## **RECYCLING LIVES CHARITY**
## **ANNUAL REPORT**
## **AND**
## **FINANCIAL STATEMENTS FOR**
## **THE YEAR ENDED APRIL 30 2021**
**Company number: 05781363 Charity number: 1116562**
**RECYCLING LIVES CHARITY ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
||I**NDEX**|
|---|---|
|Administrative information|1|
|Trustees’ and Directors’ annual report|2 – 7|
|Auditors’ report|8 – 10|
|Group statement of financial activities|11|
|Company statement of financial activities|12|
|Group balance sheet|13|
|Company balance sheet|14|
|Statement of cash flows|15|
|Notes to the financial statements|16 – 29|
**RECYCLING LIVES CHARITY ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED APRIL 30 2021**
## **DIRECTORS/TRUSTEES**
**Name Appointed/Resigned** W Fletcher Resigned 20/07/20 C Jackson B Mayne D Snape J B Taylor (Chair) C M Whalley-Hunter Appointed 02/04/21 N Whittle **SENIOR MANAGEMENT TEAM** Chief Executive *A B Jackson Head of Operations *T R Carysforth Head of Rehabilitation *B J Flanagan Head of Residential N Flanagan Food Distribution Manager *J Green (* are employed by the subsidiary company)
**REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS** 1a Essex Street Preston Lancashire PR1 1QE **AUDITORS** Chittenden Horley HGA Accountants & Financial Consultants Ltd Chartered Accounts and Statutory Auditors 456 Chester Road Old Trafford Manchester M16 9HD **SOLICITORS** Brabners LLP 55 King Street Manchester M2 4LQ **BANKERS** Allied Irish Bank 4 Hardman Street Manchester M3 3HF
**1**
## **RECYCLING LIVES CHARITY TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021**
The trustees present their annual report together with the consolidated financial statements of the charity and its subsidiary for the year ended April 30 2021. Although the accounting reference date is to April 29[th] , for administrative reasons the accounts have been prepared to April 30[th] .
## **REPORTING FRAMEWORK**
The trustees’ annual report and financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and 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), referred to as the Charities SORP (FRS 102) (second edition – October 2019).
## **OBJECTS AND ACTIVITIES**
Charitable Objects are set out in the Articles of Association as follows.
1.1 The Charity’s Objects are the promotion for the public benefit of urban or rural regeneration in areas of social and economic deprivation (and in particular, but not limited to, Lancashire) by all or any of the following means:
- 1.1 the relief of poverty in such ways as may be thought fit;
- 1.1.2 the relief of unemployment in such ways as may be thought fit, including assistance to find employment;
1.1.3 the advancement of education, training or retraining, particularly among unemployed people, and providing unemployed people with work experience;
1.1.4 the provision of financial assistance, technical assistance, or business advice or consultancy in order to provide training and employment opportunities for unemployed people in cases of financial or other charitable need through help
- 1.1.4.1. in setting up their own business, or
## 1.1.4.2. to existing businesses;
1.1.5 the creation of training and employment opportunities by the provision of workspace, buildings and/or land for use on favourable terms;
1.1.6 the provision of housing for those who are in conditions of need and the improvement of housing in the public sector or in charitable ownership provided that such power shall not extend to relieving any local authorities or other bodies of a statutory duty to provide or improve housing;
1.1.7 the maintenance, improvement or provision of public amenities;
1.1.8 the preservation of buildings or sites of historic or architectural importance;
1.1.9 the provision or assistance in the provision of recreational facilities for the public at large and/or those who, by reasons of their youth, age, infirmity or disablement, poverty or social and economic circumstances, have need of such facilities;
1.1.10 the protection or conservation of the environment;
1.1.11 the promotion of public safety and prevention of crime; and
1.1.12 such other means as may from time to time be determined subject to the prior consent of the Charity Commission for England and Wales.
**2**
**RECYCLING LIVES CHARITY TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021**
## **ACTIVITIES**
The charity undertakes the following activities either itself of through its subsidiary company in pursuit of its objectives:
- Accommodation and rehabilitation programme for ex-offenders and ex-homeless
- Training and work experience within prisons and the community through recycling work
- Training placement and mentoring programme
- Food distribution programme
- Running a café to provide work, work experience and training for ex-offenders and ex homeless people
- Other environmental projects
## **AIMS FOR 2020/21**
Once again, the aims of the Recycling Lives Charity and our Social Enterprise remained simple; to be there to help people be the best they can be. That never really changes. Our three main programmes of food redistribution, rehabilitation and residential will continue to provide quality assistance to those who need us.
However, we need to recognise that we are in the unprecedented situation of a global pandemic. Clearly that changes many things.
So, put simply, there are 3 aims for this year.
1. To ensure that we protect the jobs and wellbeing of all staff and volunteers through Covid.
2. To continue to offer the support to our participants and recipients through whatever means we can. That will mean diversification in communication methods at times and using non face to face interventions where necessary. Key is that we strive at all times to do the best we possibly can for all.
3. To closely monitor the financial standing of the organisation and look for ways to diversify the income where our more normal streams have been temporarily closed to us. The be all and end all is that we are still here post-pandemic and able to deliver our current programmes and more.
## **ACHIEVEMENTS AND PERFORMANCE**
We began the financial year with all of our prison workshops closed, the residential programme in lockdown, the community programmes unable to function, and a food distribution centre (FDC) which was struggling to cope with the ever-growing needs of the people suffering food poverty throughout Lancashire and Cumbria.
We had many operational staff on furlough as their workplaces were locked down. That meant the recycling income from our prison workshops dropped to zero for a very long period. The community café was also shut. That accounted for over 60% of our normal income.
We couldn’t just close the food redistribution centre though. The need was growing by the day. However, many of the volunteers upon whom we rely so much had to self-isolate to stay safe which meant the ever-growing need was being fulfilled by an ever shrinking workforce.
Clearly a residential programme cannot simply be shut or mothballed. Instead, we created a bubble environment which enabled the work to carry on.
What about the prison leavers and the men and women in our community programmes who still needed help with employment, accommodation, and pastoral issues? Those problems were magnified by the pandemic, so we needed to create new ways of communicating from home by using virtual technology and phone.
How did we do it without 60% of our income? Through the dedication of our team and by leaving no financial opportunity unturned. For the first time, we learned how to write grant applications and spoke to funders about our work. It paid off. Grant income rose and we were also able to re-allocate and bring forward money from a grant from the National Lottery Community Fund. This enabled us to pay the wages and the bills at a basic level.
We didn’t stop there though. We looked at everything we did and searched for improvements. Not cutting, improving. So we took advantage of the money that became available and invested in new capital projects to make things work better. New racking, chillers, freezers and vehicles were funded for the FDC. That took some of the strain away from the team. We put new systems in which made the process easier and meant we could work with the increased quantities of food we needed to provide.
Similarly, we sought donations which have enabled us to completely revamp the residential area. The new kitchen and laundry areas have helped transform the offer.
**3**
## **RECYCLING LIVES CHARITY**
## **TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021**
We knew we had to do something about our recycling contracts, so we worked hard to temporarily redirect some stock away from prisons. Some went to partner organisations, but we were gifted temporary warehouse space of our own too. That meant we were able to open a new community workshop in Preston doing the same work as the mothballed prison workshops but in the community. It didn’t replace the lost income, but it helped.
Our partners supported us too. We were able to get rent holidays and rent cancellations of rent to help us through difficult periods.
A gamechanger for us was the negotiation of a unique and long-term sponsorship deal with our partner Recycling Lives Ltd. This money has allowed us to pay off an historic loan to them but furthermore, helped to secure our future financial solidity. Not only that, it will enable us to grow the teams and the offer.
As the financial year progressed into 2021 things began to ease. Prison workshops began to tentatively reopen. Face to face consultations with participants were possible again. The improvements in the FDC started to really bear fruit. We entered a space where we were growing back again but with the added advantage of having diversified our income streams. Oddly, we were in a better place.
The teams, too, had come together, worked better and communicated more. Old metaphorical departmental walls were knocked down as people worked across the whole organisation for the common good.
Did it work for the people we are here to help? Some of the highlights…
- All of the men in the residential programme have moved out and into work and their own accommodation.
- 85 men and women who were released from prison were supported into work. In the middle of a pandemic!!
- 35 people who had been long term unemployed moved into training and work placements.
- We redistributed over 1250 tonnes of surplus food to those who really needed it. That’s the equivalent of over 3 million meals across Lancashire and Cumbria.
- The reoffending rate for our prison leavers remained at under 5% for another year.
When you consider the background against which we were working these achievements are incredible. They are a testament to the adaptability, resilience, skill and sheer hard work of the people within this amazing organisation.
It will be noted that, despite all of the obstacles put in front of us, we have ended the year in a substantially better financial position than ever before. For the first time we are in a position to plan for substantial growth. Whilst that money looks good in the accounts, we need to use it wisely.
## **FINANCIAL REVIEW**
## **Overview**
The Group delivered a surplus for the year on unrestricted funds, after transfers, of £743,041 (2020: surplus - £203,910 and the charity had a surplus of £760,477 (2020: deficit - £14,936). Overall, the trustees are pleased with group’s performance which has contributed significantly to securing its financial stability.
## **Subsidiary company – Recycling Lives (Social Enterprises) Ltd (RLSE)**
With the exception of the accommodation programme, substantially all the activities are undertaken by the subsidiary RLSE, including some which could be considered charitable.
The directors and charity trustees are undertaking regular reviews of the activities carried out by RLSE to ensure that only low risk, fully funded and/or profitable activities, which are appropriate for it to undertake as the subsidiary of a charity, are continued.
RLSE eliminated the deficit on its funds in 2019/20 meaning that has been able to make a payment to the Charity of its taxable profits for that year of c£67k under gift aid, and for 2020/21 c£755k.
## **Principal Funding Sources**
The charity is mainly funded via its wholly owned subsidiary Recycling Lives (Social Enterprises) Ltd (RLSE), through its various income generating activities. During the pandemic some of those income streams were negatively affected, and both the charity and its subsidiary were able to attract funding and donations to cover those gaps.
RLSE has a diverse range of funding streams including the National Lottery and commercial arrangements with Recycling Lives Limited for recycling work, which it carries out in prisons and community workshops, and social value sponsorship.
## **Going concern**
In the opinion of the Trustees, there is no material uncertainty regarding the charity’s or charity group’s ability to continue as a going concern. The Trustees note the dramatically improved financial performance of the group in 2020/21 which has enabled us to hit our desired reserves figure. It is anticipated that sensible spending and growth will follow which will mean the charity remains financially sound.
**4**
**RECYCLING LIVES CHARITY TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021**
## **Risk Management**
The Trustees regularly review the risks to which the charity is exposed and seek to apply appropriate strategies to mitigate, lay-off and manage these risks.
The Trustees consider that the current practices and future plans to respond to these risks are appropriate and that, as a result, such risks are being effectively managed.
## **Reserve Policy**
During the year the Trustees have reviewed their policy for financial reserves. The target of free reserves (unrestricted funds not invested in fixed assets or otherwise designated) was set at £200k.
At April 30 2021, the charity’s free reserves were £760,725. The trustees are in the process of formulating plans for the use of the reserves above the target level.
## **FUTURE PLANS**
We have set aside a reserves figure to cover for future unforeseen events and, in addition we have planned for the following:
- We are investing in the team. We plan to take on extra staff to bolster and improve all programmes. This will give us good succession planning but also enable us to do more.
- For the first time we will be able to bring in people at trainee level and bring them through to senior positions.
- We will be able to increase the teams add much needed cover but also to allow us to develop into more specialisms like drug and alcohol workers.
- We will look to expand the community and prison offers by learning from what we’ve already done and bringing that knowledge to other locations.
- We will invest in training for the team so that they are continuously learning and improving.
- We will learn from our diversification of activity and explore new opportunities. First on the agenda is partnering with 5 new prisons in different locations. By doing this we will be able to substantially grow the number of people we can help. We’ll follow that up with a new training kitchen to work alongside the FDC.
- More opportunities which may previously have passed us by will be able to be looked at and implemented.
All of this needs to be done wisely. We are well aware that the pandemic actually brought us financial opportunities which may never come again. We cannot expect the flurry of grant income to repeat ad infinitum. Sensible and well thought out growth is key and we believe this will organically lead to more opportunities for the men and women we help.
**5**
**RECYCLING LIVES CHARITY TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing Document**
The organisation is a charitable company limited by guarantee, established by its Memorandum of Association and is governed under its Articles of Association dated April 13 2006, as amended by special resolution dated July 4 2006 and further amended by special resolution dated 24[th] July 2019.
## **Members of the company**
Following the latest change to the Articles of Association, the membership of the company is restricted to the trustees and terminates if a member ceases to be a trustee, except that, if retiring at an AGM, all the trustees remain members until the conclusion of the meeting.
## **Recruitment and Appointment of Trustees/Directors**
The Directors who served during the year together with any changes are listed on page one of the annual report. The Directors are appointed by the members at the AGM or are co-opted by the trustees. All trustees retire at the AGM and are eligible for reelection.
Trustees are recruited with regard to the skills needed by the charity.
## **Induction**
Trustees are inducted by spending time with senior management and visiting the various aspects of the charity. They are also given a pack of documentation consisting of polices, recent minutes and reports.
## **Organisation**
The Board of Directors meets as necessary, and not less than four times a year. The quorum for a meeting of the Trustees is the greater of two or one third of their number. The Board is responsible for the strategic direction and policy of the charity.
The day to day operation of the charity is the responsibility of the Chief Executive and the other members of the senior management who together with the Trustees constitute the key management personnel of the charity. The members of senior management are listed on page 1.
## **Pay and remuneration for senior staff**
Senior staff salaries are reviewed annually and benchmarked against other charities and social enterprises. Recommendations are then given to trustees for sign off each year.
## **Related party transactions**
Whilst the charitable group maintains a healthy relationship with Recycling Lives Ltd., the previous in-kind support which was received has ceased. All transactions are now formal and contracted for services.
**6**
**RECYCLING LIVES CHARITY TRUSTEES’ AND DIRECTORS’ ANNUAL FOR THE YEAR ENDED APRIL 30 2021**
## **TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS**
Company law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS 102) (second edition – October 2019);
- 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 operation.
The trustees are responsible for keeping adequate accounting records that 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 also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## **STATEMENT OF DISCLOSURE TO AUDITORS**
We, the directors of the company who held office at the date of approval of these Financial Statements as set out above each confirm, so far as we are aware, that:
- there is no relevant audit information of which the company’s auditors are unaware; and
- we have taken all the steps that we ought to have taken as directors in order to make ourselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
## **SMALL COMPANY PROVISIONS AND APPROVAL**
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
Approved by the Board of Trustees and signed on its behalf by:
## J B Taylor
J B TAYLOR
Chair of Board
Date: November 25 2021
**7**
**INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF RECYCLING LIVES CHARITY FOR THE YEAR ENDED APRIL 30 2021**
## **Opinion**
We have audited the financial statements of Recycling Lives Charity (the ‘parent charitable company’) and its subsidiaries (the 'group') for the year ended April 30 2021 which comprise SOFA, balance sheet, cashflow statement and notes to the financial statements, including 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 group’s and parent charitable company’s affairs as at April 30 2021 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011
## **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 group and parent 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 group’s or parent 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
## **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 directors’ report) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report has been prepared in accordance with applicable legal requirements.
**8**
**INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF RECYCLING LIVES CHARITY FOR THE YEAR ENDED APRIL 30 2021**
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the [strategic report and the][7] directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Act 2011 requires us to report to you if, in our opinion:
- adequate and sufficient accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to [prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, set out in the Directors’ and Trustees’ Annual Report, the trustees (who are also the directors of the parent charitable company for the purposes of company law) 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 the trustees 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 groups and parent 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 group or parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.
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.
Our approach to identifying and assessing the risks in respect of irregularities and non-compliance with laws and regulations, was as follows:
- the senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognize non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with the directors and other management, and from our commercial knowledge and experience of the computer manufacturing and supply sector;
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statement to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual and alleged fraud;
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and
- Understanding the design of the company’s remuneration policies.
**9**
**INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF RECYCLING LIVES CHARITY FOR THE YEAR ENDED APRIL 30 2021**
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing the financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to the actual and potential litigation claims; and
- reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.
No instances of material non-compliance were identified. However, there are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
- A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-foraudit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
## **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 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees 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 and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## _Peter Smith_
## **Peter Smith– Senior Statutory Auditor**
For and on behalf of:
HGA Accountants & Financial Consultants t/a Chittenden Horley Chartered Accountants and Statutory Auditors 456 Chester Road Old Trafford Manchester M16 9HD Date: 25/11/21
HGA Accountants & Financial Consultants t/a Chittenden Horley _is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006._
**10**
## **RECYCLING LIVES CHARITY GROUP STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED APRIL 30 2021**
|**Notes**
**INCOME**
**Incoming resources from generated funds:**
Donations
2
Charitable activities
3
Other trading activities
4
**TOTAL INCOMING RESOURCES**
**EXPENDITURE**
Costs of raising funds
6
Expenditure on charitable activities
7
**TOTAL EXPENDITURE**
**NET INCOME/(EXPENDITURE)**
**BEFORE TRANSFERS**
10
Transfers between funds
16
**NET INCOME/(EXPENDITURE)**
**AFTER TRANSFERS**
**TOTAL FUNDS**
**Brought forward**
16
**Carried forward**
16|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds**
**Funds**
**2021**
**2020**
**£**
**£**
**£**
**£**
304,443
37,498
**341,941**
_238,988_
1,280,306
-
**1,280,306**
_1,977,348_
679,403
**-**
**679,403**
_-_|
|---|---|
||2,264,152
37,498
**2,301,650**
_2,216,336_|
||16,156
-
**16,156**
_44,771_
1,521,610
25,404
**1,547,014**
_1,981,192_|
||1,537,766
25,404
**1,563,170**
_2,025,963_|
||726,386
12,094
**738,480**
_190,373_
16,655
(16,655)
**-**
_-_|
||743,041
(4,561)
**738,480**
_190,373_
199,045
4,561
**203,606**
_13,233_|
||942,086
-
**942,086**
_203,606_|
The notes on pages 16 to 29 form part of these financial statements.
**11**
## **RECYCLING LIVES CHARITY CHARITY STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED APRIL 30 2021**
|**Notes**
**Incoming resources from generated funds:**
Donations
2
Charitable activities
3
**TOTAL INCOME**
**EXPENDITURE**
Costs of raising funds
6
Expenditure on charitable activities
7
**TOTAL EXPENDITURE**
**NET INCOME/(EXPENDITURE)**
**BEFORE TRANSFERS**
Transfers between funds
16
**NET MOVEMENT IN FUNDS**
**TOTAL FUNDS**
**Brought forward**
16
**Carried forward**
16|**Unrestricted**
**Restricted**
**Total**
**Total**
**Funds**
**Funds**
**2021**
**2020**
**£**
**£**
**£**
**£**
934,811
37,498
**972,309**
_97,460_
52,834
-
**52,834**
_46,402_|
|---|---|
||987,645
37,498
**1,025,143**
_143,862_|
||-
-
**-**
_-_
243,823
25,404
**269,227**
_142,463_|
||243,823
25,404
**269,227**
_142,463_|
||743,822
12,094
**755,916**
_1,399_
16,655
(16,655)
**-**
_-_|
||760,477
(4,561)
**755,916**
_1,399_
61,795
4,561
**66,356**
_64,957_|
||822,272
-
**822,272**
_66,356_|
The notes on pages 16 to 29 form part of these financial statements.
**12**
**RECYCLING LIVES CHARITY GROUP BALANCE SHEET FOR THE YEAR ENDED APRIL 30 2021**
|**Notes**
**FIXED ASSETS**
Tangible Assets
11
**CURRENT ASSETS**
Debtors
13
Cash at Bank and in Hand
**CREDITORS**
Amounts falling due in one year
14
**NET CURRENT ASSETS**
**CREDITORS**
Amounts falling due in more than 1 year
15
**NET ASSETS**
**FUNDS**
Unrestricted
General fund
16
Designated fund
Restricted
16
**TOTAL FUNDS**|**2021**
**£**
**641,720**
**734,349**|**2021**
**2020**
**2020**
**£**
**£**
**£**
**258,220**
_248,367_
_354,204_
_531,094_
_885,298_
_623,811_
**745,438**
_261,487_
**1,003,658**
_509,854_
**61,572**
_306,248_
**942,086**
_203,606_
**897,086**
199,045
**45,000**
**-**
_4,561_
**942,086**
_203,606_|
|---|---|---|
||**1,376,069**
**630,631**||
||||
The notes on pages 16 to 29 form part of these financial statements.
**Approved by the Board of Directors and authorised for issue on** 25/11/21
**And signed on their behalf by:**
## J B Taylor
J B Taylor – Chair of board
Company registration number: 05781363
**13**
**RECYCLING LIVES CHARITY CHARITY BALANCE SHEET FOR THE YEAR ENDED APRIL 30 2021**
|**Notes**
**FIXED ASSETS**
Tangible Assets
11
Investments
12
**CURRENT ASSETS**
Debtors
13
Cash at Bank and in Hand
**CREDITORS**
Amounts falling due in one year
14
**NET CURRENT ASSETS**
**NET ASSETS**
**FUNDS**
Unrestricted
General fund
16
Restricted
16
**TOTAL FUNDS**|**2021**
**£**
**636,243**
**188,167**|**2021**
**2020**
**2020**
**£**
**£**
**£**
**16,447**
_2,443_
**100**
_100_
**16,547**
_2,543_
_26,525_
_85,788_
_112,313_
_48,500_
**805,725**
_63,813_
**822,272**
_66,356_
**822,272**
_66,356_
**822,272**
_61,795_
**-**
_4,561_
**822,272**
_66,356_|
|---|---|---|
||**824,410**
**18,685**||
||||
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The notes on pages 16 to 29 form part of these financial statements.
**Approved by the Board of Directors and authorised for issue on** 25/11/21
## **And signed on their behalf by:**
## J B Taylor
J B Taylor – Chair of board
Company registration number: 05781363
**14**
**RECYCLING LIVES CHARITY GROUP AND CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED APRIL 30 2021**
|**notes**
**Cash generated from/(used in)**
**operating activities**
18
**Cashflows from investing activities**
Purchase of tangible fixed assets
**Cash provided by/(used in) investing activities**
**Cashflows from financing activities**
Proceeds from new borrowings - finance leases
Other creditors written off
Repayment of borrowing - finance leases
**Cash used in financing activities**
**Increase/(decrease) in cash & cash equivalents in the year**
**Cash and cash equivalents brought forward**
**Cash and cash equivalents carried forward**
**Cash and cash equivalents consist of:**
Cash at bank and in hand
Current asset investments|**Group**
**Group**
**Charity**
**Charity**
**2021**
**2020**
**2021**
**2020**
**£**
**£**
**£**
**£**
**562,475**
_224,172_
**119,034**
_2,636_|
|---|---|
||**(114,543)**
_(84,082)_
**(16,655)**
_-_|
||**(114,543)**
_(84,082)_
**(16,655)**
_-_|
||**-**
_-_
**-**
_-_
**-**
_186,634_
**-**
_-_
**(244,677)**
_(52,494)_
**-**
_-_|
||**(244,677)**
_134,140_
**-**
_-_|
||**203,255**
_274,230_
**102,379**
_2,636_
**531,094**
_256,864_
**85,788**
_83,152_|
||**734,349**
_531,094_
**188,167**
_85,788_|
||**734,349**
_531,094_
**188,167**
_85,788_|
||**734,349**
_531,094_
**188,167**
_85,788_|
The notes on pages 16 to 29 form part of these financial statements.
**15**
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
## **1 ACCOUNTING POLICIES**
## **1.1 Basis of preparation**
The financial statements have been prepared: under the historic cost convention; in accordance with the Statement of Recommended Practice – Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective January 1 2019 (second edition – October 2019); FRS102; and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS102.
The accounts are prepared in £ sterling, which is the functional currency.
## **1.2 Income recognition**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following applies to particular types of income:
Grants - whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.
Donations - from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.
Rendering of services – turnover derived from rendering services is recognised by reference to the stage of completion of contract. The stage completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.
Deferred income
Income is only deferred and included in creditors when:
- The income relates to a future accounting period
- A sales invoice has been raised ahead of the work being carried out and there is no contractual entitlement to the income until the work has been done
- Not all the terms and conditions of the grant have been met, including the incurring of expenditure and the grant conditions are such that unspent grant must be refunded
## **1.3 Expenditure and irrecoverable VAT**
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
Costs of raising funds including those associated with fundraising activities, managing investments and commercial trading by the subsidiary company.
Charitable activities costs of undertaking the work of the charity.
The charity is not registered for VAT, and costs are stated inclusive of VAT where charged.
The subsidiary is registered for VAT and is able to recover some of the input tax charged as it relates to VATable supplies. Costs are stated net of VAT were charged.
## **1.4 Tangible fixed assets and depreciation**
Tangible fixed assets are carried at costs, net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:
Depreciation rates, all straight line, are as follows:
Leasehold property improvements 25% Straight line Plant & Machinery 25% Straight line Catering equipment, fixtures & fittings 10%/25% Straight line Motor vehicles 25% Straight line IT equipment 25% Straight line
## **1.5 Debtors**
Trade and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.
## **1.6 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.
**16**
**RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
## **1 ACCOUNTING POLICIES (continued)**
## **1.7 Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.
## **1.8 Taxation**
Income tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other year and items that are never taxable or deductible. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.
Current tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.
There is no liability to income tax in the subsidiary because it donates its taxable profits to the charity. The charity is exempt from income tax.
## **1.9 Financial instruments**
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
All the financial instruments in these accounts are considered to be basic financial instruments.
## **1.10 Group financial statements**
The financial statements consolidate the results of the charity and its wholly owned subsidiary on a line by line basis.
**17**
**RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
|**2 DONATIONS**
**GROUP**
As below
Donation - Commercial group
Donations
HMRC - CJRS grant
**CHARITY**
**Project grants**
Albert Gubay
**Donations**
General
For Japanese Tea Garden
Donation from SE
**Total for company**|**2021**
**Unrestricted**
**Restricted**
**Total**|**2020**
**Unrestricted**
**Restricted**
**Total**|
|---|---|---|
||**£**
**£**
**£**
112,220
37,498
**149,718**
-
-
**-**
40,780
-
**40,780**
151,443
-
**151,443**|**£**
**£**
**£**
_90,580_
_6,880_
**_97,460_**
_118,764_
_-_
**_118,764_**
_-_
_-_
**_-_**
22,764
-
**_22,764_**|
||304,443
37,498
**341,941**|_232,108_
_6,880_
**_238,988_**|
||-
14,250
**14,250**|_-_
_-_
**_-_**|
||-
14,250
**14,250**|_-_
_-_
**_-_**|
||112,220
23,248
**135,468**
-
-
**-**|_90,580_
_6,880_
**_97,460_**
_-_
_-_
**_-_**|
||112,220
23,248
**135,468**|_90,580_
_6,880_
**_97,460_**|
||112,220
37,498
**149,718**
822,591
-
**822,591**|_90,580_
_6,880_
**_97,460_**
_-_
_-_
**_-_**|
||934,811
37,498
**972,309**|_90,580_
_6,880_
**_97,460_**|
## **3 INCOME FROM CHARITABLE ACTIVITIES**
|Residential work
**Per Charity**
Prison contract - recycling scheme
Café and canteen
Food distribution
Release Potential
**Per Group**|52,834
**52,834**
_46,402_
**_46,402_**
-
-
**-**
_-_
_-_
**_-_**|
|---|---|
||52,834
-
**52,834**
_46,402_
_-_
**_46,402_**|
||514,940
-
**514,940**
_1,113,842_
_-_
**_1,113,842_**
2,751
-
**2,751**
_197,873_
_-_
**_197,873_**
455,971
-
**455,971**
_298,663_
_-_
**_298,663_**
253,810
-
**253,810**
_320,568_
_-_
**_320,568_**|
||1,227,472
-
**1,227,472**
1,930,946
-
**_1,930,946_**|
||1,280,306
-
**1,280,306**
_1,977,348_
_-_
**_1,977,348_**|
Included in Release Potential is £36,670 (2020 - nil) of funding from the National Lottery Community Fund.
## **4 INCOME FROM OTHER TRADING ACTIVITIES**
|Social value sponsorship
**Per Group**|679,403
-
**679,403**
-
-
-|
|---|---|
||679,403
-
**679,403**
**-**
**-**
-|
18
**RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
## **5 TRADING SUBSIDIARY**
|Turnover
Cost of sales
Gross profit
Distribution costs
Administration Expenses
Other operating income
Operating profit/loss
Interest payable and similar charges
Profit for the financial year
Total assets
Total liabilities
Net funds
Total income as above
less eliminated on consolidation - grants from charity
add back capital grant
less eliminated on consolidation amortisation capital grant
**_To Group income_**
Total costs as above
Donations
Inter company trading
**_To Group costs_**|**2021**
**2020**
**£**
**£**
**1,837,329**
_1,901,156_
**(924,711)**
_(1,560,407)_
**912,618**
_340,749_
**(20,000)**
_-_
**(373,335)**
_(322,557)_
**232,941**
_178,198_
**752,224**
_196,390_
**(5,346)**
_(7,421)_
**746,878**
_188,969_
**1,423,218**
_1,047,018_
**(1,361,585)**
_(909,672)_
**61,633**
_137,346_
**2,070,270**
_1,901,156_
**(29,450)**
_(6,880)_
**77,704**
**(19,426)**
**2,099,098**
_1,894,276_
**1,323,392**
_1,890,385_
**-**
_-_
**-**
_-_
**1,323,392**
_1,890,385_|
|---|---|
19
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
|**6 COSTS OF RAISING FUNDS**
**Fundraising**
**_Per Charity_**
Direct costs
Support costs
**_Per Group_**
**7 CHARITABLE EXPENDITURE**
Residential work
Grants to subsidiary
Other projects
**_Per Charity_**
Grants to subsidiary eliminated
Prison contract - recycling scheme
Café and canteen
Food distribution
Donation to Subsidiary
Training placements and support
**_Per Group_**|**2021**
**Unrestricted**
**Restricted**
**Total**|**2020**
**Unrestricted**
**Restricted**
**Total**|
|---|---|---|
||**£**
**£**
**£**
-
-
**-**
-
**-**
16,156
-
**16,156**|**£**
**£**
**£**
_-_
_-_
**_-_**
_30,000_
_-_
**_30,000_**
_14,771_
_-_
**_14,771_**|
||16,156
-
**16,156**|_44,771_
_-_
**_44,771_**|
||233,272
-
**233,272**
15,200
14,250
**29,450**
(4,649)
11,154
**6,505**|_122,046_
_-_
**_122,046_**
_-_
_6,880_
**_6,880_**
_-_
_13,537_
**_13,537_**|
||243,823
25,404
**269,227**
(15,200)
(14,250)
**(29,450)**
786,393
-
**786,393**
100,482
-
**100,482**
263,116
14,250
**277,366**
-
-
**-**
142,996
-
**142,996**|_122,046_
_20,417_
**_142,463_**
_-_
_(6,880)_
**_(6,880)_**
1,131,813
_-_
**_1,131,813_**
243,731
_-_
**_243,731_**
214,405
_6,880_
**_221,285_**
-
_-_
**_-_**
248,780
_-_
**_248,780_**|
||1,521,610
25,404
**1,547,014**|_1,960,775_
_20,417_
**_1,981,192_**|
|Charitable expenditure is analysed as follows:
**2020/21**
Residential work
Grants to subsidiary company
Other projects
**_Total per Charity_**
Prison contract - recycling scheme
Café and canteen
Food distribution
Release Potential
**_Total per Subsidiary_**
**2019/20**
Residential work
Grants to subsidiary company
Other projects
**_Total per Charity_**
Prison contract - recycling scheme
Café and canteen
Food distribution
Training placements and support
**_Total per Subsidiary_**|**Direct**
**Direct**
**Support**
**Costs**
**Salaries**
**Costs**
**Total**
**£**
**£**
**£**
**£**
195,856
10,420
26,996
**233,272**
29,450
-
-
**29,450**
6,505
-
-
**6,505**|
|---|---|
||231,811
10,420
26,996
**269,227**|
||122,797
446,314
217,282
**786,393**
1,052
42,825
56,605
**100,482**
73,006
128,976
75,384
**277,366**
1,721
79,285
61,990
**142,996**|
||198,576
697,400
411,261
**1,307,237**|
||_76,468_
_23,832_
_21,746_
**_122,046_**
_6,880_
_-_
_-_
**_6,880_**
_13,537_
_-_
_-_
**_13,537_**|
||_96,885_
_23,832_
_21,746_
**_142,463_**|
||_631,092_
_363,998_
_136,723_
**_1,131,813_**
_97,969_
_113,702_
_32,060_
**_243,731_**
_65,463_
_114,395_
_41,427_
**_221,285_**
_38,750_
_173,046_
_36,984_
**_248,780_**|
||_833,274_
_765,141_
_247,194_
**_1,845,609_**|
20
**RECYCLING LIVES CHARITY**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
## **8 SUPPORT COSTS**
|**SUPPORT COSTS**||
|---|---|
|**2020/21**
Residential work
Prison contract - recycling scheme
Café and canteen
Food distribution
Release Potential
Fundraising|**Support**
**Travel &**
**Other**
**Governance**
**Depreciation**
**Total**
**salaries**
**Training**
**Costs**
**costs**
**Costs**
**2021**
**£**
**£**
**£**
**£**
**£**
**£**
-
-
979
23,283
2,734
**26,996**|
||**-**
**-**
979
23,283
2,734
**26,996**
46,671
14,512
41,899
25,968
88,232
**217,282**
17,950
7,256
18,276
12,984
138
**56,605**
23,335
7,256
18,276
12,984
13,533
**75,384**
23,335
7,256
18,276
12,984
138
**61,990**
16,156
-
-
-
-
**16,156**|
||127,447
36,280
97,706
88,204
104,775
**454,413**|
|**2019/20**
_Residential work_
_Prison contract - recycling scheme_
_Café and canteen_
_Food distribution_
_Release Potential_
_Fundraising_
**Governance costs**
Salaries
Professional and legal fees
Overheads|_-_
_-_
_479_|**Total**
**2020**
_19,550_
_1,717_
**_21,746_**|
|---|---|---|
||_-_
_-_
_479_
_41,785_
_6,845_
_21,436_
_15,968_
_3,423_
_7,007_
_20,892_
_3,423_
_7,007_
_20,892_
_3,423_
_7,007_
_14,771_
_-_
_-_|_19,550_
_1,717_
**_21,746_**
_10,938_
_55,719_
**_136,723_**
_5,469_
_193_
**_32,060_**
_5,469_
_4,636_
**_41,427_**
_5,469_
_193_
**_36,984_**
_-_
_-_
**_14,771_**|
||_114,308_
_17,114_
_42,936_|_46,895_
_62,458_
**_283,711_**|
|||**£**
**£**
**16,156**
_14,771_
**72,047**
_32,126_
**-**
_-_
**88,203**
_46,897_|
Support costs are allocated on the following basis:
Staff costs on estimate of time spent Other costs on basis of use of resources
21
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
## **RECYCLING LIVES CHARITY**
## **9 STAFF INFORMATION**
|**2021**
**2020**
**a Employees**
**£**
**£**
Salaries and wages
**779,289**
_844,850_
Pension costs - money purchase
**14,054**
_15,992_
Employer's nic allowance including back claim
**(4,000)**
_(12,000)_
Employer's NI contributions
**62,080**
_69,210_
**851,423**
_918,052_
Staff costs for the trading subsidiary included above
**733,297**
_795,748_
**b** Employees earning more than £60,000
**Number**
**Number**
£80,000 - £90,000
**1**
**1**
**c** The key management of the group comprise the trustees and senior staff (as set out on page1).
The trustees do not receive any remuneration for their services.
The total employee benefits of other key management were as follows:
**£**
**£**
**243,390**
_256,489_
**b Average staff numbers**
The average number of employees referred to above, was as follows:-
**2021**
**2021**
**2020**
**2020**
**Average**
**Average FTE**
**Average**
**average FTE**
**number**
**number**
**number**
**number**
Charity
**1**
**1**
_1_
_1_
Trading subsidiary
**37**
**31**
_41_
_37_
**38**
**32**
_42_
_38_
**0 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)**
This is stated after charging/(crediting):
Auditor's remuneration:-
**£**
**£**
Audit fees - annual accounts
**4,200**
_4,000_
Accountancy fees
**3,220**
_11,820_
Operating lease rentals
**80,667**
_80,300_
Depreciation of assets held on finance leases
**85,015**
_54,339_
Depreciation of fixed assets
**19,675**
_8,120_
Trustees remuneration
**-**
_-_
Trustees expenses re travel and accommodation
**-**
_-_
**Number**
**Number**
Trustees having expenses reimbursed or paid on their behalf
**-**
_-_|**2021**
**2020**
**a Employees**
**£**
**£**
Salaries and wages
**779,289**
_844,850_
Pension costs - money purchase
**14,054**
_15,992_
Employer's nic allowance including back claim
**(4,000)**
_(12,000)_
Employer's NI contributions
**62,080**
_69,210_
**851,423**
_918,052_
Staff costs for the trading subsidiary included above
**733,297**
_795,748_
**b** Employees earning more than £60,000
**Number**
**Number**
£80,000 - £90,000
**1**
**1**
**c** The key management of the group comprise the trustees and senior staff (as set out on page1).
The trustees do not receive any remuneration for their services.
The total employee benefits of other key management were as follows:
**£**
**£**
**243,390**
_256,489_
**b Average staff numbers**
The average number of employees referred to above, was as follows:-
**2021**
**2021**
**2020**
**2020**
**Average**
**Average FTE**
**Average**
**average FTE**
**number**
**number**
**number**
**number**
Charity
**1**
**1**
_1_
_1_
Trading subsidiary
**37**
**31**
_41_
_37_
**38**
**32**
_42_
_38_
**0 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)**
This is stated after charging/(crediting):
Auditor's remuneration:-
**£**
**£**
Audit fees - annual accounts
**4,200**
_4,000_
Accountancy fees
**3,220**
_11,820_
Operating lease rentals
**80,667**
_80,300_
Depreciation of assets held on finance leases
**85,015**
_54,339_
Depreciation of fixed assets
**19,675**
_8,120_
Trustees remuneration
**-**
_-_
Trustees expenses re travel and accommodation
**-**
_-_
**Number**
**Number**
Trustees having expenses reimbursed or paid on their behalf
**-**
_-_|**2021**
**2020**
**a Employees**
**£**
**£**
Salaries and wages
**779,289**
_844,850_
Pension costs - money purchase
**14,054**
_15,992_
Employer's nic allowance including back claim
**(4,000)**
_(12,000)_
Employer's NI contributions
**62,080**
_69,210_
**851,423**
_918,052_
Staff costs for the trading subsidiary included above
**733,297**
_795,748_
**b** Employees earning more than £60,000
**Number**
**Number**
£80,000 - £90,000
**1**
**1**
**c** The key management of the group comprise the trustees and senior staff (as set out on page1).
The trustees do not receive any remuneration for their services.
The total employee benefits of other key management were as follows:
**£**
**£**
**243,390**
_256,489_
**b Average staff numbers**
The average number of employees referred to above, was as follows:-
**2021**
**2021**
**2020**
**2020**
**Average**
**Average FTE**
**Average**
**average FTE**
**number**
**number**
**number**
**number**
Charity
**1**
**1**
_1_
_1_
Trading subsidiary
**37**
**31**
_41_
_37_
**38**
**32**
_42_
_38_
**0 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)**
This is stated after charging/(crediting):
Auditor's remuneration:-
**£**
**£**
Audit fees - annual accounts
**4,200**
_4,000_
Accountancy fees
**3,220**
_11,820_
Operating lease rentals
**80,667**
_80,300_
Depreciation of assets held on finance leases
**85,015**
_54,339_
Depreciation of fixed assets
**19,675**
_8,120_
Trustees remuneration
**-**
_-_
Trustees expenses re travel and accommodation
**-**
_-_
**Number**
**Number**
Trustees having expenses reimbursed or paid on their behalf
**-**
_-_|
|---|---|---|
||**38**|**32**
_42_
_38_|
|||**£**
**£**
**4,200**
_4,000_
**3,220**
_11,820_
**80,667**
_80,300_
**85,015**
_54,339_
**19,675**
_8,120_
**-**
_-_
**-**
_-_
**Number**
**Number**
**-**
_-_|
## **10 NET INCOME/(EXPENDITURE) BEFORE TRANSFERS (for the Group)**
22
**RECYCLING LIVES CHARITY**
**NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
## **11 TANGIBLE FIXED ASSETS**
||||||||
|---|---|---|---|---|---|---|
|**TANGIBLE FIXED ASSETS**||||**Equipment,**|||
||**Short leasehold**||**Motor**|**Fixtures &**|**IT**||
||**improvements**|**Canteen**|**vehicle**|**Fittings**|**Equipment**|**Total**|
|**GROUP -**|**£**|**£**|**£**|**£**|**£**|**£**|
|**Cost**|||||||
|As at May 1 2020 - as restated|3,610|8,500|49,611|325,162|14,140|401,023|
|Additions|-|-|47,115|66,862|566|114,543|
|Disposals|-|-|-|-|-|-|
|As at April 30 2021|3,610|8,500|96,726|392,024|14,706|515,566|
|**Depreciation**|||||||
|As at May 1 2020 - as restated|3,610|8,499|3,509|128,372|8,666|152,656|
|Charge for the year|-|-|12,935|89,450|2,305|104,690|
|Disposals|-|-|-|-|-|-|
|As at April 30 2021|3,610|8,499|16,444|217,822|10,971|257,346|
|**Net Book Value**|||||||
|As at April 30 2021|**-**|**1**|**80,282**|**174,202**|**3,735**|**258,220**|
|As at May 1 2020 - as restated|_-_|_1_|_46,102_|_196,790_|_5,474_|_248,367_|
Included in equipment, fixtures and fittings are assets held on finance leases with a net book value of £168,244 (2020 - £222,583).
||**Short leasehold**||**Motor**|**Fixtures &**|**IT**||
|---|---|---|---|---|---|---|
||**improvements**|**Canteen**|**vehicle**|**Fittings**|**Equipment**|**Total**|
|**COMPANY**|**£**|**£**|**£**|**£**|**£**|**£**|
|**Cost**|||||||
|As at May 1 2020|3,610|8,500|1,800|24,601|6,734|45,245|
|Additions|-|-|-|16,655|-|16,655|
|Disposals||||||-|
|As at April 30 2021|3,610|8,500|1,800|41,256|6,734|61,900|
|**Depreciation**|||||||
|As at May 1 2020|3,610|8,499|1,800|22,159|6,734|42,802|
|Charge for the year|-|-|-|2,651|-|2,651|
|Disposals||||||-|
|As at April 30 2021|3,610|8,499|1,800|24,810|6,734|45,453|
|**Net Book Value**|||||||
|As at April 30 2021|**-**|**1**|**-**|**16,446**|**-**|**16,447**|
|As at May 1 2020|_-_|_1_|_-_|_2,442_|_-_|_2,443_|
## **12 FIXED ASSET INVESTMENTS**
The Charity owns 100% of the issued share capital of the following companies:
**Name Activity** Recycling Lives (Social Enterprises) Ltd (incorporated in England & Wales)
|**Investment**|**Investment**|**Company no.**|
|---|---|---|
|**2021**|**2020**||
|**£**|**£**||
|**100**|_100_|8775890|
|**100**|_100_||
23
## **RECYCLING LIVES CHARITY**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
|**13 DEBTORS**
Trade debtors
Grants and income receivable
Recycling Lives (Social Enterprises) Ltd
Other debtors
Prepayments
**14 CREDITORS falling due within one year**
Trade creditors
Other taxes and social security
Accruals
Recycling Lives (Social Enterprises) Ltd
Finance lease creditors
Other creditors
Income and grants in advance
**15 CREDITORS falling due in more than one year**
Other creditors
Finance lease creditors - 2 - 5 years|**GROUP**
**GROUP**
**COMPANY**
**COMPANY**
**2021**
**2020**
**2021**
**2020**
**£**
**£**
**£**
**£**
**252,269**
_263,478_
**999**
_6,775_
**337,370**
_6,551_
**3,833**
_6,551_
**-**
_-_
**629,785**
_-_
**2,725**
_13,199_
**1,626**
_13,199_
**49,356**
_70,976_
**-**
_-_|
|---|---|
||**641,720**
_354,204_
**636,243**
_26,525_|
||**79,987**
147,875
**91**
_4,752_
**29,618**
_29,577_
**1,181**
_-_
**104,601**
_92,308_
**17,413**
_15,635_
**-**
_-_
**-**
_28,113_
**54,569**
_54,570_
**-**
_-_
**328,749**
_259,401_
**-**
_-_
**33,107**
_40,080_
**-**
_-_|
||**630,631**
_623,811_
**18,685**
_48,500_|
||**-**
_186,634_
**-**
_-_
**61,572**
_119,614_
**-**
_-_|
||**61,572**
_306,248_
**-**
**-**|
See the related party note for details of the other creditors due in more than one year.
24
**RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
## **16 STATEMENT OF FUNDS**
|**Income**
**Expenditure**
**Transfers**
**30/04/2021**
**£**
**£**
**£**
**£**
_2,264,152_
_(1,537,766)_
_(28,345)_
_897,086_
_-_
_-_
_45,000_
_45,000_|_942,086_|_-_|_-_|_942,086_||_822,272_
_58,278_
_119,814_|_942,086_|
|---|---|---|---|---|---|---|---|
||_16,655_|_(16,655)_|_(16,655)_|_-_||||
||_(1,537,766)_|_(25,404)_|_(25,404)_|_(1,563,170)_||||
||_2,264,152_|_37,498_|_37,498_|_2,301,650_||||
|**30/04/2020**
**01/05/2020**
**£**
_199,045_
_-_|_199,045_|_4,561_|_4,561_|_203,606_||||
|**Transfers**
**losses &**
**01/05/2019**
**Income**
**Expenditure**
**taxation**
**£**
**£**
**£**
**£**
_(4,865)_
_2,209,456_
_(2,005,546)_
_-_
_-_
_-_
_-_
_-_|_-_|_-_|_-_|_-_||||
||_(2,005,546)_|_(20,417)_|_(20,417)_|_(2,025,963)_||||
||_2,209,456_|_6,880_|_6,880_|_2,216,336_||||
||_(4,865)_|_18,098_|_18,098_|_13,233_||||
25
**RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
## **16 STATEMENT OF FUNDS (continued)**
|**Income**
**Expenditure**
**Transfers**
**30/04/2021**
**£**
**£**
**£**
**£**
987,645
(243,823)
(28,345)
**777,272**
-
45,000
**45,000**|**822,272**|**-**
**-**
**-**
**-**
**-**
**-**|**-**|**822,272**||
|---|---|---|---|---|---|
||16,655|-
-
-
(16,655)
-|(16,655)|-||
||(243,823)|(14,250)
(6,593)
(2,760)
(1,801)
-|(25,404)|(269,227)||
||987,645|14,250
6,593
-
-
16,655
-|37,498|1,025,143||
|**30/04/2020**
**01/05/2020**
**£**
_61,795_
_-_|_61,795_|_-_
_-_
_2,760_
_1,801_
_-_
_-_|_4,561_|_66,356_||
|**Transfers**
**losses &**
**01/05/2019**
**Income**
**Expenditure**
**taxation**
**£**
**£**
**£**
**£**
_46,859_
_136,982_
_(122,046)_
_-_
_-_
_-_
_-_
_-_|_-_|_-_
_-_
_-_
_-_
_-_
_-_|_-_|_-_||
||_(122,046)_|_-_
_(6,880)_
_-_
_(11,248)_
_-_
_(2,289)_|_(20,417)_|_(142,463)_||
||_136,982_|_-_
_6,880_
_-_
_-_
_-_
_-_|_6,880_|_143,862_||
||_46,859_|_-_
_-_
_2,760_
_13,049_
_-_
_2,289_|_18,098_|_64,957_||
**----- Start of picture text -----**
COMPANY
**----- End of picture text -----**
**----- Start of picture text -----**
Unrestricted funds: General fund Designated fund Total unrestricted funds Restricted Funds: Albert Gubay Protein Work Bee Big Lottery - Weight Off your Mind Japanese Tea Garden Capital Donation - New Kitchen Reach fund Total restricted funds Total Funds
**----- End of picture text -----**
26
**RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
## **16 STATEMENT OF FUNDS (continued)**
## **Transfers**
The Charity benefited from a donation of £45,000 received towards the end of the year, and this has been designated to meet the salary costs of the residential project in 21/22.
There is no continuing restriction over the use of the kitchen and the balance has been released to general funds.
## **17 ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|**ANALYSIS OF NET ASSETS BETWEEN FUNDS**||
|---|---|
|**Company fund balances at April 30 2021**
**are represented by:-**
Tangible fixed assets
Net current assets
**Company fund balances at April 30 2020**
**are represented by:-**
Tangible fixed assets
Net current assets
**Free Reserves:**
Net current assets|**Unrestricted**
**Restricted**
**Total**
**Funds**
**Funds**
**£**
**£**
**£**
16,547
-
**16,547**
805,725
-
**805,725**|
||822,272
-
**822,272**|
||2,543
-
**2,543**
59,252
4,561
**63,813**|
||61,795
4,561
**66,356**|
||**2021**
**2020**
**£**
**£**
**760,725**
59,252|
## **18 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASHFLOW FROM OPERATING ACTIVITIES**
|Net income/(expenditure) after taxation
Add back depreciation
Deduct interest income shown in investing activities
Deduct profit/add back losses on disposals of FA
Decrease/(increase) in debtors
Increase/(decrease) in creditors
**Net cash generated from/(used in) operating activities**|**Group**
**Group**
**Charity**
**Charity**
**2021**
**2020**
**2021**
**2020**
**£**
**£**
**£**
**£**
**738,480**
_190,373_
**755,916**
_1,399_
**104,690**
_62,459_
**2,651**
_1,717_
**-**
_-_
**-**
_-_
**-**
_-_
**-**
_-_
**(287,516)**
_143,609_
**(609,718)**
_(26,525)_
**6,821**
_(172,269)_
**(29,815)**
_26,045_|
|---|---|
||**562,475**
_224,172_
**119,034**
_2,636_|
|**Movement in net debt:**
**Group**
**Cash and cash equivalents**
Cash at bank and in hand
**Debt**
Finance lease obligations
**Cash and cash equivalents net of debt**|**at 31/3/20**
**cashflows**
**New finance**
**leases**
**other non**
**cash**
**as 31/3/21**
**£**
**£**
**£**
**£**
**£**
531,094
203,255
-
-
734,349|
|---|---|
||(174,184)
(58,043)
-
-
(116,141)|
||356,910
618,208|
There are no borrowings in the Charity.
27
**RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
|**19 LEASE COMMITMENTS**
**Operating leases**
Due within one year
Due within 2 to 5 years
Due in more than 5 years|**2021**
**2020**
**£**
**£**
**153,500**
_133,417_
**565,708**
_492,000_
**695,000**
_820,000_
**1,414,208**
_1,445,417_|
|---|---|
The above figures exclude service charges.
Included in the above are commitments that arise under a formal lease between the Charity and Recycling Lives Ltd (RLL), for the accommodation space at the registered office. The relevant figures are as follows:
|Due within one year
Due within 2 to 5 years
Due in more than 5 years|**123,000**
_123,000_
**492,000**
_492,000_
**695,000**
_820,000_
**1,310,000**
_1,435,000_|
|---|---|
The Charity has only occupied one of two floors covered by the lease and RLL has never sought to charge the full rent, charging only what it believes the Charity can afford in any year following discussions with the Charity.
RLL has rented out the unoccupied space to other tenants and retained the income for its own use.
The Charity and RLL are in the process of formalising the current position and agreeing a formal variation in the lease terms.
|**Finance leases**
Due within one year
Due between 2 and 5 years
Less finance lease interest|**59,919**
_59,916_
**65,088**
_125,007_
**125,007**
_184,923_
**(8,916)**
_(10,739)_
**116,091**
_174,184_|
|---|---|
28
**RECYCLING LIVES CHARITY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED APRIL 30 2021**
## **20 CONSTITUTION**
The Company is limited by guarantee and does not have a share capital. In the event of the Company being wound up the members are committed to contributing £1 each.
## **21 TAXATION**
The company is a registered charity and is entitled to claim annual exemption from UK corporation tax under sections 466 to 477 of the Corporation Tax Act 2010.
## **22 CAPITAL COMMITMENTS**
The company had the no capital commitments at the year end (2020 - none).
## **23 Related party transactions**
## Charity and subsidiary
At 30[th] April 2021 the subsidiary Recycling Lives (Social Enterprise) Limited owed to the parent charitable company £629,785 (2020 - the Charity owed £28,113). The amount is non-interest bearing and unsecured.
## Recycling Lives
The charitable group now has a simple commercial trading relationship with Recycling Lives Ltd. This involves contracting recycling services and a formal sponsorship arrangement. No trustees or key personnel or their families have any formal relationship with the business.
The Group accounts include the following total amounts for services supplied to and by commercial group companies:
## Skip hire services
Throughout both years, Recycling Lives (Social Enterprises) Ltd (RLSE) has acted as agent for Recycling Lives Ltd (RLL) in respect of a skip hire contract that invoiced c£1.2m in 20/21 (prior year c£1.4m),and was invoiced the same by RLL. The income and costs are not included in the profit and loss account of SE. At the year end there was c£202k outstanding from the skip hire company. At the year end RLL was owed £328,749 by RLSE for this.
29