Company registration number: 04837373 Charity registration Number. 111IKJ51 Fareshare (Limited by Guafanteel Report and financial statements For the year ended 31 March 2021 ¢￿IK415. 18111ll021 COMPANIES YOUSE #246 Contents Page Report of the Trustees Objectives and Activities Message from our Chair and Chief Executive5 Strategic Report Fareshare Review of the Year Fundraising Plans for Future Periods 15 29 Financial Review 32 Risk Management 5.172 Statement 37 Structure, Governance and Management Governing Document and Constitution 42 43 Trustee5' Responsibility Statement Financial Statements Independent auditor's reFQrt 45 Consolidated statement of financial activitie5 48 Balance sheets 49 Consolidated cash flow statement 50 Accounting policies 51 Notes to the financial statements 53 Definitions Fareshare refers to this charity (charity registration No 11(KK)51). The Foreshare network now comprises 30 warehouses which redistribute surplus food to frontline charities and community groups across the whole of the UK. Most of these warehouses are managed by independent charities. our Network Partners, in a partnershlp agreement with Fareshare on a scale which makes us a leader in charity collaboration in the UK. At 31 March 2021 three regTons: Merseyside, East Anglia, and Southern Central were managed directly by Fareshare. Fareshare is responsible for sourcing food and operating the supply chain and logistTCS to deliver that food to all the warehouses in the Fareshare network. Fareshare provides operational support to the warehouses and promotes the sharing of best practice across the network especially in the areas of health and safety and efficiency irnprovement. It is responsible for the fundraising, public relations and communications relating to the Fareshare brand and its own operations. Fareshare Go is a service operated in partnership with a number of the leading food retailers in the UK. This service aims to reduce the food surpluses that arise at a store level and the food is collected by the local charities and community groups directly from the stores. As a consequence of the geographical spread of the participating stores Fareshare Go is available in virtually every local authority in the UK. The Trustees, report provides statistics for the whole of the Fareshare network and these best describe the social impact of our collective work. We focus on the volume of food provided to the network and the equivalent number of meals provided by the charities and community groups f rom the food they receive from us. The financial statements refer to the charity Fareshare and do not reflect the incomes and costs of those regions in the network operated by our Network Partners. Objectives and Activities Fareshare is a UK-wide charity that, in partnership with our Network, redistributes surplus food to charities that turn it into meals. Our vlslon is of a UK where 'No good food goes to waste. Our rnission is to use surplus. fit for consumption food to feed those who are vulnerable in the UK by supporting front line charitable organisations that tackle the cause and not just the symptoms of poverty. Our values run through everything we do and set out a clear framework for us to approach our work: passion, ambition, respect, collaboration, and focus. Charitable Object5 The charitable objects of Fareshare are Set out in the Memorandum of Association: The relief of ￿verty and the preservation and promotion of gcM)d nutrition, good health and social improvement among people who are suffering from social, economic or emotional distress in such ways as the trustees may in their absolute discretion think fit but particularly through: the collection and redistribution of surplus food. the encouragement of members of the public to undertake voluntary work. the advancement of public education in particular but not exclusively by providing tralning in the voluntary sector; and the furtherance, for the benefit of the public, of the conservation, protection and improvement of the physical and natural environment through the redirection of waste {in particular food waste) and its adverse environmental impacts. Public Benefit The trustees confirm that they have referred to the Charity Commission's guidance on publTC benefit when reviewing the charity's aims and objectives and in planning future actTVlties. Fareshare's focus on tackling food poverty, working in partnership wth local charities and community-based organisations, has a direct and positive benefit for many of the most marginali5ed people in the UK, particularly individuals who are homeless, unemployed, poor or isolated. The charity engages volunteers in its work and is open to all members of the community, including the most marginalised. Fareshare's training and education work provides opportunities for volunteers and others to gain recognition. including accreditation, for the skills they have acquired while working with Fareshare to help gain further employment. Message from our Chair and Chief Executive A year ago we reported the significant investments made over many years to build our capability to source surplus food from all parts of the supply chain and to increase the capacity and reach of the UK warehouse network of our partners. The Fareshare network has grown to become the leader in surplus food redistribution in the UK, able to reach over 10,000 charities and community groups across the whole country. The rapid spread of Covid-19 early last year changed all our lives. The public health measures which were taken to control this spread created many, varied and often acute challenges, especially for the charities and community groups to whom we supply food and for the many people supported by them. The demand for food increased hugely and the isolation of peopLe that resulted from Lockdowns created the need for much of that food to be delivered to their homes. The same measures restricted the ab7lity of many of our charities and community groups to operate and at worst some had to stop their work compLetely. Last year, in response to this crisis, the Fareshare network overcame its own challenges created by Covid-19 and rapidly scaled-up its operations to support those in need. We supplied 54,203 tonnes of food to those charity and community groups that could receive our food, more than doubling the 23,543 tonnes supplied in our previous financial year. Last year that was the equivalent of 132 million meals.... or 4 meals every second. We had to move at pace to change and respond to the crisis. We are a network of local organisations, and these were ideally placed to work in partnership with newly formed local resilience forums and civil contingency agencies and Fareshare worked with the national agencies. Every Fareshare region added warehouse capacity, took on more volunteers and vans and expanded their reach. We approached the food industry for help to purchase food to both supplement our surpLus food and obtain long-dated products to make the food parcels for home delivery. The response was overwhelming and two central distribution centres were established with their 5UPPOrt in just days. Our capability and reach were recognised by the governments of the UK during this crisis. The Department for Environment, Food & Rural Affairs {DEFRA) provided £26.6m in two tranches to fund a major food purchasing and distribution programme to support the food needs of the most vulnerable in England. The governments of Scotland and Wales aLso provided for similar schemes. Importantly we continued our work in building the Fareshare network as well as focusing on our emergency response. There were a number of notable events and the number of warehouses increased from 24 to 30 over the year. In November we rnerged our east London warehouse operation with The Felix Project which complemented their existing west London operations. We weLcome them to the Fareshare network, and we will work to support their ambition to accelerate their growth in food provision in the capital. Our presence in the Highlands and Islands of Scotland were expanded and we provided the financial support to establish Fareshare in Devon and Comwall. The merger of West and East Midlands enabled their expansion into Nottingham viith a new warehouse and Greater Manchester opened a flagship new warehouse, Melanie Maynard House. We owe a debt of gratitude to so many people and organisations. Our staff and volunteers kept us going and never caved in to the pressures put upon them. The British Red Cross supported our search for the many more voLunteers needed. The food retailers donated food, logistics and funding whiLe managing unprecedented changes in their own businesses. The response to our appeal in partnership with the Institute of Grocery Distribution and the h05Pitality sector was overwhelming as that sector saw a coLlapse in its business. Many corporate and trust funders gave generousLy. Our work and the relief of food poverty took on a much higher profile with the public. Individual giving to Fareshare increased hugely this year. A special thanks must go to the England and Manchester United football striker Marcus Rashford MBE. He has been tireless in his Staunch support for us and the massive increase in household awareness of Fareshare over this last year owes so much to him. We continued to develop our ability to access more surplus food from farmers and growers this year with the 'SurpLus with Purpose, programme. This provides producers with the financial support to cover the added costs of harvesting and diverting surplus, fit for human consumption, food for redistribution rather than wasting it. The dietary benefits of redistributing more fresh fruit and vegetables is clear. The environmental impact of agriculture is becoming clearer and the benefits of reducing waste more evident with growing concem over climate change with a particular focus in the lead up to COP26. We intend to work with both the food industry and government to create the funds to support and develop this prograrnme. For so many years our activities have b￿n limited by the financial resources made available to us. These accounts show that this year the generosity of our supporters, especially individual giving, has resulted in a surpLus of £22m of income over expenditure at the point of the year end. There is much more work to be done and we will be focusing these funds on making sure we can continue to grow our impact over the next few years. We are unlikely to see the food volumes that were purchased as an emergency measure repeated on such a scale. We need to now respond to the changes that are occurring as our economy and society open up again. We are redistributing food volumes at twice the pre-pandemic level, and we will see an increase in food demand from organisations who are resuming their activities and those organisations who support people with increased economic and health need5 because of the pandemic. More than ever these organisations WILL need to bring us together as a society and food plays a major part. We wilL invest these funds caref ully over the next few years. We aim to substantially increase the food volumes we redistribute. Such a small percentage of surplus food is currently being redistributed so we will continue to build our access to that food. We will continue to build the capacity and reach of our network. The surplus is there and there remains a huge unmet need for food. We are proud of the role that Fareshare has played during this cr7sis. Thank you to all of our volunteers, staff and partners who have made that possible. n Bason Lindsay Boswell CBE CEO Strategic Report 20/21 Fareshare's annual impact at a glance The Fareshare network aims to support charities and community groups that address the causes of hunger through the provision of referral services and support. Fareshare food connects a vulnerable or hungry person with the local support they need. Over the last year we have seen considerable disruption to our charity base. As a consequence of the pandemic, the percentage of organisations we support which deliver food parcels increased from some 10% to over 70% of the total. This was due to the need to switch provision of food suitable for cookTng communal meals to delivering food in parcels. Some 4,000 of our charity partners ceased operations this year as a consequence of the lockdowns. However, we started to provide food for 4,CK)O additional charities, which stepped up to help address the sociaL issues of lockdowns. We expect communal meals and food sharing to return as communities reconnect post pandemic. Our charities tell us that they saved some £18.6m by receiving surplus food from Fareshare over the last year. This means that those charities. precious budgets could be invested further irb the life enhancing services they provide that help people to get back on their feet and find a more positive life pathway. Whilst the numbers opposite tell their own story, behind each meal is an individuaL whose quality of life is being supported and improved by the work of local front-line community groups. These groups are critical in helping those of us who fall through the cracks of society at our time of greatest need. 54,203 tonnes of food provided to communities Our income grew from £16m to £72m and thls year included £30m specifically for the purchase of food. The table below shows the food volumes obtained by Fareshare from surplus, purchased and donated sources, and the change year on year. Source of food Tonnes Tonnes (19120) (20121) Surplus 22,255 35,299 59% increase Purchased 525 12,587 Donated 763 6.317 Total 23.543 54.203 130% increase Our core mission is to divert surplus for social good, and we increased the surplus food by 59% year on year. As a response to the pandemic we supplemented the surplus food this year with purchased and donated food. We were asked by the UK government (DEFRA) to purchase £26.6m worth of food to redistribute to charities and community groups in England. The Scottish Government provided £2.5m and Welsh Government provided £500k directly to our Network Partner Fareshare Cymru. We were also recipients of some very large donations of food. In particular we received £11.5m worth of food from Tesco and £1.5m from the Co-op. In order to maximise the volume of food purchased from the Government grants as well as the food industry food purchases. Sainsbury's covered all the transport and logistics costs relating to these with a specTfic £3m donation. The table below summarises the major donations of food and funding received by Fareshare to enable its emergency response. e of activi Grant funding in two tranches to urchase food in En land Donation of food Funder DEFRA Value £26.6m Tesco £11.5m (plus an additional £7.5m to purchase food to redistribute to the Trussell Trust network of foodbanks £3m Grant funding to redistribute food Grant funding to purchase food and redistribute it in Scotland Grant funding to support surplus food provision, food redistribution and financial support to the charity communit Donation of Food & Fundraised Income To support surplus food provision Sainsbury's Scottish Government Asda £2.5m £2.5m" Co-op £1.5m in food £1.7m in fundin £0.75m ' The Julia and Hans Rausing Trust The Compass Grou Waitrose & John Lewis Partnershi Donation of food £0.5m Donation of Funding £75.000 £0.5m recognised In 19120 financial year. RecognTsed in 19120 financial year 4 meals per second redistributed, every single second this year Food equivalent to 132 million meals were provided throughout the year by the Fareshare network. This extraordinary volume of food equates to 4 meals per second. for every second of the year. day and night. for 365 days. The weekly average number of meals has risen from a pre- pandemic 950.000 each week to 2.54 million meals provided each week to the charities and community groups that the Fareshare network serves. 10 10,542 Charities supported We provided food to 10,542 charlties and community groups over the course of the financial year. We saw enormous change in the nature and makeup of the charities we supported with food over the year. Many charities closed because their service was either not appropriate for a lockdown or those running it were themselves vulnerable. Others stepped up to the challenge of delivering food parcels to individuals, homes. The overall number of charities served remained very similar to the previous year (10,860) although the types of organisations and the amount of food they each received changed dramatically. We expect there to be considerable further change in the year ahead. Sharing food is essential to building communitles and connecting those needing help with those local services that can address their problems. We want to SUPPOrt as many of the organisations that ceased to operate last year to start up again. We need the drop-in services as well as lunch clubs, particularly for the elderly. to start up again and create the community connections needed to address isolation and loneliness. It WTII be a big challenge to step up our services to support all these returning services. Charity breakdown The types of projects and number that we supported in 2020121 is shown in the table below. During the pandemic we reached out. and supplied food to, a large number of organi5ations beyond the Fareshare network. This year our priority Switched rapidly to getting food parcels to those in need and isolatTon. However. we know that giving someone food. In normal times. only addresses a symptom of their problems. namely hunger. Identifying the deeper-rooted cause then allows a local service to support a long-term solution. Our food creates and connects communities one meal at a time. In this way we will help build stronger and more inclusive communities. This is the real power of Fareshare food and why we are fighting food waste. Charity Nature of Project Food Bank Number of Charities total 1,805 1,555 Community Cafe or Centre 15% Multiple services SchooL Club 1,414 892 13% 8% Children and Family Centre 614 6% Supported Housing Youth Centre (After School Centre) Drop-in Centre Alternative services 599 6% 437 4% 405 4% 373 4% Breakfast Club 360 3% Place of Worship Hostel 339 335 Day Centre Lunch Club 308 3% 270 3% Soup Kitchen Advice or Resource Centre 172 2% 168 2% Addiction Support Hospice or Care home Training Centre Residential Rehabilitation Service 136 105 1% 88 1% 1% Refuge Social Befriending Medical FaciLity Prison 42 <1% 26 <1% 21 <1% <1% 12 The Primary Client group supported by the charity network, and number of those charities that received food from Fareshare in 2020121 is shown in the table below. Charity Primary Client Group Low Income Families Number of Charities split 39% 4069 School aged children Multiple primary client groups 1230 12% 1149 11% Homeless People Elderly Physical or Mental HeaLth Conditions 1051 604 6% 431 4% Pre-school children 4% Alternative primary client groups 347 3% Young people Drug or Alcohol addiction Asylum seekers Black and Minority Ethnic Communities 314 3% 193 2% 105 1% 103 1% Ex-offenders 91 Refugees Domestic V701ence survivors 91 1% 79 1% Socially Excluded People In-care 1% 51 <1% Not in Education, Employment or Training Long Term Unemployed Lone Parents <1% 39 <1% <1% Ex-service Personnel or Veterans 27 <1% Carers 10 <1% LGBTQ <1% Food supplied, on average, to each charity increased by 139°A The charities we support stepped up their activities this year. The average volume of food supplied increased to each charity from 2.2 tonnes to 5.2 tonnes, an increase in the equivalent number of meals from 5.253 to 12.520 per year. Charities receiving food from our warehouses increased the average number of people they each served from 96 per week to 120 per week. Charities receiving food direct from supermarket stores via Fareshare Go increased the average number of people they each served from 69 per week to 89 per week. £18.6m saved by the charities we served Each year we ask the charities that we support to estimate the financial savings they make by receiving surplus food from Fareshare. This is not an estimate of the market value of the food they received from us, because in many cases the quality and type of food is often higher than they would have been able to afford with tight budgets. This year so much of the food was redistrlbuted by food parcel which is a food format not used by many of the charities before the pandemic. As a result. the market value of thi5 food is not included in this financial estimate. This financial year they estimated a cumulative saving of £18.6m which compares to £14.3m last year. The charities tell us that as a result of the savings, they are able to reinvest more money into their services to further support their clients. Last financial year we looked closely at the measurement of this financial impact and now do so in a very detailed way. Although volumes have grown each year, we consider that these reported financial savings now ref lect the diverse nature of our charities. 14 Our own food waste We support the calls for the food industry to publish data of their food waste annually. We have seen our own food waste increase frorn 800 tonnes. 5% of the surplus food we received last year to 2,000 tonnes, 3.6% of the surplus food we received this financial year. The main driver of our waste 15 the small proportion of food that we receive with 17ttle or no time left before its use bylbest before date. Although our waste is a small percentage of the food we receive. we remain determ7ned to do all we can to reduce it. However. we want to accept as much of the food that is offered to us as possible and not let our waste metric become a barrier to accepting food. Fundraising Last year, without the statutory restricted funds. Fareshare raised £38.8m which compared to £10.9m in the previous financial year. The dramatic increase was the result of the generosity of the UK public, trusts. foundations, and companies in supporting our work. Over the past year this has been nothing short of staggering. .A r￿table feature of the funds raised this year was the step change in the amount received from individual giving. This has given us a much stronger platform from whlch to build our individual donor base which we believe will be a key to addressing our longer-term financial sustainability- To this end. we have undertaken research to understand donor motivations and preferences. The food retail sector stepped up en masse and responded with not only financial support. but also a strong commitment to help promote Fareshare to their respective audiences through advertising and campaigns. A collective response to get food to people in need saw us partner7ng with the Co-op at Easter, The John Lewis Partnership at Christmas and with Asda. Sainsbury's and Tesco throughout the year and we thank them for generously putting us at the heart of their activities. Fareshare has also been delighted to begin new corporate partnerships with supporters such as Barclays and McDonalds who initiated new activities and Fareshare has also been delighted to begin new corporate partnerships with supporters such as Barclays and McDonalds who initiated new activities and provided much needed funding for our increased food redistribution. We received unprecedented support from high profile supporters who provided significant financial donations to our mission but who also lent their voice to help us reach new and wider audiences. This year would not have been the year that is has without the wonderful support of Sir Alex Ferguson and Si r Michael Moritz who came together to contribute towards Fareshare's work. having seen the spotlight shone on the issue of food insecurity by Marcus Rashford. Not only did their contributions lead to additional funding by The Moulding Foundation. for which we were extremely grateful. but when Fareshare was fortunate to be chosen as one of The Times and The Sunday Times, Christmas Appeal charities to tell the stories of our food using charities, their beneficiaries and our own volunteers. this campaign was amplified even further by their commitment to match-fund all the donations received. The overall campaign and sums raised for The Times. Appeal was their most successful one to date and we were proud to partner with them. Music also played its part in helping to raise funds for Fareshare during the year and we have been thrilled to have had the support of several artists who chose to donate the proceeds from songs, concerts and other activities. We express our heartfelt thanks to the following artists not only for their valued donations but also for taking Fareshare to their audiences. Matt Lucas for 'Merry Christmas, Baked Potato. song and book Celeste for 'A Little Love, Becky Hill for her song 'Forever Young. Louis Tomlinson for his live streamed concert The many artists at the Music Feeds Festival organised by Co-op The continued and in many cases. much increased support from our existing donors provided great reassurance during this crisis. Particular thanks for their generosity: The Julia and Hans Rausing Trust Enterprise Rent-A-Car The Global Foodbanking Network Garfield Weston Foundation Esmée Fairbairn Foundation John Laing Charitable Trust Calleva Foundation 16 8lackRock Fidelity UK Foundation Sodexo Comic Relief The National Lottery Community Fund Pimco European Food Banks Federation Richard Brindle and family and Fidelis Insurance Mike & Helen Brown United Utilities Direct Llne CCEP Pepsico Generation IM Our Fundraising Principles Fareshare Is registered wlth the Fundralslng Regulator, which Is responsible for the UK code of fundraising practice. Our approach 15 to ensure that we comply with the standards as set out in the Code across all of our fundraising activity. We comply with the behaviours required by the code and we will not exploit the trust or lack of knowledge or awareness of any donor in vulnerable circurnstances. All of our fundraising is managed by our own staff. We do not employ any third- party professional fundraising organisations to carry out our activities. other than using a third-party payment platform to receive and manage online donations. The platform used provides the security processes to protect donors and the charity. and their funds. and reduces our administrative burden and costs. During the 2020-21 year. we received a very small number of complaints from supporters. These mainly related to the fees charged to Fareshare by the payment platform and consequently we are investigating the value for money of this service. We continue to be committed to addressing any expression of dissatisfaction on the part of our supporters and to examining ways to improve the levels of our service to them. 17 Surplus with Purpose Fareshare's 'Surplus with Purpose. fund mainly helps small to medium syze farmers and growers. as well as some manufacturers and producers, to get more of thelr surplus food to charity. We do this by making it cost-neutral for them to redistribute their surplus food against other forms of disposal such as ploughing crops back into the ground or diverting it to anaerobic digestion when it Is fit for human consumption. Last year alone the 'Surplus with Purpose fund. accounted for 69% of all surplus food that we diverted with the vast majority of this being healthy fresh fruit and vegetables. It is an elegant and practical 501ution for businesses to follow the waste hierarchy• help deliver a social difference and reduce waste. It also contributes to food businesses achieving a range of environmental targets: the United Nations Sustainable Development Goals. targets set out in the IGDIWRAP Food Reduction Roadmap. and the Courtauld Commitment. This year the equivalent of over 44 million meals were delivered to those who needed them. This represents 104.223 tonnes of carbon mitigated as a result of using this food to feed people. as opposed to just 5.910 tonnes rf it had been Sent to anaerobic digestion. or worse still. emitting 55.355 tonnes of carbon if it had been sent to landfill with no methane capture. Internal research shows that the scherne has already achieved significant levels of awareness throughout the food industry. 61% of those businesse5 who used the scheme were likely to sustain the processes and behaviours adopted thanks to the funding that has been made available. This year special thanks go to the Julia and Hans Rausing Trust who were very fast to support the expansion of this work right at the start of the pandemic. and also Asda who quickly saw the benefits and were generou5 With the?r support. We are grateful to the Scottish and Welsh Governments for their support for this programme. Our key policy ask of the UK Government is to support UK farmers and growers through the Surplus with Purpose fund at a level of £5m per annum. To do so responds to the social. healthy eating and environmental agendas of the Government. 18 Our selfless volunteers and warehouse staff Over the course of the pandemic. we recruited and trained over 1,700 new volunteers and expanded our volunteer base dramatically. All were designated as key workers. Thanks to our partnership with The British Red Cross, we received more volunteer applications in one week than we did in the whole of 2019. This financial year volunteers provided 668.000 hours of support to Fareshare. an increase of 14% over the previous financial year. We owe a huge debt of thanks and gratitude to the volunteers and staff right across the network for their dedication. determination and bravery. Thank you so much! 19 How communities responded to Covid-19 The following stories highlight just four of the 10,542 incredible communities we served last year. ChangeKitchen CIC ChangeKitchen CIC is a social enterprise event catering company, specialising in vegetarian and vegan food and supporting adults furthest from the labour market back to work. Just before lockdown, the organisation had all bookings for events cancelled, a5 meetings were not allowed to go forward. During the pandemic, ChangeKitchen CIC became part of #BrumTogether, a collaborative project connecting voluntary organisations around Birmingham, providing support and essential supplies to those supporting people throughout the pandemic. Since the start of the lockdown, the organisation worked with The Active Wellbeing Society (TAWS) to cook nourishing, tasty meals from surplus food for those who are shielding as well a5 people who have lost their job and struggling financially as a result of the coronaviru5 pandemic. Through the Fareshare Go scheme, ChangeKitchen CIC collects food f rom Waitrose Hall Green and Waitrose Harborne which is then used to create nutritious meals. Dr Birgit Kehrer, Director and Founder at ChangeKitchen CIC, said: "We've cooked I3,(￿ meo15 in the lost three months, ond we're supportins around 360 people per doy, with six meols o week delivered to their door. Neorly oll this food comes from Foreshare Go. "We're helping to feed reolly vulnerable people. A lot of people ore in difficult situation5 currently and there hove been whole families getting in touch who haven't eaten for day5. They've got no acce55 to food, some ore self-isolating. There's hundreds of 5torie5 where people are in heart-breaking circumstances - some people hove tears in their eyes when the delivery drivers arrive. "Things are fizzing down a little bit now but I think it might set reolly bod asoin when redundoncies hit so we misht hove to pick up asain. We're tryins to 5toy involved enoush that we con turn it back on quickly if we need to. 20 Malachi Specialist Family Support Services Sarah, a mother of five living in Bimiingham, knows how important it can be to know that there's someone to help you in your time of need. "I'm a mum of five,, she says, "all adults apart from one 15 year old. I'm a full-time carer for my eldest daughter, helping her to take her medications, reminding her to eat. A few years ago, Sarah reached a crisis - waiting for benefits to kick in wh71e bills piled up. "It was either keep the house warm or eat," she remembers, "terrible, having to decide between buying food and paying the bills., Her son's school referred her to Malachi Specialist Family Supwrt Services, who helped her access food from Fareshare. 'It was quite a relief to know that there's people out there that care and can help. They brought food I could cook viith: chicken, cheese, tinned soup, all sorts, she remembers. Kim Ensor, the Building Manager and Family Community Connector for Malachi Specialist Family Support Services, speaks proudly of Malachi's track record in the community. "We've been working with FareShare for about eight or nine years, she explains "I think the fact we've gone on for so long really shows what it means to the community. It's had a big impact. For people who are desperate, it can just make a world of difference. We've had people come in crying, we get thank you letters all the time. We alway5 try to talk to people, see what's going on at home, if there's anything else we can help with. I think maybe the biggest impact is that people in the community know that if they're struggling, it's there for them, there'5 someone who can help. Both Kim and Sarah say they Saw how hard the Covid-19 pandemic hit people across Birmingham. 'People have been furloughed, they've lost their jobs or had their hours cut,, says Kim, 'I'd say we normally get about 20 people picking up food in a week, and that's tripled, maybe even quadrupled, over the summer. To meet the surge in demand. Malachi increased their Fareshare delivery to launch a new food larder program in March, with thrice weekly pick-ups. "We've probably had about 6CM) families come through since the start of summer, says Kim, "Most of them totally new to us, we've worked with organisations across the city so we can reach people from all over Birmingham. For a lot of people they had to choose between buying tCM)thpa5te or a loaf of bread. With Fareshare, we can make sure they've got those shelf staples: pasta, rice, chicken, fruit and veg, tinned food. We also put recipe ideas in the bag and encourage families to share their own recipes. It can be difficult for some families being at home, especially if they're struggling with things like domestic violence, and cooking can be something to bring people together in a positive way." 21 Open Door: Connecting people in a crisis The staff at Open Door are accustomed to "wearing many hats," says Rosie Radford, the organisation's cheflcommunications officer. As the coronavirus crisis has worsened, however, Rosie and her co-workers have had to be more resourceful than ever to help those in need. Normally, the charity would be opening its door5 four times a week for around 60 guests to come and get breakfast, "endless cups of tea and coffee" as well as hot lunches, sandwiches, and food parcels on different days of the week. Guests were also provided facilities to do laundry and shower, as well as provided with support in reaching out to other organisations dealing with addiction, unemployment, and counselling. The relaxed, social approach of Open Door has made it a cornerstone of many guests. lives for the past 28 years. As Rosie describes: "One of our guests said to us 'it's just like being at a friend's house. And it is there's that atmosphere of 'come inl Put your washing in, have a cup of tea!. It really does feel like home. It's like a family. To adapt to the new circumstances of the pandemic, the staff of Open Door have had to temporarily shutter their site and quickly transform their jovial dining room style food service into a food parcel delivery system. Rather than showing up for tea, community members can now reach out to Open Door via telephone to request a food delivery. "Not a single call has been what l expected,, Rosle tells me. "We're getting people who maybe didn't use Open Door before but who are vulnerable and now need us. We've been working long hours, evenings, weekends, we're havTng to roll with the punches., Rosie puts the parcels together from the dry food stocks they've received from Fareshare, tailoring each parcel to meet each person's needs and cooking ability. "My life is Fareshare,, she says "and I love it, everything I do is based around those deliveries. Though they've had to change the way they do things, Open Door's staff knows that they're needed now more than ever: "Right now it's primarily people with mental health issues in need of the deliveries, but we might see more people in financial trouble feeling the pinch and needing our help. Mental health issues, addiction, those things don't just evaporate in a crisis. They can make it harder to stay indoors and stay safe. If we can support what the government wants and help people to stay home by making their lives a little easier we'll do that. We've also been working with other organisations in the area on how to feed homeless people who've accepted temporary accommodation in hotels. Being unable to physically gather together has been a blow to the Open Door community, but Rosie and her team are determined to rnake sure people still feel connected and cared for, even in the time of social distancing: "It's a big challenge and it's about everyone coming together and fTguring out how to help. Even if it can't be a hug and a long chat, if someone cares enough to show up) make sure that you have something to eat, you at least know you have some kind of support. It makes your life a little bit easier, and these things can make a difference. 22 The People's Pantry - creating space for community through food The People's Pantry in Leven, Scotland is not only feeding people, it's helping to change to conversation on food insecurity. "Many of our volunteers have expen.ence with forxd insecurity and their experience has really shaped the direction of the Pantry" explains Billy Bain. a Fife Council Community Learning and Development worker and Pantry co-founder. "We worked with them to craft a dignified response to food insecurity, and we've done that by connecting it to something larger. We've changed the conversation from food insecurity to food waste. vthich changes h(Yw people see eXperie￿e of coming to us. It makes it positive, many of our members tell us 'we're helping ourselves but we're also helping the enVIrc￿ment. The basic model of the People's Pantry IS STmple - memt)ers pay a small weekly membership fee which entitles them to ten item5 from the Pantry's selection, primarily provided by Fareshare. -we wouldn't be able to do this without Fareshare. They're our rnain source of fo(Ml. There's lots of fruit and veg. lots of chilled food. It's so varied, which means you have to plan around it each week. but our members have really embraced that. We're quite a deprived area so it gives people a chance to vary their diet and try things they w¢)uldn't normally get to try, and they're sometimes Quite luxurN)us itemsl i* The Pantry's dignified and engaged approach has gone over weil with its 135 member5, who before the pandemic would sh¢wé up to the Pantry's café pick-up every week: "It's become a community. At first people would just kind of sit on their own and wouldn't really talk, but now there's a real family atmosphere. People will tell us .1 lived streets away from this person and never knew them. but now I do,. They'd arranging bus journeys together, swap recipes on Facebook - there's even a team putting together a recipe bookl" When the pandemic arrived everything changed very quickly, as BSlly remembers: -we were hit with thi5 massive demand. People who'd been really laid out, no food, no money, rn heating. We had to basically shut down everything we were doing and set it up again so we could do it safely. So we ran a socially distanced version of the Pantry on Fridays, but we realised that many of our members were vulnerable and wouldn't be able to come so we Start￿ doing deliveries as well. For a lot of people they weren't Teally seeing anyone else in the week so havinq that little bit of interaction was so important. We had to do things at a distance of course. but I'd clown around at bit and we'd have a laugh. It really helped people to relax and feel safe and connected. In the initial six weeks of lockdown. the amount of people seThed by the Pantry nearly tripled. -on average we were reaching about 350 families a week," says Billy, "we froze our permanent member list but we've registered a lot of temwrary members, and for the time being we've waived the fee for everyone. We just put a blanket around the community to try to shield them from this. And we couldn't have done it without Fareshare. They very quickly picked up that we were there now to support the whole of Leven, not just our members. Our Fareshare Centre in Dundee were just amazing and we were really able to help each other in getting all this food out. We've probably delivered 8,IJXI to 9,000 food parcels over the past several month5.- The Pantry is looking to keep building as they Iwk forward to the future. -1 have to say I'm quite positive about the future,, affirms Billy "A lot of the people we work with are what we call hard to reach, they don't tend to surface and ask for help until there's really a dire need. So our food has helped us create relationships with people that we're going to build on. If soffleone is experiencing food insecurity, it doesn't happen in isolation. Through foTrJ we've created a space where people can be respected and listened to. and where we can have these conversations ab(xrt what else is qoinq on with them. 23 How the UK food industry supported Fareshare through the pandemic The food partners that Fareshare is proud to work with have gone far beyond the provision of surplus food during the pandemic. They also providing essential funding and other support to help Fareshare scale up to manage the huge increase in food volumes supplied to Fareshare. We are very grateful to those food partners who responded to the pandemic by donating food as well as their surpluses. They also provided funding, Logistical space and expertise, as well as focusing their marketing campaigns to support our cause. The awareness of food poverty by the general public has increased massively during the pandemic. Our partnershTps with the food retailers were a key to this, especially with the prominence they gave us in advertisin£ campaigns throughout the year. We are truly thankful to those food partners, both retailers and producers, who found the tirne and motivation to support Fareshare whilst battling with the implications of the pandemic on their own organisations. The following are just as small selection of case studies of the support we received from our major food partners. 24 Tesco support of Fareshare shows that every little helps In a year like no other, we are so thankful to Tesco for all of the support they have given FareShare in 2020. As the lockdown began, Tesco announced a £15 million package of food to Fareshare, Trussell Trust and independent food banks - a donation which resulted in the equivalent of 4.5 million meals being received into the Fareshare network. In Octoker, Tesco also announced a further £4 million of support for Fareshare. The generous donation has so far been used to purchase high quality cheese and meats, with a mixture of ambient food, and we will continue to purchase further food in the New Year. To further support Fareshare, Tesco ran an extra food collection in August 2020, in addition to its annual Christmas collection. With the challenge of Covid-safe measures in place and to ensure the safety of customers and Tesco colleagues in store, there were no volunteers at either collection this year meaning we had to look at alternative ways to increase awareness and encourage customer donations. Generous Te5CO Customers donated the equTvalent of 675.￿0 meals to Fareshare and items such as tinned meat and fish, tea bags and coffee, long-life milk and pasta have been welcomed into our warehouses. The food generated by the Tesco Food Collection is highly valued by the Fareshare network as it allows them to offer varied and high quality ambient food to charities and community group5 helping to feed people in need. For the first t7me ever, Tesco also provided its customers with the option to send Clubcard points to Fareshare and over £30,IXIO has been donated so far through this function. This option to donate was due to finish at the end of 2020 but, as this donation function has proven ty)pular. Tesco has extended the duration of this indefinitely. Through Fareshare Go, Te5co has also provided the equivalent of more than 60 million surplus meals to charities and community groups acr055 the UK. Every Tesco store in the UK participates in the scheme and each month more than 1.5 million meals of food is collected by organisation5 helping to feed the most vulnerable people in their communities. 25 Waitrose and John Lewis Partnership Give a Little Love campaign raises £3m John Lewis and Waitr05e raised more than £3m for Fareshare, Home-start, and other Iixal charities, through its Give a Little Love campaign. "We ore thrilled to have been oble to moke such o difference. As the impoct of this cruel pondemic is felt more deeply ocross society, we know thot now is not the time to take our foot off the pedal. We are hard at work with Fore5hare to see how we con even further supply food to those who ore soins hungry." James Bailey, Executive Director of Waitrose Partners, customers and communities all came together to support the campaign, aimed at supporting families across the UK affected by the pandemic with a raft of initiatives designed to provide nutrition, warmth and comfort for the vulnerable over the third lockdown and beyond. The funding has helped Fareshare assist charities and community organTsations, with the delivery of the equivalent of more than four million meals. Fareshare also saw an additional 3,000 volunteer registrations, up 364% from 2019, and the website saw a 255% increase in visits when the Give A Little Love campaign began. The John Lewis PartnershTP has pledged to extend its support, pooling the expertise and passion of Partners, resources, networks and time to meet the specific needs of the most vulnerable in society* backed with a further donation of £2m to both charities. Although the Christmas campaign finished at the end of December, the charitTes have confirmed that the need to support vulnerable families has never been greater. Fareshare estimated that during the initial two rnonths of the first lockdown, eight million people experienced food insecurity, while Home.Start said they continue to see families facing isolation and struggling to provide basic needs such as heating and clothing. Pippa Wicks, Executive Director of John Lewis, said- "The aim of our Christmas campaign was to harness the spirit of kindness we saw in the first lockdown and there's no doubt that we achieved this. But families in need are facing a whole new set of pressures. Although Christmas is traditionally the time for giving, we believe we need to continue this spirit of kindness into the New Year. 26 Thank you Co-op, for helping us get more food to those in need At the start of the coronavirus crisis, Co-op got behind Fareshare to help those facing hunger - not only donating £1.5 million worth of food to help create food parcels, but pulling its own Easter TV advertis?ng campaign and donating the airtime (worth £2. 5m) to raise money for Fareshare's emergency coronavirus appeal. The campaign allowed customers to donate in Co-op stores and via text and even through their Co-op membership by donating their 5%. This has meant they have supported Fareshare in delivering over 2.7m meals to those in need. Jo Whitfield, CEO, Co-op, said: "In these times of notional crisls, foodbank5 Ore a lifellne for those who rely on the donations to feed their familie5. Demand for foLxlbank services ha5 already gone up in the past couple of months, and thi5 is only set to grow os the number of people who unexpectedly find themselves without a resular or reduced income, increoses. "Every doy we ore Seeing outstondins act5 of kindness 0$ communities pull together to support those who are 5trugglins. ond our omozing Co-op member5 ond customers tell us they want to help to support their communities ond do right by those in greatest need. 27 Asda diverts 5 million meals to local charities through Fareshare Go in-store surplus scheme Asda has donated five million surplus meals from stores to charities via Fareshare Go, giving vital support to local charities and community organisations acros5 the country. "We are extremely proud to have helped so many people through the back of store donation scheme and l am thankful to every store and depot whose hard work has made a big difference. The amount of food donated to charity through our back of store donation programme has increased by 58% over the past year and helped us as a company donate over 18 million meals since the start of the partnership. Karen Todd, Senior Manager for Asda's Zero Waste Thanks to its partnership with Fareshare, over the past three years the supermarket has donated much-needed quality, in-date produce. often including bread, bakery items, fruit, vegetables and eggs. These products can no longer be sold in store due to shorter sell-by dates. With help from Asda colleagues and Fareshare, charities and community groups can receive up to five collections a week from Asda supermarkets, 5uper5tore5 and supercentres across the country. The scheme is part of the supermarket's Fight Hunger Create Change programme and has been rolled out to all of its stores and depots able to donate surplus food. This rollout has meant that the supermarket has donated 3m meals this year alone. Karen Todd, Senior Manager for Asda's Zero Waste, said: "We are extremely proud to have helped 50 many people through the back of store donation Scheme and l am thankful to every store and depot whose hard work has made a big difference. The amount of food donated to charity through our back of store donation programme has increased by 58% over the past year and has helped us a5 a company donate over 18 million meals since the start of the partnership. Lindsay Boswell, Chief Executive at Fareshare, said: "We're incredibly grateful to Asda for their continued efforts in redistributing surplus food that has become available in their stores especially during what has been such a tough time for so Many. The Covid-19 pandemic has put a massive strain on a lot of charities and community organisations. because they are facing increased demand as more people struggle to make ends meet. "Being able to Source good to eat, free surplus food from retailers through Fareshare Go provides thousand5 of vulnerable people with much needed f¢x)d that they otherwise wouldn't have access to. Asda has also donated £23 million across two years to Fareshare and the Trussell Trust, a leading food bank network, to help create long-term positive change to poverty in the UK. The donation has already helped expand Fareshare's food distribution network and allowed the charity to accept donations of fresh produce so they can help more people in need. It ha5 also enabled the Trussell Trust to fund additional services, such as debt and benefit advisors, for recipients of its emergency food parcels. 28 Plans for the future After a year of emergency response. we are clear that our focus Is to divert a lot more surplus food to the front-line organisations that we support. Retaining the focus of using an environmental problem to drive social change remains our passion. Demand for our servlces will remain challengingly high. There is a large body of evidence that our food is going to be needed more than ever to support charities and community groups that provide a safety net for increased numbers of the vulnerable as the country emerges from the pandemic. We are expecting many of the charities and community groups that had to cease their services to start up again so demand for food will only grow. Our afm is to more than double the volume of surplus food we make available over the next few years. We will need to make further investment in the people. processes. transport. logistics and infrastructure to deliver this growth. We also need to ensure that we can sustain our operations at this much higher level over the coming years. We are investing substantially in our ability to secure more food, to handle these increased food volumes in more efficient and effective ways as well as to strengthen our income generation. especially our pool of regular individual donors. To support this ambition. we start 2021122 with reserves of £28m which resulted from the strength of the support we received in the financial year. £5.8m of this is restricted and we will carefully commit the remaining unrestricted funds over the next few years to build and deliver the capacity needed for this increased impact as well as secure our sustainability. We aim to: Secure higher volumes of food aiming for a more than doubling of the surplus food we delivered this financial year. Up to £14m of the unrestricted reserves will be used over the next few years. This will support us in accessing the increase in food volumes and the investment needed in transport, logistics and operational processes. A fund of £2m will be made available to our Network partners to invest in increasing their capacity. 29 An Investment in our fundraising capability with an emphasis on building our income from individual donations. We see this a5 a key to providing long term financial sustainability for our operations. To secure the financial stability of the organisation, the trustees consider it prudent to create an appropriate free reserve which is based on our risk analysis for the charity. The policy is detailed on page 36 of these accounts and show that a free reserve of £5.1 m is required at the fi nancial year end. Through these investments. at the end of a three-year period. our aim 15 to have the food. staffing, infrastructure and income needed to sustainably maintain that level of activity in subsequent years. 30 We would like to take this opportunity to recognise and thank some of our many corporate. trust and grant and individual supporters. The 29th May 1961 Charity Ab In7tio Software Limited The Access Grwp The ￿int Charitable Trust Pepsico Peps￿0 Foundati Pwmira Fwndati Petef S)werby FtyJndatk>n opg rJDJp Or Oetker Ltd Elizabeth Hardie Ferw Ch￿ta￿eTr Fund Enterprt5e Reni.A.Car Fcwdatb E5mee Faithairn FtyJrKJatu Eurwn fr**Y ￿￿ks Federari Eur(Ma Fldeiis In5urante F￿•￿ItY Investrnents The Fidelity UK FuJndati(xi Forterra Fort￿et Fraser5 Pryrty (UK) Ltd Garfleid west￿ Fwndat GÉreol MIU5 Foundatifyi Ger*rniiM VA FwThJat Global FecdBanknng NEt Gd(len ￿￿ F(￿$ G￿￿.Lth)P Gwle UK Hampshlre aThJ Isle Of Wltht Crrnwity Fwndati( Headi¢y A￿)ert Gubay Foundètlon Allchurche5 Trust Alpha Laborattyies Amaz￿ UK Amfr Xhan Foundati MT Fruit An£￿)raRe Capi141 Euriye LLP Apple Inc. The Wad and Aiena Rosner F￿(lat)Dn p￿￿C0 Pdnce5 Fth>Y5 QBE Europ*￿ ciJwatiL•)s Rabc4)ank RaymoThY James UK Tinto Rothsthlld Fcthdaiit S&P Glf)bal 5afestwe Sage Fourmlati Capltal Atrato Capltal Partners Avenue Europe knagement LLP Avfva Investor5 alrd Eumpe Bakkavor Grnup Bank Of Arneric Barbet Charitable Trust Sarnworth Brotf*rs Schr¢)Jv5 otmid 5HL Grr¥Jp 5*Je On Barclays BDO UK Sir E(hYard Lem5 Foundatirm The &r Joseph HotLng Charitable Settlem￿r Smith atKJ w11llaN￿on Sobeil Foundatic knal Bite Fund iety of the Holy Child Je5U5 exo Hunger Foundotlon them Co.operatl¥e Standard Llfe Aberd Steve h1O￿an Foundation Strand Parishes Trttst ff0￿ c￿tY cr#J￿1 Tèkeda UK aTrY I￿ Taibot Vluaqe TnJsr The Taiert F￿1 Tesco The Trefoll Trust Troy A55et Manaleffient Tuth)r Capital Evrope Unite The Unlo) Unrted Uknlities Voiero Erergy Ltd Vthzon Wairr05e & Partner5 W￿nen UK. Kailo Fcods Ltd We5tmiftster Foundatic HEien and Mkhael Br(wn ChaffitabieTntst Hel￿nann.5 Fltachi Caprtal Islamic Relief Jane Strew Eur Jasme Ltd Jazz PhaIrn￿￿Jt￿a The ￿ Cl￿te5 Charitable T￿$t The Jth Horstxman Tru51 hn Lains Charitable Trust hn Le•rs & Partr￿5 The Charfiable TnJst LaKa5hlrE IngJrance Gjwp Latham & Watkrs LLP LlrtaRe Loglstics Livery¥)ol City CoJKiI l*￿J￿1 8a5el M&G PIC rcu5 Ra5hlonJ M8E Maryverite Fwndati( Math Corwrate Sthces MCo￿al￿5 UX Aledllne I￿￿tr*S Methc¥Js Michael Webber Tnsr The Mitchell Charitable Trust MJB Charitable Tntst The I￿￿[ding Fourkl&Kkl Murlel knes F￿ndat 14u%lim ￿￿5 MVF Global Natirmal Lottery ComrnLNiity Ffftl NNihamptonshire CommMity FrAmdaii Oaktree Capital Managemwt Othn Charftabie Tntst Bel UK Birds Eye Biriane Foundatl The Biss Da￿eS Charftabie Tnjsi 8iackRock Biackstone Bic￿Mberg LP UK BPR Group Europe Ltd Br(tsne Family CharitaNe Tn BROPA Ltd Burbeyry Cad￿t Gas Calleva FL￿daLlI Caryill PLC Carollne HIr￿S Caterpiuar Foundat Centerbridge Foundation Central England Co-optyatlve The Chttnyniss F￿ndatIOn chen1￿e Energy Fwndatic Chubb Charitable FouThJatkn) City Bndge Trust Clifton College coca.caia European Partner5 G￿at 8rita Comic Relief The Cowmer G(Kx15 F¢xwn Co-operative Grojp COS Stores Crank5tart Credit Suisse D. E. Shaw & Co. LP. Da￿d and Ruth Famlly 0￿￿talAe Tnjst DEFRA Dwt5che B￿k AG Lc*d Dlrect Lire InsurJrKe Wisd(th Yree UK Ltd WRAP Yurnl BraTrJs Zlgiu Pep5iCo Pepsico Fmddt P￿Mi￿a FLwndatiL Oil Podcot Orbis In%*stmwts PDT Partne We would also like to thank those supporters not listed here, those who wish to remain anonymous, those who support us through regular giving, and those who have fundraised in support of our work. 31 Financial review The total reserves of the charity grew to £27.7m as at 3113121 (2020 - £5.7m) with unrestricted reserves at £21.9m12020 - £1.7m) and restricted reserves at £5.8m (2020 - £4.Oml. This increase was due to the significant increase in funding from all sources that started in March 2020 when the coronavirus pandemic took hold and continued throughout the financial year. Net income rose to £21.9m in the year to 3113121 (2020 - E1.8ml with £20.2m being unrestricted (2020 - £0.2m) and £1.7m restricted12020 - £1.6m). The rise in income that occurred during the year, the majority of which was unrestricted in nature, was faster than the capacity of the organisation to immediately apply to its charitable objectives. The trustees and management have planned to utilise these reserves over the next three financial years to increase the volume of food that the charity can source and redistribute, to increase the income generating capability of the organisation to ensure higher volumes can be maintained, to continue the process of strengthening the charity's network and to ensure that an adequate reserve5 base is rnaintained. 32 Income Total income this year of £T2.1m i￿reaSed from £16.1m In previous financial year. The unrestricted income in the year was £23.6m (2020 - £3.6m) and restricted Income was £48.4m (2020 - £12.5m). The sources of income a5 follo￿. Totsl Incorne 20Z1 2020 £'ooo Donation5 14.223 3.985 Major Grants Income Asda TNLCF Walmart 4.057 1.031 312 other Restrlcted Income UK Government . OEFRA Food Purthase UK Govemment . DEFRA Surplus T4ySth a Purwse Scottlsh Goyernrnent Fareshare Go 26.555 1,010 2.511 1.471 n9 1.871 Total restricted Donatfons CommercÈal and Tradine Charity Partner and Other Fees Investment Income Total unrestricted Total 48.442 ZZ,263 422 932 11.450 2.577 211 834 23.626 3.633 Restricted Income Restricted income was significantly ahead at £48.4m (2020 - £12.5ml. hlajor Grant Inc(xne at £2.7m was £3.2m lovffi than in the year to 31 March 2020 as the major Asda grant inconie was fully recognised in previous financial years. Income from The National Lottery Community Fund IYNCLF-) was in line with prior year5 at £1.6m, with income recognised in line with expenditure which is scheduled to be fully spent by the end of the first half of the financial year to 31 hlarch 2022. The Walmart grant income is also recognised in line with expenditure and was fully spent in this financial year. Corporate donations, excluding inc(xne from the Asda and Walmart major grants, were £9.7m compared to £0.7m in the previous financial year. with significant donations received throughout the financial year from ix)th existing and new donor 33 Donations from Trusts, excluding the TNCLF income. also increased significantly to £4.2m from £1.8m recognised in the year to 31 March 2020. The income from the UK government mainly comprised grants to purchase food to alleviate the immediate effects of the pandemic on families. The major grants from DEFRA for 126.6m was fully expensed in the year and we met all the requirements for the spending of this grant to deliver value for money for the taxpayer. The funding received from the Scottish Government covered food and other essential personal products for distribution through the Fareshare network in Scotland. 34 Unrestricted Income Total unrestricted donated inc(*ne rose to £22.3m in the year from E2.6m as generous donors, existing and new, responded to the pandemic across all forms. Corporate donations rose to £10.5m in the year (2020 - £1.6m) and included significant donations from corporates of all sizes. Trust incorne grew to £5.Om in the year from £0.7m in the prior year with existing donors increasing the funding available and many new trusts and foundations supporting the charity. Finallyi individual giving, both regular and one-off, reached 16.8m (2020 - £0.3m) as many thousands of new donors supported the charity due to the higher level of media coverage and high-profile supporters raising public awareness of the imporLance of our work. Expenditure Total expenditure on charitable activities of £49. 3m increa*d from £13.7m in the previous financial year. Of this total, £30.Om from the UK and Scottish Governments grant5 was Spent on purchasing food and Surplus with Purpose. The underlying spend on charitable activities was £19.3m, a rise of £5.7m from the year to 31 March 2020. The expenditure on charitable actTVltie5 also included continued investment into building capacity, including food handling, from the major grants. The expenditure on raising funds was £0.8m (2020 - £0.7m). The total spent on 5UPPOrt costs was £2.5m (2020 - £1.5m) which was 12%12020 - 10%) of Fareshare's expendTture, excluding the costs for major food purchases. The increase in support costs this year includes costs for systems development and the professional costs and asset write -offs relating to the restructuring of regional centres. Restricted expenditure of £6.3m (2020 - £5.Om) included expenditure funded by the major projects: Asda, TNLCF, Walmart, the Julia and Hans Rausing Trust and DEFRA Surplus with Purpose. Additionally, expenditure of C29.1m is included in Restricted Expenditure relating to the rnajor UK and Scottish Government purchasing programmes. Staff costs increased by 11% to £5.9m (2020 - C5.4m) as the charity increased its capacity to manage the demands of the significantly higher level of activity required during the year and the continued investment made in our people and organisation supported by Asda, TNLCF and many others. The cost of running the Regional Centres directly managed by Fareshare increased marginally to £3.Om {2020 - £2.9m) with the costs of increase activity levels this year offset by the disposal of the West Midlands operation at the beginning of this financial year and the London operation during the year. Fareshare Go direct costs decreased to £1.5m from £1 .8m due mainly to reduced staff travel and other expense levels. Cash flow and reserves Cash generated from operating activities was £22.1 m (2020 - £1.8m). Cash at bank and in hand increased significantly during the year to £29.3m (2020 - £7.8m) and mainly reflected the significant increase in cash generated from operational activities. Debtors increased by £1.8m due to higher accrued income. Higher creditors at year end reflected amounts due to the large DEFRA contract. 35 Unrestricted cash of £21.6rn {2020 £1.2m) ￿presented 74% (2020 16%) of the Gish at bank and in hand and restricted cash increased from £6.6m in previous the financial year to £7.7m this year. Within the restricted cash total. £1.3m relates to the rnajor multi-year grants from Asda, TNCLF and Walmart which were fundeo in advance. Reserves Fareshare has a risk.based reSerVL￿ ￿licY to wotert Operati￿al reqUIre￿￿nts of the charity from any short-teffli disruptions which will ensure that our network partners can continue to operate for the duration of a disruption. The Fareshare network supports over 10.IXKI charities and commun7ty groups providing food to in excess of one million individuals. If Fareshare y￿re suddenly unable to operate. the repercussions on our partners would be severe and cause seriou5 kyoblems for the vulnerable and disadvantageintment of Trustees The trustees, who are also directors and members of the charitable company? are listed above. Each year. one- third of Ihe Iru5tees retire from office but may stand for re.electi￿ according to the procedure5 set out in the Memorandvm and Articles of Association at the next Annual General Meeting. TIu5tees are recruited with a range of skills and experiwce that is needed best to ensure sound governance and strong progress towards the charity's mission an¢J aims. Newly appointed trustees receive an Induction that includes making them aware of their legal res￿sIbIlitieS as well as Fareshare's p￿iCIes. decision-making processe5. Strategic plan and recent financial performance. All trustees give their time voluntarlly and receive no b￿efItS from the charity. Ary expenses reclaimed from the charity are set out in note 10 to the acccMJnts. Organisation The trustees together constltute the Board that is Fareshare's governing body. Due to the urgent requirements of the Covid pandemic in this financial year the trustees met more than the rormal six meetings per annum. meeting every two weeks during the first lockdown. The trustees approve strategic plan and annual budget5 of the charity as well as overseeing rM)licy. The Finance Committee is a sub-committee of the Board of trustee5 arKI provides more detailed oversight on matter5 of finan￿ and audit. financial risk and long-teym sustainability. The Senior Leadership Team. led by the Chief Executive. is responsible for implementing the strategy and for progressing towards agreed key aims and objectives. Staff pay policy (including the sensor management team) Our approach to staff pay is deSIgr￿ to ensure we can attract and retain people with the experience and ski115 we need to achieve our mission and deliver our strategic goa15. It is applied consistently across the organisation. We aim to pay competitively in the not-for-profit sertor within the context of affordability. We therefore use external salary survey5 and other tools to enable us to benchmark our ￿larIeS against other charities. The lowest rate of pay is at least the living wage set by the LI￿￿9 Wage Foundati¢Jn. Annual increase5. if awarded are considered in April each year. taking into account the rate of inflation and organisational affordability. Annual increases are subject to approval by the Board of Trustees. This process is applied for all employees. Fareshare 1st Llmited Fareshare has a wholly owned trading subsiéiary. Fareshare 1st Limited. that has it5 own Board of Oirector5. The principal activity of Fareshare 1st Limited is to undertake commercial activitie5 on behalf of the Charity. The results of Fareshare 1st Limited, which are set out in note 12 to the account5. have been consolidated in these financial statements. 43 Trustees. responslbilities The tru5tee5 are also directors of Fareshare under company Law. The trustees are reSponS￿le for preparing financial statements for each financial year. Under that law the trustees have elected to prepare the finanoal Statements in accordance with United Kingdom Generally Accepted Accounting Practice Iunited Kingdom Accounting Standards} and applTrcable law. Under company law, the trustees fflust not approve the financial statements unless they are satisfied that they give a trLE and fair view of the state of affairs of the charity and of its incoming resources and application of resources, including the net income or expenditure for that period. In preparing these financial statements, the trustees are required to: select suitable aCco￿ting ￿liCieS and then apply them consistently. observe the methods and prinoples of the Charities. SORP. make judgments and estimates that are reasonable and prudent. state whether applicable UK ACc￿nting Standard5 have been followed. subjert to any material departure5 disclosed and explained in the Financial Statements. prepare the financial Statements on the going concern basis unless it Is inappropriate to presume that the charity will continue in operation. The trustees are reskx)nsibie for keeping adequate accowting recwds that are sufficient to Show and explain the charity's transaction5 and di5c105e rea￿nable accuracy at any time the financial position of the charity and enable them lo ensure that the financial 5tatement5 comply with the Companies Act 2006. The trLtstees are also responsible for safeguarding the assets of the charity arKS hence taking reasonable steps to prevent and detect fraud and other irregularities. Disc105ure of information to auditor5 In accordance with company law, each of the trustees confirms that to the best of hislher knowledge there is no information relevant to the avdit of whith the auditors are unaware. Each of the trustees alw confirms that he/she has taken all ne￿Sary steps to ensure that he15he is aware of all rel￿ant audit inf0miat1￿ and that this information has been communicated to the auditors. Auditors Our auditors. PKF Littlejohn LLP were re-ap￿Inted durlng the year and have expressed their willingness to continue in that capacity. Thls report was approved by the Trustees 31 August 2021 and signed their behalf by: ason hair Independent Auditor's report to the Members and Trustees of Fareshare Opinion We have audited the financial statements of Fareshare (the 'parent charitable company'l and its subsith'ary {the 'group'l the year ended 31 htsrch 2021 which comprise the Con￿lIdated Statement of Financial ActTVities, the Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial 5tatement5, including Significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and Uniled Kingdom Accounting Standard5, including FRS 102 The Finunciol Rewrting Stondord opplicable in the UK ar￿ Republic ol IrelarKI (United Kingdom Generally Accepted Accounting Practice). In our oplnion, the financial statements: give a tnje and fair view of the state of the grcxjp's and the parent charitable company's affairs as of 31 March 2021, and of the group's incoming resources and application of resource5. including its income and expenditure, for the year then ended. have beerk properly prepared in accordance with United Kir8dom Generally Accepted Accounting Practice. have been prepared in accordance with the requirements of the Companies Act 2006 Basls for oplnlon We conducted our audit in accordance ¥￿th Intemational Standards on Auditing IUKI {15As IUKII 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 reptyt. We are Inde[k￿dent of the group and parent charitable company In accordance wth the ethical reqirirem￿tS that are relevant to our audit of the financial statement5 in the UK, including the FRC'S Ethical Standard, and we have fulfi.lled 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 ba515 for our opinion. Conclusions relatlng to golng concern In au¢Jlting the finanoal statements, we have conclLKled ¢hat the trustees. use of the going concem basis of accounting in the preparation of the financial statements 15 appropriate. Based on the work we have performed. we have not identified any material wcertainties relating to events or conditions that. Individually or collectively. may catt significant doubr on the group's or parent charitable company's ability to continue as a going concern for a peri(Kl of at leart twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trl￿tee5 7Mth respect to going concern are described in the relevant sections of this report. Other information The other informati(x) comprises the information included in the report of the triJ5tee5. Other than the financial statements and our auditor's rem thereon. The trurtees are responsible for the other infomiation contained within the rerM)rt of the trustees. ¢)Jr opinion on the financial statements doe5 not cover the other information we do not express any form of assurance condusion there￿. Our re4)onsibility is to read the other inforfflation and. In doing so. C(￿51der whether the other information is materially inconsistent with the financial statement5, or our knowledge obtained in the course of the audit. or othemse appear5 to be materially misstated. If we identify such material inconsistencies or apparent malerial mi55tatements, we are required to determirie whether this gives rise to a material rnisstatement in the financial statements themselves. If, bèsed on the work we have performed. we cOncl￿￿e that there is a material misstatement of thi5 Other informati￿. we are required to report that fact. We have nothing to report in this regard. 45 Opinions on other rnatters prescribed by the CompanTes Act 2006 In our opinion. based on the work urKlertaken in the course of the audit: the information given in the tnistees. rew)rt. which includes the strategic report and the director5, report prepared for the purposes of company law, for the financial year for which the financial Statements are prepared is consistent with the financial statements. and the strategic report and the directors. reixyt included within the trustees. rewrt have been prepared In accordance with applicable legal requirements. Matters on which we are required to re￿rt by exceptlon In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors. report included wthin the trustees, annual report. We have nothing to rewxt in respect of the following matters in reiatlon to which the Companies Act 2006 requires us to report to yw if. in our opinion: dequate accounting records have not been kept by the parent charitable company. or returns adequate for our audit have not been received from branches not visited by us. or the parent charitable company's fIna￿la1 statements are not in agreemeni with the accounting records and retums- or certain disclosure5 of trustees. remuneration specified by law are not made. or we have not received all the Tnfomation and explanations requTre for our audit. Responsibilities of trustees As explained more fully in the truslees. res￿)nsIbl17ty statement. the trust*s {vtho are also the direct￿5 of the charitable company for the purwses of company lawl are reSp(￿Sible for the preparation of the group and parent chariiable company financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Iru5tees deterffline is neceswy to ￿able the preparatim of financial staternent5 that are free fr¢yn material mi55tatement, vthether thje to fraud or error. In preparing the group and parent charitable company finanaal statements. the trustees are responsible for a55essing the group and parent charitable company's ability to continue as a going concern, disclosing, as appllcable, matters related to going concern ar)d using the going concem basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations. or have no realistic alternative but to do 50. Auditor's responslbllltles for the audit of the financial statements We have been appointed audit￿ Ltnder the Companies Act 2LKJ6 antl retK)rt in accordance with this Act and relevant regulations made or having effect thereunder. Our objertives are to obtaTrn reasonable asYjra￿e ab￿t 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 Ihat an audit conducted in accordance wth ISAS IUKI will always detect a material rni5Statement when it exists. Mi55tatements can arise from fraud or error and are considered material if. individually or in the aggregate. th￿ COLTrld reasonably be expected to influence the economic decisions of users taken on the basi5 of these financial statements. Irregularitie5, including fraud, are instances of non-compllance with laws and regthation5. We design procedures In line with our responsibilities, outlined above, to detect material misstatwnents in respect of irregularitie5. including f raud. The extent to which our procedures are capable of detecting irregularities. includTng fraud is detailed below: We obtained an understanding of the group and parent charitable company and the sector jn which they operate to identrfy laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through di5CU55ions with management. industry research. aFpiication of £Un￿latIVe audit kTh)wledge and experience of the sector. We determined the principal laws and regulations relevant to the group and parent charitable company in this regard io be those arising from Companies Aci 2006. Charities Act 2011, employee and tax legislation. We designed our audit pr(Kedures to ensure audit team considered whether there were any indications of rh)n-compliance by the group and parent charitable company with those laws and regulations. These procedures included. but were not limited to. enquiries of management and review of minute5. We a150 identified the ri5k5 of material mTSStatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of contro15. that judgement was rewired with regards to the recognition of incoming resources and completeness of provisions. As in all of our audits. we addre55ed the risk of fraud arising from management override of controls by performing audit procedures which included but were not limited to: the testing of journals. reviewing accounting estimates for evidence of bias: and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. Because of the inherent limTrtations of an audit. there 15 a risk that we wll not detect all irregularitie5, including those lea(Jing to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation 15 removed from the events and transartions reflerted in the financial statement5, as we will be les5 likely to become aware of instan￿ of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error. as fraud involves intentional concealment, forgery, collusion. omission CK misrepresentation. A further description of ojr responsibilities for the audit of the financial statements Is 1(Kated on the Financial Reporting Council's website at: www.frc.or -uklauditor onsibilitie5. This description forms part of our auditor's report. Use of our report This report is made solely to the dwritable company's members. as a body. in accordance with Chapter 3 of Part 16 of the Companies Art 2()J6 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 retxsrt 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 the charitable company'5 member5 as a body for (wr audit work. this report, or for the oplnions we have formed. Alastalr Duke enlor Statutory Audltor) For and on behalf of PKF Littlejohn LLP Statutory Auditor London E14 4HD 15 Westferry Circus Canary Wharf 47 Consolidated statement of financial activities For the year ended 31 March 2021 li￿OrPOrating an incorTe and ex￿dIture account) T*tsl' Fw yj Income frrjm fu¥J5 D￿4tH)r 4.971 2,571 10,579 13.756 Other trad¥￿ actplitles Commerrial trading me fin￿stments 157 157 12 265 Z65 Z4 24 1Z 12 46,971 1,471 4B.44Z 69,665 2.4D3 10,579 13,379 Z.705 16.084 IroThe frorn tharitable actw6t*s 932 834 Totsl Income 23.626 3.634 Expenthtwe t¥pendiiure LYJ Ex ￿jI¢yre w tharltableactviitR5 816 665 665 Z,934 3.031 3,697 163 274 13,654 14,319 1.765 Totsl Exwnthtsjre Net Inco Trwtsfer betwew fwd5 50.157 10,622 1,828 12741 19.876 2.035 21.911 20. 21 Net m•Yement lft fur 20.179 1.732 21.911 Z11 1.554 1.765 BalaKe ai inTring of ￿aT Bal￿re at end of ￿ar 1,703 11.882 4.036 5,768 5.739 27,650 2.46Z 4,036 3,974 5.739 20, 21 1,703 The Grw has N) gains or10s5es than those sFhy•m atM)ve. On 10 November 2020 Fareshare completed a disp)sal of the Fareshare LLTh*)n operation which was acquired at nil cons?deration by The Feiix Project, are now Fareshare's partrEr in arKI an indeFEndent charity. The Tncome and costs of the London regi(￿1 centre up to 10 No¥*mber 2020 are Ir￿Luded atwve and have not been split Crtrt separately on tt* WA to materiality. For further detail See notes l arKI 7. The Fareshare West Midlands 0￿ration was disT￿ed of through a merger with FareShaTe Midlands, Fare5haTe's delivery partner fn the Midlands on 1 ￿￿12020. Any costs stheouent to that date miftamal and have been recharged to Farthre MidLYKts so h￿e a nil IrTW on the regJLt for the year. The Accounting Policies aThJ notes on pages 51 to 64 fom part of these financial statements. Balance sheets At 31 March 2021 11 20ZO Flxed Assets Tangible fixed assets InYestm& 13 587 799 587 14 587 799 587 Current Assets Debt￿$ 15 4,355 29,331 33.686 16,4351 27,251 14Th) 27,650 Z.598 7,830 10.428 4.323 28,9fj8 33,191 6.304 26,987 2.586 7.823 10,4C8 14,992 5,417 265 Cash at bark and ￿ hand Creth"tor5: *JnrAJnts falli due With￿ ￿ year 16 Met Current Assets 5,417 265 Creitit¢)rs: ImtyJnts falli dLt aftero ar 18 Net Asset5 5.739 27.386 5,739 Reserves unre$r￿led Funds General 21.882 1,138 565 21.618 1,138 565 Designated RestrKted F￿d5 21 5,764 27.650 4.036 5,768 27,386 4.036 5,739 Nel AssÈt$ 5.739 These financial statements were approved and authorised for iswe by the Board of Tru5tee5 Qn 31 August 2021, and signed on their behalf by. ohn Bason ector The Accounting Policies and notes on pages 51 to 64 f m part of these financi Statements. Registered company number: 04837373 49 Consolidated cashflow statement For year ended 31 Atsrch 2021 Funth Cath nows from (yratiry artivitie5 Net cash prowded by operdting *isitie51see reowKI" lat￿ beicw) 22.LW5 . 1.768 Cash flow5 from Investlrw4 ￿t%￿lIeS PUrth￿ of propwty. plami tiFApment 1584) 13081 Chor4t fn ¢45h 4nd cash lents in ye 21,￿1 At beqlmirw of >Ear 7,830 . 6,370 At eTrJ of 29.331 7.830 l*t (exp￿#1]l￿re}1irrnr* for wk•J {a5 PU the statenent of ￿Tr￿al aCti￿e51 jLLStrntYis for". DepT￿latI(fi tharges L055 (ffi disposal of fixed assers 21.911 1.765 277 95 IlrLre&sel1d￿ed5t in 11,7571 1.465 22.085 11.2471 IrKreaselldeueasÈ in u*lit¢) 1.768 The kcountlng Pelicies and ￿te5 ￿ pages 51 to 64 form part of these finartTai statenMts. 50 Accounting policies Year ended 31 March 2021 Basis of Accounting and Consolldation Fareshare Is a charitable cornpany ITmited by guarantee in the Unlted Kingthmn. In the event of the chaTity iETng wound up, the liability in respect of the g￿rantee is limited to £1 per memtw of the tharity. The address of the registered office Is given in the dtsarity infomiation on page 42 of the* financial statements. The nature of the chariiy's operations and principal activities are (kniiled in the Rerrf)rt of the Trustees on pages 8 to 44. The charity constitutes a public benefit entity as defined by FRS 102. The financial statements are of the Charity and its subsidiary tradTTh4 company. Fareshare 1st Limited. The financial statements have been prepared in accordance with Acc(MJnt7ng a￿1 Reporting by Charities: Statement of Recommended Prartice applicable to charities preparing their aCCo￿ts in accordance with the FIna￿la1 RemiTra S&iThJard applicable in the UK and Republic of Ireland IFRS 1021, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 102), the Charities Act 2011, the Clympanies Act UK Generally Accepted Practice as it applies from 1 January 2019. The consolidated financial staternents incortmyate the results of Fareshare and its wholly owned subsidiary Fareshare 1M No separate Statement of Fiw(ial Activitie5 or Cashflow Statement has been prepared for Fareshare as pemiitted by section ￿ of Companies Art 2(Kkn aThJ FRS102 Sertion 1.12(b) re5peLtiYdy. The firwnclal statements are prepared on a going c¢mcern basis under the hi5twical c05t convention, modified to include certain items at fair value. The financial statements are prepared in sterling vthich is the functional currency of the charity and rO￿ded to the nearest £'IX(I. The signifTcant accounting pJlTcies applied in the preparation of these fIna￿la1 statements are set out below. These Fdicies have been consistently applied to all years presented unless otherwise stated. The accounting policies adopted are the Same for Cc¥npany and for the Gr(w. Incomlng Resources and Resources Expended All income and expenditure has been accwnted f(Y on an accruat basis. Dorkated inC(￿e 15 recogni5ed in the peri(xl in whith entitlement is established, when economic benefit is probable arKJ can be m&iswed reliabty. Charitable trading income. arising from contracts from 5ervice5, is recognised vthen earned. S￿h income received in adVa￿e of entitlement is deferred to the Bala￿e Sheet and released to the Statement of Financial Attivities in future periods. Costs of gÉY)erat)￿ funds cc¥nwise5 the cost a$￿￿lated with attrnctiry voluntary income. charitable expenditure comprising dirert eXpe￿IltUre incI￿ling staff costs. piu5 a pro1￿70n of costs that cannot be directly attritmrted Isijpport costs). costs are aii(Kated to attivity cost catwies ￿ a basis conslstent with the ttse of resources. Governance costs comprise the legal. a￿litIng and other professional costs ass(Kiated the running and management of the Charity. Taxati¢ln As a registered Charity. the Company is generally exernpt from Cortwation Tax ixrt Mt from Value Added Tax {VAT). The Company's subsidiary trading cofflpany 15 registered for VAT and is liable to corporation tax C￿ trading profits rK)t transferred under the Gift Aid arrangements. Pension Costs The Charity ope¥ate5 a defined Contributi￿ ¥y(M￿ peryThl P￿￿70n 5th￿ne f¢x eThpityyees. The assets of the stheme are held separately frorn tFKfje of the Charity. The amual contributkTh payable are charged to the Statanent of Financial Activities. Funds Unrestrtcted [￿d5 comprise those monies ttklt may be used towards meeting the charitable objects of the Charity t the discretion of the Tnsstees. Restricted funds arise when donati(rs are r￿e1Ve￿ for SPLxific purposes or are 51 subjert to specific cOnditT¢￿ inwed ty the Omr. Restritted fund5 are to be v5ed for particular a4)ects of the objects of the Charity. Desiqnated Funds Designated fund5 have been established by the Tr￿tee$ to the cost of 5tsategic initiative5 whith the trustees consider ￿￿1{ contribute to the achiEwwnent of the Charity's objectives. The fund5 are not restricted and to the extent the f￿d5 are not required will be available to the charity's day to day actTVitie5. Fixed Awt Investment The investment in the wholly ￿￿Ded sthidiary trading company 15 sIM)wn at cost. Depreclatlon Deprectation is charged on tangible fixed assets at rates caicthted to write off the cost of the asset, less any resId￿l val￿, evenly over fits expected life: Computer equTpment and softrenre Other a55ets Warehouse equipment Leasehold improvements . 3-7 years . 3 years . 3-7 year5 - Iher the life of the lease Individual assets Costing Itss than £51Jl are not Capitali*￿ and are treated as an e¥￿￿e. Provislons The full estimated cost of di1apidatlLN￿ is provided in respect of existing current lease obligations. Le￿e and Hire Purthase Contracts Renta15 WKler operat7ng leases are tharged to the Statement of FinaKial Activitie5 as incwred. Redundancy Costs Where a demonstrable commitment is made to terminate employee5 before the end of the reporting benefit any termination benefit 15 charged to the Statement of FirkwKial Activities aTrJ a liability is recognised for ￿ best estimation of the c05t at the rewrting date. In the process of applying the tharity's acc¢xmting policTes described In this note. ]￿gernents and estimates are made that have an effect on the retN)rted amounts of assets, liabilitie5. revenue and expense5 during the reporting ￿lOd. Significant estimates made in the course of preparing the fina￿la1 statements include the PTQVi5iOn for debtor5 that may not be recoverable and the provisi(m for dilapidations relating to our leased bulldiTr4S. 52 Notes to the financial statements Year ended 31 March 2021 1. Donatlons TOUI Trt F￿ndS 2011 2020 Individuals and le4acies Tnjsts and I￿ndatiC￿ 6.768 4,991 10,504 6,771 10.782 21,242 30,433 69,234 279 5,791 10,n8 30.433 46,971 3,974 6,736 2.167 13.156 Corporate Statut 22,263 The above totals include £267.0￿ of donated income associated with the LLX)don operation that was di¥K)sed of on 10 November 2020 (2020- £281,(￿). Statutory income includes £27,600,OCIJ of income received from DEFRA {2020: £729,IWI mainly being two grants to purchase and distribute fty)d during the Covid 19 pandemic. 2. Other trading activities Trt Toi41 Fwdj 2020 WIZ1 Mole Orher trading 1￿mMe 157 157 1B7 3. Income from investments Fwd5 *121 Funds 2070 14Xe Bank ￿terest receivable 12 4. Intangible income The value of the food handled by Fareshare has been incorporated into the notes to the accounts only. Further information is given in note 22. 5. Income from charitable activities T4tthi Furyts 202Q 3Q21 CommuThity partw admin fee Fee5 reclalmable frm the ol goc4 r￿e7Vable for Fa￿sha￿e 832 832 823 1CIJ 1.471 1,471 1.471 2.403 1.871 1,705 93Z 53 6. The effect of major grants on total income Tot Trt F￿ 2421 2010 Asda 4,425 1.496 387 TNLCF Walmart 1.031 27.566 1.471 16.n4 48.442 1.031 27,506 1.471 40,360 72,068 DEFRA 878 Fareshare Go 1.871 7,027 16,084 Other 2J.626 23.626 Further commentary ￿ these items is given in the rewrt of the trustees. Notes to the financial statements Year ended 31 March 2021 7. Expenditure Tot Tllt 21 J21 2020 Expendlture ralsng fun Charitable activities 537 279 816 665 Managed ￿¢￿tS Natits)al sw) Fareshare Go 2.431 43,217 552 2.983 44,325 2.033 47.645 2.512 50.157 The above managed depot5 total include5 £308.OtKJ of cost as50aated with the London operation that was disposed of on 10 November 202012020: 560,GWI. 2,875 8.936 1.843 14.319 1.108 573 National support expenditure includes a total of £29.1ts).CKJO spent CM) purthasing food for distribution to our network. Thi5 was primarily funded by two grant5 from DEFRA of a total value of E26,6(Mj.0￿ to cover f(x)d purchase, distribution costs and a small amount of project management cost5. Nwth a further £2, 5CKJ.000 funded by the Scoltish Government for fc*)d and oth£Y essentiab as well as some lower value purchases funded by other donors. All food purchasing wa5 fully funded by donated income recognised in the year. . Analysis of support Costs T*t 24 2011 Expenthture on raisfng lunds Charitable actlvltles 59 279 196 Managed depots Natitar Addit*)r6 Dis 307 535 1,474 338 187 1125 597 Al￿Of ar 641 656 1,928 Ikpreciatian At beginning d ￿ar Charge for the year Released on dis 265 336 258 52 135 2n 35 134 312 At end of ar 317 29 471 1,1Z9 Net book value Atb 42 264 277 587 At of year 314 187 285 799 The net tthk value of assets held under finan￿ leases included in the above is £56.Lm12020: £nill. 14. Investments 2121 2010 Shares in wbsidia rry lsee r#xe 121 58 Notes to the financial statements Year enéed 31 March 2021 15. Debtor5 COw￿Y 2021 Trade ¢Jebtors 1.542 2.549 222 2.269 130 1.510 2,549 222 2,257 130 Prepaymwls arKJ accnEd iTKryr VAT reclaimable 109 109 Other éebrors 42 42 4,355 2.598 4.323 2,586 Trade debtors includes £705,(XX) tjue from Defra121T20: E1.337.(KQI. CFM (Community Food Member} debtors for the four Regtonal Centres operated by Fareshare during and the Regional Centre disposed of at the beginning of the 202012021 financial year was £175k at 31 March 2021 1£204k at 31 March 20201. To support our CFMS during the corcfflavirus pandemic the Board waived CFM fee5 for the first half of this financial year. Accrued income included E697,(KKI income from Asda12020: Enil) and £1.CIjJ,l￿ frorn Barclays .12020- £nill committed before the year end but paid after the year end and £340,CKKJ of income donated, primarily from individuals, through online giving platforms before the year end txrt not paid OVÉY to Fareshare until after the year end, and associated gift aid12020: E20.CWI. 16. Creditors: amounts falling ￿e within one ye¥ 21 2020 Trade creditors 3.556 1.170 3.556 1.170 1141 3.355 Arno￿1$ due to subsidiary Accruals deferred ifftcfme 2.465 3,355 2.456 Obligations u￿￿er finar￿e leases Taxat￿ and swal securiiy VAT payable OthEY credit￿5 152 152 112 251 369 120 369 6,435 5,011 6,304 4,992 Trade creditors includes £2.353.[￿0 of invoices due to Suppliers of fcod and distribution costs relating to the DEFRA funded food purcha5e12020- £nll). 17. Deferred Income At the beginning of lh2 ￿ar ReLea5ed from deferred i 3,2LI] 12.7t4]1 1,310 1.750 2,971 11.3&KII 1.569 3,20LI 12.7601 2,971 11.3401 1,569 I￿ame deferred At end of the ar 3.2C#) 59 Notes to the financial statements Year ende(131 March 2021 Included within deferred income is £775,c￿l202o- £447.[￿). being amounts invoiced to participating retailers for the Fareshare Go project which has not been $￿t by the year end. See note 11 for further details. Also included is £662,000 belng cash received from TNLCF that has not yet be￿ recognised as income as Fareshare doe5 not have full ￿tItlement to the funds12020.' £1,979,C(X) frorn TNLCF and Walmart FoundatTronl. Deferred income also includes Enil12020: £1,010,COJI being cash received from Defra that has not yet been spent as Fareshare does not have full entitlement to the funds. 18. Long term provisions )) 2021 ZQ2D Pmws*Jn for dilapidatvs ations fIna￿e leases 359 265 359 265 41 41 The dilapidation5 provision is the estimated cost of restoring leased buildings to the required condition at the end of the lease. The increase during the year relates to new leases taken on and an increase in the liability for the London warehouse resulting from a new performed on transfeyring the lease to The Feiix Project as part of the disposal of the London operations. 19. Annual commltments - Group and Company The charitable company had the following annual commitments under non-cancellable operating leases- EWrtr* ot Exp*rtr41Tr rmre t￿￿ Tat t￿l¥j At 31 2021 Premises 132 25 365 Vehicles 140 25 373 At 31 ZQZQ Premises 266 727 1,039 80 Vehicles 62 18 328 745 1,119 As part of the dlsp05al of our London operation. the lease on the warehouse and office premises in Deptford was rea55isned to the Felix Project. This represented a commitment of £163,5￿ per annum to November 2024. Fareshare has entered into a sublease on the office part of the building from the Felix Project, representing a commitment of £30.0(K) per annum to up to a break clause in November 2022. Total expenses paid under operating leases and reflected in the Statement of Financial Activities were £331,C(X) during the year to March 202012020.. £472,(((11. Some new vehicles were acquired on finance leè5e5 thJring the year. these are capitalised and inclLbded in the balance theet. 60 Notes to the financial statements Year ended 31 hlarch 2021 20. Consolidated unrestrkted funds The Trustees formerly established the followng Llesignated funds to provtde for expected strategic expenditure: a} IT systems investment In order to improve its IT infrastructure, the tharity need5 to Tnve5t in its systems. The designated fund represents the replacement of the oJrrent Finance system a5 Fareshare has ujtgrown the current one. The designated fund include5 Costs of the new system, yJch a5 trainingj enh￿cements, hosting and supw)rt. bl Flxed assets This fund represents future depreciation costs of a5set5 purchased from restricted fund5. For the 2020121 financial year the Trustees opted to r￿0Ve the de5?gnatl￿ of these funds. Tr￿11￿% ETrJcf e51ynated funds al IT systt￿S investrnent Fixed assets 1751 1490 15651 565 IOZ1 Funds brought forward Net movemwt In fwds In the year (b￿lif dcffiatiw rnade b subsith"a Rela7￿ in subsidiary Retained in charitable eompa cong0iidaie4 funds carrfed forwar 1.703 19.914 1.703 20,179 1.492 265 to chariiabie cc 265 21.617 11.882 1.7C3 Unrestricted funds c(￿515t of General Fund 21.882 1,138 565 Desi nated fu￿[5 21.882 1,703 61 Notes to the financial statements Year ended 31 March 2021 21. Restrirted funds At 31 2021 Restrrcted fimds a) Fareshare depots bl l*twuk swrt cl Fa￿ShI￿ Go 244 (292) iio) 1.n9 45.242 11.3861 143.551) 1.470 146,4071 295 5,473 4,036 13031 48.442 5,768 1 At 31 t￿1010 Restrfrted fund5 al FareSha￿ depot5 bl Network 5UPPC Fareshare Go 2,2 23Z 12541 12,2541 16.5171 1.851 110.6221 244 10,077 1,871 12,4XI 3,792 {zoi 12741 4.036 Restrirted reserves a) Fareshare dew5 Thi5 reflects the food redistrlbLrtion operntions of Fareshare's national del￿ Sn London to November 2020, Ilerseyside, Southern Central artd East Anglia. b) Network support This reflects staffing arKI other siw)rt artivities for Fareshare's nati(￿1 rtwxk of delivery partners. including transport Costs of food redistrikxrtTOn. ) Fare5hare Go See note 11 to the accounts for further details of Fafeshare Go. d) The restricted furmts income E2,289,5% th)rh3ted by Comic Reiief12020: £50,1XX)). Fund transfer An amount of £303.OCKI (2019-. £274.OCWJ) has t￿en transferred frrAn restricted to unrestrirted fund5. being the cost of fixed assets purchased fr(￿n restrirted funds. Tlw a55ets c¢)mprised mainly equipment for our warehotw and comwter equiwnent. 62 Notes to the financial statements Year ended 31 March 2021 21. Restricted funds (continued) Consolidated fund balances at 31 lknch 2021 are represented by: Tol Tan2lble flxeé assets Debtor5 799 799 1.858 21,664 12,G801 13591 21.882 2.497 7,667 14,3961 4.355 29,331 16,4761 13591 27,650 Cash at tsa￿1 and ￿ har Credit( fcr dila alic￿$ Net assets 5,768 R•ArktÈd f(*aL At 31 2020 Tangible fixed assets Debtors 587 587 1,170 1,245 11.0341 1265 1,703 1,428 6,585 13,9771 2,598 7.830 Cash at bank and in haTrJ CreditCf5 Prowsicfi for dila atims 165 Nei assets 5,739 22. Intangible income Donors re4K>nded generously to the pandtinic gifts in kind as well as financial support. These gifts ranged from PPE. covid test kits, vehicles. warehouse space, a national distribution centre and national advertising space. The value of these gifts 15 not included as income in these accounts. Determining a valuation is highly judgemental and due to the unusual economic con(Jitions of the pandemic ascertaining a market value for all these items is challenging. However. an estimation puts the value in the region of £2.8m12020: £14.￿01. In a¢Jdition to the above, there Is the f(￿￿1 supplied by retailers. fwd manufacturers and consumers to the Fareshare network. A study condurted by Fareshare in 2015 calculated aveyage value per tonne of food at £3,000 based on a typical composition of prc4Juct5. Using this ￿lmate the value of food received into the network was E126m12020= E79ml. 63 Notes to the financial statements Year ended 31 March 2021 23. Related partle5 There are 24 Regional Centres. During the 202012021 financial year four were managed directly by Fareshare and the others are run by third-party independent charities. EMERGE 3R5 runs the Greater Mariche5ter Regional Centre. Lucy Danger, the Chief ExecutTve of EMERGE 3Rs, was on the Board of Trustees of Fareshare until October 2020. This brings EMERGE 3R5 Within the definition of a related party. Fareshare receives some donat70ns from funders that are partly for 7tself and partly f￿ other Regional Centres. During the year Fareshare paid £615,00012020- E205.0(1)I to EhlERGE 3Rs which resulted from funding prowded by Asda Store5 Ltd, TNLCF, Te5co. Sain5burys. Cfjnic Relief and other donors. Moveon runs the Glasgow.West of Scotland Regional Centre. John Hinton. Executive Director of Iloveon is on the board of trustees of Fareshare. This brings hloveon within the definition of a related party. During the year Fareshare paid £477,OCK)12020: £329.0001 to Movdjn which resulted from funding provided by Asda Stores Ltd, TNCLF, Tesco, Sainsburys> Comic Relief, Scottish Teiwision. Scotmid Co-op. the Scottish Children's Lottery, and the Scott15h Government. Fareshare provided increased financial suptM)rt to all Network Partner5 during the year to wpport the expansion of our artivities during the pandemic. The son of the Chair of the Board of Trustees was emplcryed at Fareshare for a four month pemd. in a tempor role for which he hdd relevant experience, frorn December 2020 to March 2021. His total remuneration including employer's pension contributions and national insurance was £8,674. All transaction5 were conducted on an arms.length. cwmnercial ba5i5. None of the trustees c(¥)cerned were Involved in approving these tran5artion5. Z4.. Events after the reporting perlod There were no material event5 after the reFrf)rting period which require disclowre in accordan￿ with the Charities SORP IFRS 1021 section 13. 64