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 |
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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)'.
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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
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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:
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Practical help, via free money management training courses.
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Free, professional debt, budgeting and money management advice.
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Emotional support.
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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
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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.
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The number of clients visiting to access practical provision was 431. These visitors represented a total of 1,080 people in our community. With 168 of these being refugees and asylum seekers.
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The Arches saw 44 nationalities come through their doors to be project worked.
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Our largest referrers are Nottingham City Council, Framework, Nottingham City homes, Nottingham Community Housing Association . These four referrers account for over 54% of clients seen.
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The recently relaunched Step Forward Employability (Previously operating as Arches Inspiring Change) has expanded its remit and is working with external partners supporting over 30 attendees.
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The Living Room has relaunched as Step Forward Community with a more focussed approach to support attendees to move forward, utilising the SIGNAL platform.
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The fundraising team were furloughed for a large portion of the period, but continue to work hard having filed 45 applications to both national and local funders.
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We have had practical provision support from local organisations such as Loughborough University , who have donated hundreds of bedding items such as duvets and pillows.
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.
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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.
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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:
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so far as that trustee is aware, there is no relevant audit information of which the charity's auditor is unaware, and
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that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
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)
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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:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles of the Charities SORP (FRS 102);
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make judgements and accounting estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
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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:
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give a true and fair view of the state of the charitable company's affairs as at 30 June 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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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:
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the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
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the Trustees' Report has been prepared in accordance with applicable legal requirements.
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:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' Report and from the requirement to prepare a Strategic Report.
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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:
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We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
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We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006.
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We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
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Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
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Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
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Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
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Documenting and verifying all significant related party and consolidated balances and transactions.
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Testing all material consolidation adjustments.
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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
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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.
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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 |
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| 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.
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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.
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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.
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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 |
- The above donation relates to facilities and services provided by Trent Vineyard, see note 10.
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 |
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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 |
|---|---|---|---|---|---|
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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