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2021-12-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31ST DECEMBER 2021

NARTHEX SPARKHILL

CHARITABLE INCORPORATED ORGANISATION

CHARITY REGISTRATION NUMBER 1100358

Independent Examiners Ltd

Unit 2 The Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

1

NARTHEX SPARKHILL

CONTENTS PAGE

Pages 2 to 7 Report of the Trustees
Page 8 Statement of Financial Activities
Page 9 Balance Sheet
Pages 10 to 22 Notes to the Financial Statements
Page 23 Statement of Cashflows
Page 24 Independent Examiner's Report

2

NARTHEX SPARKHILL

LEGAL AND ADMINISTRATIVE INFORMATION

CHARITY NUMBER 1100358 START OF FINANCIAL YEAR 1st January 2021 END OF FINANCIAL YEAR 31st December 2021 TRUSTEES THAT SERVED DURING YEAR Mr G J Holt TO 31ST DECEMBER 2021 Mr D J Bower Mrs J E Ahumibe Mrs L Wiseman Mr J Walsh (Chair) Revd P G Day Mrs K O'Keefe (resigned 30th June 2021) Revd T Crowe (appointed 9th September 2021) CORRESPONDENCE ADDRESS St Johns Church St Johns Road Sparkhill Birmingham B11 4RG DATE OF REGISTRATION 28th October 2003 GOVERNING DOCUMENT CIO - Foundation conversion dated 9th April 2019 BANKERS TSB Sparkhill Birmingham INDEPENDENT EXAMINERS Independent Examiners Ltd Unit 2 Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

OBJECTS

(i) The promotion of the benefit of, and facilitation of inter cultural harmony between the inhabitants of Birmingham, and in particular the inner city area of Sparkhill, and the neighbourhood ("the beneficiaries") without distinction of sex, sexual orientation, race or of political, religious or other opinions, by associating together the said inhabitants and the local authorities and health authorities, voluntary and other organisations in a common effort to advance education and to provide facilities in the interests of social welfare for advancement, recreation and leisure time occupation with the object of improving the conditions and quality of life for the said beneficiaries (ii) the promotion for the public benefit of urban regeneration in areas of social and economic deprivation and in particular in the inner city area of Sparkhill, Birmingham by all or any of the the following means (a) the advancement of education, training or retraining (b) the creation of training and employment opportunities by the provision of workspace, buildings and/or land for use on favourable terms (c) the maintenance, improvement or provision of public amenities (d) the provision or assistance in the provision of recreational and community facilities for the public at large and/or those who, by reasons of their youth, age, infirmity or disablement, poverty or social and economic circumstances, have need of such facilities; and (e) such other means as may from time to time be determined subject to the prior consent of the Charity Commission for England and Wales (iii) promote such other charitable purposes as may from time to time be determined.

3

NARTHEX SPARKHILL

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021

During 2021 Narthex has continued to fulfil its vision and charitable objectives of supporting individuals and families in crisis, as we see more and more people in need coming to us. The ongoing impact of Covid-19 has been very evident, as it becomes a struggle to make ends meet for many.

Our community lies in the top 4% of the most deprived in England. It is a densely populated inner-city area facing major economic and social challenges, with a high number of new immigrants, families living in poverty and houses of multiple occupancy (HMO’s). It is clear that the most deprived areas, such as our area of benefit, are being disproportionately impacted. And so we have continued to support people in need or facing crisis, individuals, single parents, refugees and asylum seekers of all faiths and ethnic origins.

Our strategic priorities as a Charity continue to be provision of food through our network of Foodbank satellites, our Money and Debt Advice work, and our Clothes Bank and Resource Centre. These have indeed proved to be the crucial areas of need and service over the year.

Throughout the year, including periods of lockdown, our Foodbank and its various satellites have continued to operate week by week, ensuring appropriate social distancing, sanitising and cleanliness arrangements. This has been enormously appreciated by the many clients who have come to us over this period, as so often the reality is that they have nowhere else to turn to; often we have seen long queues of individuals and families.

At the same time, we have been seeing how incoming donations and gifts, both of food and money, have come in to match the need. These donations have come from all sections of the community, from people of different faith backgrounds. This has been hugely encouraging, as we see how Narthex has been so clearly trusted to deliver this service and meet this need, right across the community. We are hugely grateful and appreciative for all those individuals, groups and organisations who have contributed so generously. We are however anticipating that in 2022 we will need to supplement our food stock by purchasing selected items, with funds that have been given for this specific purpose, in order to match the growing demand.

Strategically the Charity recognises that the need for our Money and Debt Advice Work cannot but increase as we begin to emerge from the effects of the pandemic and the consequent economic impact. Accordingly we have been successful in securing funding for a further three Money and General Advice Workers, so that we can continue to seek to respond positively to the levels of need and crisis we are seeing. A priority for us is to further strengthen our Advice Team during 2022.

During the year the norm has been telephone appointments (usually 1 hour), with our Advisers working from home on most days, and clients having the option of dropping off documentation at our Centre. This continues to be a positive and effective outcome which is appreciated and welcomed by clients. We are planning to gradually reintroduce face-to-face appointments at the various Centres and Satellites as appropriate, and where safe to do so.

Particular mention must be made of our CEO Nigel Brookhouse and his outstanding fundraising efforts. Although our income has fallen from a peak in 2020 (due to Covid response), we have continued to receive significant grant and statutory funding, acknowledging that our activities have been at the front line of response to growing need, and overall our income continues to increase. Over the year we were supported by over 60 different grant making trusts and organisations. When Nigel retires in 2022 he will be leaving the Charity in the most financially sustainable position in its history.

We have continued to set aside a Reserve Fund, roughly equivalent to two months’ salary payments, so that we can be more confident about our ability to respond effectively to the needs around us in the longer term, recognising the inevitable peaks and troughs of grant funding.

Management of the Charity’s Finances is overseen by our Finance and Staffing Committee, ensuring that funds are Restricted or Designated where appropriate, only allocated for the specific purposes for which they were given, and that supporting accounting records are maintained and subject to Independent Examination and scrutiny.

4

NARTHEX SPARKHILL

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021

We have been very grateful to Sandra Osbourne, our Project Manager, who has led the team of Advice Workers, responding so reliably to the needs of our clients. Also, we have really valued David Wiseman who has led the efforts of the Foodbank in responding to the significantly increased levels of need we have been seeing.

Mention must be made of all our staff who have responded outstandingly and with great commitment in the face of very difficult circumstances. We are greatly indebted to you all. Our clients will always be grateful for all you have given. Of course we can’t fail to recognise our loyal and hardworking band of volunteers who have been so faithful in very difficult times.

Mention must also be made of our Board of Trustees who have overseen this work over the year. Our former Chair, Revd John Self, very sadly died in May 2021. His contribution to the vision of Narthex is immense, it was through John’s vision that the charity was originally founded. We continue to recognise his immense contribution and legacy. Jamie Walsh has taken on the role of Chair of Trustees.

A further transition is facing us. Our CEO Nigel Brookhouse who has served faithfully since 2005 will be formally retiring in September 2022, Patricia Coleman-Taylor will be joining us as Chief Operating Officer in May 2022.

Finally we are grateful to all our donors and supporters - individuals, organisations and grant making trusts who have responded so magnificently during 2021. Without you we could not have done what we have. Your support is hugely appreciated, thank you.

It is often said that “the most valuable asset of any organisation is the people who work for it”. Nowhere is this truer than for Narthex, as over the past year the Charity has sought to respond to the increasing needs of those impacted by a global pandemic and economic hardship.

We look forward to continuing to working together during 2022, as we seek to continue to respond to the ever growing needs around us.

Geoff

Geoff Holt Finance Director

5

NARTHEX SPARKHILL

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021

Reserves Policy

Why we need Reserves

Narthex Sparkhill runs social outreach projects including Sparkhill Foodbank and is dependent on grants, commissioned income, donations and ‘earned income’. This means that if income was to drop it would be likely that the Charity would have to restrict its operations and possibly reduce staff numbers.

Level of Reserves

The Trustees have considered the level of reserves they wish to retain, appropriate to the Charity’s needs. This is based on the Charity’s size and level of financial commitments held. The Trustees aim to ensure that the Charity will be able to continue to fulfil its charitable objectives for a period of three months even if there is a temporary shortfall in income or unexpected expenditure. While cash in the bank may be included in the calculation of the reserves figure it will also include all promised restricted and unrestricted income as well as promised donations and potential ‘earned’ income.

Cash Flow

The importance of Cash Flow is recognised, particularly to ensure staff salary payments are made promptly each month. A priority is therefore to ensure that cash in the bank is held to cover at least one month’s salary payments at any one time.

The Trustees will endeavour not to set aside funds unnecessarily.

The steps the charity is going to take

As a matter of policy the Trustees have decided that multiple income streams shall be sought, to include a balance between the following:

The Trustees are of the opinion that by maintaining a balance, the risk of experiencing a financial shortfall is minimised.

Monitoring and reviewing the Policy

The Finance Committee will meet before each full Trustees' meeting and will prepare a review of the current financial position for presentation at the Trustees' meeting.

Steps to be taken if the level of reserves falls below that set in this policy

The Finance Committee will draw the Trustees' attention to the reserves position and if it falls below three months will require the development of an Action Plan to bring the reserves back to at least three months. Should the reserves position reduce to two months the Trustees will take actions to reduce the levels of expenditure to an acceptable level. If this is not practical then actions will be taken to reduce the activities and staffing levels of the Charity.

Designated Reserve Fund

A separate Designated Reserve Fund has been set up in the Narthex Accounts, with a balance of £50,000 in the first instance. This is to provide a contingency or buffer for potential future cash flow issues arising from potential peaks and troughs in the receipt of grant funding.

6

NARTHEX SPARKHILL

TRUSTEES' REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021

.

Statement of Trustees' responsibilities:

The Charities Act requires the Board of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the CIO as at the end of the financial year and of the surplus or deficit of the CIO. In preparing those financial statements the Board is required to :-

The trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the CIO and which are sufficient to show and explain the CIO'S transactions and enable them to ensure that the financial statements comply with the regulations made under the Charities Act. They are also responsible for safeguarding the assets of the CIO and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are also responsible for the contents of the trustees' report, and the responsibility of the independent examiner in relation to the trustees' report is limited to examining the report and ensuring that, on the face of the report, there are no inconsistencies with the figures disclosed in the financial statements.

I approve the attached statement of financial activities and balance sheet for the year ended 31 December 2021, and confirm that I have made available all information necessary for its preparation.

Signed on behalf of the Board of Trustees by G Holt

PRINT NAME: G HOLT

Date: 23 June 2022

7

NARTHEX SPARKHILL

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2021

Notes
INCOMING RESOURCES
Income and Endowments from:
Donations, Grants and Legacies
2a
Charitable Activities
2b
Other Income
2c
Donated Goods
5
TOTAL
RESOURCES EXPENDED
Expenditure on:
Raising Funds
3a
Charitable Activities
3b
Donated Goods
5
TOTAL
NET INCOME/(EXPENDITURE)
Transfers Between Funds
15
NET MOVEMENT IN FUNDS
Reconciliation of funds:
Total Funds Brought Forward
Petty Cash balance introduced
22
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2021
2020
£
£
£
£
£
310,794
0
184,700
495,494
595,291
27,126
0
6,093
33,219
31,576
0
0
4,000
4,000
0
0
0
197,802
197,802
229,473
337,920
0
392,595
730,515
856,340
13,074
0
0
13,074
9,448
316,722
0
196,801
513,523
424,785
0
0
234,253
234,253
186,993
329,796
0
431,054
760,850
621,226
8,124
0
(38,459)
(30,335)
235,114
(10,000)
10,000
0
0
0
(1,876)
10,000
(38,459)
(30,335)
235,114
57,143
50,000
178,507
285,650
50,517
0
0
0
0
19
55,267
60,000
140,048
255,315
285,650

Movements on all reserves and all recognised gains and losses are shown above. All of the organisation's operations are classed as continuing.

The notes on pages 10 to 22 form part of these financial statements.

8

NARTHEX SPARKHILL

BALANCE SHEET AS AT 31ST DECEMBER 2021

Unrestricted Designated Restricted 31-Dec-21 31-Dec-20
Funds Funds Funds Total Total
Note £ £ £ £ £
Fixed Assets
Tangible assets 9 7,069 0 18,647 25,716 23,707
Current Assets
Debtors 10 13,783 0 0 13,783 9,175
Donated Goods held in stock 11 0 0 59,982 59,982 96,433
Cash at bank and in hand 36,005 60,000 61,419 157,424 157,895
Total Current Assets 49,788 60,000 121,401 231,189 263,503
Creditors:amounts falling due 12 1,590 0 0 1,590 1,560
within one year
NET CURRENT ASSETS 48,198 60,000 121,401 229,599 261,943
TOTAL ASSETSless current liabilities 55,267 60,000 140,048 255,315 285,650
Creditors:amounts falling due in 13 0 0 0 0 0
more than one year
NET ASSETS 55,267 60,000 140,048 255,315 285,650
Funds of the CIO
General Unrestricted Funds 16 55,267 0 0 55,267 57,143
Designated Funds 16 0 60,000 0 60,000 50,000
Restricted Funds 16 0 0 140,048 140,048 178,507
Total Funds 55,267 60,000 140,048 255,315 285,650

Approved by the Board of Trustees on 23 June 2022

Signed on their behalf by Trustee G Holt

Print Name: G HOLT

9

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

Basis of preparation

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The accounts have been prepared in accordance with: the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and with the Charities Act 2011.

The CIO constitutes a public benefit entity as defined by FRS 102.

Changes to accounting estimates

No changes to accounting estimates have occurred in the reporting period.

Material prior period errors

No material prior year errors have been identified in the reporting period.

Preparation of accounts on a going concern basis

Preparation of the accounts is on a going concern basis. The Trustees are of the view that the level of reserves will support the CIO going forward.

Recognition of Income

These are included in the Statement of Financial Activities (SoFA) when:

Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102.

Grants and Donations

Grants and donations are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 SORP).

Tax Reclaims on Donations and Gifts

Gift Aid receivable is included in income when there is a valid declaration from the donor. Any Gift Aid amount recovered on a donation is considered to be part of that gift and is treated as an addition to the same fund as the initial donation unless the donor or the terms of the appeal have specified otherwise.

Contractual Income and Performance Related Grants

This is only included in the SoFA once the CIO has provided the related goods or services or met the performance related conditions.

Gifts in Kind

Gifts in kind for use by the CIO are included in the SoFA as income from donations when receivable.

Legacies

Legacies are included in the SoFA when receipt is probable, that is, when there has been grant of probate, the executors have established that there are sufficient assets in the estate and any conditions attached to the legacy are either within the control of the CIO or have been met.

Government Grants

The CIO has not received government grants in the reporting period.

10

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

Donated goods

Donated goods are measured at fair value (the amount for which the asset could be exchanged) unless impractical to do so.

The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt and they are recognised on receipt. In the reporting period in which the stocks are distributed, they are recognised as an expense at the carrying amount of the stocks at distribution.

Donated goods for resale are measured at fair value on initial recognition, which is the expected proceeds from sale less the expected costs of sale, and recognised in 'Income from other trading activities' with the corresponding stock recognised in the balance sheet. On its sale the value of stock is charged against 'Income from other trading activities' and the proceeds from sale are also recognised as 'Income from other trading activities'.

Goods donated for on-going use by the CIO are recognised as tangible fixed assets and included in the SoFA as incoming resources when receivable.

Donated Services and Facilities

Donated services and facilities are included in the SoFA when received at the value of the gift to the CIO provided the value of the gift can be measured reliably.

Donated services and facilities that are consumed immediately are recognised as income with an equivalent amount recognised as an expense under the appropriate heading in the SoFA.

Volunteer Help

The value of any voluntary help received is not included in the accounts but is described in the Trustees' annual report.

Income from interest, royalties and dividends

This is included in the accounts when receipt is probable and the amount receivable can be measured reliably.

Investment Gains and Losses

This included any gain or loss on the sale of investments and any gain or loss resulting from revaluing investments to market value at the end of the year.

Insurance claims

Insurance claims are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS 102 SORP) and are included as an item of other income in the SoFA.

Expenditure and liabilities

The CIO has opted to prepare its accounts using natural categories.

Liability Recognition

Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the CIO to pay out resources and the amount of the obligation can be measured with reasonable certainty.

Governance and Support Costs

Support costs represent the cost of central functions, for example governance costs, payroll administration, information technology. Governance costs are those support costs which relate to public accountability of the CIO and its compliance with regulation and good practice.

11

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

Grants with Performance Conditions

Where the CIO gives a grant with conditions for its payment being a specific level of service or output to be provided, such grants are only recognised in the SoFA once the recipient of the grant has provided the specified service or output.

Grants Payable without Performance Conditions

Where there are no conditions attaching to the grant that enables the donor to realistically avoid the commitment, a liability for the full funding obligation must be recognised.

Employee benefits

Short term benefits including holiday pay are recognised as an expense in the period in which the service is received.

Redundancy cost

The CIO made no redundancy payments during the reporting period.

Deferred income

No material item of deferred income has been included in the accounts.

Creditors

The CIO has creditors which are measured at settlement amounts less any trade discounts.

Provisions for liabilities

A liability is measured on recognition at its historical cost and then subsequently measured at the best estimate of the amount required to settle the obligation at the reporting date.

Fixed Assets

These are capitalised if they can be used for more than one year, and cost at least £500. They are valued at cost or, if gifted, at the value to the CIO on receipt.

Depreciation Expense

Depreciation is calculated at a rate to write off the cost of tangible fixed assets on a straight line basis over their estimated useful lives. The rates applied per annum are as follows:

Equipment 33% Fixtures and Fittings 33% Motor Vehicles 25%

Legal status of the charity

On the 9th April 2019, Narthex Sparkhill converted from a charitable company to a CIO under section 228 of the Charities Act 2011 and in line with the CIO conversion regulations 2017.

12

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

2. INCOME
Notes
a) Donations, Grants and Legacies
Donations and Gifts
Commissioned Funding
7
Gift Aid Donations and Reclaimed Tax
Grants
6
b) Charitable Activities
Other Income
Project Income
Rental and Administration Income
c) Other Income
Gain on disposal of Fixed Assets
3. EXPENDITURE
a) Raising Funds
Publicity and Fundraising		 Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2021
2020
£
£
£
£
44,431
0
44,431
63,718
148,503
0
148,503
68,169
28,892
0
28,892
13,483
88,968
184,700
273,668
449,921
310,794
184,700
495,494
595,291
0
6,093
6,093
9,628
26,061
0
26,061
20,653
1,065
0
1,065
1,295
27,126
6,093
33,219
31,576
0
4,000
4,000
0
0
4,000
4,000
0
Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2021
2020
£
£
£
£
13,074
0
13,074
9,448
13,074
0
13,074
9,448

13

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

3. EXPENDITURE

Notes
b) Charitable Activities
Depreciation
Establishment:
Cleaning and Kitchen Supplies
Insurance
Rental and Utilities - St Johns
Foodbank:
Running Costs and Premises Rental
Loan Interest
Project Activities
Staff Costs:
Employers National Insurance
Employers Pension Contributions
Payroll Processing Fee
Training Costs
Wages and Salaries
Support costs
4
Volunteer and Staff Expenses
4. ANALYSIS OF SUPPORT COSTS
Office costs
Telephone and Broadband
Office, Admin and Upkeep Costs
Governance costs (below)
Governance Costs
Independent Examiners Fees		 Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2021
2020
£
£
£
£
1,536
6,802
8,338
13,408
3,949
0
3,949
4,627
8,750
0
8,750
6,518
11,272
0
11,272
14,000
0
91,763
91,763
69,160
0
0
0
438
23,674
0
23,674
37,326
19,130
0
19,130
13,701
4,640
0
4,640
3,345
578
0
578
521
635
0
635
0
205,533
98,236
303,769
234,237
33,587
0
33,587
25,024
3,438
0
3,438
2,480
316,722
196,801
513,523
424,785
Staff
Other
and related
direct
costs
costs
2021
2020
£
£
£
£
0
16,759
16,759
6,559
0
15,238
15,238
16,905
0
1,590
1,590
1,560
0
33,587
33,587
25,024
2021
2020
£
£
1,590
1,560

14

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

5. DONATED GOODS

The Statement of Financial Activities includes the estimated value of food that has been donated and subsequently distributed by the Foodbank.

Stocks of Food at 1.1.21
Donated Food
Distributed Food
Disposed as waste
Stocks of Food at 31.12.21		 Weight
Value
kg
£
57,401
96,433
117,739
197,802
(133,435)
(224,171)
(6,001)
(10,082)
35,704
59,982

The estimated cost of food has been calculated by weight at an average cost as calculated by the Trussell Trust of £1.68 per kg.

6. GRANTS RECEIVED

29 May 1961 Charitable Trust
Alfred Haines Charitable Trust
Accord Housing
All Churches Trust Limited
Archer Trust
Arnold Clark
Bayfield Charitable Trust
BBC Children in Need
Benevit Charitable Giving
Birmingham CVS
Birmingham City Council
CAF - Martin Lewis
CAF - Emergency Covid-19
Charles Brotherton Trust
Charities Trust
Charity of Stella Symons
Clothworkers'Foundation
Covid-19 Grant
Creation Financial
D M F Ellis Charitable Trust
Dr PJM Sloan
Edward Gosling Foundation
Edith Murphy Foundation
EH Smith Charitable Trust
Eric Sparkes Charitable Trust
Eric W Vincent Trust Fund
Carried forward to next page		 2021
2020
£
£
4,000
4,000
0
750
4,423
0
0
20,000
0
2,500
2,000
0
1,750
0
0
0
1,300
0
0
10,000
0
6,250
0
15,000
1,400
10,000
275
275
200
501
0
250
0
15,000
0
41,798
0
650
0
3,500
0
500
0
10,000
3,000
0
12,500
10,000
1,000
1,000
0
500
31,848
152,474

15

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

6. GRANTS RECEIVED (continued)

Brought forward from previous page
Eveson Charitable Trust
FareShare
Fitton Trust
Garfield Weston Foundation
GE Gee Trust
George Henry Collins Registered Charity
GJW Turner Trust
Goodenough Charitable Trust
Gowling WLG (UK) Charitable Trust
Grantham Yorke Trust
Grimmitt Trust
Grimley Charity
Haramead Trust
HE & EL Botteley Charity Settlement
Heart of England Community Foundation
Henry James Sayer Charity
HMRC Job Retention Scheme
Independent Age
Jaguar Land Rover
Jarman Charitable Trust
Joseph Hopkins Charity
Knowle PCC
Leigh Trust
LG Harris Trust
Lickey Parochial Church Council
Lifeline Community Project
Limoges Charitable Trust
London Metric Property Plc
Loppylugs and B Morrison Charitable Trust
Lord Austin Trust
Lord Mayor of Birmingham Charity
Making a Difference Locally Ltd
Marsh Christian Trust
Mary Kinross Trust
Maidenhead Malachi Trust
Metamorph Law Ltd
Michael Marsh Charitable Trust
Other Grants < £500
Park Family Charitable Trust
Pat Newman Memorial Trust
PCC St Mary's, Hobs Moat, Solihull
Pearl GP Management
Postcode Neighbourhood Trust
Province of Worcestershire
Carried forward to next page		 2021
2020
£
£
31,848
152,474
5,000
0
0
581
350
0
0
25,000
1,000
0
0
2,000
2,000
0
1,000
2,000
1,000
500
2,000
2,000
2,000
3,000
1,000
0
10,000
0
500
0
0
4,050
900
1,000
0
9,688
0
14,700
0
1,000
0
200
750
0
920
0
2,000
2,000
5,000
0
0
301
0
2,000
1,000
0
0
1,500
0
9,600
0
1,000
0
1,000
0
568
0
500
0
20,000
0
2,000
500
0
2,000
0
100
0
2,000
0
3,000
3,000
0
369
0
3,063
0
19,904
0
500
75,868
285,498

16

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

6. GRANTS RECEIVED (continued)

Brought forward from previous page
Ratcliffe Foundation
Reuben Foundation
Richard Cadbury Charitable Trust
Richard Kilcuppes Registered Charity
Roger and Douglas Turner Charitable Trust
Shakespeare Martin Barlow
Shoosmiths Lawyers
Souter Charitable Trust
South Birmingham Friends Institute Trust
Sparkhill Trust
St Alphege Solihull
St Mary's Wythall
SYD Property Developments
Taylor Wimpey West Midlands
Truemark Trust
Trussell Trust
Trustees of BK Kufton
Unite West Midlands Region
Unity Trust Bank
Veale Wasbrough Charitable Trust
Veolia Environmental Trust
Waitrose Ltd
WED Charitable Trust
Yardley Great Trust
Yardley Wood Baptist Church
Big Lottery
TOTALS
7. COMMISSIONED FUNDING
Ashiana Community Project
Birmingham City Council
BVSC - Ageing Better
The Muath Trust(including Ageing Better LAP)
Small Heath Community Forum		 2021
2020
£
£
75,868
285,498
0
5,000
250
0
500
500
1,000
500
2,000
0
1,000
0
0
1,397
3,000
0
2,000
500
1,000
0
0
500
0
1,000
0
1,500
0
500
0
2,000
57,292
35,115
1,000
0
0
500
0
1,200
350
0
0
811
0
1,000
1,000
0
0
1,000
0
500
146,260
339,021
127,408
110,900
273,668
449,921
2021
2020
£
£
12,500
0
0
6,250
55,000
41,250
57,044
2,700
23,959
17,969
148,503
68,169

17

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

8. NET INCOME FOR THE YEAR

This stated after charging:
Independent Examiners Fees
Depreciation
9. TANGIBLE FIXED ASSETS
Cost
01-Jan-21
Additions
Cost at
31-Dec-21
Depreciation
01-Jan-21
Charge
Depreciation at
31-Dec-21
Net Book Value
31-Dec-21
Net Book Value
31-Dec-20		 2021
2020
£
£
1,590
1,560
8,338
13,408
Unrestricted
Restricted
Equipment
Motor
Equipment
Fixtures &
Total
Fixtures &
Vehicles
Fittings
Fittings
£
£
£
£
£
86,240
37,600
14,830
2,065
140,735
8,605
0
0
1,742
10,347
94,845
37,600
14,830
3,807
151,082
86,240
16,072
12,651
2,065
117,028
1,536
5,382
924
496
8,338
87,776
21,454
13,575
2,561
125,366
7,069
16,146
1,255
1,246
25,716
0
21,528
2,179
0
23,707

The annual commitments under non-cancelling operating leases and capital commitments are as follows:

31st December 2021 : 35 x monthly vehicle finance lease payments of £300.57 commencing December 2020 Ongoing quarterly office equipment lease rentals of £561.42

10. DEBTORS AND PREPAYMENTS

Project Income
PrepaidExpenditure
Tax Recoverable		 Unrestricted
Restricted
Total
Total
Fund
Fund
31-Dec-21
31-Dec-20
£
£
£
£
769
0
769
435
9,468
0
9,468
8,740
3,546
0
3,546
0
13,783
0
13,783
9,175

18

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

11. STOCK

Charitable activities:
Opening
Added in period
Expensed in period
Impaired/Disposed as waste
Closing		 For
For
distribution
resale
£
£
96,433
0
197,802
0
(224,171)
0
(10,082)
0
59,982
0
Donated goods and stock

12. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Independent Examiners Fees Unrestricted
Restricted
Total
Total
Fund
Fund
31-Dec-21
31-Dec-20
£
£
£
£
1,590
0
1,590
1,560
1,590
0
1,590
1,560

13. CREDITORS AND ACCRUALS: AMOUNTS FALLING DUE AFTER ONE YEAR

The CIO had no long term liabilities at the end of this or the previous financial year.

19

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

14. RESTRICTED FUNDS

----- Start of picture text -----
CURRENT YEAR Balance Donated Distributed Fixed Balance
01-Jan-21 Income Expenditure goods goods assets pcshed 31-Dec-21
£ £ £ £ £ £ £
Foodbank Fund 178,507 194,793 196,801 197,802 (234,253) 1,742 140,048
178,507 194,793 196,801 197,802 (234,253) 1,742 140,048
PREVIOUS YEAR Balance Donated Distributed Fixed Balance
01-Jan-20 Income Expenditure goods goods assets pcshed 31-Dec-20
£ £ £ £ £ £ £
Foodbank Fund 83,456 188,272 135,701 229,473 (186,993) - 178,507
83,456 188,272 135,701 229,473 (186,993) - 178,507
----- End of picture text -----

The Foodbank Fund relates to:

All income and expenditure for the Sparkhill Foodbank, located at Unit 20-21 Rovex Business Park, Hay Hall Road, Tyseley funded by a grant from the Big Lottery for operations and by other grants for food.

The restricted funds are represented by:

Donated goods held in stock
Debtors
Cash at bank and in hand
Fixed assets		 2021
2020
£
£
59,982
96,433
0
8,240
61,419
50,127
18,647
23,707
140,048
178,507

15. DESIGNATED FUNDS

CURRENT YEAR
Reserve Fund
PREVIOUS YEAR
Reserve Fund		 Balance
Donated
Distributed
Transfer
Balance
01-Jan-21
Income
Expenditure
goods
goods
btw funds
31-Dec-21
£
£
£
£
£
£
£
50,000
0
0
0
0
10,000
60,000
50,000
0
0
0
0
10,000
60,000
Balance
Donated
Distributed
Transfer
Balance
01-Jan-20
Income
Expenditure
goods
goods
btw funds
31-Dec-20
£
£
£
£
£
£
£
0
0
0
0
0
50,000
50,000
0
0
0
0
0
50,000
50,000

The Trustees agreed in 2020 to set aside £50,000 of General Funds as a Reserve Fund, as a protection against future potential peaks and troughs of grant funding and other income. In the financial year to 31st December 2021, the Trustees agreed to transfer an additional £10,000 to this fund.

20

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

15. DESIGNATED FUNDS (continued)

The designated funds are represented by:

Cash at bank and in hand
Fixed assets		 2021
2020
£
£
60,000
50,000
0
0
60,000
50,000

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Tangible Fixed Assets
Cash at bank and in hand
Other net current assets/(liabilities)
TOTAL		 Unrestricted
Designated
Restricted
TOTAL
Fund
Fund
Fund
31-Dec-21
Foodbank
£
£
£
£
7,069
0
18,647
25,716
36,005
60,000
61,419
157,424
12,193
0
59,982
72,175
55,267
60,000
140,048
255,315

17. ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL

Gross Wages and Salaries
Employer's National Insurance Costs (after allowance)
SMP/SPP Recovered (through Employer's NI)
Employer's Pension Contributions		 2021
2020
£
£
304,236
242,555
19,371
12,211
(467)
(6,828)
4,624
3,346
327,764
251,284

Average number of employees who were engaged in each of the following activities:

2021 2020
TOTAL TOTAL
Furthering the charitable objectives 15.7 14.3

Staff numbers represent 13 being on payroll at the start of the year and 18 at the end of the year (2020: 14 at the start of the year and 15 at the end of the year).

No employees received emoluments in excess of £60,000. All staff are paid through the PAYE system.

The key management personnel of the CIO comprise the Trustees, Director of Finance, CEO, Centre Manager and Foodbank Manager. The Trustees and Director of Finance are not remunerated. The total employee benefits (including employer national insurance and employer pension contributions) of the key management personnel of the CIO were £101,688 (2020: £95,444)

Two Trustees donated an aggregate amount of £136 to the CIO during 2020 (2020: Two Trustees donated an aggregate amount of £320). There were no conditions attached to these donations. No Trustees made any loans to the CIO during 2021 or 2020.

No payments were made to directors or any persons connected with them during this financial period. No other material transaction took place between the organisation and a trustee or any person connected with them (20 20 : None)

The CIO currently pays pension contributions on behalf of 16 employees (at 31 December 2020: 11 employees). An automatic enrolment workplace pension scheme is available and eligible employees were enrolled with the option of opting out if they so wish. The scheme is administered and managed through the Diocese of Birmingham.

21

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2021

18. RISK ASSESSMENT

The Trustees actively review the major risks which the CIO faces on a regular basis and believe that maintaining the free reserves stated, combined with the annual review of the controls over key financial systems carried out on an annual basis will provide sufficient resources in the event of adverse conditions. The Trustees have also examined other operational and business risks which they face and confirm that they have established systems to mitigate the significant risks.

19. RESERVES POLICY

This is described in detail in the Trustees' annual report.

20. PUBLIC BENEFIT

The CIO acknowledges its requirement to demonstrate clearly that it must have charitable purposes or ‘aims’ that are for the public benefit. Details of how the CIO has achieved this are provided in the Trustees' report. The Trustees confirm that they have paid due regard to the Charity Commission guidance on public benefit before deciding what activities the CIO should undertake.

21. CONVERSION TO CIO

On the 9th April 2019, Narthex Sparkhill converted from a charitable company to a CIO under section 228 of the Charities Act 2011 and in line with the CIO conversion regulations 2017.

22

NARTHEX SPARKHILL

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31ST DECEMBER 2021

2021
£
Cash used in operating activities
(a)
9,876
Cash used from investing activities
Interest income
0
Purchase of tangible fixed assets
(10,347)
Cash provided by (used in)
investing activities
(10,347)
Cash flows from financing activities
Introduction/(Repayment) of long term borrowing
0
Cash used in financing activities
0
Increase/(decrease) in cash and
cash equivalents in the year
(471)
Cash and cash equivalents at the
start of the year
157,895
TOTAL cash and cash equivalents
at the end of the year
(b)
157,424
(a) Reconciliation of net movement in funds to net cash flow from operating activities
2021
£
Net movement in funds
(30,335)
Adjustment to opening funds
0
Add back depreciation charge
8,338
Deduct interest income shown
in investing activities
0
Decrease/(increase) in debtors
(4,608)
Increase/(decrease) in creditors
30
Decrease/(increase) in donated goods stock
36,451
9,876
Net cash used in operating activities
(b) Analysis of cash and cash equivalents
2021
£
Cash at bank and in hand
157,424
Fixed Term Bond
0
Total cash and cash equivalents
157,424		 2020
£
230,463
0
(27,801)
(27,801)
(45,500)
(45,500)
157,162
733
157,895
2020
£
235,114
19
13,408
0
47,039
(22,637)
(42,480)
230,463
2020
£
157,895
0
157,895

23

NARTHEX SPARKHILL INDEPENDENT EXAMINER’S REPORT ON THE ACCOUNTS

I report to the trustees on my examination of the accounts of Narthex Sparkhill, Charitable Incorporated Organisation ("the CIO") for the year ended 31st December 2021.

As the CIO's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the Act”).

Responsibilities and basis of report

I report in respect of my examination of the CIO's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.

Independent examiner's statement

The CIO's gross income exceeded £250,000 and I am qualified to undertake the examination by being a fellow member of the Association of Charity Independent Examiners.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Signed:

Name: J Irvinesmith Date: 18th May 2022

Independent Examiners Ltd Unit 2 Broadbridge Business Centre Delling Lane Bosham West Sussex PO18 8NF

24