## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED**
**31ST DECEMBER 2022**
## **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 21|Notes to the Financial Statements|
|Page 22|Statement of Cashflows|
|Page 23|Independent Examiner's Report|
2
## **NARTHEX SPARKHILL**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**CHARITY NUMBER** 1100358 **START OF FINANCIAL YEAR** 1st January 2022 **END OF FINANCIAL YEAR** 31st December 2022 **TRUSTEES THAT SERVED DURING YEAR** Mr G J Holt **TO 31ST DECEMBER 2022** Mr D J Bower Mrs JE Ahumibe Mrs L Wiseman Mr J Walsh (Chair) Rev P Day Rev T Crowe **CORRESPONDENCE ADDRESS** St John's 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 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 31[ST] DECEMBER 2022**
During 2022 Narthex has continued to fulfil its vision and charitable objective of supporting individuals and families in crisis, as we see more and more people in need coming to us as a result of the impact of cost of living increases and fuel poverty.
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 immigrants, refugees, asylum seekers and families living in poverty and with houses of multiple occupancy (HMOs). It is clear that the most deprived areas, such as ours, are disproportionately impacted by the cost of living crisis and so we have continued to support people in need or facing crisis, of all faiths and ethnic origins.
Our strategic priorities as a Charity continue to be provision of food through our network of Foodbank satellites and also our Money and Debt Advice work, as we seek to address some of the underlying issues of financial inclusion. We continue to work closely with our partner Trussell Trust, with a long-term strategic aim of eliminating the need for foodbanks.
Throughout the year our Foodbank and its various satellites have continued to operate consistently week by week. This has been greatly 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. Often we see long queues of individuals and families waiting to receive food parcels.
During the year we provided food parcels to 12,004 adults and 7,081 children – a 34% increase from 2021, reflecting the current cost of living crisis. We have seen significant increases in referrals from schools (indicating the need amongst families) and from those living in local HMOs, often highlighting poor living conditions and lack of support.
Over the year donations and gifts, both of food and money, have continued to come in from all sections of the community, as we see how Narthex has been clearly trusted to deliver this service. We are however beginning to find that we 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 the increasing need for both our money and debt advice, and also more generalist advice and guidance, so that clients can be given the dignity of being able to make informed choices about their lives. These needs cannot but increase as we see the impact of the current economic situation. It remains a key strategic priority for us to identify relevant sources of funding and potential commissioned advice and guidance work.
During the year our Advisers have been working a hybrid pattern, some days in the Centre and some days at home. Many of the appointments with our clients continue to be by telephone, but with the option of face-to-face appointments where this is more appropriate or in more complex cases. This continues to be a positive and effective outcome which is appreciated and welcomed by clients. We are working towards opening our Centre at St Johns Church on more days of the week.
During the year we responded to 3265 requests for this advice from 2474 clients, the outcomes for these clients being nearly £3 million in welfare benefits, and 317 clients for whom a total of £431,320 in debt was resolved and managed.
4
Our founding CEO Nigel Brookhouse retired during the year. Nigel was the first employee of Narthex and oversaw its growth over that time.
After a thorough recruitment process the Trustees appointed Patricia Coleman-Taylor to take over as Chief Executive in May 2023. Her priorities have been the engagement and development of staff, establishing new strategies for our changing and demanding context, and developing new supporting structures and processes.
Our Trustees continue to provide good governance for the Charity. Trustees bring a wide range of relevant skills, experience and backgrounds in order to make informed decisions about the future direction of Narthex, with designated Trustee Champions having particular areas of responsibility and focus.
Income increased from £730,515 last year to £906,567 this year, this includes a valuation for donated goods, in the form of food for our foodbank. Expenditure correspondingly increased from £760,850 last year to £913,840 this year. The 2022 financial year ended with net assets of £79,287 held in general unrestricted funds and £60,000 held in designated unrestricted funds. The Trustees are satisfied that this level of reserves is in line with the CIO’s reserves policy and is sufficient to support the CIO going forward and 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.
Mention must be made of our staff team who have responded outstandingly and with commitment and dedication in the face of very difficult circumstances. We are indebted to them all. Our clients will always be grateful for the dedication that has been shown. 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.
Our growing band of loyal and hardworking volunteers (around 75 at time of writing) has an increasingly important role to play in the life of the Charity, we estimate volunteers have contributed over 20,000 hours to the work of the Charity during the year. One of our strategic priorities is to further develop and support our volunteers, recognising their vital contribution to the growing needs we are seeing. We are providing relevant training for all our volunteers, this includes safeguarding training for all those in client-facing roles.
Finally, we are grateful to all our donors and supporters - individuals, organisations and grant making trusts who have responded so magnificently during 2022. Over the year we were supported by over 50 different grant making trusts and organisations. Without you we could not have achieved our outcomes. Your support is hugely appreciated, thank you.
We look forward to continuing to work together during 2023, as we seek to respond to the ever growing needs around us.
Geoff Holt Trustee – HR & Finance
5
## **NARTHEX SPARKHILL**
## **TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **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:
- Donations and gifts (encouraging regular monthly donations and claiming Gift Aid where possible)
- · Income generated from Projects
- Commissioned Funding
- Charitable Grants (including Lottery funds)
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 and Staffing 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 and Staffing 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 Designated Reserve Fund has been set up 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 2022**
.
## **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 :-
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the CIO will continue in business;
- state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements.
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 2022, and confirm that I have made available all information necessary for its preparation.
Signed on behalf of the Board of Trustees by
Print name: GEOFF HOLT
Date: 30th June 2023
7
## **NARTHEX SPARKHILL**
## **STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2022**
|Notes
**INCOME**
**Income and Endowments from:**
Donations, Grants and Legacies
2a
Charitable Activities
2b
Other Income
2c
Donated Goods
5
**TOTAL**
**EXPENDITURE**
**Expenditure on:**
Raising Funds
3a
Charitable Activities
3b
Donated Goods
5
**TOTAL**
**NET INCOME/(EXPENDITURE)**
Transfers Between Funds
15
**OTHER RECOGNISED GAINS/(LOSSES)**
Revaluation of Stock held
5
**NET MOVEMENT IN FUNDS**
**Reconciliation of funds:**
Total Funds Brought Forward
**TOTAL FUNDS CARRIED FORWARD**|Unrestricted
Designated
Restricted
TOTAL
TOTAL
Funds
Funds
Funds
2022
2021
£
£
£
£
£
410,842
0
164,940
575,782
495,494
33,859
0
20,710
54,569
33,219
0
0
0
0
4,000
0
0
276,216
276,216
197,802
**444,701**
**0**
**461,866**
**906,567**
**730,515**
12,880
0
0
12,880
13,074
407,801
0
217,097
624,898
513,523
0
0
276,062
276,062
234,253
**420,681**
**0**
**493,159**
**913,840**
**760,850**
**24,020**
**0**
**(31,293)**
**(7,273)**
**(30,335)**
0
0
0
0
0
0
0
24,636
24,636
0
**24,020**
**0**
**(6,657)**
**17,363**
**(30,335)**
55,267
60,000
140,048
255,315
285,650
**79,287**
**60,000**
**133,391**
**272,678**
**255,315**|
|---|---|
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 21 form part of these financial statements.
8
## **NARTHEX SPARKHILL**
## **BALANCE SHEET AS AT 31ST DECEMBER 2022**
|||Unrestricted|Designated|Restricted|**31-Dec-22**|**31-Dec-21**|
|---|---|---|---|---|---|---|
|||Funds|Funds|Funds|**Total**|**Total**|
||**Note**|£|£|£|**£**|**£**|
|**Fixed Assets**|||||||
|Tangible assets|9|7,258|0|11,766|19,024|25,716|
|**Current Assets**|||||||
|Debtors|10|10,178|0|14,449|24,627|13,783|
|Donated Goods held in stock|11|0|0|84,772|84,772|59,982|
|Cash at bank and in hand||69,989|60,000|22,404|152,393|157,424|
|**Total Current Assets**||**80,167**|**60,000**|**121,625**|**261,792**|**231,189**|
|**Creditors:**amounts falling due|12|8,138|0|0|8,138|1,590|
|within one year|||||||
|**NET CURRENT ASSETS**||72,029|60,000|121,625|253,654|229,599|
|**TOTAL ASSETS**less current liabilities||**79,287**|**60,000**|**133,391**|**272,678**|**255,315**|
|**Creditors:**amounts falling due in|13|0|0|0|0|0|
|more than one year|||||||
|**NET ASSETS**||**79,287**|**60,000**|**133,391**|**272,678**|**255,315**|
|**Funds of the CIO**|||||||
|General Unrestricted Funds|16|79,287|0|0|79,287|55,267|
|Designated Funds|16|0|60,000|0|60,000|60,000|
|Restricted Funds|16|0|0|133,391|133,391|140,048|
|**Total Funds**||**79,287**|**60,000**|**133,391**|**272,678**|**255,315**|
Approved by the Board of Trustees on 30th June 2023
Signed on their behalf by Trustee
Print Name: GEOFF HOLT
9
## **NARTHEX SPARKHILL**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **1.�ACCOUNTING POLICIES AND BASIS OF PREPARATION**
## **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: Accounting and Reporting by Charities: Statement of Recommended Practice applicable to Charities preparing their accounts in accordance with FRS 102 (effective 1 January 2019) - (Charities SORP (FRS 102)) and 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:
- the CIO becomes entitled to the income;
- it is more likely than not that the trustees will receive the resources; and
- the monetary value can be measured with sufficient reliability.
## **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 (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **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 includes 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 (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **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 realistically to 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 (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
|**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
2022
2021
£
£
£
£
49,802
549
50,351
44,531
78,800
0
78,800
148,503
23,080
0
23,080
28,892
259,160
164,391
423,551
273,568
**410,842**
**164,940**
**575,782**
**495,494**
228
20,710
20,938
6,093
32,620
0
32,620
26,061
1,011
0
1,011
1,065
**33,859**
**20,710**
**54,569**
**33,219**
0
0
0
4,000
**0**
**0**
**0**
**4,000**
Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2022
2021
£
£
£
£
12,880
0
12,880
13,074
**12,880**
**0**
**12,880**
**13,074**|
|---|---|
13
## **NARTHEX SPARKHILL**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **3. EXPENDITURE**
|Notes
**b) Charitable Activities**
Depreciation
8
Establishment:
Cleaning and Kitchen Supplies
Insurance
Rental and Utilities - St Johns
Foodbank:
Running Costs and Premises Rental
Vehicle Leasing Costs
Gifts and Grants
Project Activities
Staff Costs:
Contractor Fees
Employers National Insurance
17
Employers Pension Contributions
17
Payroll Processing Fee
Training Costs
Wages and Salaries
17
Support costs
4
Trustees Expenses *
Volunteer and Staff Expenses|Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2022
2021
£
£
£
£
3,848
6,880
10,728
8,338
5,088
5,088
3,949
9,134
9,134
8,750
12,000
12,000
11,272
102,212
102,212
88,151
3,610
3,610
3,612
115
625
740
0
35,159
35,159
23,674
6,950
6,950
0
24,777
24,777
19,130
6,479
6,479
4,640
692
692
578
2,705
2,705
635
274,129
103,770
377,899
303,769
19,236
19,236
33,587
144
144
0
7,345
7,345
3,438
**407,801**
**217,097**
**624,898**
**513,523**
0
0
0
0
0
0
0
0
0
0
0
0
0
0|
|---|---|
* Trustees Expenses represent the reimbursement of Zoom video communication software
## **4. ANALYSIS OF SUPPORT COSTS**
|Office costs
Telephone and Broadband (note: 2022 telephone refund received)
Office Supplies, Stationery and Postage
Equipment Lease
IT Software
Governance costs (breakdown shown below)|Staff
Other
and related
direct
costs
costs
2022
2021
£
£
£
£
1,025
(1,349)
(324)
16,759
0
8,270
8,270
10,191
0
8,819
8,819
4,694
0
821
821
353
0
1,650
1,650
1,590
**1,025**
**18,211**
**19,236**
**33,587**|
|---|---|
## **Governance Costs**
|Independent Examiner's Fees
8|2022
2021
£
£
1,650
1,590|
|---|---|
14
## **NARTHEX SPARKHILL**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **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 1.1.22
Stock revalued as per Trussell Trust guidelines
Donated Food
Distributed Food
Disposed as waste
Stocks of Food at 31.12.22|**Weight**
**Value**
**kg**
**£**
35,704
59,982
-
24,636
116,547
276,216
(116,297)
(275,624)
(185)
(438)
35,769
84,772|
|---|---|
The estimated cost of food has been calculated by weight at an average cost as calculated by the Trussell Trust of £2.37 per kg (was formerly £1.68 per kg).
## **6. GRANTS RECEIVED**
|29 May 1961 Charitable Trust
Accord Housing
Alexis Trust
Archer Trust
Arnold Clark
Bayfield Charitable Trust
Benevit Charitable Giving
Bernard Piggott Charitable Trust
CAF - Emergency Covid-19
Charles Brotherton Trust
Charities Trust
Dumbreck Charity
Edward and Dorothy Cadbury Trust
Edward Gosling Foundation
Edith Murphy Foundation
EH Smith Charitable Trust
Eric F Sparkes Charitable Trust
Eric W Vincent Trust Fund
Education and Skills Funding Agency
Eveson Charitable Trust
Fitton Trust
Fredmill 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
Carried forward to next page|2022
2021
£
£
4,000
4,000
0
4,423
250
0
2,500
0
0
2,000
0
1,750
0
1,300
2,000
0
0
1,400
275
275
0
200
500
0
3,000
0
10,000
0
0
3,000
15,000
12,500
1,100
1,000
500
0
3,000
0
0
5,000
500
350
3,000
0
30,000
0
1,000
1,000
2,000
0
2,000
2,000
5,000
1,000
0
1,000
1,000
2,000
0
2,000
0
1,000
0
10,000
86,625
57,198|
|---|---|
15
## **NARTHEX SPARKHILL**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **6. GRANTS RECEIVED (continued)**
|Brought forward from previous page
HE & EL Botteley Charity Settlement
Henry James Sayer Charity
IMI Kynoch Ltd
Jaguar Land Rover
Joseph Hopkins Charity
Julia and Hans Rau Trust
Knowle PCC
Leaver Family Fund
Leigh Trust
LG Harris Trust
Limoges Charitable Trust
L Barbara Morrison Charitable Trust
Lord Austin Trust
Lord Mayor of Birmingham Charity
Marsh Christian Trust
Maidenhead Malachi Trust
Metamorph Law Ltd
Michael Marsh Charitable Trust
Montal Charitable Trust
Park Family Charitable Trust
Pat Newman Memorial Trust
Reuben Foundation
Richard Cadbury Charitable Trust
Richard Kilcuppes Registered Charity
Roger and Douglas Turner Charitable Trust
Rowlands Trust
S D Lloyd Charity
Shakespeare Martineau
Shirley Churches Together
Shirley Lions Club
Sobell Foundation
Souter Charitable Trust
South Birmingham Friends Institute Trust
Sparkhill Trust
Trussell Trust
Trustees of BK Kufton
Veale Wasbrough Charitable Trust
Vincent Timber
WED Charitable Trust
Western Power Distribution Community Matters
Yardley Great Trust
Big Lottery
**TOTALS**|2022
2021
£
£
86,625
57,198
500
500
750
900
500
0
600
0
0
750
39,663
0
2,000
920
1,000
0
0
2,000
2,500
5,000
0
1,000
4,800
0
1,000
0
2,000
0
550
0
1,250
0
0
500
1,820
2,000
5,000
0
0
2,000
3,000
3,000
0
250
500
500
0
1,000
0
2,000
2,000
0
500
0
0
1,000
225
0
1,800
0
5,000
0
3,000
3,000
1,000
2,000
0
1,000
130,239
57,292
0
1,000
0
350
250
0
0
1,000
2,500
0
10,000
0
310,572
146,160
112,979
127,408
**423,551**
**273,568**|
|---|---|
16
## **NARTHEX SPARKHILL**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **7. COMMISSIONED FUNDING**
|Ashiana Community Project
BVSC - Ageing Better
The Muath Trust(including Ageing Better LAP)
Small Heath Community Forum|2022
2021
£
£
6,250
12,500
13,750
55,000
34,840
57,044
23,960
23,959
**78,800**
**148,503**|
|---|---|
## **8. NET INCOME FOR THE YEAR**
|**8. NET INCOME FOR THE YEAR**||
|---|---|
|Thisisstated after charging:|2022
2021
£
£|
|Independent Examiner's Fees|1,650
1,590|
|Depreciation|10,728
8,338|
## **9. TANGIBLE FIXED ASSETS**
|Cost
01-Jan-22
Additions
Cost at
31-Dec-22
Depreciation
01-Jan-22
Charge
Depreciation at
31-Dec-22
Net Book Value
31-Dec-22
Net Book Value
31-Dec-21|Unrestricted
Restricted
Equipment
Motor
Equipment
Fixtures &
Total
Fixtures &
Vehicles
Fittings
Fittings
£
£
£
£
£
94,845
25,000
14,830
3,807
138,482
4,036
0
0
0
4,036
98,881
25,000
14,830
3,807
142,518
87,776
8,854
13,575
2,561
112,766
3,847
5,382
924
575
10,728
91,623
14,236
14,499
3,136
123,494
**7,258**
**10,764**
**331**
**671**
**19,024**
7,069
16,146
1,255
1,246
25,716|
|---|---|
The annual commitments under non-cancelling operating leases and capital commitments are as follows:
31st December 2022 : 35 x monthly vehicle finance lease payments of £300.57 commencing December 2020 Ongoing quarterly office equipment lease rentals of £561.42 Ongoing quarterly office equipment lease rentals of £1,800 Ongoing monthly premises rental of £1,000 Ongoing monthly premises rental of £14,368
## **10. DEBTORS AND PREPAYMENTS**
|Project Income
Prepaid expenditure
Tax Recoverable|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Dec-22**
**31-Dec-21**
£
£
**£**
**£**
7,461
0
7,461
769
0
14,449
14,449
9,468
2,717
0
2,717
3,546
**10,178**
**14,449**
**24,627**
**13,783**|
|---|---|
17
## **NARTHEX SPARKHILL**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **11.�STOCK**
**----- Start of picture text -----**
Donated goods and stock
For For
distribution resale
£ £
Charitable activities:
Opening 59,982 0
Revaluation 24,636 0
Added in period 276,216 0
Expensed in period (275,624) 0
Impaired/Disposed as waste (438) 0
Closing 84,772 0
**----- End of picture text -----**
## **12.�CREDITORS�AND�ACCRUALS:�AMOUNTS�FALLING DUE WITHIN ONE YEAR**
|Independent Examiner's Fees
Accounts Payable|Unrestricted
Restricted
**Total**
**Total**
Fund
Fund
**31-Dec-22**
**31-Dec-21**
£
£
**£**
**£**
1,650
0
1,650
1,590
6,488
0
6,488
0
**8,138**
**0**
**8,138**
**1,590**|
|---|---|
## **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.
## **14. RESTRICTED FUNDS**
|CURRENT YEAR
Foodbank Fund
PREVIOUS YEAR
Foodbank Fund|Balance
Donated
Distributed Revaluation of
Balance
**01-Jan-22**
Income
Expenditure
goods
goods
Stock held
**31-Dec-22**
£
£
£
£
£
£
£
140,048
185,650
(217,097)
276,216
(276,062)
24,636
133,391
**140,048**
**185,650**
**(217,097)**
**276,216**
**(276,062)**
**24,636**
**133,391**
Balance
Donated
Distributed
Fixed
Balance
**01-Jan-21**
Income
Expenditure
goods
goods
assets pcshed
**31-Dec-21**
£
£
£
£
£
£
£
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**|
|---|---|
## The Foodbank Fund relates to:
All income and expenditure for the Sparkhill Foodbank, located at Units 18a, 19 and 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.
18
## **NARTHEX SPARKHILL**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **14. RESTRICTED FUNDS (continued)**
The restricted funds are represented by:
**----- Start of picture text -----**
31-Dec-22 31-Dec-21
£ £
Donated goods held in stock 84,772 59,982
Debtors 14,449 0
Cash at bank and in hand 22,404 61,419
Fixed assets 11,766 18,647
133,391 140,048
**----- End of picture text -----**
## **15. DESIGNATED FUNDS**
|CURRENT YEAR
Reserve Fund
PREVIOUS YEAR
Reserve Fund|Balance
Donated
Distributed
Transfer
Balance
**01-Jan-22**
Income
Expenditure
goods
goods
btw funds
**31-Dec-22**
£
£
£
£
£
£
£
60,000
0
0
0
0
0
60,000
**60,000**
**0**
**0**
**0**
**0**
**0**
**60,000**
Balance
Donated
Distributed
Transfer
Balance
**01-Jan-21**
Income
Expenditure
goods
goods
btw funds
**31-Dec-21**
£
£
£
£
£
£
£
50000
0
0
0
0
10,000
60,000
**50,000**
**0**
**0**
**0**
**0**
**10,000**
**60,000**|
|---|---|
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.
There were no transfers to this fund in 2022.
## **15. DESIGNATED FUNDS (continued)**
The designated funds are represented by:
|Cash at bank and in hand
Fixed assets
**16. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
Tangible Fixed Assets
Cash at bank and in hand
Other net current assets/(liabilities)
TOTAL|2022
2021
£
£
60,000
60,000
0
0
60,000
60,000
Unrestricted
Designated
Restricted
TOTAL
Fund
Fund
Fund
31-Dec-22
Foodbank
£
£
£
£
7,258
0
11,766
19,024
69,989
60,000
22,404
152,393
2,040
0
99,221
101,261
79,287
60,000
133,391
272,678|
|---|---|
19
## **NARTHEX SPARKHILL**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **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|31-Dec-22
31-Dec-21
£
£
377,899
304,236
24,777
19,130
0
(467)
6,479
4,640
**409,155**
**327,539**|
|---|---|
Average number of employees who were engaged in each of the following activities:
||31-Dec-22|31-Dec-21|
|---|---|---|
||TOTAL|TOTAL|
|Furthering the charitable objectives|18.9|15.7|
Staff numbers represent 18 being on payroll at the start of the year and 20 at the end of the year (2021: 13 at the start of the year and 18 at the end of the year).
No employees received emoluments in excess of £60,000. All staff are paid through the PAYE system. The CIO also engaged the services of subcontractors to deliver services. The total amount paid to sub contractors in 2022 was £6,950.
The key management personnel of the CIO comprise the Trustees, Director of Finance, CEO, Narthex Project Manager and Strategic Project 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 £102,938 (2021: £101,688). Contractor fees of £6,950 were also paid to a limited company of which one member of key management personnel is a director, for their professional services rendered.
A related party to Trustee L Wiseman (her spouse) received remuneration (including employer national insurance and employer pension contributions) totalling £28,305 for his role as Strategic Project Manager.
A related party to Trustee G Holt (his son) received remuneration (including employer national insurance contributions) totalling £21,131 for his role as Foodbank Co-Ordinator.
The CIO currently pays pension contributions on behalf of 18 employees (at 31 December 2021: 16 employees). An automatic enrolment workplace pension scheme is available and eligible employees were enrolled with the option of opting out if they so wished. The scheme is administered and managed through the Diocese of Birmingham.
Three Trustees donated an aggregate amount of £748 to the CIO during 2022 (2021: Two Trustees donated an aggregate amount of £136). There were no conditions attached to these donations. No Trustees made any loans to the CIO during 2022 or 2021.
There were no other payments made to Trustees or any persons connected with them during this financial period apart from reimbursement of items purchased on behalf of the CIO. No other material transaction took place between the CIO and a trustee or any person connected with them (2021: None)
## **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
## **NARTHEX SPARKHILL**
## **NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2022**
## **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
## **NARTHEX SPARKHILL**
## **STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31ST DECEMBER 2022**
|2022
£
**Cash used in operating activities**
(a)
**(995)**
**Cash used from investing activities**
Interest income
0
Purchase of tangible fixed assets
(4,036)
**Cash provided by (used in)**
**investing activities**
(4,036)
**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
(5,031)
Cash and cash equivalents at the
start of the year
157,424
**TOTAL cash and cash equivalents**
**at the end of the year**
(b)
**152,393**
**(a) Reconciliation of net movement in funds to net cash flow from operating activities**
2022
£
17,363
10,728
0
(10,844)
6,548
(24,790)
**(995)**
2022
£
152,393
Net movement in funds
Add back depreciation charge
Deduct interest income shown in investing activities
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Decrease/(increase) in donated goods stock
**Net cash used in operating activities**
**(b)**
**Analysis of cash and cash equivalents**
Cash at bank and in hand
**Total cash and cash equivalents**
**152,393**|2021
£
**9,876**
0
(10,347)
(10,347)
0
0
(471)
157,895
**157,424**
2021
£
(30,335)
8,338
0
(4,608)
30
36,451
**9,876**
2021
£
157,424
**157,424**|
|---|---|
22
## **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 2022.
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:
- the accounting records were not kept in accordance with section 130 of the Charities Act; or
- · the accounts did not accord with the accounting records; or
- the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair’ view which is not a matter considered as part of an independent examination.
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 Irvine-Smith FCIE
Date: 7th July 2023
Independent Examiners Ltd
Delling Lane Bosham West Sussex PO18 8NF
23