## ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
## City Gate Community Projects
(A company limited by guarantee)
Charity registration number: 1093245 Company registration number: 04298200
Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham, Chichester West Sussex PO18 8NF
## **CITY GATE COMMUNITY PROJECTS**
## **CONTENTS**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 8|
|Independent Examiner's Report|9|
|Statement of Financial Activities|10|
|Balance Sheet|11|
|Statement of Cash Flows|12|
|Notes to the Financial Statements|13 to 24|
## **CITY GATE COMMUNITY PROJECTS**
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Trustees**
Yvonne Au Fiona Bennett Elizabeth Brewer Gwyn Davies Stephen Hardman Keith Harrison Suzanne Maine (appointed 1 December 2022) James Marchant Caroline Ward Jonathan Wilkins Katharine Bingley (resigned 24 January 2023)
## **Secretary**
Jonathan Wilkins
**Charity Registration** 1093245 **Number**
**Company Registration** 04298200 **Number**
The charity is incorporated in England. **Registered Office** FareShare Sussex & Surrey Unit 3-4 Fairway Business Centre Westergate Road Brighton BN2 4JZ **Independent Examiner** G W Schulz ACMA Independent Examiners Ltd 2 Broadbridge Business Centre Delling Lane Bosham, Chichester West Sussex PO18 8NF **Bankers** The Co-perative Bank P.O. Box 250 Skelmersdale WN86WT
Page 1
## **CITY GATE COMMUNITY PROJECTS**
## **TRUSTEES' REPORT**
The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2023.
## **Objectives and activities**
## _**Objects and aims**_
The charitable objects as stated in the governing documents are summarised in our mission: “To fight hunger, tackle food waste and transform lives through the redistribution of food.”
- The charity’s purposes, for the public benefit are:
1. The relief of people in need through fighting hunger
2. The advancement of environmental protection though tackling food waste
3. The advancement of citizenship through the promotion of volunteering
## _**Public benefit**_
The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
The trustees ensure that the charity is always managed with a view to benefitting the public and with regard to its beneficiaries. It also means identifying and minimising risks of harm. Decisions are made in accordance with the general framework for ‘trustee decision making’.
- In 2022-23, FareShare Sussex & Surrey achieved the following for the public benefit: ●2.4 million meals provided for vulnerable people
- ●1,014 tonnes of food distributed to community projects
- ●850 tonnes of surplus food saved from waste
- ●153 charity and community partners received food in Sussex and Surrey
- ●17,370 vulnerable people received meals every week
At FareShare Sussex & Surrey, we source good-to-eat food from the food industry that would otherwise go to waste and landfill. We store and sort this food and deliver it to charities, breakfast clubs, after school clubs, children’s and family centres, hostels, food banks, supported housing and other community groups to provide nutritious meals for those in the community who need it most.
We provide a range of volunteering opportunities for people from diverse backgrounds. We would be unable to offer our service without their invaluable support. Our volunteers receive incoming food, stock the warehouse, pick deliveries and load and drive our delivery vans. They also support office administration, manage our social media activities and develop our fundraising activities. Our volunteers are motivated by a desire to give back to the community, develop their skills, support vulnerable people and tackle food waste. FareShare Sussex & Surrey employability training supports people with job readiness skills to help them find work, often in the food sector.
Page 2
## **CITY GATE COMMUNITY PROJECTS**
## **TRUSTEES' REPORT**
_“You can get to a certain age where you think you may become invisible, that you are never going to learn something new. FareShare Sussex & Surrey gives you that - you know you are respected, you're needed. It makes you feel like you have a purpose and you are not disappearing anymore and you can learn new skills.”_ Caroline, Volunteer Driver
Proud achievements in 2022-23 include:
- ●74 volunteers completed formal training in Food Safety, Health and Safety and manual handling.
- ●17 volunteers progressed into employment, having had opportunities to improve skills in communication, food safety and warehousing.
- ●3 volunteers were taken on in paid staff roles at FareShare Sussex & Surrey.
- ●26 trainees participated in the FareShare Futures employability training programme.
## **Structure, governance and management**
## _**Nature of governing document**_
The company is registered as a charitable company limited by guarantee and was set up by a Memorandum and Articles of Association on 03/10/2001 and as amended by Special Resolution.
## _**Recruitment and appointment of trustees**_
The management of the company is the responsibility of the trustees who are elected and co-opted under the terms of the Articles of Association.
## _**Risk management**_
The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
## **Achievements and performance**
The 2022/23 year was successful in very arduous conditions. The cost of living crisis took hold as utilities, fuel and food inflation saw demand for our services skyrocket. Food inflation peaked at 19.1% during the period. The consequences had a direct cost impact on the charity, our partners and ultimately, the beneficiaries.
This year also launched the celebration of 20 years serving the people of Sussex and Surrey since 2002. Alongside events to mark this achievement, the anniversary provided a platform to relaunch our website with branding being freshened to incorporate Surrey into our operational name. Our operational name change and geographic jurisdiction was also amended with the Charity Commission.
## _Industry Partnerships_
The charity continues to benefit from working in partnership securing food from a wide range of suppliers from all stages of the supply chain, including growers, manufacturers, wholesalers, hospitality and retailers.
Page 3
## **CITY GATE COMMUNITY PROJECTS**
## **TRUSTEES' REPORT**
For only the second time in 20 years, we saw our food volumes fall (-10%) as supply was squeezed by a variety of very challenging factors. The availability and flow of surplus food slowed as product ranges and national food volumes reduced and consumers faced empty shelves at retailers. Covid 19 spikes also continued to cause disruption in the first half of the year.
In spite of such strong headwinds, FareShare Sussex & Surrey still managed to distribute 1,014 tonnes of food to the communities we serve. However, during the year, we experienced disruption to our food supply at different stages including an especially difficult period at the start of our first quarter. Local food sourcing became increasingly important, leading to further staffing investment and the appointment of a new role. This is starting to yield results but for the moment is still not sufficient to meet increasing needs.
_“We’re extremely proud to support FareShare Sussex & Surrey. The team makes donating so simple, and we are delighted to be able to help whenever we can. Knowing our eggs help so many people in our local community makes us very proud of our family farm.”_ Susie Macmillan, Director, The Mac’s Farm
## _People_
The headcount in our teams of both staff and volunteers was increased and strengthened during the year. A new recruitment and growth strategy across the teams had the aim of increasing capacity and maximising opportunities to rescue and redistribute a more stable volume of food in these uncertain times.
This demonstrated considerable commitment and flexibility, delivering enough food to provide 2.4 million meals to 153 Community Food Members (2020-21: 181), providing nutritious meals for 17,290 beneficiaries per week (2020-21: 21,720). Our volunteers contributed an incredible 24,726 hours during the year.
June 2022 saw the appointment of Dan Slatter as Chief Executive Officer following the departure of his predecessor. Further changes were subsequently made with an internal appointment of a new Head of Development joining the Senior Management Team in November.
Through the support of the European FLAVOUR programme, FareShare Sussex & Surrey worked in partnership with the network to broaden its work, develop employability training and create recipes using surplus food. 26 trainees took part in our ‘FareShare Futures’ employability and training programme, which was designed to help people in the community become employment ready and offer work experience in the food sector. Thanks to the FLAVOUR funding, we delivered skill sharing workshops to boost confidence in the kitchen and to provide inspiration to reduce food waste and create nutritious meals on a budget.
Page 4
## **CITY GATE COMMUNITY PROJECTS**
## **TRUSTEES' REPORT**
Over the year, we ran 44 cooking on a budget workshops for a total of 211 people in partnership with our community groups. Beneficiaries included homeless people and young adults with unstable living conditions, women escaping domestic abuse, people from the travelling community, people who are neurodiverse or have additional needs or suffer from mental health issues, those who are unemployed and low income families struggling with the cost of living. The FLAVOUR programme and funding stream drew to a close in August. The charity aims to continue to develop its work on employability to support people in preparation for work, with the aim to open this programme into our new Surrey sites in 2023.
_“There's a strong sense of community, being a part of something important, where everyone's contribution is valued and acknowledged. It makes FareShare a warm and positive place to be. Personally, it's helped me through a period of significant difficulty in my life, which I would have found much harder if I hadn't been here.”_ Jon, Warehouse Volunteer
## _Food_
As already noted, demand for food from our community partners has remained high and increased further as the impact of inflation and the cost of living crisis continued to bite. This, combined with a lower food yield, meant forming a waiting list of community partners who needed to receive food from us. The list totalled 17 at the end of March, which equates to 11% of our current membership. Furthermore, 27 existing members requested an increase in food volume supplied. 90% of our members reported an increase in demand for their service in our annual survey (May ’22). To offer some much needed support, the charity decided to freeze membership fees for the year at 2021/22 levels, particularly in the face of rising inflation.
_“We really try to make the food as creative and interesting as possible. It’s so important for the elderly. Sometimes it’s the only time they’ll eat a main course. And it’s a social thing, bringing everyone together. Also, we’ve got people that used to stick to jacket potatoes every day, and now they’re having curries, and with chillies.”_ Tammi, Chef Hop50
_“It makes my money go a little bit further. Things have really gone up in price. There’s my husband and these two. It’s been really helpful getting veg and fruit I wouldn’t normally afford, like broccoli, carrots and raspberries. Our boys get free school meals, so this is even more important and helpful in the school holidays. We just couldn’t manage without the Food from FareShare Sussex & Surrey.”_ Jane, Service user at Seaside Community Hub
Page 5
## **CITY GATE COMMUNITY PROJECTS**
## **TRUSTEES' REPORT**
## _Development plans_
The focus was sharpened on our plans to expand our reach and capacity in Surrey following the appointment of our new Chief Executive. In addition to partners in East and West Sussex, we have been delivering food to a number of community projects in Surrey, an area where there is significant demand. As a result, we have been developing plans and seeking funding to extend our area of operation and open a warehouse in the county. As we closed the year, big strides had been made towards launching new facilities in Surrey. Firstly, with a new warehouse, and secondly with an initiative to open a production kitchen. Heads of Terms have recently been agreed with owners and lease holders. On 23rd May 2023 the trustees agreed to designate funding of £250k for this initiative, which is included in Note 17 of these accounts.
_“It has been an absolute pleasure to have supported the brilliant work that Fareshare Sussex & Surrey do over the last 12 months. By offering free digital marketing expertise across SEO, content, strategy and paid media, we hope that we have helped the team achieve maximum impact. They are a joy to work with and we are in awe of their unwavering efforts to tackle food poverty, reduce waste and care for the community. We love our partnership and look forward to continuing our work together!”_ Sam Zindel, Managing Director, Propellernet
## _Environmental Impact_
FareShare Sussex & Surrey continues to review and improve our own environmental footprint as an organisation.
This is driven by our ‘Green Team’ made up of both staff and volunteers. The team continues to work through our action plan, making carbon reductions from our 2021/22 carbon footprint report. The plan includes both small and large scale improvements. In the last year, we have saved 1,359 tonnes of CO2 from being released into the atmosphere through our work rescuing food.
An example of our larger investments has been the addition of another electric powered van to our fleet. This van was partially funded by the Rampion Offshore Wind Community Benefit Fund. Since joining the fleet in early winter, the van has covered 3,500 miles delivering and collecting surplus food. This has saved an estimated 350 kg of CO2 emissions.
Our fleet now comprises three out of seven delivery and collection vehicles powered by electricity. We purchased a further electric van this financial year and expect delivery in the first quarter of 2023. Funding for the most recent vans has been secured from capital grants from funders and commercial partners.
Looking ahead, the Green Team will continue to seek environmental improvements to our operations. Among the measures being explored is the installation of Solar PV panels at our Brighton warehouse.
_“As a Trust, we distribute small pots of money where we think they can make the most impact and support people on the front line of the current cost of living crisis. By giving to FareShare Sussex & Surrey, for the work they do exclusively across Sussex, we know that our money has a huge impact at what is a challenging time for many.”_ Richard Piggott, Homity Trust
Page 6
## **CITY GATE COMMUNITY PROJECTS**
## **TRUSTEES' REPORT**
## _Notable achievements_
Other notable achievements included:
- ●Formal registration as a Real Living Wage Employer with the Real Living Wage Foundation.
- ●Initiation of registration process with the Fundraising Regulator.
- ●Selection as the Mayor of Brighton and Hove’s charity of the year.
- Completion of successful external audits of Health & Safety, Food Safety and
- Safeguarding.
The consistency of the food supply remains uncertain for the year ahead and we have budgeted for likely continued increased running costs but especially on utilities and fuel, with inflation rates remaining very high.
_“Food is a brilliant way to bring people together, something about food can take the anxiety out of meeting new people and starting conversations. It elevates your mood and makes you feel good. It just makes people feel valued and a part of something._
_We couldn’t make these meals and run the service without the value of the food from FareShare Sussex & Surrey. Food and support from FareShare Sussex & Surrey is helping us form some more targeted work and reach out to different groups - for instance we’ve just started a food and friends group for women and families.”_ Gary Pargeter, Service Manager, Lunch Positive
## **Financial review**
Despite a difficult funding and operating landscape, the directors are pleased to report a surplus of income over expenditure in 2022-23.
Following the strong financial performance in the year 2022-23 the trustees established a designated fund to support our expansion into Surrey, reserved for opening a new warehouse and production kitchen during the summer of 2023. We also passed this on to all our Community Food Members by freezing fees for the first quarter of 2023-24.
Total income for the year was £797,563 (2022: £728,139). This was mostly achieved through voluntary income, including grants and donations, and includes the investment in new and increased staffing levels in the Fundraising and Communications team.
Total expenditure was £605,896 (2022: £619,258) with spending on charitable activities being 89% of total expenditure.
The directors are responsible for the financial viability and sustainability of FareShare Sussex & Surrey. The directors reviewed and updated the reserves policy during the year, which ensures a minimum of six months’ reserve funding in place.
## **Going concern**
After making appropriate enquiries, the trustees have a reasonable expectation that the charity 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.
Page 7
## **CITY GATE COMMUNITY PROJECTS**
## **TRUSTEES' REPORT**
## **Statement of responsibilities**
The trustees (who are also the directors of City Gate Community Projects 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
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 charitable company and of the incoming resources and application of resources, including its income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that can disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Small companies provision statement**
This report has been prepared in accordance with the small companies regime under the Companies Act 2006.
The annual report was approved by the trustees of the charity on 25 July 2023 and signed on its behalf by:
**----- Start of picture text -----**
.........................................
**----- End of picture text -----**
......................................... Jonathan Wilkins Company secretary and trustee
Page 8
## **CITY GATE COMMUNITY PROJECTS**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF CITY GATE COMMUNITY PROJECTS**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 March 2023 which are set out on pages 10 to 24.
## **Responsibilities and basis of report**
As the charity’s trustees of City Gate Community Projects (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of City Gate Community Projects are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner’s statement**
Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Chartered Institute of Management Accountants, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of City Gate Community Projects as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... G W Schulz ACMA Independent Examiners Ltd
25 July 2023
Page 9
## **CITY GATE COMMUNITY PROJECTS**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023**
|**Note**
**Unrestricted**
**funds**
**£**
**Income and Endowments from:**
Donations and legacies
3
610,967
Charitable activities
4
157,462
Other trading activities
5
-
Investment income
6
453
Other income
7
12,592
Total income
781,474
**Expenditure on:**
Raising funds
9
67,215
Charitable activities
10
513,799
Total expenditure
581,014
Net
income/(expenditure)
200,460
Net movement in funds
200,460
**Reconciliation of funds**
Total funds brought
forward
704,213
Total funds carried
forward
17
904,673|**Restricted**
**funds**
**£**
16,089
-
-
-
-
16,089
-
24,882
24,882
(8,793)
(8,793)
43,232
34,439|**Total**
**2023**
**£**
627,056
157,462
-
453
12,592
797,563
67,215
538,681
605,896
191,667
191,667
747,445
939,112|**Total**
**2022**
**£**
625,737
83,865
18,254
85
198|
|---|---|---|---|
||||728,139|
||||33,161
586,097|
||||619,258|
||||108,881|
||||108,881
638,564|
||||747,445|
The notes on pages 13 to 24 form an integral part of these financial statements. Page 10
## **CITY GATE COMMUNITY PROJECTS**
## **(REGISTRATION NUMBER: 04298200) BALANCE SHEET AS AT 31 MARCH 2023**
|**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**
**Net assets**
**Funds of the charity:**
**Restricted income funds**
Restricted funds
**Unrestricted income funds**
Unrestricted funds
**Total funds**
17|**2023**
**£**
288,725
288,725
109,969
564,845
674,814
(24,427)
650,387
939,112
34,439
904,673
939,112|**2022**
**£**
192,226|
|---|---|---|
|||192,226|
|||50,501
522,743|
|||573,244
(18,025)|
|||555,219|
|||747,445|
|||43,232
704,213|
|||747,445|
For the financial year ending 31 March 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
The financial statements on pages 10 to 24 were approved by the trustees, and authorised for issue on 25 July 2023 and signed on their behalf by:
**----- Start of picture text -----**
.........................................
**----- End of picture text -----**
......................................... Jonathan Wilkins Company secretary and trustee
The notes on pages 13 to 24 form an integral part of these financial statements. Page 11
## **CITY GATE COMMUNITY PROJECTS**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023**
|**Note**
**Cash flows from operating activities**
Net cash income
**Adjustments to cash flows from non-cash items**
Depreciation
9
Investment income
6
**Working capital adjustments**
Increase in debtors
14
Increase/(decrease) in creditors
15
Net cash flows from operating activities
**Cash flows from investing activities**
Interest receivable and similar income
6
Purchase of tangible fixed assets
13
Sale of tangible fixed assets
Net cash flows from investing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March
**Reconciliation of net cash flow to movement in net**
**funds**
Increase/(decrease) in cash
Net funds at 1 April 2022
Net funds at 31 March 2023|**2023**
**£**
191,667
42,547
(453)
233,761
(59,468)
6,402
180,695
453
(139,046)
-
(138,593)
42,102
522,743
564,845
42,102
522,743
564,845|**2022**
**£**
108,881
49,869
(85)|
|---|---|---|
|||158,665
(40,278)
(121,955)|
|||(3,568)|
|||85
(16,182)
17,488|
|||1,391|
|||(2,177)
524,920|
|||522,743|
|||(2,177)
524,920|
|||522,743|
All of the cash flows are derived from continuing operations during the above two periods.
The notes on pages 13 to 24 form an integral part of these financial statements. Page 12
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **1 Charity status**
The charity is limited by guarantee, incorporated in England, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation.
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
City Gate Community Projects 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 notes.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Income and endowments**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
Page 13
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## _**Donations and legacies**_
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.
## _**Grants receivable**_
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
## _**Gift aid**_
Gift aid receivable is included in income when there is a valid declaration from the donor. Any Gift aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.
## _**Interest receivable**_
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category.
## _**Raising funds**_
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Page 14
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **Taxation**
The charity 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 charity 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.
## **Tangible fixed assets**
Individual fixed assets costing £1,000 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
|**Asset class**|**Depreciation method and rate**|
|---|---|
|Furniture and equipment|25% reducing balance (pre April
2021)|
|Furniture and equipment|10% on cost (post April 2021)|
## **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.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Liabilities**
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.
Page 15
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **Pensions and other post retirement obligations**
The charity operates a defined contribution pension scheme which is a pension plan under which fixed contributions are paid into a pension fund and the charity has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised in the Statement of Financial Activities when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
## **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.
## **3 Income from donations and legacies**
|Donations and legacies;
Donations
Gift aid reclaimed
Grants, including capital
grants;
Grants from other charities
Grants from companies
Statutory and European
funding|**Unrestricted**
**funds**
**General**
**£**
105,612
22,708
385,108
72,163
25,376
610,967|**Restricted**
**funds**
**£**
-
-
16,089
-
-
16,089|**Total**
**2023**
**£**
105,612
22,708
401,197
72,163
25,376
627,056|**Total**
**2022**
**£**
77,281
5,136
413,052
38,798
91,470|
|---|---|---|---|---|
|||||625,737|
Page 16
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **4 Income from charitable activities**
|Administrative fees (CRM)
Intern placement
Training
**5 Income from other trading activities**
Fundraising
**6 Investment income**
Interest receivable and similar income;
Interest receivable on bank deposits
**7 Other income**
Miscellaneous|**Unrestricted**
**funds**
**General**
**£**
156,138
1,324
-
157,462
**Unrestricted**
**funds**
**General**
**£**
453
**Unrestricted**
**funds**
**General**
**£**
12,592|**Total**
**2023**
**£**
156,138
1,324
-
157,462
**Total**
**funds**
**£**
-
-
**Total**
**2023**
**£**
453
**Total**
**2023**
**£**
12,592|**Total**
**2022**
**£**
62,647
21,074
144|
|---|---|---|---|
||||83,865|
||||**Total**
**2022**
**£**
18,254|
||||18,254|
||||**Total**
**2022**
**£**
85|
||||**Total**
**2022**
**£**
198|
Page 17
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **8 Intangible income**
In addition to the income shown in the Statement of Financial Activities, there is the food supplied by retailers, food manufacturers and consumers to FareShare Sussex.
Based on advice from FareShare UK and professional advisers, including MHA Carpenter Box, the food supplied, stored and distributed from and to third parties has been treated as ‘intangible income’. Full details including weight, value and assumption for valuation are fully disclosed below.
|Stocks of food at the beginning of the year
Donated food
Distributed food
Disposal of waste
Stocks of food at end of the year|**Weight**
**kg**
51,990
993,272
(982,800)
(10,100)
52,362|**Value**
**£**
87,343
1,668,697
(1,651,104)
(16,968)|
|---|---|---|
|||87,968|
## **9 Expenditure on raising funds**
## **a) Costs of generating donations and legacies**
|**Note**
Marketing and publicity
Other direct costs of generating
voluntary income
Staff Costs
12|**Unrestricted**
**funds**
**General**
**£**
13,091
15,788
38,336
67,215|**Total**
**2023**
**£**
13,091
15,788
38,336
67,215|**Total**
**2022**
**£**
571
2,438
30,152|
|---|---|---|---|
||||33,161|
Page 18
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **10 Expenditure on charitable activities**
|**Note**
Rent and rates
Utilities
Equipment
Health and safety
Cleaning
Insurance
Repairs and
maintenance
Memberships,
licences and
subscriptions
Vehicle expenses
Recruitment and
administration
Printing, post and
stationery
Volunteer expenses
Telephone
Training and staff
wellbeing
Travel and
subsistence
Waste collection
Legal and
professional fees
Sundry expenses
Independent
examination
Depreciation,
amortisation and
other similar costs
Staff costs
12|**Unrestricted**
**funds**
**General**
**£**
57,917
11,732
4,151
4,441
4,378
5,624
9,577
5,951
76,431
2,093
3,883
5,800
4,197
1,214
3,153
8,768
-
228
1,500
33,755
269,006
513,799|**Restricted**
**funds**
**£**
-
-
620
-
-
-
-
-
980
-
-
-
-
-
-
-
-
-
-
8,793
14,489
24,882|**Total**
**2023**
**£**
57,917
11,732
4,771
4,441
4,378
5,624
9,577
5,951
77,411
2,093
3,883
5,800
4,197
1,214
3,153
8,768
-
228
1,500
42,548
283,495
538,681|**Total**
**2022**
**£**
66,047
12,091
2,970
3,569
4,712
5,151
7,939
8,916
61,113
4,434
3,180
9,181
3,033
3,377
1,493
9,437
1,726
84
1,500
52,411
323,733|
|---|---|---|---|---|
|||||586,097|
Page 19
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **11 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses from the charity during the year.
## **12 Staff costs**
The aggregate payroll costs were as follows:
|**Staff costs during the year were:**
Wages and salaries
Social security costs
Pension costs|**2023**
**£**
295,403
19,470
6,958
321,831|**2022**
**£**
328,264
19,790
5,831|
|---|---|---|
|||353,885|
The monthly average number of persons (including senior management / leadership team) employed by the charity during the year expressed as full time equivalents was as follows:
|Fundraising
Charitable activities|**2023**
**No**
1
11
12|**2022**
**No**
1
13|
|---|---|---|
|||14|
No employee received emoluments of more than £60,000 during the year.
The total employee benefits of the key management personnel of the charity were - £105,169 (2022 £36,995).
Page 20
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **13 Tangible fixed assets**
|**Furniture**
**and**
**equipment**
**£**
**Cost**
At 1 April 2022
340,776
Additions
-
At 31 March 2023
340,776
**Depreciation**
At 1 April 2022
148,550
Charge for the year
37,886
At 31 March 2023
186,436
**Net book value**
At 31 March 2023
154,340
At 31 March 2022
192,226
**14 Debtors**
Trade debtors
Prepayments
Accrued income
Other debtors
**15 Creditors: amounts falling due within one year**
Trade creditors
Other taxation and social security
Other creditors
Accruals|**Furniture**
**and**
**equipment**
**£**
340,776
-||**Motor**
**vehicles**
**£**
-
139,046||**Total**
**£**
340,776
139,046
479,822
148,550
42,547
191,097
288,725
192,226
**2022**
**£**
42,347
7,000
-
1,154|
|---|---|---|---|---|---|
||340,776||139,046|||
||148,550
37,886||-
4,661|||
||186,436||4,661|||
||154,340||134,385|||
||192,226||-|||
||||**2023**
**£**
69,240
18,363
21,504
862
109,969
**2023**
**£**
18,899
-
4,030
1,498
24,427|||
||||||50,501|
||||||**2022**
**£**
3,621
11,778
1,126
1,500|
||||||18,025|
Page 21
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **16 Pension and other schemes**
## **Defined contribution pension scheme**
The charity operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the charity to the scheme and amounted to - £6,958 (2022 £5,831).
Contributions totalling £40 (2022 - £1,097) were payable to the scheme at the end of the year and are included in creditors.
## **17 Funds**
|**17 Funds**||||||
|---|---|---|---|---|---|
|**Unrestricted funds**
**_General_**
General Funds
**_Designated_**
Surrey Development
Fund
**Total unrestricted**
**funds**
**Restricted funds**
Cold Room - Capital
Funded Fixed Assets
Cold Room - Fixed
Assets
Equipment - Fixed
Assets
Salaries
Van and equipment
**Total funds**|**Balance**
**at 1 April**
**2022**
**£**
704,213
-
704,213
41,649
1,514
69
-
-
43,232
747,445|**Incoming**
**resources**
**£**
781,474
-
781,474
-
-
-
14,489
1,600
16,089
797,563|**Resources**
**expended**
**£**
(581,014)
-
(581,014)
(8,398)
(378)
(17)
(14,489)
(1,600)
(24,882)
(605,896)|**Transfers**
**£**
(250,000)
250,000
-
-
-
-
-
-
-
-|**Balance**
**at 31**
**March**
**2023**
**£**
654,673
250,000|
||||||904,673|
||||||33,251
1,136
52
-
-|
||||||34,439|
||||||939,112|
Page 22
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
|**Unrestricted funds**
**_General_**
General Funds
**_Designated_**
Salaries
Member fees
CFM fees
Covid response roles
WRAP covid response
support roles
Brighton and Hove Carbon
Fund
Grants from Trusts and
Foundations
**Total unrestricted funds**
**Restricted funds**
Cold Room - Capital
Funded Fixed Assets
Cold Room - Fixed Assets
Equipment - Fixed Assets
Office and admin
Rent and unit costs
Salaries
Van and equipment
**Total funds**|**Balance at**
**1 April**
**2021**
**£**
401,056
48,000
86,580
6,724
32,000
8,970
8,000
7,500
197,774
598,830
37,624
2,018
92
-
-
-
-
39,734
638,564|**Incoming**
**resources**
**£**
684,523
-
-
-
-
-
-
-
-
684,523
14,616
-
-
1,500
12,000
10,500
5,000
43,616
728,139|**Resources**
**expended**
**£**
(381,366)
(48,000)
(86,580)
(6,724)
(32,000)
(8,970)
(8,000)
(7,500)
(197,774)
(579,140)
(10,591)
(504)
(23)
(1,500)
(12,000)
(10,500)
(5,000)
(40,118)
(619,258)|**Balance at**
**31 March**
**2022**
**£**
704,213
-
-
-
-
-
-
-|
|---|---|---|---|---|
|||||-|
|||||704,213|
|||||41,649
1,514
69
-
-
-
-|
|||||43,232|
|||||747,445|
Page 23
## **CITY GATE COMMUNITY PROJECTS**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023**
## **18 Analysis of net assets between funds**
|Tangible fixed assets
Current assets
Current liabilities
Total net assets
Tangible fixed assets
Current assets
Current liabilities
Total net assets|**Unrestricted**
**funds**
**General**
**£**
254,286
674,814
(24,427)
904,673
**Unrestricted**
**funds**
**General**
**£**
148,994
573,244
(18,025)
704,213|**Restricted**
**funds**
**£**
34,439
-
-
34,439
**Restricted**
**funds**
**£**
43,232
-
-
43,232|**Total funds**
**at 31**
**March**
**2023**
**£**
288,725
674,814
(24,427)|
|---|---|---|---|
||||939,112|
||||**Total funds**
**at 31**
**March**
**2022**
**£**
192,226
573,244
(18,025)|
||||747,445|
Page 24