Winchester Basics Bank
(a company limited by guarantee)
Report and Financial Statements
Year ending 31[st] December 2020
Charity number: 1102470 Company number: 05005690
| Contents | Page(s) |
|---|---|
| Report of the directors | 2 - 9 |
| Report of the Independent Examiner | 10 |
| Statement of Financial Activities | 11 |
| Balance Sheet | 12 |
| Notes to the accounts | 13 - 19 |
Winchester Basics Bank
Report of the directors for the year ending 31[st] December 2020
The trustees present their annual directors’ report together with the financial statements of Winchester Basics Bank for the year ending 31[st] December 2020. The financial statements have been prepared for the company as a going concern on the basis set out in Note 1 to the accounts and under the accounting policies set out in Note 2 (see pages 11 and 12).
The directors have taken advantage of the exemptions applicable to small companies including: not being required to have a statutory audit, not being required to include a statement of cash flows with the financial statements, not being required to analyse and report income and expenditure on a detailed activity basis.
As total income for the period exceeds £250,000, the company is required under charity law to have either an audit or an independent examination of its accounts by a qualified person. The Board has appointed K.J. Stratton of Kimball Smith as the independent examiner this year. Our previous independent examiner, Mr Ian Bray, retired this year and the Board is very grateful for his hard work and support.
This directors’ report includes the trustees’ annual report information as required under charity law.
1. Background and Purpose
Winchester Basics Bank provides food, hygiene products and clothing to individuals and families in emergency need. It aims to make appropriate resources available to the maximum number of people at their point of greatest need.
Winchester Basics Bank, an ecumenical Christian registered charity, opened in January 2004. In recognition of the need for such a facility in Winchester, a steering group was formed from people who had experience of working with those requiring support in the city. The charity was set up by the churches based in Winchester and with the support of Winchester City Council.
The purpose of Winchester Basics Bank is to act as a resource for people facing emergencies and struggling to make ends meet, perhaps because of unexpected bills, delayed benefit payments or a major household crisis and in 2020 the impact of the Covid-19 pandemic. It is entirely non-judgmental in that it helps anyone in urgent need. The range of people who are served is wide, from the single person, to families with children and to elderly people. Winchester Basics Bank provides a vital contribution to the relief of hardship that those in an emergency situation face and so supports social cohesion in the community and in this way provides public benefit.
Traditionally clients are referred to Winchester Basics Bank through referral agents, including Winchester City Council Housing Department, Hampshire County Council Social Services, Citizens Advice, Trinity Centre, local housing associations and local charitable groups, churches, doctors’ surgeries, probation officers and health visitors. These referral agents issue online vouchers to people they know who are in urgent emergency need, and these vouchers are exchanged by Winchester Basics Bank for 7-days of food and hygiene products and also for articles of clothing when required. In addition, as a result of the pandemic, it was decided in 2020 to set up a self-referral process whereby people who have never used our services before could reach us directly. Winchester Basics Bank also supports other food banks in the surrounding area with food donations from time to time.
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2. Facilities
2.1. New Bulk Food Sorting & Storage Facility
In recent years our main centre at Milland Road, where we have been located for the last 12 years, has progressively become too small for us to operate safely and efficiently due to the growing demand for our services. We have had to prioritise operational space for food over clothing in order to provide the required food service. Unfortunately this has meant that our clothes service has become very limited with a small range of adult-only clothing available.
With the impact of the pandemic it was necessary to create better social distancing for our staff and volunteers. We also had a 3-fold increase in client numbers to contend with during the March-June period due to the lockdown. It became clear very quickly that in order for us to remain open for clients we had to set up a new bulk food sorting and storage facility. We are very grateful to St. Peter’s RC Church for providing space for us to store surplus crates of food in recent years but we needed more storage space and a new large sorting area. Fortunately this emergency requirement was resolved in a very short space of time due to the kindness and flexibility of the Winchester Vineyard Church (WVC) in allowing us in April to occupy their main hall in Bar End where we remain on a temporary basis.
2.2. New Food Hubs
In partnership with WVC we have established a new Food Hub at the WVC premises which is open 2 days per week (Monday & Thursday). Also following input and active cooperation from the Alresford Town Council, we opened a Food Hub in New Alresford which is available to clients each Wednesday. Adding these developments to our existing sites at Milland Road and St. Barnabas Church in Weeke, means we now have Food Hubs at 4 different locations and are open for clients from at least one of them every day of the week from Monday to Friday. Hence we have wider availability for clients to access in terms of location and days of the week.
2.3. New Clothes Hub
As mentioned above, in recent years WBB has had limited space for providing clothes and only been able to offer a short range of adult wear. In 2020 we were delighted to partner with WVC, who previously offered only children’s clothes, to create a new Clothes Hub covering all ages for adults and children.
2.4. Investment in Facilities
In 2020 we improved our facilities at our Milland Road Centre, equipped the storage and sorting facilities at WVC with new trollies, re-equipped the clothing facility, added new laptops and mobiles to meet the needs of the pandemic and more complex delivery needs. The new Alresford Food Hub was also equipped with new trollies.
3. Services
3.1. Client numbers
The total number of food parcels given out by WBB was up by 65% in 2020 vs 2019 to 4830. By far the main impact was in the March-June period when demand was 3 times the level of the same period last year as the impact of the first lockdown was felt.
As an emergency service, our general rule is not to accept more than 6 vouchers from any client during a rolling 12-month period. However during 2020 this was increased to 8. However
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very few clients require our services for more than 3 visits and the average is less than 2 visits per year.
3.2. Schools Programme
In recent years we have operated a School Holiday Lunch Scheme for Pupil Premium children referred to us by local schools during the summer period. This ensures that children who receive free lunches during school term time also receive food for lunch during the summer holiday period. At the beginning of 2020 we decided to expand this programme to also cover the Easter and Christmas holiday periods. However, with the arrival of lockdown in early April we implemented this scheme immediately. This was well received in the community and resulted in over 250 families receiving food. During the summer of 2020 the UK government decided to issue vouchers for Pupil Premium families. This meant WBB offered a small level of support for a handful of families who needed our help over the summer. At the end of the year we provided additional help for 182 such families.
3.3. Deliveries to Clients
Another change that came about due to the pandemic was a new service where we decided to support those clients who physically could not collect food due to shielding, isolating or other incapacity. The numbers have progressively grown over time and are now around 1015 per week. This service has enabled us to reach more clients who are in real difficulty therefore we plan to continue it in the future.
3.4. Food Donations
Food and hygiene products are generously regularly donated by a number of organisations and individuals and fresh food is obtained weekly from Abel & Cole and the charity FareShare. In May we were wonderfully helped by Winchester Round Table who with very short notice responded to our need for higher food donations by getting their Christmas sleigh out of storage, redecorated it with NHS rainbows and sent it out every evening for 2 weeks touring the streets of the city and surrounding areas. The response was phenomenal with fantastic donations made from the local community resulting in a mountain of food being delivered to our new bulk store. In addition we have purchased certain food items from time to time in order to cope with shortages during the pandemic.
3.5. Investment in Services
To help with re-organising and controlling our stock flow we created the new position of Logistics Manager under a fixed term contract. This has resulted in an improved stock turn and helped us specify the amount of bulk storage space we need moving forward. Our closer relationship with WVC led us to make an agreement for use of their van for moving crates of food between our sites.
4. Future developments
Following the experience of 2020 the WBB board has decided that a bulk food storage facility is necessary on a permanent basis to continue and develop our services. This is especially relevant as we anticipate demand to continue at a high level given the economic fallout following the pandemic. As the current WVC option is only available short term it is therefore necessary to find other premises.
Churches, Corporates, Charities and individuals in our community have been very generous in their giving both of time, food and finances. We are extremely grateful for this which has enabled us to increase the provision of our services and to start the process of finding more
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appropriate, scalable and sustainable premises so that the breadth and depth of our services can be further increased to meet the needs of our community.
Winchester City Council have previously advised us that they would like to reuse the building, that we rent from them in Milland Road, for housing purposes. We are in discussion with them about potential future options for its replacement.
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Winchester Basics Bank
Financial review
| Income Monetary donations and interest Donated goods received Total income Expenditure Monetary expenditure – unrestricted - restricted Donated goods given out Total expenditure Net surplus/(deficit) Monetary Donated goods Net income/(expenditure) Funds at 31stDecember Unrestricted general income funds Donated goods and restricted funds Total funds |
2020 £ 2019 £ 213,291 42,663 122,997 96,530 |
|---|---|
| 336,288 139,193 |
|
| 42,142 1,177 28,529 124,960 95,404 |
|
| 168,279 123,933 |
|
| 169,972 14,134 (1,963) 1,126 |
|
| 168,009 15,260 |
|
| 232,417 61,268 29,038 32,178 |
|
| 261,455 93,446 |
During 2019 the directors identified the need to increase their fundraising campaigning, to provide for increased need in the community. That campaign was successful and continued to have a very significant positive effect in 2020, in parallel with efforts to address the impact of the Covid-19 pandemic.
Such generosity resulted in total monetary income of £213,291 (2019 - £42,663) – representing churches (9%), businesses/ charities (29%) and individuals including associated Gift Aid (62%). Monetary donations were received from a combination of local council bodies, private
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individuals, local church communities, schools, local businesses, charitable trusts, grants and fundraising events. We also received gift aid (directly or via CAF and Virgin Donate) and the interest from cash deposits.
We are very grateful for the continued financial support of Winchester and surrounding communities for our activities. We are blessed to be in a healthy financial situation and therefore able to consider the broadening our services particularly as a function of the increased need arising from the pandemic. We now have £230,526 (2019 - £59,801) in the bank and cash in hand. These funds will enable us to meet the needs of our community well into the future.
Total monetary expenditure in the year was higher at £42,142 (2019 - £28,529) – further details are provided in Note 3 to the accounts. Much of the provision in 2020 to facilitate our service was in kind and therefore the cash costs of operations has been kept very low and is in effect understated in true value terms. This means investment has been deferred but is now required for the future needs of the community in a sustainable manner.
The net surplus for the year was £168,009 (2019 - £15,260), comprising a net monetary surplus of £169,972 (2019 - £14,134), plus a net deficit of £1,963 (2019 – surplus of £1,126) on donated goods, representing the net decrease in donated goods stock at the year end.
The directors’ policy is to aim to hold unrestricted monetary funds as a reserve of at least six months of operating costs (which equates to approximately £22,000), plus funds for the investment in the future sustainable provision of services to meet the needs of the community. The total of unrestricted general funds at 31[st] December 2020 exceeds this level.
The fair-value cost of donated goods given out in the year was £122,997 (2019 - £96,530) a net increase of 27%. The main reasons for this increase are a significant increase in volumes as a function of the pandemic compensated partly by a lower average price due to a change of mix. Given the pandemic, we bought more food directly this year to cover any specific gaps in foods donated.
Food donations are received from a variety of sources: there are regular collection points at many local churches, supermarkets and other locations. This is supplemented by occasional collections from local businesses, churches and schools. Rather than manage a large donation around the traditional Harvest Festival period we have developed a new scheme to spread these donations through the year. This also enables us to request the items that are low in stock at different points in the years.
We would like to give a huge thank you to all those individuals and organisations who have helped us during the year through gifts of food, clothing, cash and time. The organisations include supermarkets such as Sainsbury, Tesco, Co-op and Waitrose and also Able & Cole who supply fruit and vegetables. We also purchase fresh food weekly from FareShare
During 2020 we had many volunteers who needed to withdraw from working at WBB due to shielding from the pandemic. Fortunately we were able to recruit several new volunteers to fill the gap and cover greater client numbers. Some volunteers decided the time was right to retire from such duties, many of whom had worked for WBB for several years and some since its inception in 2004. We are hugely grateful for their work over the years. In total we are supported by over seventy volunteers who donate very generously of their time and skills. Our volunteers transport food collected at supermarkets and other donation sites to our bulk sorting and storage facility and food hubs as well as individual households as a function of the pandemic. Our volunteers then sort and store the food as well as serving our beneficiaries with food and clothing. Without our wonderful volunteers we would not be able to provide our services.
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Winchester Basics Bank
Structure, governance and management
Winchester Basics Bank is a charitable company limited by guarantee without share capital. It was incorporated on 5[th] January 2004 and registered as a charity on 4[th] March 2004.
It is governed under its Articles of Association and was established under a Memorandum of Association that sets out the objects and powers of the charitable company. These documents were updated in 2020 with the help of the Hampshire County Council legal team.
The members of the Board of Trustees, who are also Directors and members are elected at the AGM to serve for three years, subject to ratification at each AGM. The directors of the charitable company (the charity) are its trustees under charity law. Directors are selected from local churches and from the wider local community.
The members of Winchester Basics Bank are guarantors of the company to an amount not exceeding £1 per person in the event of winding up.
The board of directors normally meet every two months to review the operation of the charity and to monitor its day-to-day running by means of reports from the Operations Manager and the Treasurer. Decision making is the responsibility of the board. During the peak of the pandemic and the first lockdown the board met on a fortnightly basis to deal with the high level of issues arising at the time. A Steering Committee was established with Winchester City Council involving 3 directors of WBB and 3 executives from WCC in order to fully coordinate our response to the pandemic. This committee originally met every week and now meets every 1-2 months.
Contact details for the charity are set out on the Winchester Basics Bank website (www.winchesterbasicsbank.org.uk).
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Winchester Basics Bank Report of the Independent Examlner to the trustees of Winchester Basics Bank I report to the Charity trustees on my examination of the accounts of the company for th& year ended 31" December 2020 as set out on pages 11 to 19 (induding notes lo the accounts). Rèsponsibilities and basis of report As the charity trustees of the company {who are also the directors of th8 company for Ihe purposes of company lawl, you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 {"the 2006 Act.). Having satisfied myseN that the accounts of the company are not required to be audited for this year under Part 16 of the 2006 Act and are eligible for independent examination, I r8POrt in resp8Ct of my examination of your charity's accounts as carried out under section 145 of the Charitiès Act 2011 ('the 2011 Act'l. In carrying out my examination, I have followad the Directions given by th8 Charity Commission (under section 145{5llb) of the 2011 Act. Independent examSner'5 Statement I have completed my examination. I confirm that no material matters have come to my attention whbch give me cause to believe that.. accounting records were not kept in accordance with section 386 of the Companies Act 2006., or the accounts do not accord with $u¢h records; or the accounts do not comply with relevant accounting requirements under section 396 of the Companies Act 2006 other Ihan any requirement that the accounts give a 'lrue and fair, viewwhich is not a matter considered as part of an independent examination; or the accounts hav8 not been prepared in accordance with the Charities SORP {FRS102). I have no concerns and have Gome across no other matters in connection with the examination to which attention should be drawn in this report in order to 8nable a proper understanding of the accounts to be reached. Signed by: As signed by JL 3.5M Date: 11 A lall Name: Kenneth John Stratton FMA4T 6195080 Address: clo Kimball Smith Brewery House High Street Twyford Winchester S021 1RG io
Winchester Basics Bank
Statement of Financial Activities (including Summary Income and Expenditure Account)
for the year ending 31[st] December
| Note Income Donations Donations and gifts Fundraising events Gift Aid on direct giving Donated goods received 1.f Other income Cash deposits interest Total income Expenditure Fundraising Charitable activities Donated goods given out 1.f FareShare fees Food purchased Staff costs 3.a Other costs 3.b Total expenditure Net income for the reporting period Transfers between funds 10. Net movement in funds Reconciliation of funds Total funds brought forward 10. Total funds carried forward 10. |
Unrestricted funds Restricted funds 2020 Total funds 2019 Total funds £ £ £ 201,785 - 201,785 33,089 - - - 6,751 11,022 - 11,022 2,535 122,997 - 122,997 96,530 484 - 484 288 |
|---|---|
| 336,288 - 336,288 139,193 |
|
| - - - 2,228 124,960 - 124,960 95,404 1,081 - 1,081 1,818 2,813 1,177 3,990 - 26,912 - 26,912 19,305 11,336 - 11,336 5,178 |
|
| 167,102 1,177 168,279 123,933 |
|
| 169,186 (1,177) 168,009 15,260 - - - - |
|
| 169,186 (1,177) 168,009 15,260 92,244 1,202 93,446 78,186 |
|
| 261,430 25 261,455 93,446 |
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Winchester Basics Bank
Balance Sheet
as at 31[st] December
| 2020 2019 £ £ 1,760 - 29,013 30,976 156 2,959 230,526 59,801 |
|
|---|---|
| Note Fixed Assets 5. Current assets Stocks 6. Debtors and pre-payments 7. Cash at bank and in hand 8. Total current assets |
|
| 259,695 93,736 - 290 |
|
| Creditors: amounts falling due within one year 9. |
|
| Net current assets Total assets less current liabilities Funds of the charity Restricted income funds 10. Unrestricted general funds 10. Donated goods fund (fair value) 10. Total funds 10. |
259,695 93,446 |
| 261,455 93,446 |
|
25 1,202 232,417 61,268 29,013 30,976 |
|
261,455 93,446 |
The company is entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with Charities SORP (FRS102).
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trf.
Winchester Basics Bank
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h. Expenditure is recognised on an accruals basis and includes VAT which cannot be recovered. Liabilities are generally recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.
-
i. Charitable activities expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
-
j. The charity has creditors which are measured at settlement amounts less any trade discounts applicable.
-
k. Expenditure on individual fixed asset items of less than £2,000 cost is 100% written-off in the year of purchase. Items in excess of that are capitalized and depreciated over five years.
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Expenditure on charitable activities
-
a. Staff costs
| Salaries and wages Social security costs Pension costs Total staff costs |
2020 2019 £ £ 25,827 18,238 - - 1,085 1,067 |
|---|---|
| 26,912 19,305 |
Headcount for the period was 3 (2019: 2). The part time employees work wholly in the delivery and support of the charity’s activities.
The charity continues to take advantage of the Government's NEST defined contribution workplace pension scheme. Pension costs are employer pension contributions. All pension expense is taken from unrestricted funds.
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b. Other costs
| osts | |
|---|---|
| Equipment, fixtures and depreciation Transport expenses |
2020 Total £ 2019 Total £ 2,618 1,402 73 63 2,111 1,228 2,124 624 325 330 1,552 159 906 479 605 244 523 170 499 249 - 230 |
| Sundry operating costs | |
| Rent Postage and stationery |
|
| Computer consumables | |
| Insurance | |
| Website | |
| Training Telephone Energy vouchers Total other costs |
|
| 11,336 5,178 |
Equipment in 2020 relates mainly to clothes storage, trolleys, laptops and mobiles to meet the demands of increased volumes from the pandemic. Equipment in 2019 relates mainly to a heater and printer at Milland Road, plus new profile-raising banners.
4. Taxation
The charity is exempt from tax on income and gains to the extent that these are applied for its charitable purposes. No tax liabilities or charges have arisen in the period.
5. Fixed Assets
During 2020, a clothes store was created at a cost of £2,200(£- last year). This is to be depreciated over five years and therefore £440 (£- last year)of depreciation has been provided for. The net book value and accumulated depreciation are £1,760 (£- last year) and £440 (£- last year) respectively.
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6. Stocks
| Donated goods for distribution to beneficiaries Opening stock value Received in period Expensed in period Closing stock value at 31stDecember |
2020 £ 2019 £ 30,976 29,850 122,997 96,530 (124,960) (95,404) |
|---|---|
| 29,013 30,976 |
Other than the stock of donated goods the charity does not hold any material value of stocks.
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7. Debtors and prepayments
| as at 31st December Donations in transit Gift Aid reclaim Prepayments Total debtors bank and in hand as at 31st December Short term deposits Cash at bank and on hand Total |
2020 £ 2019 £ - 551 - 2,252 156 156 |
|---|---|
| 156 2,959 |
|
| 2020 £ 2019 £ 170,304 49,820 60,222 9,981 |
|
| 230,526 59,801 |
8. Cash at bank and in hand
9. Creditors and accruals
| Amounts falling due within one year as at 31st December Accrued expenses |
2020 £ 2019 £ - 290 - - |
|---|---|
| Taxation and social security | |
| Total | - 290 |
There were no creditors falling due after more than one year at either 31[st] December 2020 or 2019.
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10. Fund movements
| Funds held and movement 2020 Restricted funds Fuel poverty fund Basics supplies fund Sub-total Unrestricted funds General funds Donated goods fund (fair value) Sub-total Total charity funds Funds held and movement 2019 Restricted funds Fuel poverty fund Basics supplies fund Sub-total Unrestricted funds General funds Donated goods fund (fair value) Sub-total Total charity funds |
Opening balance Income Expenditure Transfers Closing balance £ £ £ £ £ 25 - - - 25 1,177 - (1,177) - - |
|---|---|
| 1,202 - (1,177) - 25 |
|
| 61,268 213,291 (42,142) - 232,417 30,976 122,997 (124,960) - 29,013 |
|
| 92,244 336,288 (167,102) - 261,430 |
|
| 93,446 336,288 (168,279) - 261,455 Opening balance Income Expenditure Transfers Closing balance £ £ £ £ £ 255 - (230) - 25 445 2,550 (1,818) - 1,177 |
|
| 700 2,550 (2,048) - 1,202 |
|
| 47,636 40,113 (26,481) - 61,268 29,850 96,530 (95,404) - 30,976 |
|
| 77,486 136,643 (121,885) - 92,244 |
|
| 78,186 139,193 (123,933) - 93,446 |
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Transactions with trustees and related parties
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a. None of the trustees have been paid any remuneration or received any other benefits from an employment with the charity or a related entity.
-
b. No trustee expenses have been incurred or paid.
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c. There have been no related party transactions in the reporting period.
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