REGISTERED COMPANY NUMBER: 04905282 (England and Wales) REGISTERED CHARITY NUMBER: 1118160
Doncaster Re-Furnish Limited
Financial Statements For The Year Ended 30 September 2021
Kingswood Allotts Limited, Statutory Auditor Chartered Accountants Sidings Court Lakeside Doncaster South Yorkshire DN4 5NU
Doncaster Re-Furnish Limited
Contents of the Financial Statements For The Year Ended 30 September 2021
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 7 |
| Report of the Independent Auditors | 8 | to | 9 |
| Statement of Financial Activities | 10 | ||
| Balance Sheet | 11 | ||
| Cash Flow Statement | 12 | ||
| Notes to the Cash Flow Statement | 13 | ||
| Notes to the Financial Statements | 14 | to | 22 |
Doncaster Re-Furnish Limited (Registered number: 04905282)
Report of the Trustees For The Year Ended 30 September 2021
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 30 September 2021. 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).
OBJECTIVES AND ACTIVITIES
Objectives and aims
The principle aims of the charity are to create public benefit through providing affordable furniture to local people whilst delivering a combination of social, environmental and economic objectives. Furniture and domestic appliances are sourced through collections of unwanted furniture on a contractual basis with the Local Authority. National retailers also donate product to the charity that would otherwise have been destined for landfill. In the process of doing so it provides work and training opportunities for the long term unemployed and those severely disadvantaged in the labour market. The organisation was designed to respond to local, regional, national and European legislative drivers in the areas of recycling, regeneration and enterprise development.
Our Story
Refurnish is a charity with a difference. Working with the local community, retailers and public sector agencies, Refurnish prides itself on selling quality new, used and rebranded furniture and electrical goods at a truly affordable price for their customers. The life of Refurnish began on 8th January 2003 and since then, our not for private-profit social enterprise has excelled in providing a greener and more sustainable answer to the manufacture and distribution of furniture and other household goods. And what's more than that is the 10,685 people we have helped this year in the local area through the products sold in our stores. The figures speak for themselves.
Born out of five thriving community groups central to furniture production and delivery in Doncaster, Refurnish recognised the opportunity to divert the increasing amounts of goods sent to landfill sites into the successful environmentally friendly project you now see. We do not see 'waste' but an opportunity to recycle, reuse and create high quality goods to sell to the local community at low costs. And at the heart of it: People!
Refurnish offers a unique service like no other. We realise that furniture for the home can be a huge expense and we work to meet our charitable aims of helping people create their perfect home at a reasonable price. From the collection, remanufacture and delivery, Refurnish work to give you good choice at affordable prices. Not only do we collect unwanted furniture from your home, workplace or retail outlet, our friendly team also provide a door to door delivery service of many sought after furniture items.
With an eye for detail, the highly skilled work-force at Refurnish have a reputation for creativity, hard work and craftsmanship which is evidenced in the remanufacture and selling of damaged or unused goods into quality furniture and electrical items. Refurnish are known as the 'problem solvers'. They also sell on new end of range retail furniture at a fraction of the price reducing the need to pay extortionate prices at high street furniture companies.
Refurnish also promote their values of recycling and sustaining environmentally friendly living in schools to inspire and teach the future generation of how society can better itself through the work Refurnish carries out.
So what can you buy?
The stock is diverse and ever changing with the latest fashionable furniture on sale. From light furnishings such as canvases, real leather dining chairs and cushions to the bigger, bulkier bedroom, office and dining furniture available in a range of colours, sizes and styles to suit you. This includes the sale of a range of new and used electrical products such as washing machines, all with a warranty scheme so you can get more life from your product. If it doesn't fit when you get it home you can return it with a full refund or choose another piece! What is certain is you will receive a high standard of quality furniture and excellent customer care to reflect this.
Whilst Refurnish maintains the high level of support it delivers to people through their ethos of alleviating poverty and diverting waste from landfill, they also provide further public benefit through the creation of training and employment opportunities. At Refurnish work experience opportunities are second to none, in fact 98% of employees are from the local area and many were classed as long term unemployed.
Every individual working for Refurnish is given the opportunity to build transferable skills in areas of interest to them. The project encourages volunteering and paid work placements, for people of all ages and backgrounds, in working towards achieving their aspirations and expanding their mind in a supportive and friendly environment. The beauty is they can have a go at anything. Refurnish trains employees through formal courses leading to recognised qualifications.
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Doncaster Re-Furnish Limited (Registered number: 04905282)
Report of the Trustees For The Year Ended 30 September 2021
STRATEGIC REPORT
Achievement and performance Charitable activities
Covid 19 and the effects upon Public Benefit - Achievements and Performance
Covid 19 has had a very significant impact on the organisation. It has been forced like so many other businesses to reorganise the way that it operates and restructure. Through the pandemic we increased productivity through multi-skilling and streamlining, achieving better coordination between production, logistics and retail. The charity had to go through a redundancy process and downsized staffing levels by a third.
We also closed some stores and reconfigured our production units in line with our projected donations and supply routes (all our suppliers are cutting the number of product ranges) whilst maximising opportunities that the Covid 19 situation has taught us. We have identified areas of growth and focussed on them to maintain and build our brand.
In the new financial year we will be focussing a lot on consolidation, maintaining our position and increasing resilience.
The charity applied for grants and was successful in receiving support through the Social Enterprise Support Fund. This funding was received at a crucial time for the organisation and allowed us to deliver essential services to the community we serve, maintain our brand and prove the importance of our organisation to the community. We managed to increase the number of beneficiaries by 8% from the previous financial year.
We believe the opportunities to support our core customers will increase over the next twelve months.
Public Benefit - Achievements
| 12,353 | Households received bulky waste collections |
|---|---|
| 9,884 | Low income households accessing affordable furniture and household goods |
| 2,189 | Individuals and families supported by Humankind@Refurnish (COVID 19 Support Services + Flood |
| Recovery Programme) | |
| 0 | People undertaking training work placements |
| 1 | SEN people undertaking training work placements |
| 32 | People volunteering |
| 0 | Prisoners engaged in training work placements |
| 0 | Young Offenders engaged in training work placements |
| 0 | Students/school children engaged in educational activities |
| 120 | Children and their families engaged through Spirit of Christmas event |
| 19 | Community groups supported |
How Doncaster Re-furnish Provides Public Benefit
We use the medium of taking unwanted materials and we create an environment for demotivated or uninspired people to grow and excel. We do this by helping them to realise their potential, encouraging their creativity and enabling them to test out their ideas, calculate and take risks in a supportive environment.
The trustees have had due regard to guidance published by the Charities Commission on public benefit.
Furniture Collection
Doncaster Refurnish collects unwanted furniture and domestic appliances from households throughout the Metropolitan Borough of Doncaster. This is a free service to those donating items that can be reused. This service maximises resources for the benefit of low income families whilst diverting products from landfill and reducing the cost on the public purse.
Furniture Remanufacture
Doncaster Re-furnish works in partnership with national retailers to divert waste from landfill through the remanufacture of damaged furniture.
Expressions Furniture Upcycling
We upcycle items that have been rescued from our own internal waste stream. Upcycling is the process of converting old or discarded materials into something useful and often beautiful. In addition we use our resources to provide craft workshops for vulnerable young people.
We also receive commissions from the general public and businesses to reupholster their own products.
BDR Reuse
This is a partnership project with a private waste management company and three local authorities to divert reusable products from Household Waste Recycling Centres. Products are sifted, sorted, graded and retailed to traders and the general public.
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Doncaster Re-Furnish Limited (Registered number: 04905282)
Report of the Trustees For The Year Ended 30 September 2021
Shops
People who are in receipt of low income and struggling to afford household items to set up home have access to two shops in the Doncaster area; Carcroft and Dunscroft and can access products through Facebook.
Handyman Services
The Handyman Service was set up to bring together existing services to provide a one-stop shop that will result in a more co-ordinated and customer focused approach to support people to live independently. The service has been developed in partnership with Doncaster Council's Trading Standards and has been supported by Sunderland Community Furniture Services who provided their best practice model.
Most people want to stay in their own homes as they get older and Doncaster Refurnish through the Handyman Service aims to help people do just that. The aim of Handyman Service is to "enable those in need of support to maintain their independence in their chosen home for the foreseeable future. This will be achieved by supporting people throughout the repair, adaptation or improvement process, so that individuals are able to remain in their own home in a warm, safe and secure environment". We provide a whole range of services across all disciplines.
Volunteer Programme
Re-furnish offers volunteering and work placement opportunities to people facing long-term unemployment and those serving probation orders. The aim of the programme is to support local people in gaining the skills, qualifications and confidence to become active participants in society.
Spirit of Christmas
Refurnish runs a Christmas party for children in need. This year we worked with Doncaster Councils Children's Starting Well Service and ReRead. The event catered for up to 120 children.
Moral Fibre
Refurnish works in partnership with HMP Hatfield. Refurnish has a production workshop in HMP Hatfield. All prison projects are based on prisoners volunteering in order to learn key skills and aid their rehabilitation and resettlement. Prisoners engage through internal Refurnish workshops where they learn furniture restoration techniques. After an undetermined time once they have proven their commitment and suitability they then come out of prison and volunteer on license to work in Refurnish's sites where they increase their interaction with our staff, volunteers and the general public.
Widening Participation and Community Capacity Building
Refurnish worked in partnership with Doncaster Council and other third sector organisations to establish a new Voluntary Community and Faith (VCF) Sector Cooperative in order to provide strong voice and representation, infrastructure support and a point of access for commissioning/partnership working. This has helped statutory and private sector bodies to work in meaningful partnership with the local third sector to deliver shared outcomes for Doncaster.
Financial review
Financial position
The charity works closely with its external accountants to achieve thorough financial planning. In order to achieve the vision of delivering much needed services to the local community in the long term, Doncaster Refurnish has adopted a policy of regular financial reviews. Three year financial projections are available to assist Trustees and the CEO to plan for the future and define the fundraising strategy. Budget reports are normally produced monthly that give a comparison between projected income and actual. This practice keeps the management abreast of the current financial situation and corrective action is taken if income differs significantly from projected levels.
The charity endeavours to adopt the principles of full cost recovery (securing funding for, or "recovering", all costs, including the direct costs of projects and all overheads) when delivering services and applying for grants.
Principal funding sources
The charity's income is derived from a combination of contracts, the sale of goods, delivery of services and grant giving bodies.
Investment policy and objectives
Under the Memorandum and Articles of Association the trustees have the following powers:
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To deposit or invest funds in any manner (but to invest only after obtaining advice from a financial expert and having regard to the suitability of investments and the need for diversification).
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To delegate the management of investments to a financial expert under agreed terms and conditions.
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Doncaster Re-Furnish Limited (Registered number: 04905282)
Report of the Trustees For The Year Ended 30 September 2021
STRATEGIC REPORT
Financial review
Reserves policy
Due to the economic climate and uncertainty for the economic outlook of the Country as a whole, the Management Committee has established a policy whereby the unrestricted reserves held by the charity should meet 6 months of expenditure requirements of core service contract costs. Total forecast expenditure for 2022 is £1,324,000 with
expenditure for delivery of core service contracts forecast at £175,000.
Therefore between £80,000 and £100,000 will remain in reserve to cover our contractual obligations.
Future plans
This year has been another a year of consolidation. The charity aims to continue to deliver its core services in relation to furniture re-use and recycling, training and the volunteer programme. Our strategic plan includes the following developments for 2021/22:
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Doncaster Refurnish currently has a service level agreement with Doncaster Council and Suez UK to collect bulky household waste from Doncaster residents. It is our intention to work with our partners to improve participation, reuse and recycling to meet targets set out in our Local Area Agreement and to improve overall environmental and social performance in the borough.
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To continue to secure quality household goods to benefit those who need it.
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The continued expansion of our work with national retailers.
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Further Expansion of the BDR reuse project working with national waste contractors and three local authorities.
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To provide subsidised/free work specific training for the long term unemployed.
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The further development of the 'handyman' service, specifically aiming to secure maintenance contracts with social landlords and at people on low incomes and those who experience social isolation. We have been delivering a relocation service in partnership with St Leger Homes for those affected by welfare reforms and in particular the bedroom tax.
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The expansion of our volunteering programme and to support students with severe educational needs.
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To create and maintain an online business presence.
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To build upon our humanitarian work framework especially around disaster recovery.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The organisation is a charitable company limited by guarantee, incorporated on the 19th September 2003 and became a registered charity on 28th February 2007. The company was established under a Memorandum of Association and is governed under the Articles of Association.
Recruitment and appointment of new trustees
The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the management committee.
The management committee seeks to ensure diversity of experience and skills are maintained on the trustee body that reflect the aims and objectives of the charity.
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Doncaster Re-Furnish Limited (Registered number: 04905282)
Report of the Trustees For The Year Ended 30 September 2021
STRUCTURE, GOVERNANCE AND MANAGEMENT
Organisational structure
The management committee consists of five people who bring with them a depth of experience and knowledge. The governing document states that trustees should be over the age of 18 years. The board meets bi-monthly to make strategic decisions and to provide governance in line with charity law. During committee meetings, management and financial reports are presented by the Chief Executive Officer.
The Chief Executive has delegated authority to provide overall day to day management of the charity and is assisted by a Management Team.
The Management Team Are:
Andy Simpson - Chief Executive Pete Child - Business Quality Analyst Annette Millward - Finance Officer John Smith - Production Paul Burns - Logistics
Induction and training of new trustees
New charity trustees are invited to an induction meeting with a serving trustee and the Chief Executive Officer to:
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Outline the objectives and activities of the charity.
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Outline future plans and objectives.
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Discuss the content of the Memorandum and Articles of Association.
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Discuss the skills and experience required on the committee.
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To outline the obligations of Management Committee members.
All trustees are provided with guidance packs produced by the Charity Commission. Additional training is offered to enable trustees to fulfil their legal obligations to the charity.
Key management remuneration
The charity attempts to pay comparative wages and salaries with those businesses in our community and industry sectors. Wages and salaries are classified by position based on experience, responsibility, and physical and mental demands. The charity reviews salary ranges once per year and makes any adjustment deemed necessary.
Related parties
The charity is not affiliated to any other organisation and has no subsidiaries. Our key stakeholder is Doncaster Metropolitan Borough Council who has a service level agreement with Doncaster Re-furnish to collect all unwanted (reusable) bulky household waste items from Doncaster households. Local agencies contact the organisation to source affordable goods for their clients.
Doncaster Re-furnish is also a member of the Reuse Network, a national umbrella body that advises on good practice, publishes national standards to guide organisations, gives accreditation to those who provide evidence of working to national standards (DRF achieved accreditation in December 2007), organises the national conference and works with statutory bodies and the private sector to promote reuse regionally, nationally and in Europe.
The charity is accredited by the Reuse Network for Quality Management Systems and is a Mindful Employer.
Risk management
The trustees have a risk management strategy that is reviewed annually and includes:
- Contingency plans.
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Business continuity plans.
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Strategic and business plans encompassing servicing delivery, future service development, key performance
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indicators and financial monitoring and planning.
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The charity operates to the Reuse Network Quality Management Systems and is an Authorised and Approved Reuse Treatment Facility. Management Review meetings occur every six months to assess the organisations performance against quality, health & safety and environmental targets.
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Doncaster Re-Furnish Limited (Registered number: 04905282)
Report of the Trustees For The Year Ended 30 September 2021
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
04905282 (England and Wales)
Registered Charity number
1118160
Registered office
Unit 15 Hutton Business Park Hangthwaite Road Carcroft Doncaster South Yorkshire DN6 7BD
Trustees
G B Barnes R A Fitzharris Archdeacon Emeritus E Hughes D J Middlemass J Evans (resigned 18.12.2020) J J McLaughlin
Company Secretary
Company Creations and Controls Ltd
Auditors
Kingswood Allotts Limited, Statutory Auditor Chartered Accountants Sidings Court Lakeside Doncaster South Yorkshire DN4 5NU
Bankers
Co-operative Bank 31 St Sepulchre Gate Doncaster South Yorkshire DN1 1TD
Chief Executive
A Simpson
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Doncaster Re-Furnish Limited (Registered number: 04905282)
Report of the Trustees For The Year Ended 30 September 2021
IN CONCLUSION....
Overall, this has been our worst year since the Charity formed in 2003. It has been extremely challenging. The staff have coped amazingly well in extremely difficult times. They have constantly tried against all the odds to maintain the level of essential services to the public despite everything being thrown at them.
The UK's retail industry as projected continues to decline with many shops closing their doors and trying to adapt to online sales in extremely competitive markets. In the third sector many of the organisations and groups that we work with have managed to maintain their position yet are running on a shoestring. This highlights the precarious state of business and our local economy as a whole.
Local authorities have struggled with cuts and so greater emphasis has been placed on the third sector as the delivery agents for the work that this vacuum will create. All the big players are moving down to our customer base and adopting our models of working, hoovering up income that charities rely on to deliver essential services.
This is a grave area of concern and one that the Government will need to address. Fundraising is more competitive than ever. We continue to explore new fundraising options and streamline our costs.
On the positive side, we are still in operation and the demands on the services are great and will only increase. We continue to explore new partnership working models with like minded local grass roots and large organisations in order to stimulate creativity in our markets and increase our growth potential for public benefit.
Andy Simpson CEO
STATEMENT OF TRUSTEES' RESPONSIBILITIES
The trustees (who are also the directors of Doncaster Re-Furnish Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
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 those financial statements, the trustees are required to
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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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 proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.
In so far as the trustees are aware:
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there is no relevant audit information of which the charitable company's auditors are unaware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
AUDITORS
The auditors, Kingswood Allotts Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on ............................................. and signed on the board's behalf by:
........................................................................ D J Middlemass - Trustee
Page 7
Report of the Independent Auditors to the Members of Doncaster Re-Furnish Limited
Opinion
We have audited the financial statements of Doncaster Re-Furnish Limited (the 'charitable company') for the year ended 30 September 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and 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 (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
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give a true and fair view of the state of the charitable company's affairs as at 30 September 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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 Auditors' 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 Report of the Independent Auditors 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 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:
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the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Report of the Trustees 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 Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
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Report of the Independent Auditors to the Members of Doncaster Re-Furnish Limited
Responsibilities of trustees
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the 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 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 a Report of the Independent Auditors 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:
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Enquiry of management around actual and potential litigation and claims and fraud;
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Enquiry of management and review of correspondence to identify any instances of non-compliance with laws and regulations; - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
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Performing audit work over the risk of management override of controls, including review of nominal ledger transactions and other adjustments for appropriateness, evaluating the business rationale of any significant transactions outside the normal course of business and testing of cash income.
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 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 Report of the Independent Auditors.
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 auditors' 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, for our audit work, for this report, or for the opinions we have formed.
Steven Pepper FCA (Senior Statutory Auditor) for and on behalf of Kingswood Allotts Limited, Statutory Auditor Chartered Accountants Sidings Court Lakeside Doncaster South Yorkshire DN4 5NU
Date: .............................................
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Doncaster Re-Furnish Limited
Statement of Financial Activities
(Incorporating an Income and Expenditure Account) For The Year Ended 30 September 2021
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies 3 Charitable activities 5 Retail Investment income 4 Total EXPENDITURE ON Raising funds 6 Charitable activities 7 Retail Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 329,991 1,404,700 1,040 1,735,731 232,704 1,286,658 1,519,362 - 216,369 328,819 545,188 |
Restricted funds £ 119,000 - - 119,000 - 111,078 111,078 - 7,922 - 7,922 |
2021 Total funds £ 448,991 1,404,700 1,040 1,854,731 232,704 1,397,736 1,630,440 - 224,291 328,819 553,110 |
2020 Total funds £ 372,491 1,150,239 6,308 1,529,038 231,036 1,317,227 1,548,263 (6,889) (26,114) 354,933 328,819 |
|---|---|---|---|---|
The notes form part of these financial statements
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Doncaster Re-Furnish Limited (Registered number: 04905282)
Balance Sheet
30 September 2021
| Unrestricted Restricted funds funds Notes £ £ FIXED ASSETS Tangible assets 13 56,927 - Investment property 14 - - 56,927 - CURRENT ASSETS Stocks 15 9,192 - Debtors 16 125,867 - Cash at bank and in hand 521,300 7,922 656,359 7,922 CREDITORS Amounts falling due within one year 17 (168,098) - NET CURRENT ASSETS 488,261 7,922 TOTAL ASSETS LESS CURRENT LIABILITIES 545,188 7,922 NET ASSETS 545,188 7,922 FUNDS 19 Unrestricted funds: General Fund Restricted funds TOTAL FUNDS |
2021 Total funds £ 56,927 - 56,927 9,192 125,867 529,222 664,281 (168,098) 496,183 553,110 553,110 545,188 7,922 553,110 |
2020 Total funds £ 15,752 130,000 145,752 6,880 128,015 199,557 334,452 (151,385) 183,067 328,819 328,819 328,819 - 328,819 |
|---|---|---|
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by:
.............................................
D J Middlemass - Trustee
The notes form part of these financial statements
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Doncaster Re-Furnish Limited
Cash Flow Statement
For The Year Ended 30 September 2021
| Notes Cash flows from operating activities Cash generated from operations 1 Interest paid Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Sale of tangible fixed assets Sale of investment property Interest received Net cash provided by/(used in) investing activities Cash flows from financing activities Loan repayments in year Net cash provided by/(used in) financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period |
2021 £ 251,376 (59) 251,317 (52,109) 417 130,000 40 78,348 - - 329,665 199,557 529,222 |
2020 £ 20,078 (820) 19,258 (2,508) - - 308 (2,200) (16,184) (16,184) 874 198,683 199,557 |
|---|---|---|
The notes form part of these financial statements
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Doncaster Re-Furnish Limited
Notes to the Cash Flow Statement
For The Year Ended 30 September 2021
1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
| ACTIVITIES | ||
|---|---|---|
| Net income/(expenditure) for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Profit on disposal of fixed assets Interest received Interest paid Change in market value of investments (Increase)/decrease in stocks Decrease in debtors Increase in creditors Net cash provided by operations |
2021 £ 224,291 10,934 (417) (40) 59 - (2,312) 2,148 16,713 251,376 |
2020 £ (26,114) 11,249 - (308) 820 13,000 13,812 5,416 2,203 |
| 20,078 |
2.
ANALYSIS OF CHANGES IN NET FUNDS
| At 1.10.20 | Cash flow | At 30.9.21 | |
|---|---|---|---|
| £ | £ | £ | |
| Net cash | |||
| Cash at bank and in hand | 199,557 | 329,665 | 529,222 |
| 199,557 | 329,665 | 529,222 | |
| Total | 199,557 | 329,665 | 529,222 |
The notes form part of these financial statements
Page 13
Doncaster Re-Furnish Limited
Notes to the Financial Statements
For The Year Ended 30 September 2021
1. STATUTORY INFORMATION
Doncaster Re-Furnish Limited is a charitable company, limited by guarantee, registered in England and Wales. The company's registered number and registered office can be found in the Report of the Trustees.
2. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain assets.
Income
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy. The following specific policies are applied to particular categories of income:
Voluntary income is received by way of grants, donations and gifts and is included in full in the Statement of Financial Activities when receivable. Grants where entitlement is not conditional on the delivery of a specific performance by the charity, are recognised when the charity becomes unconditionally entitled to the grant.
Donated services and facilities are included at the value to the charity where this can be quantified. The value of services provided by volunteers has not been included.
Gifts donated for resale are included as incoming resources within activities for generating funds when they are sold, as it is considered that their market value as second hand or damaged goods cannot be ascertained with reliable estimates, given the alternative uses, when donations are made.Consequently no adjustment is made for the stock of donated goods.
Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable.
Income from investments is included in the year in which it is receivable.
Expenditure
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.
Costs of generating funds comprise the costs associated with attracting voluntary income and the costs of trading for fundraising purposes including the charity's shop.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management.
Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less residual value of each asset over its expected useful life, as follows:
Plant and machinery - 25% straight line Fixtures, fittings and equipment - 25% to 33% straight line Motor vehicles - 25% straight line
Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value are shown in the Statement of Financial Activities and transferred to or from a revaluation reserve.
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Doncaster Re-Furnish Limited
Notes to the Financial Statements - continued For The Year Ended 30 September 2021
2. ACCOUNTING POLICIES - continued
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Leasing commitments
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
Pension costs and other post-retirement benefits
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
Liabilities
Liabilities are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayment are valued at the amount prepaid net of any trade discounts etc.
Redundancy payments
Redundancy payments are included in wages costs when the legal obligation arises.
3.
DONATIONS AND LEGACIES
| Grants Donations Covid support grants Grants received, included in the above, are as follows: South Yorkshire Key Fund Coalfield Regeneration Trust Voices of Doncaster DMBC Renourishing Food Banks DMBC Fight back fund DMBC COVID support Voluntary Action Rotherham |
2021 £ 119,000 46,328 283,663 448,991 2021 £ 100,000 4,000 10,000 5,000 - - - 119,000 |
2020 £ 34,000 75,590 262,901 |
|---|---|---|
| 372,491 | ||
| 2020 £ - - - 5,000 10,000 5,000 14,000 |
||
| 34,000 |
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Doncaster Re-Furnish Limited
Notes to the Financial Statements - continued For The Year Ended 30 September 2021
4. INVESTMENT INCOME
| Income from UK investment properties Bank interest receivable 5. INCOME FROM CHARITABLE ACTIVITIES Activity Sale of goods and services Retail 6. RAISING FUNDS Other trading activities Opening stock Purchases Closing stock Direct costs 7. CHARITABLE ACTIVITIES COSTS Retail 8. SUPPORT COSTS Retail Support costs, included in the above, are as follows: Management Wages and salaries Social security Pensions Rent Rates and water Insurance Light and heat Telephone Printing, postage and stationery Advertising Repairs and maintenance Motor vehicle expenses Carried forward |
Management £ 1,365,801 |
2021 £ 1,000 40 1,040 2021 £ 1,404,700 2021 £ 6,880 212,751 (9,192) 22,265 232,704 Governance costs £ 31,935 2021 Retail £ 937,447 54,600 25,089 147,578 9,178 15,854 24,509 13,811 2,568 - 2,534 68,751 1,301,919 |
2020 £ 6,000 308 6,308 2020 £ 1,150,239 2020 £ 20,692 201,864 (6,880) 15,360 231,036 Support costs (see note 8) £ 1,397,736 Totals £ 1,397,736 2020 Total activities £ 855,099 47,723 24,334 158,939 9,770 9,146 25,140 14,901 2,138 145 12,931 46,369 1,206,635 |
|---|---|---|---|
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Doncaster Re-Furnish Limited
Notes to the Financial Statements - continued For The Year Ended 30 September 2021
8. SUPPORT COSTS - continued
Management - continued
| 2021 | 2020 | |
|---|---|---|
| Total | ||
| Retail | activities | |
| £ | £ | |
| Brought forward | 1,301,919 | 1,206,635 |
| Hire of equipment | 19,847 | 11,149 |
| Travelling expenses | 10,278 | 14,696 |
| Staff training and welfare | 2,534 | 5,255 |
| Work wear | 4,775 | 4,241 |
| Bank charges | 7,768 | 9,541 |
| Subscriptions | 4,515 | 5,474 |
| General expenses | 3,648 | 3,840 |
| Depreciation | 10,934 | 11,249 |
| Profit on sale of tangible fixed assets | (417) | - |
| Impairment to investment property | - | 6,111 |
| 1,365,801 | 1,278,191 | |
| Governance costs | ||
| 2021 | 2020 | |
| Total | ||
| Retail | activities | |
| £ | £ | |
| Auditors' remuneration | 4,450 | 4,450 |
| Accountancy and legal fees | 27,426 | 33,766 |
| Interest on PAYE/NI | 59 | - |
| Loan interest | - | 820 |
| 31,935 | 39,036 | |
| NET INCOME/(EXPENDITURE) | ||
| Net income/(expenditure) is stated after charging/(crediting): | ||
| 2021 | 2020 | |
| £ | £ | |
| Auditors' remuneration | 4,450 | 4,450 |
| Depreciation - owned assets | 10,934 | 11,249 |
| Other operating leases | 147,578 | 158,939 |
| Surplus on disposal of fixed assets | (417) | - |
9. NET INCOME/(EXPENDITURE)
10. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 30 September 2021 nor for the year ended 30 September 2020.
Trustees' expenses
There were no trustees' expenses paid for the year ended 30 September 2021 nor the year ended 30 September 2020.
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Doncaster Re-Furnish Limited
Notes to the Financial Statements - continued For The Year Ended 30 September 2021
11. STAFF COSTS
| Wages and salaries Social security costs Other pension costs The average monthly number of employees during the year was as follows: Chief executive Managers Sales and delivery Administration and support Production and appliance operatives Technicians |
2021 £ 937,447 54,600 25,089 1,017,136 2021 1 9 11 4 29 3 57 |
2020 £ 855,099 47,723 24,334 |
|
|---|---|---|---|
| 927,156 | |||
| 2020 1 9 11 5 29 3 58 |
No employees received emoluments in excess of £60,000.
Total remuneration paid to key management personnel was £165,649 (2020: £151,363).
12. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Retail Investment income Total EXPENDITURE ON Raising funds Charitable activities Retail Total Net gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted funds £ 372,491 1,150,239 6,308 1,529,038 231,036 1,310,456 1,541,492 (6,889) (19,343) 348,162 328,819 |
Restricted funds £ - - - - - 6,771 6,771 - (6,771) 6,771 - |
Total funds £ 372,491 1,150,239 6,308 1,529,038 231,036 1,317,227 1,548,263 (6,889) (26,114) 354,933 328,819 |
|---|---|---|---|
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Doncaster Re-Furnish Limited
Notes to the Financial Statements - continued For The Year Ended 30 September 2021
13. TANGIBLE FIXED ASSETS
| Fixtures, fittings Plant and and machinery equipment £ £ COST At 1 October 2020 44,596 105,757 Additions 2,081 1,208 Disposals - - At 30 September 2021 46,677 106,965 DEPRECIATION At 1 October 2020 42,908 102,071 Charge for year 750 1,055 Eliminated on disposal - - At 30 September 2021 43,658 103,126 NET BOOK VALUE At 30 September 2021 3,019 3,839 At 30 September 2020 1,688 3,686 14. INVESTMENT PROPERTY FAIR VALUE At 1 October 2020 Disposals At 30 September 2021 NET BOOK VALUE At 30 September 2021 At 30 September 2020 |
Motor vehicles £ 143,228 48,820 (9,495) 182,553 132,850 9,129 (9,495) 132,484 50,069 10,378 |
Totals £ 293,581 52,109 (9,495) |
|---|---|---|
| 336,195 | ||
| 277,829 10,934 (9,495) |
||
| 279,268 | ||
| 56,927 | ||
| 15,752 | ||
| £ 130,000 (130,000) |
||
| - | ||
| - | ||
| 130,000 |
The investment property was bought on 18 September 2006 and cost £136,111 including renovation costs. The property was sold during the year for £130,000.
| 15. STOCKS Stocks 16. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Other debtors Prepayments and accrued income |
2021 £ 9,192 2021 £ 49,552 7,936 68,379 125,867 |
2020 £ 6,880 2020 £ 80,246 1,636 46,133 |
2020 £ 6,880 |
|---|---|---|---|
| 128,015 |
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Doncaster Re-Furnish Limited
Notes to the Financial Statements - continued For The Year Ended 30 September 2021
17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
| Trade creditors Other taxes and social security Accruals and deferred income |
2021 £ 50,245 23,825 94,028 168,098 |
2020 £ 65,764 19,652 65,969 |
|---|---|---|
| 151,385 |
18. LEASING AGREEMENTS
Minimum lease payments under non-cancellable operating leases fall due as follows:
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Within one year | 52,779 | 64,280 |
| Between one and five years | 4,883 | 6,143 |
| 57,662 | 70,423 | |
19. MOVEMENT IN FUNDS
| Unrestricted funds General Fund Restricted funds Coalfield Regeneration Trust - Pump Prime DMBC - Renourishing Food Banks TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General Fund Restricted funds National Lottery Community Fund - Social Enterprise Support Fund Coalfield Regeneration Trust - Pump Prime Voices of Doncaster DMBC - Renourishing Food Banks TOTAL FUNDS |
At 1.10.20 £ 328,819 - - - 328,819 Incoming resources £ 1,735,731 100,000 4,000 10,000 5,000 119,000 1,854,731 |
Net movement in funds £ 216,369 4,000 3,922 7,922 224,291 Resources expended £ (1,519,362) (100,000) - (10,000) (1,078) (111,078) (1,630,440) |
At 30.9.21 £ 545,188 4,000 3,922 7,922 553,110 Movement in funds £ 216,369 - 4,000 - 3,922 7,922 224,291 |
|---|---|---|---|
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Doncaster Re-Furnish Limited
Notes to the Financial Statements - continued For The Year Ended 30 September 2021
19. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Unrestricted funds General Fund Revaluation Reserve Restricted funds National Lottery Awards for All TOTAL FUNDS |
Net At movement 1.10.19 in funds £ £ 341,273 (12,454) 6,889 (6,889) 348,162 (19,343) 6,771 (6,771) 354,933 (26,114) |
At 30.9.20 £ 328,819 - |
|---|---|---|
| 328,819 - |
||
| 328,819 |
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Gains and | Movement | |
|---|---|---|---|---|
| resources | expended | losses | in funds | |
| £ | £ | £ | £ | |
| Unrestricted funds | ||||
| General Fund | 1,529,038 | (1,541,492) | - | (12,454) |
| Revaluation Reserve | - | - | (6,889) | (6,889) |
| 1,529,038 | (1,541,492) | (6,889) | (19,343) | |
| Restricted funds | ||||
| National Lottery Awards for All | - | (6,771) | - | (6,771) |
| TOTAL FUNDS | 1,529,038 | (1,548,263) | (6,889) | (26,114) |
Purposes of restricted funds
National Lottery Awards for All - Expressions
Funding to provide community venues to refurbish/up-cycle furniture and household products from workshops designed by community members, which will additionally develop their future employment skills.
National Lottery Community Fund - Social Enterprise Support Fund
Funding to support the setting up of a food project that will include delivery of food parcels to those living in a state of food poverty.
Coalfield Regeneration Trust - Pump Prime
Funding for work carried out to build a partnership application for funding.
DMBC - Renourishing Food Banks
Funding to establish a food project during Covid-19.
Voices of Doncaster
The establishment of a Voluntary Community and Faith (VCF) Sector Cooperative to provide strong voice and representation, infrastructure support and a point of access for commissioning/partnership working. This will help statutory and private sector bodies to work in meaningful partnership with the local third sector to deliver shared outcomes for Doncaster.
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Doncaster Re-Furnish Limited
Notes to the Financial Statements - continued For The Year Ended 30 September 2021
20. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 30 September 2021 nor the year ended 30 September 2020.
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