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2021-06-30-accounts

Toent Compassion Toust Report and Financial Statements For the Year Ended 30 June 2021 Tcent Compassion

TRENT COMPASSION TRUST (a company limited by guarantee)

CONTENTS

Page
Reference and administrative details of the company, its trustees and advisers 1
Trustees' report 2 - 7
Trustees' responsibilities statement 8
Independent auditor's report on the financial statements 9 - 12
Statement of financial activities 13
Balance sheet 14
Notes to the financial statements 15 - 29

TRENT COMPASSION TRUST (a company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2021

Trustees S Dunlop
J Henderson
H Buck
Company registered
number
04339357
Charity registered
number
1091918
Registered office
Unit 1
Easter Park
Lenton Lane
Nottingham
NG7 2PX
Company secretary
A L Delaney to July 2021, J G Pagdin from 21 July 2021
Independent auditor
Barnett & Turner Accountants Ltd
Statutory Auditor
Chartered Accountants
Cromwell House
68 West Gate
Mansfield
Nottinghamshire
NG18 1RR
Bankers
CAF Bank
25 Kings Hill
West Malling
Kent
ME19 4JQ

Page 1

TRENT COMPASSION TRUST (a company limited by guarantee)

TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2021

The trustees present their annual report together with the audited financial statements of the company for the year from 1 July 2020 to 30 June 2021. The annual report serves the purposes of both a trustees' report and a directors' report under company law. The trustees confirm that the annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the company qualifies as small under section 382 of the Companies Act 2006, the strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

Trent Compassion Trust's main activity is run through a project called “The Arches” which is a practical resource centre for those in need in Nottingham. We provide furniture, clothing, child and baby equipment, emergency food and household goods. Our desire at The Arches is to demonstrate God’s love in a practical way through generosity and treating people with dignity and respect. We aim to support our visitors to build self-confidence and self-esteem, empowering them to reach their potential.

In 2001, The Arches was started by Trent Vineyard church. Trent Vineyard is a large contemporary church in Nottingham with a vision to serve and help those in need, and help the disadvantaged and socially excluded members of society in Nottingham. A row of derelict arches under Abbey Bridge was converted and renovated into a place to store and distribute furniture, household goods, clothing, baby equipment and emergency food. After 11 years of growth, the Arches moved into a renovated building on Lenton Lane, next to Trent Vineyard. In 2019 Trent Compassion Trust was created to include additional existing Trent Vineyard activities with the aim of giving people not only immediate emergency support, but also additional support to step forward in their circumstances. With over 300 volunteers, mainly from Trent Vineyard, the Trent Compassion Trust is able to reach out to thousands of vulnerable people, taking referrals from over 100 organisations in Nottingham.

In setting objectives and planning for activities, the trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

Page 2

TRENT COMPASSION TRUST (a company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Achievements and performance

a. Review of activities

Provide practical support - The Arches

Our aim at The Arches is to meet people’s urgent practical needs, focussing on clients moving into empty properties and supporting them with essential furniture and household goods to ensure an acceptable standard of living. They might have recently been housed with very little, be fleeing from domestic violence or seeking asylum.

We take referrals from a range of organisations across our city.

We have partnered with other charities in the city to support the foodbank network and we have utilised our building and logistics capability to store and distribute large food donations easing the pressure on storage at many of the foodbanks themselves.

We continue to be committed to doing what we can to meet the needs of our community and are partnering with Hope Nottingham (Charity 1161248) and others charities and organisations to get essential supplies, including food, to those in need.

Provide an opportunity for community - Step Forward Community

We have a number of additional groups that aim to build and encourage ongoing relationships, not only between our volunteers and visitors, but also among our visitors themselves. All receive a warm welcome and are able to learn more about other free services that we offer in order to move people out of isolation. These include a regular Living Room, Conversational English classes and faith based small group sessions for our visitors.

As well as practical support and meeting client’s immediate needs through The Arches, Trent Compassion aims to support clients as they build self-confidence and self-esteem in order to empower them to reach their full potential through our many services, which will bring about a sense of community spirit and promote interaction between clients.

“When I fell pregnant with my little boy, I was living in a hostel and it was taking me ages to find somewhere to live. I suffered with depression during my pregnancy and ended up having to go off sick because of it. During that time I had so much support from the people at The Arches; I was prayed for every week and in the end I got private rented accommodation. The Arches has been brilliant because they have helped me out with furniture for my house. If I need to let something out, speak about something that’s private and confidential, I know there are people around at The Arches that I can talk to and cry with and if you’ve got questions they’ll try and help you any way they can. People have got to be given a second chance if they want to change and The Arches gives people that chance. I think to myself, if the Arches weren’t open, where would we be?” - former client

Page 3

TRENT COMPASSION TRUST (a company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Achievements and performance (continued)

Provide financial assistance

Trent Vineyard has been providing Debt Management support for over 20 years and has long desired to respond to specific needs around financial poverty, debt and money worries. Since 2011, Trent Debt Advice has helped people living in Nottinghamshire and surrounding regions, and is affiliated to Community Money Advice and Advice UK. We want to give people hope and non-judgemental practical support, whatever their background, circumstances or beliefs. We deliver this help through a combination of money management training courses and one-to-one casework support. People directly benefit from our support in four ways:

  1. Practical help, via free money management training courses.

  2. Free, professional debt, budgeting and money management advice.

  3. Emotional support.

  4. Signposting to other services and agencies.

In 2020 the debt advice programme moved from Trent Vineyard direct oversight to Trent Compassion Trust and we renamed it in line with our other programmes – Step Forward Money Advice. Step Forward Money Advice is a free and friendly service open to anyone in need of budgeting or debt advice. It offers free, confidential debt advice and money management support.

“By volunteering to serve the Nottingham community through Step Forward Money Advice, I have the enormous privilege of seeing people released from fear and uncertainty in their finances. They are able to take advantage of the expertise we have developed over the years. We not only act as an intermediary between them and their creditors but also encourage them to move forward in their lives with more confidence and control in their finances” – Step Forward Money Advice volunteer

Provide ongoing support - Step Forward Housing

We are continuing our partnership with the charity ‘Hope into Action’ helping to furnish properties and support residents. We are now providing friendship groups for three properties; the first ‘Swan house’ provides a temporary home for women and their babies. Women stay in the house for a period of anywhere between 3 months and 2 years. The second ‘Kingfisher house’ supports stage 3 clients moving on from rehabilitation with the Carpenters arms. The third ‘Sandmartin house’ supports a family with long term accommodation.

Provide ongoing support – Step Forward Employability

The purpose of the programme is to work alongside people who are at differing points on the spectrum of seeking work, particularly for those who have been marginalised in society for various reasons. Our vision is to empower the participants through employability training and life skills workshops to work towards becoming employed.

We prepare each participant who is presently out of work to work towards getting back into work or for those who are long term unemployed or have never worked, through our 3 tiered programme to work towards employment.

We look at long term and transformational change and our Step forward programme is an employability and educational project to equip people who are long term unemployed, experiencing poverty and isolation and we help them to gain life skills through CV workshops, work experience, one to one session and other workshops and trips throughout the years which help them with life skills.

The programme is made up of three areas: workshops and training, coaching sessions - these will be both 1:1 mentoring sessions and in small groups and finally 1:1 mentoring sessions.

Participants commit to the programme and investing in themselves. At the beginning of each contract the

Page 4

TRENT COMPASSION TRUST (a company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Achievements and performance (continued)

programme supervisor/coach completes a narrative assessment in order to establish where they are currently and where they would like to be, any potential challenges or obstacles that could get in the way of them getting the most from the programme. What support they may require from us or others in order to achieve their goals and finally what do they like doing and what others say that they are good at. Each participant is then given a bespoke development plan with an overarching goal that they would like to achieve that is reviewed six weekly.

“I loved learning about myself and others, for the first time in forever! I believe that I have a purpose and a future in life” – Current client, 2021

Impact Statistics

We have seen some wonderful and life changing things happen at Trent Compassion Trust and many stories to tell from the past year.

Financial review

a. Going concern

After making appropriate enquiries due to the impact of the restrictions of the COVID pandemic, we have had to adapt many of the services we provide, or in some cases stop providing services to the clients we support. However, we have also increased or added some services to respond to the emerging needs across the city; such as being a storage and distribution centre for food banks, which has enabled us to continue to support people in need, albeit in a different way. After reviewing the finances the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

b. Reserves policy

The trustees agree that it is prudent for the Trust to maintain reserves capable of covering two months’ worth of running costs to mitigate any risk of a drop in funding. This will also provide scope for any necessary but unforeseen capital expenditure which may arise. It is estimated that to meet this requirement, £25,000 in free reserves should be an appropriate target.

The trustees report that the free reserves position is healthy to cover our reserves requirement.

Page 5

TRENT COMPASSION TRUST (a company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

c. Principal risks and uncertainties

The trustees are aware of their obligations regarding risk assessment and management. The trustees are satisfied that the necessary procedures and systems to mitigate risks are in operation.

d. Principal funding

Nov 2020 saw Trent Compassion Trust, working in partnership with HOPE Nottingham, receive a large grant as part of a conglomerate application to DCMS for funding till December 2021. This match fund bid has a value of £194,000 spread across two financial years, so in addition to funds we have diverted and prior year reserves we have been able to gain a further £97,000 from the DCMS grant. This project was aimed at supporting Food distribution, which we undertook in partnership with HOPE Nottingham, alongside Debt advice and Employability services. This enabled us to provide some employment so that we provide additional support and expansion in these areas.

The trustees report that the overall finances are in a good position at the end of June 2021.

Trent Vineyard continues to provide the majority of funding for the charity.

Income for the year totalled £304.4k (2020 - £165.9k).

Structure, governance and management

a. Constitution

Trent Compassion Trust is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.

b. Methods of appointment or election of trustees

The management of the company is the responsibility of the trustees who are elected and co-opted under the terms of the Memorandum of Association.

c. Organisational structure and decision-making policies

The day-to-day running is delegated to a number of staff who are employed by Trent Vineyard Church, along with several volunteers, the majority of whom are members of Trent Vineyard Church.

Trent Compassion Trust is also a subsidiary charity of Trent Vineyard.

d. Policies adopted for the induction and training of trustees

New trustees are appointed when appropriate. Suitable candidates are considered on the basis of their skills, experience and sympathy with the aims of the charity. New trustees have the opportunity of reviewing appropriate documents, including the accounts, as part of their induction process.

Members' liability

The Members of the company guarantee to contribute an amount not exceeding £1 to the assets of the company in the event of winding up.

Page 6

TRENT COMPASSION TRUST (a company limited by guarantee)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Disclosure of information to auditor

Each of the persons who are trustees at the time when this trustees' report is approved has confirmed that:

Auditor

The auditor, Barnett & Turner Accountants Ltd, has indicated his willingness to continue in office. The designated trustees will propose a motion reappointing the auditor at a meeting of the trustees.

Approved by order of the members of the board of trustees on 15 February 2022 and signed on their behalf by:

As Signed

As Signed

S Dunlop (Trustee)

H Buck (Trustee)

Page 7

TRENT COMPASSION TRUST (a company limited by guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 30 JUNE 2021

The trustees (who are also the directors of the company for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year. Under company law, the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 8

TRENT COMPASSION TRUST (a company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRENT COMPASSION TRUST

Opinion

We have audited the financial statements of Trent Compassion Trust (the 'charitable company') for the year ended 30 June 2021 which comprise the Statement of Financial Activities, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Page 9

TRENT COMPASSION TRUST (a company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRENT COMPASSION TRUST (CONTINUED)

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Page 10

TRENT COMPASSION TRUST (a company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRENT COMPASSION TRUST (CONTINUED)

Responsibilities of trustees

As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

Page 11

TRENT COMPASSION TRUST (a company limited by guarantee)

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF TRENT COMPASSION TRUST (CONTINUED)

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors of the entity.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.

As Signed

Jonathan Wilson FCA CTA (Senior Statutory Auditor)

For and on behalf of

Barnett & Turner Accountants Ltd Statutory Auditor Chartered Accountants

1 March 2022

Page 12

TRENT COMPASSION TRUST (a company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Other trading activities
6
Investments
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9
Total expenditure
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward
Unrestricted
funds
2021
£
124,471
87
3,119
19
127,696
3,412
126,845
130,257
(2,561)
54,019
(2,561)
51,458
Restricted
funds
2021
£
176,720
-
-
-
176,720
346
174,713
175,059
1,661
73,131
1,661
74,792
Total
funds
2021
£
301,191
87
3,119
19
304,416
3,758
301,558
305,316
(900)
127,150
(900)
126,250
Total
funds
2020
£
156,672
2,127
6,921
202
165,922
9,387
162,958
172,345
(6,423)
133,573
(6,423)
127,150

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 15 to 29 form part of these financial statements.

Page 13

TRENT COMPASSION TRUST (a company limited by guarantee) REGISTERED NUMBER: 04339357

BALANCE SHEET AS AT 30 JUNE 2021

Note
Fixed assets
Tangible assets
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds
2,424
147,103
149,527
(47,102)
2021
£
23,825
102,425
126,250
74,792
51,458
126,250
259
136,662
136,921
(37,612)
2020
£
27,841
99,309
127,150
73,131
54,019
127,150

The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.

The financial statements were approved and authorised for issue by the trustees on 15 February 2022 and signed on their behalf by:

As Signed

S Dunlop

(Trustee)

The notes on pages 15 to 29 form part of these financial statements.

Page 14

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

1. Accounting policies

1.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Trent Compassion Trust 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.

1.2 Going concern

After making appropriate enquiries due to the impact of the restrictions of the COVID pandemic, we have had to adapt many of the services we provide, or in some cases stop providing services to the clients we support. However, we have also increased or added some services to respond to the emerging needs across the city; such as being a storage and distribution centre for food banks, which has enabled us to continue to support people in need, albeit in a different way. After reviewing the finances the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

1.3 Income

All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Where the donated good is a fixed asset, it is measured at fair value, unless it is impractical to measure this reliably, in which case the cost of the item to the donor should be used. The gain is recognised as income from donations and a corresponding amount is included in the appropriate fixed asset class and depreciated over the useful economic life in accordance with the company's accounting policies.

On receipt, donated professional services and facilities are recognised on the basis of the value of the gift to the company which is the amount it would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Page 15

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

1. Accounting policies (continued)

1.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds includes all expenditure incurred by the company to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

1.5 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

1.6 Taxation

The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

1.7 Tangible fixed assets and depreciation

Tangible fixed assets costing £100 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Page 16

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

1. Accounting policies (continued)

1.7 Tangible fixed assets and depreciation (continued)

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Short-term leasehold property - 10% straight-line method Motor vehicles - 25% straight-line method - Office equipment Computer equipment - 33% straight-line method Other fixed assets - 25% straight-line method

1.8 Debtors

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

1.9 Cash at bank and in hand

Cash at bank and 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.

1.10 Liabilities and provisions

Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the statement of financial activities as a finance cost.

1.11 Financial instruments

The company 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 measured at amortised cost using the effective interest method.

1.12 Concessionary loans

Consessionary loans are loans which are made or received at below the prevailing market rate of interest, that are not repayable on demand and are for the purposes of furthering the objectives of Trent Compassion Trust.

Loans are recorded in the financial statements at the amount received or paid.

Page 17

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

1. Accounting policies (continued)

1.13 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

2. General information

Trent Compassion Trust is a company limited by guarantee, registered in England and Wales, registration number 04339357 and a charitable company registered with The Charity Commission, registration number 1091918.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Critical areas of judgement:

Determining the appropriate rate of depreciation of tangible fixed assets requires an estimate of the useful economic life and ultimate net realisable value. The useful economic life is determined to be the period during which each asset will be usable.

Page 18

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

4. Income from donations and legacies

Unrestricted
funds
2021
£
Donations
Trent Vineyard
113,486
Donations
10,985
124,471
Unrestricted
funds
2020
£
Donations
Trent Vineyard

109,612
Donations
10,565
120,177
Restricted
funds
2021
£
-
176,720
176,720
Restricted
funds
2020
£
-
36,495
36,495
Total
funds
2021
£
113,486
187,705
301,191
Total
funds
2020
£
109,612
47,060
156,672

5. Income from charitable activities

Unrestricted
funds
2021
£
Other charitable activities
87
Unrestricted
funds
2020
£
Other charitable activities
2,127
Total
funds
2021
£
87
Total
funds
2020
£
2,127

Page 19

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

6. Income from other trading activities

Income from fundraising events

Unrestricted
funds
2021
£
Sale of donated goods
3,119
Unrestricted
funds
2020
£
Sale of donated goods
6,921
Total
funds
2021
£
3,119
Total
funds
2020
£
6,921

7. Investment income

Unrestricted
funds
2021
£
Bank interest
19
Unrestricted
funds
2020
£
Bank interest
202
Total
funds
2021
£
19
Total
funds
2020
£
202

Page 20

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

8. Expenditure on raising funds

Fundraising trading expenses

Unrestricted
funds
2021
£
Donated sales direct costs
525
Wages and salaries
2,887
3,412
Donated sales direct costs
Wages and salaries
Restricted
funds
2021
£
-
346
346
Unrestricted
funds
2020
£
733
8,654
9,387
Total
funds
2021
£
525
3,233
3,758
Total
funds
2020
£
733
8,654
9,387

Page 21

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

9. Analysis of expenditure on charitable activities

Summary by expense type

Unrestricted
funds
2021
£
Staff salaries
64,972
Client support
2,998
Projects and groups
11
Other staff support
1,581
Transportation
940
Administration
22,931
Facilities
32,567
Depreciation
845
126,845
Unrestricted
funds
2020
£
Staff salaries
64,973
Client support
7,163
Projects and groups
-
Other staff support
1,686
Transportation
518
Administration
22,523
Facilities
27,601
Depreciation
241
124,705
Restricted
funds
2021
£
60,489
97,756
2,674
3,936
399
1,750
97
7,612
174,713
Restricted
funds
2020
£
11,301
8,900
5,168
304
1,118
-
4,744
6,718
38,253
Total
funds
2021
£
125,461
100,754
2,685
5,517
1,339
24,681
32,664
8,457
301,558
Total
funds
2020
£
76,274
16,063
5,168
1,990
1,636
22,523
32,345
6,959
162,958

Page 22

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

10. Donated services and facilities

Salaries
Administration
Facilities
2021
£
64,800
16,453
32,233
113,486
2020
£
64,678
17,991
26,943
109,612

The above amounts are included within donations in note 4 in the statement of source and application of funds, and also added into charitable expenditure in note 9, therefore having a nil impact on net resources for the year.

All staff costs are recharged from Trent Vineyard.

No employee received remuneration amounting to more than £60,000 in either year.

11. Auditor's remuneration

2021 2020
£ £
Fees payable to the company's auditor for the audit of the company's
annual accounts 1,500 1,500

Page 23

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

12. Trustees' remuneration and expenses

During the year, no trustees received any remuneration or other benefits (2020 - £NIL).

During the year ended 30 June 2021, no trustee expenses have been incurred (2020 - £NIL).

13. Tangible fixed assets

Cost or valuation
At 1 July 2020
Additions
Disposals
At 30 June 2021
Depreciation
At 1 July 2020
Charge for the year
On disposals
At 30 June 2021
Net book value
At 30 June 2021
At 30 June 2020
Short-term
leasehold
property
£
45,275
-
-
45,275
21,607
4,527
-
26,134
19,141
23,668
Motor
vehicles
£
23,790
-
(6,671)
17,119
23,790
-
(6,671)
17,119
-
-
Office
equipment
£
17,998
-
(1,719)
16,279
14,312
1,964
(1,719)
14,557
1,722
3,686
Computer
equipment
£
30,678
4,441
(11,977)
23,142
30,191
1,966
(11,977)
20,180
2,962
487
Total
£
117,741
4,441
(20,367)
101,815
89,900
8,457
(20,367)
77,990
23,825
27,841

Page 24

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

14. Debtors

Due within one year
Trade debtors
Other debtors
2021
£
-
2,424
2,424
2020
£
259
-
259

15. Creditors: Amounts falling due within one year

Bank overdrafts
Trade creditors
Amounts owed to group undertakings
Accruals and deferred income
2021
£
3,578
4,152
39,072
300
47,102
2020
£
-
1,286
36,326
-
37,612

Page 25

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

16. Financial instruments

Financial assets
Financial assets measured at fair value through income and expenditure
Financial assets measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost
2021
£
147,103
-
147,103
2021
£
8,030
2020
£
136,662
259
136,921
2020
£
1,286

Financial assets measured at fair value through income and expenditure comprise bank and cash balances.

Financial assets measured at amortised cost comprise trade debtors.

Other financial liabilities measured at amortised cost comprise trade creditors, accruals and bank overdraft.

Page 26

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

17. Statement of funds

Statement of funds - current year

Unrestricted funds
General Funds
Restricted funds
Church Revitalisation Trust
Nottingham Building Society
The Chetwode Foundation - White Goods
The Chetwode Foundation - Ministry
Jessie Spencer Fund
The Joseph Rank Trust
Garfield Weston Foundation
The Souter Charitable Trust
The Toyota Foundation
Trusthouse Charitable Foundation
Anonymous donor
The Haramead Foundation
The Pret Foundation
The Jones Trust
Awards for All (National Lottery)
The Hobson Charity Limited
Individuals
Acts of Compassion
The Lemn Sissay Foundation
Other restricted funds
Total of funds
Balance at 1
July 2020
£
54,019
-
386
5,501
3,084
185
16,645
13,438
2,339
683
175
2,438
588
5,814
1,917
550
(1,251)
14,988
-
1,405
4,246
73,131
127,150
Income
£
127,696
109,059
-
-
-
-
-
-
-
-
-
2,750
-
-
2,500
-
1,481
13,620
23,787
-
23,523
176,720
304,416
Expenditure
£
(130,257)
(106,097)
(129)
(4,440)
(1,542)
(146)
(2,274)
(4,645)
(1,258)
(334)
(58)
(2,267)
(294)
(1,201)
(1,663)
(550)
(230)
(9,365)
(13,253)
-
(25,313)
(175,059)
(305,316)
Balance at
30 June
2021
£
51,458
2,962
257
1,061
1,542
39
14,371
8,793
1,081
349
117
2,921
294
4,613
2,754
-
-
19,243
10,534
1,405
2,456
74,792
126,250

Page 27

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
General Funds
Restricted funds
Nottingham Building Society
The Chetwode Foundation - White Goods
The Chetwode Foundation - Ministry
Jessie Spencer Fund
The Joseph Rank Trust
Garfield Weston Foundation
The Souter Charitable Trust
The Toyota Foundation
Trusthouse Charitable Foundation
Anonymous donor
The Haramead Foundation
The Pret Foundation
The Jones Trust
Awards for All (National Lottery)
The Hobson Charity Limited
Individuals
The Lemn Sissay Foundation
Other restricted funds
Total of funds
Balance at
1 July 2019
£
58,684
515
5,371
4,626
617
21,815
7,231
2,644
1,016
233
2,000
882
738
2,598
550
(615)
21,762
405
2,501
74,889
133,573
Income
£
129,427
-
6,250
-
-
-
10,000
-
-
-
2,500
-
9,982
-
-
-
2,517
1,000
4,246
36,495
165,922
Expenditure
£
(134,092)
(129)
(6,120)
(1,542)
(432)
(5,170)
(3,793)
(305)
(333)
(58)
(2,062)
(294)
(4,906)
(681)
-
(636)
(9,291)
-
(2,501)
(38,253)
(172,345)
Balance at
30 June
2020
£
54,019
386
5,501
3,084
185
16,645
13,438
2,339
683
175
2,438
588
5,814
1,917
550
(1,251)
14,988
1,405
4,246
73,131
127,150

Page 28

TRENT COMPASSION TRUST (a company limited by guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£
Tangible fixed assets
1,096
Current assets
97,464
Creditors due within one year
(47,102)
51,458
Restricted
funds
2021
£
22,729
52,063
-
74,792
Total
funds
2021
£
23,825
149,527
(47,102)
126,250

Analysis of net assets between funds - prior year

Tangible fixed assets
Current assets
Creditors due within one year
Unrestricted
funds
2020
£
1,972
89,659
(37,612)
54,019
Restricted
funds
2020
£
25,869
47,262
-
73,131
Total
funds
2020
£
27,841
136,921
(37,612)
127,150

19. Members' liability

Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member.

20. Related party transactions

There are no further related third party transactions to disclose.

21. Controlling party

The parent company is Trent Vineyard, Unit 1, Easter Park, Lenton Lane, Nottingham, NG7 2PX, company regitstration number 3018774, regiatered in England and Wales and charity registration number 1044369.

Page 29