Bradford Metropolitan Food Bank
Charity number 1120018
Annual Report and Financial Statements for the period ended 31 December 2020
Bradford Metropolitan Food Bank
Annual Report and Financial Statements for the period ended 31 December 2020
| Contents | Page |
|---|---|
| Trustees' report | 2 to 4 |
| Examiner's report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the accounts | 8 to 11 |
Prepared by West Yorkshire Community Accounting Service
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Bradford Metropolitan Food Bank
Trustees' report for the period ended 31 December 2020
Reference and administrative details of the charity, its trustees and advisors
The trustees during the financial year and up to and including the date the report was approved were: Name Position Dates
Name Position Dates Lashman Singh Chair John Henkel Treasurer Appointed July 2019 Helen Lynskey Secretary Frances Atkins Steven Barnbrook Kenneth Leach Graham Walker Julie Woodhurst Rob Edwards Appointed May 2020 Charity number 1120018 Registered in England and Wales Registered and principal address Bankers Girlington Community Centre Co-operative Bank plc Girlington Road 1 Balloon Street Bradford Manchester West Yorkshire M60 1GP BD8 9NN
Independent examiner
Rhys North ACA West Yorkshire Community Accounting Service Stringer House 34 Lupton Street Leeds LS10 2QW
Structure, governance and management
The charity is a Charitable Incorporated Organisation (CIO) and is governed by a constitution.
Method of recruitment and appointment of trustees
The trustees of the charity are appointed by the members at the AGM.
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Bradford Metropolitan Food Bank
Trustees' report (continued) for the period ended 31 December 2020
Objectives and activities
The charity's objects
To provide relief from financial hardship and social and/or economic disadvantage among people living or working in the Metropolitan District of Bradford by providing such persons with goods and/or services which they could not otherwise afford through lack of means.
The charity's main activities
The Bradford Metropolitan Food Bank (BMFB) supports people across Bradford District who are experiencing food poverty through the provision of emergency food. BMFB supplements donated food with purchased food, funded through grants, donations and fund raising. Volunteers pack c11 food items into heavy duty plastics bags for collection by registered third parties, who then distribute food to end users. Each food bag (which may be vegetarian, halal or meat/fish based) will provide a balanced, healthy diet for three days. Each bag contains information about the food content and, at times, further information about other assistance available to people in poverty.
Public benefit statement
In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and, in particular, the relief of poverty through the collection and distribution of emergency food parcels to those requiring such assistance.
Achievements and performance
The role and function of the Food Bank has changed significantly as a result of the Covid-19 pandemic, its economic impact and the restrictions that have been in place since March 2020.
The demand for food increased significantly as a result of the economic impacts of Covid-19 as people came to rely on furlough payments and/or Universal Credit and experienced both a drop in income but also significant cash flow problems. Over 16,000 food bags were distributed during the 2020 calendar year, an increase of over 25% compared to the previous calendar year, with a weekly average of 370 bags of food.
Covid-19 also required very significant changes to the operation of the Food Bank, both because key personnel were required to shield and Covid-19 risk assessments required new operational procedures, most significantly meaning fewer volunteers at packing sessions and a stricter requirement for third parties to book collection times. It was deemed impossible to operate the food bank on the pre-Covid basis and Committee members adopted new roles and a third party (Youthtrain) were contracted to provide operational support in terms of food procurement, co-ordination of volunteers, third parties and supervision of packing sessions and ensuring application of new operational procedures arising from covid-19 risk assessment and reviews.
BMFB was able to both meet this increased demand, and increase its reserves, as a result of the incredible generosity of individuals, businesses and organisations as well as strong support from Bradford Council, individual councillors, the Area West Committee and Shipley Town Council. The requirement to buy food was reduced as a result of support from Bradford Council for centralised procurement. BMFB is also grateful for support from the Bradford Food Network.
Other changes arising from Covid-19 were requirement for virtual meetings, revision to financial procedures to reflect the greater use of online banking for payments with second authorisation and the use of a bank charge card to end the requirement for individuals to cash-flow Food Bank food purchases.
BMFB also completed the process of becoming a CIO (Charitable Incorporated Organisation), adopting a new financial year (being calendar years) with an initial transitional accounting period of 3 August 2019 to 31 December 2020. This change means that the Food Bank is no longer registered with Companies House.
The Food Bank also strengthened its online, social media presence and comms capabilities through the cooption of Rob Edwards, who also took a lead in respect of data sharing and GDPR compliance.
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Bradford Metropolitan Food Bank
Trustees' report (continued) for the period ended 31 December 2020
Financial review
The net income for the year was £79,461, including net income of £73,461 on unrestricted funds and net income of £6,000 on restricted funds.
Reserves policy
The charity's free reserves, excluding fixed assets, at the year end were £93,035.
The Committee has re-affirmed its policy to maintain reserves of at least £10,000 for the eventuality of being required to move to new premises. The Food Bank is in discussion with its current landlord regarding measures to increase its security as a tenant and thereby reduce this requirement for reserves.
The trustees recognise that its reserves significantly exceed the target reserves level. With this in mind a deficit budget of £46k has been agreed for 2021 and the level of reserves will continue to be monitored during 2021.
At the time of signing these accounts the charity has been impacted by the global Covid-19 virus. The trustees have reassessed the charity’s ability to continue for at least 12 months from the date that the accounts are approved and conclude that no material uncertainties exist that cast significant doubt on the charity’s ability to continue as a going concern.
Signed on behalf of the board of trustees:
Signed: John Henkel (Trustee)
Date: 17 May 2021
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Bradford Metropolitan Food Bank
Independent examiner's report to the trustees of Bradford Metropolitan Food Bank
I report to the charity trustees on my examination of the accounts of the CIO for the period ended 31 December 2020, which are set out on pages 6 to 11.
Responsibilities and basis of report
As the charity trustees of the CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the CIO's accounts as carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Since the CIO's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act.
I confirm that I am qualified to undertake the examination because I am a member of ICAEW which is one of the listed bodies.
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the Charities Act; 2 the accounts do not accord with those records; or
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3 the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a 'true and fair view' which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Signed: Rhys North
Relevant professional qualification or body: ACA
Date: 3 June 2021
West Yorkshire Community Accounting Service
Stringer House 34 Lupton Street Leeds LS10 2QW
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Bradford Metropolitan Food Bank
Statement of Financial Activities
(including summary income and expenditure account) for the period ended 31 December 2020
| Notes 2020 Unrestricted funds £ Income from: Grants and donations (2) 157,205 Donated food for distribution (3) 324,069 Bank interest 38 Rates refund - Total income 481,312 Expenditure on: Purchase of food for distribution 64,169 Donated food distributed (3) 324,069 Materials and resources 3,934 Trade waste 808 Vehicle hire 87 Administration 312 Insurance 338 Independent examination 720 Rates - Food bank co-ordination fee 13,390 Volunteer expenses 24 Total expenditure 407,851 Net income / (expenditure) 73,461 Fund balances brought forward 19,574 Fund balances carried forward (4) 93,035 |
2020 Restricted funds £ 6,847 - - - 6,847 847 - - - - - - - - - - 847 6,000 - 6,000 |
2020 Total funds £ 164,052 324,069 38 - 488,159 65,016 324,069 3,934 808 87 312 338 720 - 13,390 24 408,698 79,461 19,574 99,035 |
2019 Total funds £ 52,177 150,913 - 1,828 204,918 39,167 150,913 2,163 - - 200 55 300 206 - - 193,004 11,914 7,660 19,574 |
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
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Bradford Metropolitan Food Bank
Balance sheet
| as at 31 December 2020 2020 Unrestricted £ Current assets Debtors and prepayments (5) 4,755 Cash at bank 96,838 Total current assets 101,593 Current liabilities: amounts falling due within one year Creditors and accruals (6) 8,558 Total current liabilities 8,558 Net current assets / (liabilities) 93,035 Net assets 93,035 Funds Unrestricted funds 93,035 Restricted funds - Total funds 93,035 |
2020 Restricted £ - 6,000 6,000 - - 6,000 6,000 - 6,000 6,000 |
2020 Total £ 4,755 102,838 107,593 8,558 8,558 99,035 99,035 93,035 6,000 99,035 |
2019 Total £ 223 19,717 19,940 366 366 19,574 19,574 19,574 - 19,574 |
|---|---|---|---|
The financial statements were approved by the board of trustees on
Date: 17 May 2021
Signed: John Henkel (Trustee)
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Bradford Metropolitan Food Bank
Notes to the accounts
for the period ended 31 December 2020
1 Accounting policies
Basis of accounting
These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared 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 (FRS 102) (effective 1 January 2019) and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102. There has been no change to the accounting policies since last year. No changes have been made to the accounts for previous years.
Going concern
The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.
Incoming resources
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.
Grants and donations
Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance.
Donated assets, facilities or services are valued at their estimated value to the charity. This is the price that the charity estimates it would pay in the open market for equivalent items; or services and facilities of equivalent utility to the charity.
Expenditure and liabilities
Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.
Taxation
As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.
Further explanation of the nature and purpose of each fund is included in the notes to the accounts.
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Bradford Metropolitan Food Bank
Notes to the accounts continued
for the period ended 31 December 2020
| 2 Grants and donations City of Bradford Metropolitan District Council Groundworks Tesco Martin Lewis Morrisons Sovereign Health Donations |
2020 Unrestricted funds £ 10,667 500 6,000 10,000 2,500 127,538 157,205 |
2020 Restricted funds £ 6,847 - - - - - 6,847 |
2020 Total funds £ 17,514 500 6,000 10,000 2,500 127,538 164,052 |
2019 Total funds £ - - - - - 52,177 52,177 |
|---|---|---|---|---|
3 Donated food for redistribution
Most of the food distributed by the charity is donated in kind and its value is calculated on the assumption that, on average, each food bag prepared is worth £15. The calculation for 2018-19 is shown in the accounts and is as follows :
| Number of food bags prepared Estimated value at £15 per bag Less food purchased for distribution Estimated value of donated food stuffs |
2020 £ 25,939 389,085 (65,016) 324,069 |
2019 £ 12,672 190,080 (39,167) 150,913 |
|---|---|---|
The charity also benefits from the free use of premises in which to sort and prepare food for distribution. No financial amount is included in the accounts for this donation, as it is not considered to be material.
| 4 Restricted funds Bradford West Covid Winter Support |
Balance b/f £ - - - |
Incoming £ 847 6,000 6,847 |
Outgoing £ 847 - 847 |
Transfers £ - - - |
Balance c/f £ - 6,000 6,000 |
|---|---|---|---|---|---|
Fund name
Purpose of restriction
Bradford West Covid Winter Support
For the purchase of food. For the provision of food bags to third party organisations working with individuals and families.
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Bradford Metropolitan Food Bank
Notes to the accounts continued
for the period ended 31 December 2020
| 5 Debtors and prepayments 2020 £ Debtors 4,551 Prepayments 204 4,755 6 Creditors and accruals 2020 £ Creditors 7,838 Accruals 720 8,558 7 Related party transactions Trustee expenses Trustee remuneration and benefits No trustee received any remuneration or benefit during this or the previous year. Other transactions with trustees or related parties 2020 £ Youthtrain Limited 13,390 13,390 Julie Woodhurst is a trustee of the CIO and a director with significant influence of Youthtrain Limited Provison of Food Bank co- ordination services No trustee received any expenses during this year or the previous year. Name of related party Relationship to charity Description of transaction |
2019 £ - 223 223 2019 £ 66 300 366 2019 £ - - |
|---|---|
Included in the above amount is £2,100 that was owing to Youthtrain Limited at 31 December 2020.
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Bradford Metropolitan Food Bank
Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the period ended 31 December 2020
| 2020 2019 Unrestricted Unrestricted funds funds £ £ Income Grants and donations 157,205 52,177 Donated food for distribution 324,069 150,913 Bank interest 38 - Rates refund - 1,828 Total income 481,312 204,918 Expenditure Purchase of food for distribution 64,169 39,167 Donated food distributed 324,069 150,913 Materials and resources 3,934 2,163 Trade waste 808 - Vehicle hire 87 - Administration 312 200 Insurance 338 55 Independent examination 720 300 Rates - 206 Food bank co-ordination fee 13,390 - Volunteer expenses 24 - Total expenditure 407,851 193,004 Net income / (expenditure) 73,461 11,914 Fund balances brought forward 19,574 7,660 Fund balances carried forward 93,035 19,574 |
2020 Restricted funds £ 6,847 - - - 6,847 847 - - - - - - - - - - 847 6,000 - 6,000 |
2019 Restricted funds £ - - - - - - - - - - - - - - - - - - - - |
2020 Total funds £ 164,052 324,069 38 - 488,159 65,016 324,069 3,934 808 87 312 338 720 - 13,390 24 408,698 79,461 19,574 99,035 |
2019 Total funds £ 52,177 150,913 - 1,828 204,918 39,167 150,913 2,163 - - 200 55 300 206 - - 193,004 11,914 7,660 19,574 |
|---|---|---|---|---|
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