISTRATIVE INFORMATION**
## **Trustees**
Philip Hatton Carol Wood – Treasurer John Edward Barfoot Clive Sherratt Norman Ellis Carol Greenwood – Chair (appointed 29 April 2021)
## **Company Secretary**
Carol Greenwood
**Finance Officer**
Carol Greenwood
**Staff: Project Manager** Gary O’Hara **Driver/Warehouse Persons** Angela Towell Chris Dudman Matthew Preston Andrew Lugg (left 16 November 2020) **Office Administrator/Cleaner** Michelle O’Hara **Electrician/Technician** Anthony Emmott (left 30 April 2020) **Charity number** 1090090 **Company number** 4178817 **Registered office** Unit 1 Springfield Mills Oakworth Road Keighley West Yorkshire BD21 1SL
**Independent examiner**
Kevin J Meddings MAAT Stuart B Lodge & Co Chartered Accountants 44 Bradford Road Idle Bradford West Yorkshire BD10 9PE
**KEIGHLEY FURNITURE PROJECT**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
## **Bankers**
Lloyds Bank plc 45 Hustlergate Bradford West Yorkshire BD1 1NT
## **Solicitors**
CCLA Investment Management Ltd 80 Cheapside London EC2V 6DZ Martin Wood AWB Charlesworth Solicitors 12/16 North Street Keighley West Yorkshire
**KEIGHLEY FURNITURE PROJECT**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees’ report|1 – 4|
|Independent accountants’ report|5|
|Statement of financial activities|6|
|Balance sheet|7|
|Statement of cashflows|8|
|Notes to the accounts|9 - 13|
1.
## **KEIGHLEY FURNITURE PROJECT**
## **TRUSTEES’ REPORT** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The Trustees present their report and accounts for the year ended 31 March 2021.
The accounts have been prepared in accordance with accounting policies set out in note 1 to the accounts and comply with the charity’s Memorandum and Articles of Association dated 13 March 2001, the Companies Act 2006 and the Charities Act.
## **Structure, Governance and Management**
The charity is a company limited by guarantee. The trustees are directors of the company for the purposes of the Companies Act. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per trustee of the charity.
The trustees, who are also directors for the purposes of company law and who served during the year, were:
Philip Hatton Carol Wood – Treasurer John Edward Barfoot Clive Sherratt Norman Ellis
## **Trustees Induction and Training**
New trustees are given advice leaflets provided by the Charity Commission and Companies House about their roles and responsibilities. Keighley Furniture Project’s policies and procedures can be accessed. Trustees are introduced to the project’s staff and learn about their individual work. The Company Secretary is available to discuss things in more detail. Trustees are made aware of any training opportunities that are relevant.
## **Recruitment of Trustees**
The Articles of Association states that trustees shall be no fewer than three, no more than twelve.
Trustees can be elected at the Annual General Meeting or at any time during the year on application to the board, giving details of relevant skills and experience.
One third of trustees shall retire annually by rotation. If no other trustee is elected to the vacancy the retiring trustee(s) shall be deemed to have been reappointed unless the meeting resolves not to fill the vacancy or the retiring trustee loses the vote to be re-elected.
Additional committee members with suitable knowledge or expertise may be co-opted by the trustees.
## **Structure, Governance and Management**
The requirements, duties and responsibilities are listed in the Articles of Association.
## **Constitution and Objects**
The charity is a charitable company limited by guarantee on 13 March 2001 and registered with the Charity Commission on 15 January 2002.
2.
## **KEIGHLEY FURNITURE PROJECT**
## **TRUSTEES’ REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
The objects of the charity are:
To relieve; either generally or individually, persons resident in the area of benefit who are in condition of need, hardship and distress arising there from by:
- The provision of furniture and other household accessories calculated to reduce the need, hardship or distress of such persons; and
- The provision of training, advice, and support in order to provide them with the skills to improve their employment opportunities.
Our charitable activities for the year are in accordance with the Charity Commission’s guidance on public benefit. These are outlined further in this report. Our services are available to any member of the public who needs information or support with a Keighley Furniture Project issue. We have an equal opportunities policy for users, staff and volunteers.
## **Achieving our Objects**
Through the year over 247 items have been sold, ensuring local people benefit from low cost furniture and white goods which have been re-used and diverted from Landfill. A significant reduction however, due to the Covid 19 pandemic (5,799 items to March 2020)
There has been a slight decrease in overall income this year, due to the negative impact of Covid 19. Income was boosted however, thanks to local authority grants and the governments Job retention Scheme. Mill closure spanned March 2020 to September 2021.
Popularity of the project remains high with donations of a high quality continuing to be received, despite the increase of other local charitable outlets.
## **Organisational Decision Making**
The Project Manager reports on the work of the project to the Board of Trustees at regular meetings, usually every six weeks. The Finance Officer/Company Secretary and Treasurer regularly report on the financial position of the project. Any trustees may ask for further information on any matter.
Key legal and financial documents are signed by two officers/trustees.
All new staff are interviewed by the Chair of the Board (or another board member) and the Project Manager. Any staffing problems will be discussed by the Project Manager with the officers of the board. Written discipline and grievance procedures are in place. Pay and increments are agreed by the board. All policies and procedures are regularly reviewed as part of the new employees’ handbook.
## **Membership of Wider Networks**
Keighley Furniture Project continues to liaise with other networks as appropriate. These networks have no impact on the day to day running of Keighley Furniture Project.
## **Relationship with other Organisations**
Keighley Furniture Project has no subsidiaries and is not currently a member organisation. It does network with other agencies and organisations.
Funding received from grant making bodies is accountable and monitoring reports are supplied when required.
3.
## **KEIGHLEY FURNITURE PROJECT**
## **TRUSTEES’ REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Financial Review**
The company had net incoming resources for the year of £10,232 (2020 - net outgoing resources of £3,650). Unrestricted reserves at the end of the financial year amounted to £514,475 of which £481,579 relates to the freehold property. Income is received from donations of furniture, rental of rooms and storage bays.
Due to Covid 19 restrictions donations for furniture, white goods and rental income decreased by £132,392. Other incoming resources increased by £110,780 mainly due to local authority grants and the governments Job retention Scheme.
## **Plans for Future Periods**
The overall project continuity remains our primary aim in the future. Increased public visibility is the key to achieving income sustainability and a variety of measures including social media are being taken to address the issue including Thomson Local, Keighley News and Aire & Worth Valley magazine entries.
The increase in popularity of white goods tested by our Electrician/Technician and his colleague is benefiting the local community by supplying them with a much needed supply of refurbished electrical items and in turn, contributing to our increased income. After the development of units within the mill, we are now at virtually full capacity.
The card machine is still proving very popular. Although the project was closed during Covid 19, recent card sales are very encouraging.
## **Reserves Policy**
The charity aims to maintain unrestricted reserves equivalent to three months salaries and overheads. Reserves currently equate to less than three months salaries and overheads. Essential maintenance and repair of a large mill requires steady expenditure. To accommodate this, it is our intention is to continue building upon these reserves by increasing income as the company’s activities expand. This is slowly happening.
## **Risk Review**
The company has examined the principal areas of its operations and set up a framework for assessing what major risks may arise in each of these areas. We have examined major risks, including fire, and because we have a unique sprinkler system including a back-up water system, the Fire Officer and Insurance Company are happy that fire represents a low risk. Governance, management, operational, financial, external and legal matters have all been examined. In the opinion of the trustees, the resources and monitoring systems set in place should allow the risks identified to be mitigated to an acceptable level in its day to day operations. Keighley Furniture Project is in the enviable position of owning its own building; Bradford Council had a charge on the building until 2013, but this is now spent or finalised and the building is now entirely owned by Keighley Furniture Project. The project itself is now virtually selffinancing. Any potential risks would be drawn to the attention of the board by the Project Manager, and preventative measures taken.
4.
## **KEIGHLEY FURNITURE PROJECT**
## **TRUSTEES’ REPORT (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **Statement of Trustees’ Responsibilities**
The trustees (who are also the directors of Keighley Furniture Project) are responsible for preparing the Trustees’ Annual Report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare accounts for each financial year. Under company law the Trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these accounts the Trustees are required to:-
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements that are reasonable and prudent;
- state whether UK accounting standards have been followed, subject to any departures disclosed and explained in the accounts; and
- prepare the accounts on a going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and disseminator of accounts may differ from legislation in other jurisdictions.
The Trustees are responsible for maintaining proper accounting records which disclose at anytime the financial position of the charitable company and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities .
Approved by the trustees and signed on their behalf by:-
......................................
Trustee
Dated:
5.
## **KEIGHLEY FURNITURE PROJECT**
## **INDEPENDENT EXAMINER’S REPORT TO THE MEMBERS ON THE UNAUDITED ACCOUNTS OF KEIGHLEY FURNITURE PROJECT**
I report on the accounts of the Charity for the year ended 31 March 2021 which are set out on pages 6 to 13.
## **Respective responsibilities of directors and examiner**
The directors who also act as trustees of Keighley Furniture Project are responsible for the preparation of the accounts. The directors 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 needed. The charity’s gross income exceeded £100,000 and I am qualified to undertake the examination being a Member of the Association of Accounting Technicians.
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:
- (i) examine the accounts under section 145 of the 2011 Act;
- (ii) 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
- (iii) 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 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 statement below.
In connection with my examination, no matter has come to my attention;
- a. which gives me reasonable cause to believe that in any material respect the requirements
- (i) to keep accounting records in accordance with section 386 of the Companies Act 2006; and (ii) to prepare accounts which accord with the accounting records, 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
- b. to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
## **Kevin J Meddings MAAT**
Stuart B Lodge & Co Chartered Accountants 44 Bradford Road Idle Bradford BD10 9PE West Yorkshire
Dated:
6.
## **KEIGHLEY FURNITURE PROJECT**
## **STATEMENT OF FINANCIAL ACTIVITIES** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Unrestricted**
**Restricted**
**fund**
**fund**
**Notes**
**£**
**£**
**Income**
Incoming resources from Charitable activities**2**
99,552
-
Other incoming resources
**3**
111,698
-
**Total income**
211,250
-
**Expenditure**
**4**
**Charitable activities**
200,617
401
**Total expenditure**
200,617
401
**Net income/(expenditure) and**
**net movement in funds**
10,633
(401)
**Reconciliation of Funds**
**Total funds brought forward**
503,842
401
**Total funds carried forward**
514,475
-|**Total**
**2021**
**£**
99,552
111,698
211,250
201,018
201,018
10,232
504,243
514,475|Total
2020
£
231,944
918
232,862
236,512
236,512
(3,650)
507,893
504,243|
|---|---|---|
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
7.
## **KEIGHLEY FURNITURE PROJECT**
## **BALANCE SHEET** _**AS AT 31 MARCH 2021**_
|**Unrestricted**
**Restricted**
**fund**
**fund**
**Notes**
**£**
**£**
**Fixed assets**
Tangible assets
**7**
481,579
-
**Current assets**
Debtors
**8**
4,211
-
Cash at bank and in hand
97,029
-
101,240
-
**Creditors: amounts falling due within**
**one year**
**9**
(68,344)
-
**Net current assets**
32,896
-
**Total assets less current liabilities**
514,475
-
**The funds of the charity**
Unrestricted funds: General
32,896
-
Freehold Property
481,579
-
Restricted funds
**11**
-
-
**Total charity funds**
514,475
-|**2021**
**Total**
**£**
481,579
4,211
97,029
101,240
(68,344)
32,896
514,475
32,896
481,579
-
514,475|2020
Total
**£**
488,541
6,882
12,569
19,451
(3,749)
15,702
504,243
15,301
488,541
401
504,243|
|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021. No member of the company has deposited a notice, pursuant to section 476, requiring an audit of these accounts.
The directors acknowledge their responsibilities for:
- (a) ensuring that the company keeps accounting records which comply with section 386 of the Act; and (b) preparing accounts which give a true and fair view of the state of affairs of the company at the end of the financial year, and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of section 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006, so far as applicable to the company.
These accounts have been prepared in accordance with the provisions applicable to companies subject to small companies regime.
The accounts were approved by the trustees on
……………………
Trustee
**Company Registration No: 4178817**
8.
## **KEIGHLEY FURNITURE PROJECT**
## **STATEMENT OF CASHFLOWS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
|**Notes**
**Cash generated in operating activities**
**12**
Cash equivalents at the beginning of the year
**Total cash equivalents at the end of the year**|**2021**
**£**
84,460
12,569
97,029|**2020**
**£**
2,823
9,746
12,569|
|---|---|---|
9.
## **KEIGHLEY FURNITURE PROJECT**
## **NOTES TO THE ACCOUNTS** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **1 Accounting policies**
## **1.1 Basis of preparation**
The accounts are prepared under the historical cost convention, unless otherwise stated.
The accounts have been prepared in accordance with the Companies Act 2006, Charities Act 2011, 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) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
The charity constitutes a public benefit entity as defined by FRS 102.
Having considered future planned activities and the reserves available to the charity, the trustees are satisfied that the financial statements should be prepared on the going concern basis.
## **1.2 Incoming resources**
Donations and furniture are accounted for when received by the charity. Other income is accounted for on an accruals basis as far as is prudent to do so.
Revenue grants are recognised on receipt, subject to any required conditions being met or services provided. Capital grants are written off in line with the charity’s depreciation policy.
## **1.3 Resources expended**
Expenditure is recognised on an accruals basis as a liability is incurred.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for beneficiaries.
Governance costs includes those costs associated with meeting the constitutional and statutory requirement of the charity.
All costs are allocated between the expenditure categories on the (Statement of Financial Activities) SOFA on a basis designed to reflect the use of the resource.
## **1.4 Tangible fixed assets and depreciation**
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life as follows:-
Freehold property 2% straight line on the building Motor vehicles 25% reducing balance
## **1.5 Fund accounting**
Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees.
## **1.6 Pensions**
The company administers and contributes to individual stakeholder arrangements on behalf of specific employees. The pension cost charge represents amounts paid during the year in respect of these defined contribution schemes.
10.
## **KEIGHLEY FURNITURE PROJECT**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **2 Incoming resources from charitable activities**
|**Incoming resources from charitable activities**|||
|---|---|---|
|Donations for furniture and white goods
Rent and licence fees
Electricity generated
Employment Allowance|**2021**
**£**
6,032
82,040
7,480
4,000
99,552
|2020
£
126,499
95,632
6,813
3,000|
|||231,944|
## **3 Other incoming resources**
|City of Bradford MDC – Covid 19 grants
Job retention scheme
Other income
**Charitable activities**
Wages and salaries
Pension costs
Pension administration fees
Payroll costs
Telephone
Legal and professional fees
Accountancy
Rates and water
Light and heat
Insurance
Stationery and Postage
Repairs and renewals
Computer software and maintenance
Advertising
Transport
Van leasing charges
Volunteer expenses
Materials, tipping and testing
Bank charges
Merchant card fees
Sundries
Depreciation
PPE costs|**Total**
**2021**
**£**
39,143
71,530
1,025
111,698
**2021**
**£**
114,454
2,975
1,004
738
1,259
3,177
1,692
1,213
22,750
17,681
233
11,966
3,007
922
2,791
4,529
240
710
544
68
275
6,962
1,828
201,018
|Total
2020
£
-
-
918|
|---|---|---|
|||918
2020
£
149,553
3,805
1,066
674
917
3,250
1,494
1,701
20,752
17,119
831
8,179
3,539
3,623
4,780
4,903
424
1,209
1,096
473
162
6,962
-|
|||236,512|
## **4 Charitable activities**
11.
**KEIGHLEY FURNITURE PROJECT NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **5 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or were paid any expenses during the year. .
## **6 Employees**
## **Number of employees**
The average monthly number of employees during the year was:-
|Staff
**Employment costs**
Wages and salaries
Social security costs
Pension costs|**2021**
**Number**
6
**2021**
**£**
107,313
7,141
2,975
117,429|2020
Number
7
2020
£
139,933
9,620
3,805
153,358|
|---|---|---|
There were no employees whose annual emoluments were £60,000 or more.
The charity considers that the key personnel of the organisation are the Board of Trustees and the Project Manage Gary O’Hara.
## **7 Tangible fixed assets**
|**Freehold**
**Property**
**£**
**Cost**
At 1 April 2020
And
**31 March 2021**
595,969
**Depreciation**
At 1 April 2020
107,428
Charge for Year
6,962
**At 31 March 2021**
114,390
**Net book value**
**At 31 March 2021**
481,579
At 31 March 2020
488,541|**Total**
**£**
595,969
107,428
6,962
114,390
481,579
488,541|
|---|---|
12.
## **KEIGHLEY FURNITURE PROJECT**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **8 Debtors**
|Debtors
VAT repayable
**Creditors: amounts falling due within one year**
Creditors
Accruals
Bank loan|**2021**
**£**
3,959
252
4,211
**2021**
**£**
3,384
14,960
50,000
68,344|2020
£
6,273
609|
|---|---|---|
|||6,882|
|||2020
£
1,632
2,117
-|
|||3,749|
## **9 Creditors: amounts falling due within one year**
## **10 Related Party Transactions**
There were no material transactions with organisations that any of the Trustees are involved with.
## **11 Restricted Funds**
The income funds of the charity include restricted funds comprising the following unexpected balance of grants held on trust for specific purposes:
||||**Movement of Funds**|**Movement of Funds**||
|---|---|---|---|---|---|
|||**Balance at**|**Incoming**|**Resources**|**Balance at**|
||**1**|**April 2020**|**Resources**|**Expended**|**31 March 2021**|
|||**£**|**£**|**£**|**£**|
|Screwfix Foundation||401|-|(401)|-|
## **Screwfix Foundation**
Funding to install LED lighting within the mill.
## **12 Reconciliation of net movement in funds to net cashflow from operating activities**
|Net movement in funds
Add back depreciation charge
Decrease in debtors
Increase/(decrease) in creditors
**Net cash generated in operating activities**|**2021**
**£**
10,232
6,962
2,671
64,595
84,460|2020
£
(3,650)
6,962
3,752
(4,241)
2,823|
|---|---|---|
13.
## **KEIGHLEY FURNITURE PROJECT**
## **NOTES TO THE ACCOUNTS (CONTINUED)** _**FOR THE YEAR ENDED 31 MARCH 2021**_
## **13 Commitments under finance leases**
At 31 March 2021 the Company had annual commitments under non-cancellable operating leases as follows:
|Expiry date
Within one year
Between two and five years|**2021**
**£**
4,529
4,529|2020
£
4,903
4,903|
|---|---|---|