2021-08-31-accounts

Registered Charity Number: 1110266 Company Number: 05410855

Sodexo Stop Hunger Foundation (A Company Limited by Guarantee)

Trustees’ Report and Financial Statements for the year ended 31 August 2021

Sodexo Stop Hunger Foundation

Contents

Page

Reference and administrative details ................................................................................ 1 Report of the Trustees ................................................................................................... 2 Trustees’ Responsibilities Statement ................................................................................ 7 Independent Auditor’s Report ......................................................................................... 8 Statement of Financial Activities ...................................................................................... 12 Balance Sheet .............................................................................................................. 13 Cash Flow Statement ..................................................................................................... 14 Notes to the Financial Statements ................................................................................... 15

Sodexo Stop Hunger Foundation

Reference and administrative details of the charitable company, its Trustees and advisers for the year ended 31 August 2021

The directors and trustees of the Charitable company (the "charity'') who served during the year and up to the date of signing the financial statements were as follows:

Trustees

Laura Ellen Brimacombe Nicholas James Byrom Patrick Forbes Sean Michael Haley Gareth Luke Sefton John Simon Keith McCluskey David William Anthony Mulcahy Samanthan Louise Scott Stuart William Winters Paul Anstey

(Chair)

(Resigned 13 September 2021) (Appointed 13 December 2021)

Company number 05410855

Registered charity number

1110266

Registered office

One Southampton Row London WC1B 5HA

Company secretary

Sodexo Corporate Services (No 2) Limited

Independent Auditor

Azets Audit Services Limited Triune Court Monks Cross Drive York YO32 9GZ

Bankers

HSBC PLC 8 Canada Square London E14 5XL

Allied Irish Banks PLC 1-4 Baggot Street Dublin 2 D02 X342

1

Sodexo Stop Hunger Foundation

Report of the Trustees for the year ended 31 August 2021

Sodexo Stop Hunger Foundation is a Charitable company, company number 05410855, charity number 1110266.

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their annual report together with the financial statements of the charity for the year ended 31 August 2021. The annual report serves the purposes for both a Trustees’ Report and a Directors’ Report under company law. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and republic of Ireland (FRS 102) (effective 1 January 2019).

The Reference and administrative details on page 1 of these financial statements form part of the Report of the Trustees.

Structure, governance and management

Sodexo Stop Hunger Foundation is a company limited by guarantee incorporated in England and Wales. It is registered as a charity with the Charity Commission. The company is governed by its Articles of Association.

The Chair of the trustees is responsible for the induction of any new trustee which involves awareness of a trustee's responsibilities, the governing document, administrative procedures and the history and philosophical approach of the charity.

The board meets on a regular quarterly basis to administer and manage the affairs of the charity. In the intervening periods, consultations and decision making are undertaken by the board and trust administrator by telephone and email.

Board training: during the year the directors were reminded of their duties in the donation decision making process.

The Board conducts the activities of the charity from its principal and registered office at One Southampton Row, London, WC1B 5HA. On a day to day basis the activities of the charity are supported by the Sodexo Limited Corporate Responsibility Officer.

Objectives and Activities

During the financial year, the principal objectives of the charity were, in the United Kingdom and Ireland:

• to advance the education of the general public in relation to health, nutrition and wellbeing;

• to provide relief from financial hardship, and the improvement of the quality of life in socially and/or economically disadvantaged communities through the provision of grants, goods and/or services in relation to health, nutrition and wellbeing; and

• to promote all other purposes recognised as charitable under the law of England and Wales from time to time to the benefit of the general public as the trustees shall from time to time determine.

Activities during the year have included setting divisional fundraising targets across Sodexo UK and Ireland, with nominated charity champions across the business actively controlling and promoting charitable activities in order to meet these divisional targets.

Other activities have included the promotion of a new staff volunteering platform, the continuing development of promotional material and the staff lottery, sponsored events and increased publicity in order to achieve the objective of promoting the charity to employees and the general public.

All fundraising is conducted by the Foundation without any employment of professional fundraising partners or commercial participators. The staff lottery accords to all legal

2

Sodexo Stop Hunger Foundation

Report of the Trustees for the year ended 31 August 2021

requirements. This and all fundraising activities and events are conducted in accordance with all ethical and legal regulations and standards. The Board of trustees is composed of a cross section of professional and experienced persons to ensure robust management, ensuring best practice so as not to unreasonably pressure and invade the privacy of any persons. During the year, no complaints were received by the charity in relation to fundraising.

A total of £351,173 (2020: £288,876) has been awarded by way of grants to charities, in line with its objective of providing relief from financial hardship and the improvement of the quality of life in socially and/or economically disadvantaged communities.

The board reviews its internal processes and controls to determine their effectiveness. Currently all decision making is undertaken by board consultation.

Public Benefit

All our charitable activities, as described above, focus on either advancing the education of the general public in relation to health nutrition and wellbeing or providing relief from financial hardship and the improvement of the quality of life in socially and/or economically disadvantaged communities. They are undertaken specifically to provide public benefit through improving the lives of those we help, their families and the greater community. The Board of trustees ensure that they continue to carry out the Charity’s aims for the public benefit and confirm they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to public benefit guidance as published by the Commission.

Achievements and Performance

In May 2005 the Sodexo Stop Hunger Foundation launched its Stop Hunger campaign. The campaign aims to tackle poor nutrition in local communities, promote good nutrition and healthy lifestyles, promote basic life skills, such as cooking, thereby following the objectives set out by the charity and providing public benefit.

The Stop Hunger campaign provides a central focus for Sodexo's charitable and community interests. It encompasses company-wide fundraising, community investment, community partnerships and employee volunteering.

Stop Hunger is a Sodexo S.A global initiative. It began in the United States in 1996 and has evolved to incorporate a number of initiatives and is present in 41 countries in which Sodexo operates.

During the year the Charity made the following donations:

During the year the Charity made the following	donations:
FareShare	£85,885
Trussell Trust	£71,885
SSAFA ForcesHelp	£35,000
Coram Life	£22,000
Oasis CommunityPartnerships	£15,000
Enactus	£12,000
MadeIn Hackney	£10,000
MassageTrust	£10,000
Social Bite	£10,000
WycombeFoodHub	£10,000
British Nutrition Foundation	£9,400
Fountains Church	£9,500
ShrewsburyFoodDonation	£9,500
Simon Parish	£8,000
FocusIreland	£7,603
PembrokeHouse	£7,500
Spires	£7,400
Alexander Rose Charity	£5,000
StGeorge's Crypt	£5,000
Dona Crag	£500

3

Sodexo Stop Hunger Foundation

Report of the Trustees for the year ended 31 August 2021

The trustees continue to work closely with FareShare as their activity continues to grow. The trustees feel that a continuing strong alliance with FareShare meets very clearly the objectives of the Charity. In addition to raising funds to support its operations, Sodexo employees volunteer their time during working hours to work at FareShare's distribution centres, providing much needed additional resources. Total volunteer time donated in the United Kingdom, including time volunteered with FareShare, has been recognised in the accounts as charitable activity to the value of £46,107 (2020: £34,614).

The trustees also continue to develop the strategic relationship with the Trussell Trust to support their nationwide network of foodbanks in local communities.

The donations and support stated, assisting our selected charity partners, deliver the legal and charitable purposes of the Foundation, with the advancement of educating communities in health, nutrition and wellbeing, as well as providing relief from financial hardship to disadvantaged communities, with the provision of goods and services.

The Foundation’s success is measured and evidenced by the reports and stories provided back to the trustees from our charity partners as to how our donations and support have been utilised. These reports and stories are shared on our website – uk.stop-hunger.org. Our charity partners provided and delivered food to impoverished communities and persons suffering from hardship due to personal circumstances, including former armed services personnel, breakfasts to children who would otherwise have started their school days hungry and provision of learning to persons to assist them to manage their monies and diets accordingly, promoting their continual health and wellbeing.

Financial review

At 31 August 2021 the Foundation’s finances are robust, the staff lottery driving income from donations to £595,883 (2020: £617,545). The impact of the Covid-19 pandemic reducing the opportunity to raise and receive monies. The cost of the staff lottery is the principal cost within the expenditure on raising funds which reduced to £216,057 (2020: £235,266).

Expenditure on charitable activities has increased to £407,500 (2020: £341,875) whilst reserves and cash holdings have decreased.

The charity achieved a net expenditure of £26,902 in 2021 (2020: net income of £38,580), a result of the above. Whilst there isn’t a formal reserves policy, judicious management ensures the reserves’ balance is sufficient to fulfil present day and future commitments, and to react to assist with ad hoc requests for donations and support, in line with the Foundation’s objectives. At 31 August 2021 the reserves held by the Foundation were £175,482 (2020: £202,384) all of which £175,482 were free reserves.

With the general, challenging fundraising environment the trustees continue to promote the staff lottery, seek innovative ad hoc fundraising opportunities, and obtain an annual corporate contribution, to increase future funds. The initiatives will assist the Foundation to continue, and to support, its charitable activities in the future.

Covid-19 continues to impact the Foundation’s finances. The trustees have implemented actions and plans to mitigate this, ensuring the Foundation’s financial sustainability, whilst still significantly contributing to charitable partners during this difficult period.

4

Sodexo Stop Hunger Foundation

Report of the Trustees for the year ended 31 August 2021

Future plans

At the year end, Sodexo Stop Hunger Foundation has unrestricted reserves of £175,482 (2020: £202,384) which are intended to be used to make donations to charities and other organisations working in line with Sodexo Stop Hunger Foundation's objectives. Successful parties from prior years are invited back to present requests for further grants.

The principal risks and uncertainties facing the Foundation are the continual raising of funds and persons providing their time and support for volunteering purposes, in order to fulfil our charitable objectives. The Covid-19 pandemic continues to heighten the risks and uncertainties and the Foundation’s management of these circumstances is detailed later within this Trustees’ Report.

Sodexo Stop Hunger Foundation, to guard against these risks and uncertainties, will continue to promote itself through promotion and fundraising activities. Principally the fundraising activities are undertaken by employees in addition to monies raised through corporate events such as a golf day and the annual charitable foundation dinner (both cancelled in this financial year due to Covid-19), together with the staff lottery. Also, the Charity continues to receive a direct, annual corporate contribution to further enable the objectives of the charity to be met.

The charity will continue to work closely with FareShare and Trussell Trust with more donations expected in future years.

Covid-19 impact

Sodexo Stop Hunger Foundation, like most charities, continues to be impacted in terms of its fundraising ability and subsequent donations to charity partners since the pandemic began in the UK in March 2020. Consequently, the 2021 events of the annual charitable foundation dinner and the golf day were cancelled.

With the continued fundraising activities undertaken by employees, combined with support from corporate partners, a direct contribution from Sodexo Limited, the historic and unrestricted reserves, and robust financial management, the Foundation has been able to maintain a level of support to our charity partners in 2021, as well as ensure the Foundation’s continued financial sustainability. This management will ensure that as the impact of Covid-19 lessens the Foundation will be able to reinvigorate its normal fundraising activities and redouble its efforts to achieve its objectives. Unfortunately, with the impact of Covid-19 the support and efforts of the Foundation will be more needed than ever, in all of our communities.

Where volunteering activity was performed by employees of Sodexo Limited, the company issued health and safety guidance to staff during the pandemic to help ensure their safety.

Auditor

Azets Audit Services Limited were appointed auditor to the charitable company following their acquisition of the trade of Garbutt & Elliott Audit Limited on 1 December 2021. Azets Audit Services Limited have indicated their willingness to stand for reappointment at the Annual General Meeting.

5

Sodexo Stop Hunger Foundation

Report of the Trustees for the year ended 31 August 2021

Disclosure of information to the auditor

Each of the persons who are trustees at the time when this Trustees' report is approved has confirmed that:

• so far as that trustee is aware, there is no relevant audit information of which the charitable company's auditor is unaware, and

• that trustee has taken all the steps that ought to have been taken as a trustee in order to be aware of any relevant audit information and to establish that the Charitable company's auditor is aware of that information.

The Trustees’ Report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements have been approved on 26th May 2022 and signed on its behalf by:

.................................................................... Gareth Luke Sefton John

Chair and Trustee

.................................................................... Patrick Forbes Trustee

6

Sodexo Stop Hunger Foundation

Trustees’ Responsibilities Statement for the year ended 31 August 2021

The trustees are responsible for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law they are required to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charitable company and of the excess of expenditure over income for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the Charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Charitable company and to prevent and detect fraud and other irregularities.

7

Sodexo Stop Hunger Foundation

Independent Auditor’s Report to the Members of Sodexo Stop Hunger Foundation for the year ended 31 August 2021

Opinion

We have audited the financial statements of Sodexo Stop Hunger Foundation (“The Charitable company”) for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the Charitable company’s affairs as at 31 August 2021 and of its income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

• Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

• Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

8

Sodexo Stop Hunger Foundation

Independent Auditor’s Report to the Members of Sodexo Stop Hunger Foundation for the year ended 31 August 2021

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the Trustees’ Report (incorporating the strategic report and the directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Trustees’ Report (incorporating the strategic report and the directors’ report) has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us;

• the financial statements are not in agreement with the accounting records and returns;

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not obtained all the information and explanations necessary for the purposes of our audit.

Responsibilities of the Trustees

As explained more fully in the Trustees’ Responsibilities Statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Charitable company or to cease operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

9

Sodexo Stop Hunger Foundation

Independent Auditor’s Report to the Members of Sodexo Stop Hunger Foundation for the year ended 31 August 2021

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, through discussion with the trustees and other management, and from inspection of the Charitable Company’s regulatory and legal correspondence. We discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance during the audit.

The Charitable Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related charities legislation), pensions legislation, taxation legislation and further laws and regulations that could indirectly affect the financial statements, comprising environmental, health and safety and employment legislation, and, in the current climate, Covid regulations. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the trustees and other management and inspection of regulatory and legal correspondence, if any. These procedures did not identify any potentially material actual or suspected non-compliance.

To identify risks of material misstatement due to fraud we considered the opportunities and incentives and pressures that may exist within the Charitable Company to commit fraud. Our risk assessment procedures included: enquiry of trustees and other management to understand the high level policies and procedures in place to prevent and detect fraud, reading Board minutes and considering performance targets and incentive schemes in place for management. We communicated identified fraud risks throughout our team and remained alert to any indications of fraud during the audit.

As a result of these procedures we identified the greatest potential for fraud in the following areas: - income recognition and in particular the risk that income is recognised in the wrong reporting period or that restricted income is not correctly recognised as such; and - subjective accounting estimates.

These fraud risks arise due to a potential desire to present results in a differing light to meet management objectives.

As required by auditing standards we also identified and addressed the risk of management override of controls.

We performed the following procedures to address the risks of fraud identified:

• identifying and testing high risk journal entries through vouching the entries to supporting documentation;

• assessing significant accounting estimates for bias; and

• testing the recognition of income and in particular that it was appropriately recognised or deferred.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

10

Sodexo Stop Hunger Foundation

Independent Auditor’s Report to the Members of Sodexo Stop Hunger Foundation for the year ended 31 August 2021

Use of our report

This report is made solely to the Charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Azets Audit Services Limited

Laura Masheder (Senior Statutory Auditor) for and on behalf of Azets Audit Services Limited

27/05/2022

……………………………….

Chartered Accountants Statutory Auditor

Triune Court Monks Cross Drive York YO32 9GZ

11

Sodexo Stop Hunger Foundation

Statement of Financial Activities for the year ended 31 August 2021 (Including Income and Expenditure Account)

		Unrestricted	Restricted	Total	Total
		funds	funds	funds	funds
	Notes	2021	2021	2021	2020
		£	£	£	£
Income from:
Donations	2	-	157,018	157,018	143,766
Fundraising activities	3	438,865	-	438,865	473,779
Investments	4	1	-	1	2
Total income		438,866	157,018	595,884	617,547
Expenditure on:
Raising funds	5	105,146	110,911	216,057	235,266
Charitable activities	6	361,393	46,107	407,500	341,875
Total expenditure		466,539	157,018	623,557	577,141
Net gains/(losses) on investments	11	771	-	771	(1,826)
Net movement in funds		(26,902)	-	(26,902)	38,580
Reconciliation of funds:
Total funds brought forward		202,384	-	202,384	163,804
Total funds carried forward	14,15	175,482	-	175,482	202,384

The Statement of financial activities included all gains and losses recognised in the year.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

All income and expenditure derives from continuing activities.

A fully detailed Statement of Financial Activities for the year ended 31 August 2020 is shown at note 18 to the financial statements.

The notes on pages 15 to 23 form part of these financial statements.

12

Sodexo Stop Hunger Foundation

Balance Sheet as at 31 August 2021

	Notes		2021		2020
		£	£	£	£
Fixed assets
Investments	11		3,333		2,562
Current assets
Debtors	12	12,390		40,435
Cash in bank and in hand		191,051		194,707
		203,441		235,142
Creditors:Amounts falling due
within one year	13	(31,292)		(35,320)
Net current assets			172,149		199,822
Net assets			175,482		202,384
Charity funds
Unrestricted funds	14,15		175,482		202,384
Total funds	12,13		175,482		202,384

The company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and authorised for issue by the trustees on 26th May 2022 and signed on their behalf by:

.................................................................... Gareth Luke Sefton John Chair

.................................................................... Patrick Forbes Trustee

The notes on pages 15 to 23 form part of these financial statements.

Company Registration Number: 05410855

13

Sodexo Stop Hunger Foundation

Cash Flow Statement for the year ended 31 August 2021

	Notes	2021	2020
		£	£
Cash flows from operating activities
Net cash (used in)/provided by operating activities	16	(3,656)	126,196
Change in cash and cash equivalents in the year		(3,656)	126,196
Cash and cash equivalents brought forward		194,707	68,511
Cash and cash equivalents carried forward		191,051	194,707

14

Sodexo Stop Hunger Foundation

Notes to the Financial Statements for the year ended 31 August 2021

1. Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

Charity information

The Charitable company is a company limited by guarantee and a charity registered at the Charity Commission in England and Wales. The members of the company are the trustees named on page 1. In the event of the Charitable company being wound up, the liability in respect of the guarantee is limited to £nil per member of the Charitable company. The registered office is One Southampton Row, London, WC1B 5HA. The nature of the charity’s operations and principal activities is given in the charity information and Trustees’ Report.

Basis of Preparation of financial statements

The financial statements have been prepared on a going concern basis in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) (“Charities SORP (FRS102)”), the Financial Reporting Standard applicable in the UK and Ireland (FRS 102), the Companies Act 2006 and the Charities Act 2011.

Sodexo Stop Hunger Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in sterling which is the functional currency of the charity. Monetary amounts on these Financial Statements are rounded to the nearest £1.

Going concern

The trustees have considered the future income of the Charitable company and its ability to continue as a going concern. The trustees maintain a policy whereby grant commitments are only made if there is sufficient cash and unrestricted reserves available to fulfil any grant giving commitments for at least 12 months. Furthermore, grants are only awarded out of foundation income, rather than the foundation being in a net deficit position between income and grants awarded. Based on these policies, the foundation would be expected to remain as a going concern for at least 12 months from the date of these accounts. The running costs of the foundation are met by a donation from Sodexo Limited and are reflected in the restricted funds. Consequently the financial statements have been prepared on a going concern basis.

Fund accounting

Unrestricted funds are expendable at the discretion of the trustees in furtherance of the objects of the charity. Unrestricted funds earmarked for particular purposes by the trustees are designated as separate funds. The designation has an administrative purpose only, and does not legally restrict the trustees’ discretion to apply the fund.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charitable company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Income

All income is recognised once the Charitable company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Employee time donated by Sodexo Limited is recognised as being the estimated cost to Sodexo Limited, and is included within both income and expenditure in these financial statements.

15

Sodexo Stop Hunger Foundation

Notes to the Financial Statements for the year ended 31 August 2021

1. Accounting Policies

Expenditure

Expenditure is charged on an accruals basis, inclusive of irrecoverable VAT. Charitable activities comprise those costs directly incurred in pursuance of the Charitable company's charitable activities. These costs are mainly donations and grants made by the Charitable company. Where costs cannot be directly attributable to particular headings they have been allocated on a basis consistent with the use of resources.

Fundraising costs are those incurred in seeking voluntary contributions and do not include the costs of disseminating information in support of the charitable activities. Governance costs are those incurred in connection with administration of the company and-compliance with constitutional and statutory requirements.

All grants are recognised in full when committed to. The trustees are responsible for approving the charity grants. Grants made by the Charitable company are recorded when the commitment is made on a paid basis or where an irrevocable commitment to make such payment has been made.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid Investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Taxation

The company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a Charitable company for UK corporation tax purposes. Accordingly, the Charitable company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below:

Income from, and cost of time donated by Sodexo UK employees

Donated employee time as seen in note 2 has been calculated based on the salary per day of each employee who donated time from Sodexo UK, multiplied by the number of days spent working for the charity. As seen in notes 4 and 5, the cost of this time is recognised according to whether the employee has been using the time for fundraising or towards the charitable activities. As all time is expended upon ‘donation’, income and cost of time donated have a nil effect on the net movement in funds. As Sodexo UK donate this time to fulfil the charity’s needs, it has been recognised in restricted funds.

Trustees consider that there are no other critical estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the financial statements.

16

Sodexo Stop Hunger Foundation

Notes to the Financial Statements for the year ended 31 August 2021

2. Income from donations

		Unrestricted	Restricted
		funds	funds	Total
		2021	2021	2021
		£	£	£
Income from Sodexo Limited
-	Donated employee time	-	157,018	157,018
		-	157,018	157,018
		Unrestricted	Restricted
		funds	funds	Total
		2020	2020	2020
		£	£	£
Income from Sodexo Limited
-	Donated employee time	-	143,766	143,766
		-	143,766	143,766

3. Income from fundraising activities

		Total	Total
		2021	2020
		£	£
Income raised by Sodexo employees:
-	Foundation dinner (see note below)	-	128,305
-	Sodexo UK employee lottery	204,524	210,860
-	Other	234,341	134,614
		438,865	473,339

All income fundraising activities are unrestricted in both the current and previous financial year.

The 2020 Foundation Dinner was cancelled following the outbreak of Covid-19. However the trustees are grateful that it was agreed with a significant proportion of the would-be attendees that the amounts could be retained by the charity as a donation, to continue to fund the Foundations charitable activities.

4. Investment income

. Investment income
	Total	Total
	2021	2020
	£	£
Bank interest received	1	2

All investment income in both years is unrestricted.

5. Costs of raising funds

	Unrestricted	Restricted
	funds	funds	Total
	2021	2021	2021
	£	£	£
Golf day	(1,188)	-	(1,188)
Sodexo UK employee lottery	106,214	-	106,214
Cost of time donated by Sodexo UK of
employees for fundraising activities	-	110,911	110,911
Other	120	-	120
	105,146	110,911	216,057

17

Sodexo Stop Hunger Foundation

Notes to the Financial Statements for the year ended 31 August 2021

6. Costs of raising funds

6.	Costs of raising funds
		Unrestricted	Restricted
		funds	funds	Total
		2020	2020	2020
		£	£	£
Foundation dinner		18,923	-	18,923
Golf	day	250	-	250
Sodexo UK employee lottery		106,941	-	106,941
Cost	of time donated by Sodexo UK of
employees for fundraising activities		-	109,152	109,152
		126,114	109,152	235,266
7.	Charitable activities

7. Charitable activities
		Unrestricted	Restricted
		funds	funds	Total
		2021	2021	2021
	Note	£	£	£
Direct costs
Grants	6	351,173	-	351,173
Cost of time donated by Sodexo UK of
employees for volunteering purposes		-	46,107	46,107
		351,173	46,107	397,280
Support costs
Bank charges		464	-	464
Bad debt provision		(5,250)	-	(5,250)
Audit and accountancy fees		15,006	-	15,006
		361,393	46,107	407,500
		Unrestricted	Restricted
		funds	funds	Total
		2020	2020	2020
	Note	£	£	£
Direct costs
Grants	8	288,876	-	288,876
Cost of time donated by Sodexo UK of
employees for volunteering purposes		-	34,614	34,614
		288,876	34,614	323,490
Support costs
Bank charges		115	-	115
Bad debt provision		5,250	-	5,250
Audit and accountancy fees		13,020	-	13,020
		307,261	34,614	341,875

18

Sodexo Stop Hunger Foundation

Notes to the Financial Statements for the year ended 31 August 2021

8. Analysis of grants
	2021	2020
Grants to institutions	£	£
Fareshare	85,885	84,000
SSAFA Forces Help	35,000	45,000
Magic Breakfast	-	5,000
Trussell Trust	71,885	70,000
Aberlour CCT	-	10,000
Alexander Rose Charity	5,000	5,000
Bags of Taste Limited	-	9,864
Barnados LTD	-	9,141
Berkshire Autistic Society	-	2,200
Food Cloud	-	13,712
Focus Ireland	7,603	7,959
NGLE Homeless	-	10,000
Oasis Community Partnerships	15,000	10,000
OHOL Research	-	2,000
Volunteer Centre Tower Hamlets	-	5,000
British Nutrition Foundation	9,400	-
Coram Life	22,000	-
Dona Crag	500	-
Enactus	12,000	-
Fountains Church	9,500	-
Made in Hackney	10,000	-
Message Trust	10,000	-
Pembroke House	7,500	-
Shrewsbury Food	9,500	-
Simon Parish	8,000	-
Social Bite	10,000	-
Spires	7,400	-
St George's Crypt	5,000
Wycombe Food Hub	10,000
	351,173	288,876

The grants paid to the institutions listed above, have all been made with the purpose of delivering the charitable objectives of Sodexo Stop Hunger Foundation.

19

Sodexo Stop Hunger Foundation

Notes to the Financial Statements for the year ended 31 August 2021

9. Auditors remuneration

The analysis of auditor’s remuneration is as follows:

	Total	Total
	2021	2020
	£	£
Audit of financial statements	10,185	9,700
All other non-audit services	1,765	1,680

10. Staff number and costs

The trustees received no emoluments for their services, nor were they reimbursed for any expenses in the period.

The total number of staff working on Sodexo Stop Hunger Foundation was 26 (2020 - 32). Staff are not paid by Sodexo Stop Hunger Foundation and an estimate of the value of this time is included as a donation from Sodexo Services Limited in note 2 and within fundraising costs in note 4. In addition 301 (2020 – 391) Sodexo staff volunteered at such as FareShare and Trussell Trust during the year their contribution has been recognised as a donation from Sodexo within note 5.

11. Fixed asset investments

		UK listed
		securities
Market Value
At 1 September 2020		2,562
Gains on revaluation		771
At 31 August 2021		3,333
Shares held in:	2021	2020
	£	£
ITV Plc	232	121
Compass Group PLC	3,101	2,441
	3,333	2,562

The historical cost of the investments is £681 (2020 - £681).

12. Debtors

	2021	2020
	£	£
Trade debtors	-	7,800
Amounts owed by related parties	1,617	1,617
Prepayments and accrued income	10,773	31,018
	12,390	40,435

20

Sodexo Stop Hunger Foundation

Notes to the Financial Statements for the year ended 31 August 2021

13. Creditors: amounts falling due within one year

13. Creditors: amounts falling due within one year
	2021 £ 2020 £
Accruals for grants payable Accruals (excluding grants payable) Deferred income	8,750 8,750 18,992 26,570 3,550 -
	31,292 35,320
Deferred income: Deferred income at 1 September 2020 Income deferred in the year Deferred income at 31	£ - 3,550 3,550

At the balance sheet day the charity was holding funds received in advance of the Golf Day which took place in October 2021, this is fully released in the following financial year.

14. Statement of funds

For the year ended	Balance at				Balance at
31 August 2021	1 September				31 August
	2020	Income	Expenditure	Gains	2021
	£	£	£	£	£
Unrestricted funds	202,384	438,866	(466,539)	771	175,482
Restricted funds:
Donated employee time
– administration and
trustees	-	110,911	(110,911)	-	-
Donated employee time
– charity partner
volunteers	-	46,107	(46,107)	-	-
Total restricted funds	-	157,018	(157,918)	-	-
Total funds	202,384	595,884	(623,557)	771	175,482
For the year ended	Balance at 1				Balance at
31 August 2020	September				31 August
	2019	Income	Expenditure	(Loss)	2020
	£	£	£	£	£
Unrestricted funds	163,804	473,781	(433,375)	(1,826)	202,384
Restricted funds:
Donated employee time
– administration and
trustees	-	109,152	(109,152)	-	-
Donated employee time
– charity partner
volunteers	-	34,614	(34,614)	-	-
Total restricted funds	-	143,766	(143,766)	-	-
Total funds	163,804	617,547	(577,141)	(1,826)	202,384

21

Sodexo Stop Hunger Foundation

Notes to the Financial Statements for the year ended 31 August 2021

14. Statement of funds (continued)

Purpose of restricted funds

Donation from Sodexo Limited for administration

The cost of time of Sodexo UK employees is the cost of the time spent on the accounting and administration services and preparation of accounts for Sodexo Stop Hunger Foundation as well as the time of the Sodexo Stop Hunger Foundation trustees who are also employees of Sodexo UK.

Cost of time of Sodexo UK employees – Volunteers

In addition to raising funds to support its operations, Sodexo UK employees have volunteered their time during working hours to work at FareShare's depots, providing much needed additional resources, and to support large ad hoc FareShare events.

15. Analysis of net assets between funds

	Unrestricted	Restricted	Total
	funds	funds	funds
As at 31 August 2021	£	£	£
Fixed asset investments	3,333	-	3,333
Current assets	203,441	-	203,441
Creditors due within one year	(31,292)	-	(31,292)
	175,482	-	175,482

	Unrestricted	Restricted	Total
	funds	funds	funds
As at 31 August 2020	£	£	£
Fixed asset investments	2,562	-	2,562
Current assets	235,142	-	235,142
Creditors due within one year	(35,320)	-	(35,320)
	202,384	-	202,384

16. Reconciliation of net movement in funds to net cash flow from operating activities

	2021	2020
	£	£
Net (expenditure)/incomefor the year	(26,902)	38,580
Adjustment for:
(Gains)/losses/ on investments	(771)	1,826
Decrease in debtors	28,045	81,243
(Decrease)/increase in creditors	(4,028)	4,547
Net cash (used in)/provided by operating activities	(3,656)	126,196

The charity had no debt during the year current or previous financial year.

17. Related party transactions

During the year Sodexo Limited (which is owned by Sodexo Holdings Limited) donated staff time with a cost of £157,018 (2020 - £143,766) to restricted funds relating to the running costs of the Foundation. Sodexo Limited is the trading company which holds the employees who raise funds for the Sodexo Stop Hunger Foundation. The amount donated from Sodexo Limited for employee time also includes £18,104 (2020 - £18,165) in relation to trustee time specifically.

At the year end the debt owed by Sodexo Limited was £1,617 (2020 - £1,617).

22

Sodexo Stop Hunger Foundation

Notes to the Financial Statements for the year ended 31 August 2021

18. Comparative Statement of Financial Activities (Including Income and Expenditure Account) for the year ended 31 August 2020

	Unrestricted	Restricted	Total
	funds	funds	funds
	2020	2020	2020
	£	£	£
Income from:
Donations	473,779	143,766	617,545
Investments	2	-	2
Total income	473,781	143,766	617,547
Expenditure on:
Raising funds	126,114	109,152	235,266
Charitable activities	307,261	34,614	341,875
Total expenditure	433,375	143,766	577,141
Net (losses) on investments	(1,826)	-	(1,826)
Net movement in funds	38,580	-	38,580
Reconciliation of funds:
Total funds brought forward	163,804	-	163,804
Total funds carried forward	202,384	-	202,384

23