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2023-12-31-accounts

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023

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 9 Report of the Trustees
Page 10 Statement of Financial Activities
Page 11 Balance Sheet
Pages 12 to 24 Notes to the Financial Statements
Page 25 Statement of Cashflows
Page 26 Independent Examiner's Report

2

NARTHEX SPARKHILL

LEGAL AND ADMINISTRATIVE INFORMATION

CHARITY NUMBER 1100358 START OF FINANCIAL YEAR 1st January 2023 END OF FINANCIAL YEAR 31st December 2023 TRUSTEES THAT SERVED DURING YEAR Mr G J Holt TO 31ST DECEMBER 2023 Mr D J Bower Mrs JE Ahumibe Mrs L Wiseman (resigned after year end 26 March 2024) Mr J Walsh (Chair until 3 October 2023) Rev P Day (resigned 14 July 2023) Rev T Crowe (Chair from 3 October 2023) 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

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NARTHEX SPARKHILL

TRUSTEES REPORT

FOR THE YEAR ENDED 31ST DECEMBER 2023

Structure, governance and management

The charity is constituted as a Charitable Incorporated Organisation - Foundation conversion dated 9th April 2019.

Trustees are appointed for a term of three years by a resolution passed at a properly convened meeting of the charity trustees.

In selecting individuals for appointment as charity trustees, the exisiting charity trustees have regard to the skills, knowledge and experience needed for the effective administration of the CIO.

Upon appointment, all Trustees are provided with:

(a) a copy of the current version of the constitution; and

(b) a copy of the CIO’s latest Trustees’ Annual Report and statement of accounts

Management of the Charity’s Finances is overseen by our Finance and General Purposes 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. This Committee reviews and sets levels of pay for all Narthex staff, benchmarking with comparable Third Sector organisations and taking into account Living Wage Foundation recommendations.

Achievements and Performance

We have been able to increase the funds set aside in our Designated Reserve Fund to £100,000, giving a buffer of approximately three months’ salary costs, as a contingency against the inevitable peaks and troughs in receipt of grant and other income. These are encouraging markers in our journey towards enhanced financial sustainability. Fundraising efforts have particularly focussed on providing resources to strengthen our Advice and Guidance work, held in a Restricted Fund, in line with the Charity’s strategic priorities agreed with Trustees. As a result, we move into 2024 in a strong position to grow and develop our IAG and MDA provision.

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 (over 100 at time of writing) has an increasingly important role to play in the life of the Charity, we estimate volunteers have contributed well over 20,000 hours to the work of the Charity during the year. One of our strategic priorities is to further grow, develop, support and train our volunteers and the contribution they make. 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 2023. Over the year we were supported by around 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 2024, as we seek to respond to the ever growing needs around us.

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NARTHEX SPARKHILL

TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2023

Objectives and Activities

The CIO's charitable objects are shown on page 3.

The trustees have had regard to the Charity Commission’s guidance on public benefit.

During 2023 we continued to see people in need coming to us as a result of the impact of cost of living increases and fuel poverty. Our community 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 many 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.

Throughout the year our Foodbank and its various satellites have continued to operate consistently week by week. During the year we provided food parcels to 13,138 adults and 6,271 children, seeing significant increases in referrals from those living in local HMOs, often highlighting poor living conditions and lack of support. Representatives from Shelter attend some of our Foodbank sessions to advise and support on housing matters.

It is recognised that the Foodbank model as it has been operating is not financially sustainable in the longer term, nor is it delivering the best possible outcomes for our clients. Whilst we continue to do all we can to help those in crisis, as explained above by our Chair of Trustees, our focus is increasingly on supporting those individuals on their journey to change, through appropriate advice and guidance. Our experience is that funders and grant-making bodies are increasingly recognising this as a cause worth funding.

This means that we recognise the increasing need for both IAG and MDA services, so that clients can be given the dignity of being able to make informed choices about their lives. Wherever possible we have Advisers on hand during our Foodbank sessions to give support and guidance. Our Advisers offer both face-to-face and telephone appointments, and during 2024 the Centre at St Johns Church will open five days a week. During the year we responded to 2573 requests for this advice from 933 clients, the outcomes for these clients being £808,461 in welfare benefits, and 256 clients for whom a total of £601,288 in debt was resolved and managed.

Our Trustees continue to provide good governance for the Charity, bringing a 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. We are looking to strengthen the team during 2024.

Financial Review

The Trustees report a surplus of income over expenditure of £11,190 for the year ended 31st December 2023, after attributing £11,462 to depreciation of fixed assets. This is compared to a surplus of £17,363 in 2022 (after revaluation of stock held) and £10,728 was attributed to the depreciation of fixed assets. Free reserves as at 31st December 2023 as represented by unrestricted (including designated) net current assets were £221,555 (2022: £132,029).

Principal funding sources are grants received from our funders, as detailed in Note 6 to the financial statements.

The Trustees believe there are no uncertainties about the charity’s ability to continue as a going concern.

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NARTHEX SPARKHILL

TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2023

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 and General Purposes 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.

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NARTHEX SPARKHILL

TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2023

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.

Going Concern

The Trustees believe there are no uncertainties about the Charity’s ability to continue as a going concern.

Plans for the future

How do you sum up areas like the ones we work in? Often, the tendency is to look for the things we don’t have, and to let those things define us. It’s certainly true that we remain, by many markers, highly deprived. In early 2024, one national politician even called Sparkhill “a no-go area”!

One problem with viewing Balsall Heath, Hall Green, Sparkhill or Tyseley through the lenses of what we don’t have is that it can shape the narrative and ethos of any organisation which works there. If the most notable thing about our area is that it’s highly deprived, then Narthex must surely focus on giving people ‘something’. We must, it seems, think of ourselves as a ‘destitution-relief charity’ first of all.

But this leaves out so much that’s precious about our communities, and it limits Narthex too! If our role is just to respond to need, and the need keeps on rising (as we see with attendance at our foodbanks), then it’s a recipe for continually trying to do more with less… until the wheels fall off!

In 2023, Trustees decided unequivocally that we no longer wanted to be boxed in by low expectations of ourselves. We resolved no longer to look at our communities mainly through the lens of what we don’t have; nor to view Narthex itself as an exercise in just filling the resultant holes.

In fact, when we thought about it we realised that, while our part of Birmingham faces significant challenges, we have the most wonderful gift of one another −great people, many of them young −and that, if we work together and resource one another (across faiths, across languages, across backgrounds), we can make Sparkhill and its surrounding suburbs an even better place in which to live

So 2023 was, for Narthex, a year of defining a new strategy and a new mission. We now name our vision as being that we want to see Birmingham being changed for the better −a city in which thriving, self-sustaining communities and individuals empower each other to flourish.

Our mission, which follows from this, is that we want to see Birmingham lives being changed for the better as we work in partnership with the people we serve, helping them to realise their potential and then becoming agents of community-transformation themselves.

On the face of it, we continue to do some of the same things as before. We provide food to those who struggle, and offer advice on money and debt. But we’ve made a strategic shift, to accompany our existential shift away from being, above all, a charity which relieves destitution and fills holes.

We’ve looked at our foodbanks, for example; and, as well as the fundamental unsustainability of the model, we see a risk that people can become ‘stuck’ in them. So we want to be clear that we want to serve clients at our foodbanks, but only for as long as strictly necessary − and not a day longer.

We’ve therefore done two things. In late 2023, we started the process of taking on ‘ownership’ of a food pantry −a process completed with a full and final hand-over in April 2024. This was done with a clear strategic goal in mind. We’re now actively encouraging many of our regular foodbank users to move into the pantry instead −to switch from contributing nothing to paying for something, and from having no choice to having a choice.

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NARTHEX SPARKHILL

TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2023

.

The other aspect of our strategy, informed by our mission and aimed at contributing to the achievement of our vision, is that we’re seeking to be more intentional with the provision of Information, Advice and Guidance (IAG), including our Money and Debt Advice (MDA) services.

We believe that, in the past, we sometimes addressed the wrong issue. We focused on feeding people when we should instead have asked, “Why doesn’t this person have enough money?” Of course benefit levels should be higher; but for some of our clients, at least, it isn’t just lack of income which brings them to the foodbank −it’s that they’re not getting all the benefits to which they’re entitled; or they’re deeply in debt; or… or… or…

We are therefore working in a much more joined up way with other providers (eg. Birmingham Law Centre, appealing Universal Credit sanctions; Shelter) to provide information and guidance at source, as well as increasingly deploying our own MDA paid staff into the foodbanks and pantries.

We’re also starting to recruit, train, support and equip a team of volunteers who will both provide a level of IAG themselves (so releasing paid colleagues to focus on the more complex cases) and who will accompany clients through their personal journeys into change. Instead of saying, in effect, “this other organisation can help you −go and ask them” (an invitation which is not always taken up), we can say “our friends in this other organisation can help you, and we’ll walk that path along with you”.

It’s not just about ‘clients’ and ‘professionals’, in other words; it’s about building relationships and a resilient community, as we work for transformation together. Our belief is that, as we see this happening more and more in the individuals we accompany, Birmingham itself will be transformed.

There are several things which could be added in relation to this:

All in all, 2023 was a year of great but necessary change. Development will continue in 2024; but always done as one team, moving forward together. We want to see lives being changed for the better as we work in partnership with the people we serve, helping them to realise their potential and then becoming agents of community-transformation themselves. Our belief is that, when people across our city see this happening, other groups and organisations will want to join in −and Birmingham will be transformed. You can be part of this movement for change. Come and join us!

Toby Crowe Chair of Trustees

8

TRUSTEES REPORT FOR THE YEAR ENDED 31ST DECEMBER 2023

NARTHEX SPARKHILL

.

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 :-

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 2023, 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: 10 July 2024

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NARTHEX SPARKHILL

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2023

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
2023
2022
£
£
£
£
£
381,653
0
256,288
637,941
575,782
19,055
0
10,032
29,087
54,569
0
0
0
0
0
0
0
198,805
198,805
276,216
400,708
0
465,125
865,833
906,567
4,120
0
0
4,120
12,880
177,995
0
439,905
617,900
624,898
0
0
232,623
232,623
276,062
182,115
0
672,528
854,643
913,840
218,593
0
(207,403)
11,190
(7,273)
(206,325)
40,000
166,325
0
0
0
0
0
0
24,636
12,268
40,000
(41,078)
11,190
17,363
79,287
60,000
133,391
272,678
255,315
91,555
100,000
92,313
283,868
272,678

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 12 to 24 form part of these financial statements.

10

NARTHEX SPARKHILL

BALANCE SHEET AS AT 31ST DECEMBER 2023

Unrestricted Designated Restricted 31-Dec-23 31-Dec-22
Funds Funds Funds Total Total
Note £ £ £ £ £
Fixed Assets
Tangible assets 9 4,001 0 4,610 8,611 19,024
Current Assets
Debtors 10 79,593 0 64,542 144,135 24,627
Donated Goods held in stock 11 0 0 50,954 50,954 84,772
Cash at bank and in hand 9,641 100,000 (12,587) 97,054 152,393
Total Current Assets 89,234 100,000 102,909 292,143 261,792
Creditors:amounts falling due 12 1,680 0 15,206 16,886 8,138
within one year
NET CURRENT ASSETS 87,554 100,000 87,703 275,257 253,654
TOTAL ASSETSless current liabilities 91,555 100,000 92,313 283,868 272,678
Creditors:amounts falling due in 13 0 0 0 0 0
more than one year
NET ASSETS 91,555 100,000 92,313 283,868 272,678
Funds of the CIO
General Unrestricted Funds 16 91,555 0 0 91,555 79,287
Designated Funds 16 0 100,000 0 100,000 60,000
Restricted Funds 16 0 0 92,313 92,313 133,391
Total Funds 91,555 100,000 92,313 283,868 272,678

Approved by the Board of Trustees on 10 July 2024

Signed on their behalf by Trustee

Print Name: GEOFF HOLT

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NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023

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:

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 received government grants in the reporting period.

12

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

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.

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NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

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.

14

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

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
2023
2022
£
£
£
£
41,108
19,000
60,108
50,351
0
0
0
78,800
16,022
0
16,022
23,080
324,523
237,288
561,811
423,551
381,653
256,288
637,941
575,782
567
10,032
10,599
20,938
16,989
0
16,989
32,620
1,499
0
1,499
1,011
19,055
10,032
29,087
54,569
0
0
0
0
0
0
0
0
Unrestricted
Restricted
TOTAL
TOTAL
Funds
Funds
2023
2022
£
£
£
£
4,120
0
4,120
12,880
4,120
0
4,120
12,880

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NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

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
2023
2022
£
£
£
£
11,462
0
11,462
10,728
750
750
5,088
9,607
9,607
9,134
12,000
12,000
12,000
110,794
110,794
102,212
3,158
3,158
3,610
0
625
625
740
5,250
3,718
8,968
35,159
13,321
13,321
6,950
22,473
22,473
24,777
7,333
7,333
6,479
761
761
692
1,449
1,449
2,705
63,094
321,610
384,704
377,899
28,969
28,969
19,236
1,080
1,080
144
446
446
7,345
177,995
439,905
617,900
624,898

4. ANALYSIS OF SUPPORT COSTS

Office costs
Telephone and Broadband (note: 2022 telephone refund received)
Bank and Card Charges
Office Supplies, Stationery and Postage
Placement Fees
Equipment Lease
IT Software
Governance costs (breakdown shown below)		 Staff
Other
and related
direct
costs
costs
2023
2022
£
£
£
£
13,691
0
13,691
(324)
0
240
240
0
0
2,052
2,052
8,270
0
372
372
0
0
10,372
10,372
8,819
0
562
562
821
0
1,680
1,680
1,650
13,691
15,278
28,969
19,236

Governance Costs

Independent Examiner's Fees

2023
2022
£
£
1,680
1,650

16

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

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 1.1.23
Stock revalued as per Trussell Trust guidelines
Donated Food
Distributed Food
Disposed as waste
Stocks of Food at 31.12.23		 Weight
Value
kg
£
35,769
84,772
-
-
83,884
198,805
(94,105)
(223,029)
(4,048)
(9,594)
21,500
50,954

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
Alfred Haines Charitable Trust
Alexis Trust
Archer Trust
Asda Foundation
Ashiana
Aylesforel Family Charitable Trust
Bayfield Charitable Trust
Bernard Piggott Charitable Trust
Birmingham City Council
BVSC Ageing Better
Cadbury Charitable Trust
CB & HH Taylor Trust
Charles Brotherton Trust
Comm MA Ltd (grants for clients)
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
Fenthams Trust
Filton Trust
Fitton Trust
Fredmill Trust
Garfield Weston Foundation
GE Gee Trust
George Henry Collins Registered Charity
Carried forward to next page		 2023
2022
£
£
0
4,000
750
0
0
250
0
2,500
1,000
0
50,000
0
1,000
0
2,000
0
0
2,000
45,042
0
17,910
0
3,000
0
2,000
0
275
275
680
0
0
500
0
3,000
0
10,000
0
0
15,000
15,000
1,100
1,100
0
500
0
3,000
5,000
0
2,000
0
350
0
0
500
0
3,000
0
30,000
1,000
1,000
3,000
2,000
151,107
78,625

17

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

6. GRANTS RECEIVED (continued)

Brought forward from previous page
GJW Turner Trust
Goodenough Charitable Trust
Gowling WLG (UK) Charitable Trust
Grantham Yorke Trust
Grimmitt Trust
Grimley Charity
HE & EL Botteley Charity Settlement
Heart of England Community Foundation
Henry James Sayer Charity
IMI Kynoch Ltd
Jaguar Land Rover
J.C. Secombe Charitable Trust
Joseph Hopkins Charity
Julia and Hans Rau Trust
Keith and Joan Mindelsohn Charitable Trust
Knowle PCC
Ladbrokes Coral
Leaver Family Fund
Leigh Trust
LG Harris Trust
Lillie C Johnson Trust
L Barbara Morrison Charitable Trust
Lord Austin Trust
Lord Mayor of Birmingham Charity
Lottery Cost of Living
M Trust
Marsh Christian Trust
Maidenhead Malachi Trust
Marshalls Solicitors
Michael Marsh Charitable Trust
Mills and Reeve Charitable Trust
Montal Charitable Trust
Pat Newman Memorial Trust
Prosperity Law LLP
Richard Cadbury Charitable Trust
Richard Kilcuppes Registered Charity
Rowlands Trust
Sainsburys
S D Lloyd Charity
Shirley Churches Together
Shirley Parish Church
Shirley Lions Club
Small Heath Community Forum/Police &
Sobell Foundation
Souter Charitable Trust
South Birmingham Friends Institute Trust
Squire Patton
Carried forward to next page		 2023
2022
£
£
151,107
78,625
3,000
2,000
3,000
5,000
500
0
0
1,000
3,000
0
1,000
0
0
500
30,000
0
0
750
1,000
500
0
600
150
0
700
0
0
39,663
500
0
4,000
2,000
382
0
0
1,000
1,500
0
0
2,500
500
0
0
4,800
2,000
1,000
0
2,000
74,974
0
1,500
0
700
550
0
1,250
250
0
0
1,820
1,044
0
0
5,000
0
3,000
450
0
500
500
1,000
0
0
2,000
5,000
0
0
500
0
225
1,000
0
500
1,800
17,970
0
1,500
5,000
0
3,000
0
1,000
250
0
308,977
167,583

18

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

6. GRANTS RECEIVED (continued)

Brought forward from previous page
Trussell Trust
Turner Trust
Vincent Timber
WED Charitable Trust
Western Power Distribution Community Matters
Wilkes Partnership
Wilmcote Charity Trust
Yardley Great Trust
Big Lottery
TOTALS
7. COMMISSIONED FUNDING
Ashiana Community Project
BVSC - Ageing Better
The Muath Trust(including Ageing Better LAP)
Small Heath Community Forum
8. NET INCOME FOR THE YEAR
This is stated after charging:
Independent Examiner's Fees
Depreciation		 2023
2022
£
£
308,977
167,583
126,426
130,239
3,000
0
0
250
1,000
0
0
2,500
5,300
0
750
0
0
10,000
445,453
310,572
116,358
112,979
561,811
423,551
2023
2022
£
£
0
6,250
0
13,750
0
34,840
0
23,960
0
78,800
2023
2022
£
£
1,680
1,650
11,462
10,728

19

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

9. TANGIBLE FIXED ASSETS

Cost
01-Jan-23
Additions
Cost at
31-Dec-23
Depreciation
01-Jan-23
Charge
Depreciation at
31-Dec-23
Net Book Value
31-Dec-23
Net Book Value
31-Dec-22		 Unrestricted
Restricted
Equipment
Motor
Equipment
Fixtures &
Total
Fixtures &
Vehicles
Fittings
Fittings
£
£
£
£
£
98,881
25,000
14,830
3,807
142,518
1,049
0
0
0
1,049
99,930
25,000
14,830
3,807
143,567
91,623
14,236
14,499
3,136
123,494
4,306
6,250
331
575
11,462
95,929
20,486
14,830
3,711
134,956
4,001
4,514
0
96
8,611
7,258
10,764
331
671
19,024

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

At 31st December 2023 :

35 x monthly vehicle finance lease payments of £300.57 (from 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 £15,206

10. DEBTORS AND PREPAYMENTS

Grant Funding
Employee Loan
Project Income
Prepaid expenditure
Tax Recoverable		 Unrestricted
Restricted
Total
Total
Fund
Fund
31-Dec-23
31-Dec-22
£
£
£
£
74,974
30,000
104,974
0
1,000
0
1,000
0
1,773
34,542
36,315
7,461
0
0
0
14,449
1,846
0
1,846
2,717
79,593
64,542
144,135
24,627

11. STOCK

Charitable activities:
Opening
Revaluation
Added in period
Expensed in period
Impaired/Disposed as waste
Closing		 For
For
distribution
resale
£
£
84,772
0
0
0
198,805
0
(223,029)
0
(9,594)
0
50,954
0
Donated goods and stock

20

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

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

----- Start of picture text -----
Unrestricted Restricted Total Total
Fund Fund 31-Dec-23 31-Dec-22
£ £ £ £
Independent Examiner's Fees 1,680 0 1,680 1,650
Accounts Payable 0 15,206 15,206 6,488
1,680 15,206 16,886 8,138
----- End of picture text -----

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
Advice Work Fund
PREVIOUS YEAR
Foodbank Fund		 Balance
Donated
Distributed
Transfer
Balance
01-Jan-23
Income
Expenditure
goods
goods
Btw Funds
31-Dec-23
£
£
£
£
£
£
£
133,391
251,320
(258,580)
198,805
(232,623)
0
92,313
0
15,000
(181,325)
0
0
166,325
0
133,391
266,320
(439,905)
198,805
(232,623)
166,325
92,313
Balance
Donated
Distributed
Fixed
Balance
01-Jan-22
Income
Expenditure
goods
goods
assets pcshed
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

The Foodbank Fund relates to:

Income and Expenditure for the operation of a warehouse and supply of a network of foodbank satellites, providing emergency food for individuals and families in crisis.

The Advice Work Fund relates to:

Income and Expenditure for the provision of Information, Advice and Guidance (IAG) and Money and Debt Advice (MDA) services, with a view to supporting individuals and families out of financial difficulties, crisis and debt.

The restricted funds are represented by:

Donated goods held in stock
Debtors
Creditors
Cash at bank and in hand
Fixed assets		 31-Dec-23
31-Dec-22
£
£
50,954
84,772
64,542
14,449
(15,206)
0
(12,587)
22,404
4,610
11,766
92,313
133,391

21

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

15. DESIGNATED FUNDS

----- Start of picture text -----
CURRENT YEAR Balance Donated Distributed Transfer Balance
01-Jan-23 Income Expenditure goods goods btw funds 31-Dec-23
£ £ £ £ £ £ £
Reserve Fund 60,000 0 0 0 0 40,000 100,000
60,000 0 0 0 0 40,000 100,000
PREVIOUS YEAR Balance Donated Distributed Transfer Balance
01-Jan-22 Income Expenditure goods goods btw funds 31-Dec-22
£ £ £ £ £ £ £
Reserve Fund 60000 0 0 0 0 0 60,000
60,000 0 0 0 0 0 60,000
----- End of picture text -----

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 and in 2023 the Trustees agreed an additional transfer of £40,000 to this fund.

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		 2023
2022
£
£
100,000
60,000
0
0
100,000
60,000
Unrestricted
Designated
Restricted
TOTAL
Fund
Fund
Fund
31-Dec-23
£
£
£
£
4,001
0
4,610
8,611
9,641
100,000
(12,587)
97,054
77,913
0
100,290
178,203
91,555
100,000
92,313
283,868

22

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

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)
Employer's Pension Contributions		 31-Dec-23
31-Dec-22
£
£
384,704
377,899
22,473
24,777
7,333
6,479
414,510
409,155

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

31-Dec-23 31-Dec-22
TOTAL TOTAL
Furthering the charitable objectives 20.75 18.9

Staff numbers represent 20 being on payroll at the start of the year and 20 at the end of the year (2022: 18 at the start of the year and 20 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 2023 was £13,321 (2022: £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 £73,062 (2022: £102,938). Contractor fees of £13,321 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 £31,656 (2022: £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 £25,265 (2022: £21,131) for his role as Foodbank Co-ordinator.

The CIO currently pays pension contributions on behalf of 16 employees (at 31 December 2022: 18 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.

One Trustee donated an amount of £120 to the CIO during 2023 (2022: Three Trustees donated an aggregate amount of £748). There were no conditions attached to these donations. No Trustees made any loans to the CIO during 2023 or 2022.

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 (2022: 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.

23

NARTHEX SPARKHILL

NOTES TO THE FINANCIAL STATEMENTS (continued) FOR THE YEAR ENDED 31ST DECEMBER 2023

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.

24

NARTHEX SPARKHILL

STATEMENT OF CASHFLOWS FOR THE YEAR ENDED 31ST DECEMBER 2023

2023
£
Cash used in operating activities
(a)
(54,290)
Cash used from investing activities
Interest income
0
Purchase of tangible fixed assets
(1,049)
Cash provided by (used in)
investing activities
(1,049)
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
(55,339)
Cash and cash equivalents at the
start of the year
152,393
TOTAL cash and cash equivalents
at the end of the year
(b)
97,054
(a) Reconciliation of net movement in funds to net cash flow from operating activities
2023
£
Net movement in funds
11,190
Add back depreciation charge
11,462
Deduct interest income shown
in investing activities
0
Decrease/(increase) in debtors
(119,508)
Increase/(decrease) in creditors
8,748
Decrease/(increase) in donated goods stock
33,818
Net cash used in operating activities
(54,290)
(b) Analysis of cash and cash equivalents
2023
£
Cash at bank and in hand
97,054
Total cash and cash equivalents
97,054		 2022
£
(995)
0
(4,036)
(4,036)
0
0
(5,031)
157,424
152,393
2022
£
17,363
10,728
0
(10,844)
6,548
(24,790)
(995)
2022
£
152,393
152,393

25

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 2023.

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 FCIE Date: 11th July 2024

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

26