## Bradford Metropolitan Food Bank
Charity number 1120018
Annual Report and Financial Statements for the year ended 31 December 2021
Bradford Metropolitan Food Bank
Annual Report and Financial Statements for the year ended 31 December 2021
|**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 Accountancy Service CIO**
1
## Bradford Metropolitan Food Bank
## Trustees' report for the year ended 31 December 2021
## **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** Lashman Singh Chair John Henkel Treasurer Helen Lynskey Secretary Frances Atkins Steven Barnbrook Kenneth Leach Graham Walker Julie Woodhurst Rob Edwards **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 BD8 9NN M60 1GP **Independent examiner** Rhys North ACA **West Yorkshire Community Accountancy Service CIO** Stringer House 34 Lupton Street Leeds LS10 2QW
## **Structure, governance and management**
The charity is a Charitable Incorporated Organisation (CIO) foundation and is governed by a constitution.
## **Method of recruitment and appointment of trustees**
The trustees of the charity are appointed by a resolution passed at a properly convened meeting of the charity trustees.
## **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.
2
## Bradford Metropolitan Food Bank
## Trustees' report (continued) for the year ended 31 December 2021
## **Objectives and activities continued**
## **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 Food Bank has continued to respond flexibly to the ever-changing demands caused by the Covid-19 pandemic and the subsequent global economic impact, exacerbated in Britain by other factors such as Brexit.
The demand for food has continued to increase significantly as furlough schemes came to an end and price inflation continued to rise, particularly for some foods and fuel.
Over 19,000 food bags were distributed during the 2021 calendar year, a level of demand that was similar to the increased demand experienced in 2020.
BMFB was able to both meet this increased demand, as a result of the incredible generosity of individuals, businesses and organisations as well as strong support from Bradford Council and individual councillors.
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 and other food banks in the wider region, with whom we have a cooperative relationship.
Significantly, however, other sources of grant funding became less available as the year progressed, perhaps because funders adopted a “post-pandemic” mindset. The Food Bank had anticipated this and managed finances accordingly, adopting a deficit budget in 2021 and using some £20,000 of accumulated reserves to meet the increased demand. BMFB was also able to claim over £4,300 Gift Aid from HMRC to supplement individual donations.
We remain reliant on our wonderful volunteers, without whom we wouldn’t be able to function. As with the previous year, we have also used paid support from Youthtrain to coordinate volunteers and, crucially, buy food in the best available volume for the best available price. This has produced valuable savings as well as avoiding shortages of key foods.
We have continued to use our newsletters and social media platforms to raise awareness of our activities, with 661 people signed up to our mailing list, 1,797 followers on Facebook and 1,230 on Twitter.
Board meetings continue to remain virtual in the main, but individual board members devote significant time working on different aspects of management of the organisation and maintenance of external relationships.
We continue to adopt a robust approach to managing our finances and assessing risk, operating with the knowledge that things will become even tougher over the coming year, if not longer.
We continue to increase our reach on social media platforms, an increasingly important part of our communications and relationship management approach, although we recognise that we need to rebuild some of the real world partnerships that we were able to nurture pre-pandemic, especially with organisations who provided regular donations of food.
We are under no illusion as to the extent of the difficulties that the future holds for the people we seek to help, but we believe that our management of our assets and the support of so many amazing people means that we can continue to try to make a real difference to the lives of so many people in the Bradford District.
3
## Bradford Metropolitan Food Bank
## Trustees' report (continued) for the year ended 31 December 2021
## **Financial review**
The net expenditure for the year was £17,605, including net expenditure of £11,605 on unrestricted funds and net expenditure of £6,000 on restricted funds.
## **Reserves policy**
The charity's free reserves, excluding fixed assets, at the year end were £79,270.
We are a small charity with irregular patterns of income. We receive some income from small regular donations. These are reasonably predictable and, at the current level of c£4,000 per month, represent approximately 70% of our annual income. We also receive some one-off donations. This is less reliable. Finally, we bid for grants to deliver specific projects or to provide basic funding.
We have a contract with a provider who supplies a day-to-day management resource, and have the usual overheads such as insurance and utilities. As such, we are able to make a relatively stable and predictable forecast of expenditure in normal circumstances. We have a Finance item at all Board meetings, at which our Treasurer reports on income and expenditure and makes recommendations of any corrective actions required.
Despite being a small organisation, the service which we deliver is one with a wide reach, which helps those most at need at a critical time in their lives, and which resonates with many in positions of influence. It is therefore important that our Reserves Policy is based upon being able to maintain that service delivery even through a period when income is reduced, or demand is increased. It is our view, based on a risk analysis and historic income and expenditure figures, that a minimum reserve balance should reflect:
- Two months expenditure on the Food Bank support contract, to allow time to make alternative
- arrangements and to give the required notice
- One month’s expenditure on other ‘variable’ cost items, such as food purchase and the Food Bank
- support contract (which can be terminated with one month’s notice)
- 12 months expenditure on ‘fixed cost’ items, such as insurance, utilities, external examination, and
- business rates (should we only be afforded mandatory business rate relief)
- A small amount (c 5%) for contingency, to cover expenditure such as repairs or incidental expenditure on
- items such as bags or string.
This provision allows the Food Bank to maintain its medium-term viability (which requires a physical storage facility) by adjusting food purchase (and hence provision) to match income (from donations or grants) in the light of prevailing circumstances. It should be noted that the Food Bank also distributes substantial amounts of donated food.
This approach excludes any Food Bank’s limited fixed assets, as well as committed elements of Unrestricted Funds and any Designated Funds identified and approved by the Committee.
For the 2022 financial year, this sum required by the reserves policy amounts to £18,500.
The Treasurer will review the Reserves Policy and balances on an annual basis and make recommendations to the Board as necessary.
The trustees recognise that its reserves significantly exceed the target reserves level. With this in mind a deficit budget of £40k has been agreed for 2022 and the level of reserves will continue to be monitored during 2022.
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 on 6/6/2022
John Henkel (Trustee)
4
## 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 year ended 31 December 2021, 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:
- 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
- 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.
Rhys North ACA
17/6/2022
## **West Yorkshire Community Accountancy Service CIO**
Stringer House 34 Lupton Street Leeds LS10 2QW
5
## Bradford Metropolitan Food Bank
## Statement of Financial Activities
## (including summary income and expenditure account) for the year ended 31 December 2021
|Notes
2021
Unrestricted
funds
£
**Income from:**
Grants and donations
(2)
77,994
Donated food for distribution
(3)
227,074
Bank interest
-
Fundraising income
238
Rates refund
244
**Total income**
305,550
**Expenditure on:**
Purchase of food for distribution
64,599
Donated food distributed
(3)
227,074
Materials and resources
3,192
Utilities and trade waste
1,984
Vehicle hire
79
Administration
349
Insurance
238
Independent examination
720
Food bank co-ordination fee
18,200
Volunteer expenses
-
Depreciation
720
**Total expenditure**
317,155
**Net income / (expenditure)**
(11,605)
**Fund balances brought forward**
93,035
**Fund balances carried forward**
(4)
81,430|2021
Restricted
funds
£
4,000
-
-
-
-
4,000
10,000
-
-
-
-
-
-
-
-
-
-
10,000
(6,000)
6,000
-|2021
Total
funds
£
81,994
227,074
-
238
244
309,550
74,599
227,074
3,192
1,984
79
349
238
720
18,200
-
720
327,155
(17,605)
99,035
81,430|3.8.2019 -
31.12.2020
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|
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
6
## Bradford Metropolitan Food Bank
## Balance sheet
|as at 31 December 2021
2021
Unrestricted
£
**Fixed assets**
Tangible assets
(5)
2,160
**Total fixed assets**
2,160
**Current assets**
Debtors and prepayments
(6)
4,830
Cash at bank
81,587
**Total current assets**
86,417
**Current liabilities:**
**amounts falling due within one year**
Creditors and accruals
(7)
7,147
**Total current liabilities**
7,147
**Net current assets / (liabilities)**
79,270
**Net assets**
81,430
**Funds**
Unrestricted funds
81,430
Restricted funds
-
**Total funds**
81,430|2021
Restricted
£
-
-
-
-
-
-
-
-
-
-
-
-|2021
Total
£
2,160
2,160
4,830
81,587
86,417
7,147
7,147
79,270
81,430
81,430
-
81,430|2020
Total
£
-
-
4,755
102,838
107,593
8,558
8,558
99,035
99,035
93,035
6,000
99,035|
|---|---|---|---|
The financial statements were approved by the board of trustees on 6/6/2022
John Henkel (Trustee)
7
## Bradford Metropolitan Food Bank
## Notes to the accounts
## for the year ended 31 December 2021
## **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.
## **Tangible fixed assets**
Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows: Warehouse equipment: over 4 years
8
## Bradford Metropolitan Food Bank
## Notes to the accounts continued
for the year ended 31 December 2021
## **1 Accounting policies continued**
## **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.
|**2 Grants and donations**
Bradford Metropolitan District Council
Groundworks Tesco
Martin Lewis
Morrisons
Sovereign Health
Donations|2021
Unrestricted
funds
£
-
-
-
-
-
77,994
77,994|2021
Restricted
funds
£
4,000
-
-
-
-
-
4,000|2021
Total
funds
£
4,000
-
-
-
-
77,994
81,994|3.8.2019 -
31.12.2020
Total
funds
£
17,514
500
6,000
10,000
2,500
127,538
164,052|
|---|---|---|---|---|
## **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 £14.85 (2020 - £15). The estimated value of donated food has been calculated as follows:
|Number of food bags prepared
Estimated value at £14.85 per bag
Less food purchased for distribution
Estimated value of donated food stuffs|2021
£
19,033
282,640
(74,599)
227,074|3.8.2019 -
31.12.2020
£
25,939
389,085
(65,016)
324,069|
|---|---|---|
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**
Covid Winter Support
**Fund name**|Balance b/f
Incoming
£
£
6,000
4,000
6,000
4,000
**Purpose of restriction**|Outgoing
£
10,000
10,000|Transfers
£
-
-|Balance c/f
£
-
-|
|---|---|---|---|---|
## **Purpose of restriction**
Covid Winter Support For the provision of food bags to third party organisations working with individuals and families.
9
## Bradford Metropolitan Food Bank
## Notes to the accounts continued
## for the year ended 31 December 2021
|**5 **
**6 **
**6 **
**7 **|**Tangible assets**
**Cost**
£
At 1 January 2021
-
Additions
2,880
At 31 December 2021
2,880
**Depreciation**
At 1 January 2021
-
Charge for year
720
At 31 December 2021
720
**Net book value**
At 31 December 2021
2,160
At 31 December 2020
-
**Debtors and prepayments**
2021
£
Debtors
4,600
Prepayments
230
4,830
**Creditors and accruals**
2021
£
Creditors
6,427
Accruals
720
7,147
**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**
2021
£
Youthtrain Limited
18,200
18,200
Warehouse
equipment
No trustee received any expenses during this year or the previous year.
**Name of related**
**party**
**Relationship to**
**charity**
**Description of transaction**
Julie Woodhurst is
a trustee of the
CIO and a director
with significant
influence of
Youthtrain Limited
Provison of Food Bank co-
ordination services|Total
£
-
2,880
2,880
-
720
720
2,160
-
2020
£
4,551
204
4,755
2020
£
7,838
720
8,558
3.8.2019 -
31.12.2020
£
13,390
13,390|
|---|---|---|
10
## Bradford Metropolitan Food Bank
## Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 December 2021
|2021
3.8.2019 -
31.12.2020
Unrestricted Unrestricted
funds
funds
£
£
**Income**
Grants and donations
77,994
157,205
Donated food for distribution
227,074
324,069
Bank interest
-
38
Fundraising income
238
-
Rates refund
244
-
**Total income**
305,550
481,312
**Expenditure**
Purchase of food for distribution
64,599
64,169
Donated food distributed
227,074
324,069
Materials and resources
3,192
3,934
Utilities and trade waste
1,984
808
Vehicle hire
79
87
Administration
349
312
Insurance
238
338
Independent examination
720
720
Food bank co-ordination fee
18,200
13,390
Volunteer expenses
-
24
Depreciation
720
-
**Total expenditure**
317,155
407,851
**Net income / (expenditure)**
(11,605)
73,461
**Fund balances brought forward**
93,035
19,574
**Fund balances carried forward**
81,430
93,035|2021
Restricted
funds
£
4,000
-
-
-
-
4,000
10,000
-
-
-
-
-
-
-
-
-
-
10,000
(6,000)
6,000
-|3.8.2019 -
31.12.2020
Restricted
funds
£
6,847
-
-
-
-
6,847
847
-
-
-
-
-
-
-
-
-
-
847
6,000
-
6,000|2021
Total
funds
£
81,994
227,074
-
238
244
309,550
74,599
227,074
3,192
1,984
79
349
238
720
18,200
-
720
327,155
(17,605)
99,035
81,430|3.8.2019 -
31.12.2020
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|
|---|---|---|---|---|
11
## Bradford Metropolitan Food Bank
Charity number 1120018
Annual Report and Financial Statements for the year ended 31 December 2021
Bradford Metropolitan Food Bank
Annual Report and Financial Statements for the year ended 31 December 2021
|**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 Accountancy Service CIO**
1
## Bradford Metropolitan Food Bank
## Trustees' report for the year ended 31 December 2021
## **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** Lashman Singh Chair John Henkel Treasurer Helen Lynskey Secretary Frances Atkins Steven Barnbrook Kenneth Leach Graham Walker Julie Woodhurst Rob Edwards **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 BD8 9NN M60 1GP **Independent examiner** Rhys North ACA **West Yorkshire Community Accountancy Service CIO** Stringer House 34 Lupton Street Leeds LS10 2QW
## **Structure, governance and management**
The charity is a Charitable Incorporated Organisation (CIO) foundation and is governed by a constitution.
## **Method of recruitment and appointment of trustees**
The trustees of the charity are appointed by a resolution passed at a properly convened meeting of the charity trustees.
## **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.
2
## Bradford Metropolitan Food Bank
## Trustees' report (continued) for the year ended 31 December 2021
## **Objectives and activities continued**
## **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 Food Bank has continued to respond flexibly to the ever-changing demands caused by the Covid-19 pandemic and the subsequent global economic impact, exacerbated in Britain by other factors such as Brexit.
The demand for food has continued to increase significantly as furlough schemes came to an end and price inflation continued to rise, particularly for some foods and fuel.
Over 19,000 food bags were distributed during the 2021 calendar year, a level of demand that was similar to the increased demand experienced in 2020.
BMFB was able to both meet this increased demand, as a result of the incredible generosity of individuals, businesses and organisations as well as strong support from Bradford Council and individual councillors.
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 and other food banks in the wider region, with whom we have a cooperative relationship.
Significantly, however, other sources of grant funding became less available as the year progressed, perhaps because funders adopted a “post-pandemic” mindset. The Food Bank had anticipated this and managed finances accordingly, adopting a deficit budget in 2021 and using some £20,000 of accumulated reserves to meet the increased demand. BMFB was also able to claim over £4,300 Gift Aid from HMRC to supplement individual donations.
We remain reliant on our wonderful volunteers, without whom we wouldn’t be able to function. As with the previous year, we have also used paid support from Youthtrain to coordinate volunteers and, crucially, buy food in the best available volume for the best available price. This has produced valuable savings as well as avoiding shortages of key foods.
We have continued to use our newsletters and social media platforms to raise awareness of our activities, with 661 people signed up to our mailing list, 1,797 followers on Facebook and 1,230 on Twitter.
Board meetings continue to remain virtual in the main, but individual board members devote significant time working on different aspects of management of the organisation and maintenance of external relationships.
We continue to adopt a robust approach to managing our finances and assessing risk, operating with the knowledge that things will become even tougher over the coming year, if not longer.
We continue to increase our reach on social media platforms, an increasingly important part of our communications and relationship management approach, although we recognise that we need to rebuild some of the real world partnerships that we were able to nurture pre-pandemic, especially with organisations who provided regular donations of food.
We are under no illusion as to the extent of the difficulties that the future holds for the people we seek to help, but we believe that our management of our assets and the support of so many amazing people means that we can continue to try to make a real difference to the lives of so many people in the Bradford District.
3
## Bradford Metropolitan Food Bank
## Trustees' report (continued) for the year ended 31 December 2021
## **Financial review**
The net expenditure for the year was £17,605, including net expenditure of £11,605 on unrestricted funds and net expenditure of £6,000 on restricted funds.
## **Reserves policy**
The charity's free reserves, excluding fixed assets, at the year end were £79,270.
We are a small charity with irregular patterns of income. We receive some income from small regular donations. These are reasonably predictable and, at the current level of c£4,000 per month, represent approximately 70% of our annual income. We also receive some one-off donations. This is less reliable. Finally, we bid for grants to deliver specific projects or to provide basic funding.
We have a contract with a provider who supplies a day-to-day management resource, and have the usual overheads such as insurance and utilities. As such, we are able to make a relatively stable and predictable forecast of expenditure in normal circumstances. We have a Finance item at all Board meetings, at which our Treasurer reports on income and expenditure and makes recommendations of any corrective actions required.
Despite being a small organisation, the service which we deliver is one with a wide reach, which helps those most at need at a critical time in their lives, and which resonates with many in positions of influence. It is therefore important that our Reserves Policy is based upon being able to maintain that service delivery even through a period when income is reduced, or demand is increased. It is our view, based on a risk analysis and historic income and expenditure figures, that a minimum reserve balance should reflect:
- Two months expenditure on the Food Bank support contract, to allow time to make alternative
- arrangements and to give the required notice
- One month’s expenditure on other ‘variable’ cost items, such as food purchase and the Food Bank
- support contract (which can be terminated with one month’s notice)
- 12 months expenditure on ‘fixed cost’ items, such as insurance, utilities, external examination, and
- business rates (should we only be afforded mandatory business rate relief)
- A small amount (c 5%) for contingency, to cover expenditure such as repairs or incidental expenditure on
- items such as bags or string.
This provision allows the Food Bank to maintain its medium-term viability (which requires a physical storage facility) by adjusting food purchase (and hence provision) to match income (from donations or grants) in the light of prevailing circumstances. It should be noted that the Food Bank also distributes substantial amounts of donated food.
This approach excludes any Food Bank’s limited fixed assets, as well as committed elements of Unrestricted Funds and any Designated Funds identified and approved by the Committee.
For the 2022 financial year, this sum required by the reserves policy amounts to £18,500.
The Treasurer will review the Reserves Policy and balances on an annual basis and make recommendations to the Board as necessary.
The trustees recognise that its reserves significantly exceed the target reserves level. With this in mind a deficit budget of £40k has been agreed for 2022 and the level of reserves will continue to be monitored during 2022.
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 on 6/6/2022
John Henkel (Trustee)
4
## 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 year ended 31 December 2021, 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:
- 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
- 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.
Rhys North ACA
17/6/2022
## **West Yorkshire Community Accountancy Service CIO**
Stringer House 34 Lupton Street Leeds LS10 2QW
5
## Bradford Metropolitan Food Bank
## Statement of Financial Activities
## (including summary income and expenditure account) for the year ended 31 December 2021
|Notes
2021
Unrestricted
funds
£
**Income from:**
Grants and donations
(2)
77,994
Donated food for distribution
(3)
227,074
Bank interest
-
Fundraising income
238
Rates refund
244
**Total income**
305,550
**Expenditure on:**
Purchase of food for distribution
64,599
Donated food distributed
(3)
227,074
Materials and resources
3,192
Utilities and trade waste
1,984
Vehicle hire
79
Administration
349
Insurance
238
Independent examination
720
Food bank co-ordination fee
18,200
Volunteer expenses
-
Depreciation
720
**Total expenditure**
317,155
**Net income / (expenditure)**
(11,605)
**Fund balances brought forward**
93,035
**Fund balances carried forward**
(4)
81,430|2021
Restricted
funds
£
4,000
-
-
-
-
4,000
10,000
-
-
-
-
-
-
-
-
-
-
10,000
(6,000)
6,000
-|2021
Total
funds
£
81,994
227,074
-
238
244
309,550
74,599
227,074
3,192
1,984
79
349
238
720
18,200
-
720
327,155
(17,605)
99,035
81,430|3.8.2019 -
31.12.2020
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|
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
6
## Bradford Metropolitan Food Bank
## Balance sheet
|as at 31 December 2021
2021
Unrestricted
£
**Fixed assets**
Tangible assets
(5)
2,160
**Total fixed assets**
2,160
**Current assets**
Debtors and prepayments
(6)
4,830
Cash at bank
81,587
**Total current assets**
86,417
**Current liabilities:**
**amounts falling due within one year**
Creditors and accruals
(7)
7,147
**Total current liabilities**
7,147
**Net current assets / (liabilities)**
79,270
**Net assets**
81,430
**Funds**
Unrestricted funds
81,430
Restricted funds
-
**Total funds**
81,430|2021
Restricted
£
-
-
-
-
-
-
-
-
-
-
-
-|2021
Total
£
2,160
2,160
4,830
81,587
86,417
7,147
7,147
79,270
81,430
81,430
-
81,430|2020
Total
£
-
-
4,755
102,838
107,593
8,558
8,558
99,035
99,035
93,035
6,000
99,035|
|---|---|---|---|
The financial statements were approved by the board of trustees on 6/6/2022
John Henkel (Trustee)
7
## Bradford Metropolitan Food Bank
## Notes to the accounts
## for the year ended 31 December 2021
## **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.
## **Tangible fixed assets**
Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows: Warehouse equipment: over 4 years
8
## Bradford Metropolitan Food Bank
## Notes to the accounts continued
for the year ended 31 December 2021
## **1 Accounting policies continued**
## **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.
|**2 Grants and donations**
Bradford Metropolitan District Council
Groundworks Tesco
Martin Lewis
Morrisons
Sovereign Health
Donations|2021
Unrestricted
funds
£
-
-
-
-
-
77,994
77,994|2021
Restricted
funds
£
4,000
-
-
-
-
-
4,000|2021
Total
funds
£
4,000
-
-
-
-
77,994
81,994|3.8.2019 -
31.12.2020
Total
funds
£
17,514
500
6,000
10,000
2,500
127,538
164,052|
|---|---|---|---|---|
## **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 £14.85 (2020 - £15). The estimated value of donated food has been calculated as follows:
|Number of food bags prepared
Estimated value at £14.85 per bag
Less food purchased for distribution
Estimated value of donated food stuffs|2021
£
19,033
282,640
(74,599)
227,074|3.8.2019 -
31.12.2020
£
25,939
389,085
(65,016)
324,069|
|---|---|---|
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**
Covid Winter Support
**Fund name**|Balance b/f
Incoming
£
£
6,000
4,000
6,000
4,000
**Purpose of restriction**|Outgoing
£
10,000
10,000|Transfers
£
-
-|Balance c/f
£
-
-|
|---|---|---|---|---|
## **Purpose of restriction**
Covid Winter Support For the provision of food bags to third party organisations working with individuals and families.
9
## Bradford Metropolitan Food Bank
## Notes to the accounts continued
## for the year ended 31 December 2021
|**5 **
**6 **
**6 **
**7 **|**Tangible assets**
**Cost**
£
At 1 January 2021
-
Additions
2,880
At 31 December 2021
2,880
**Depreciation**
At 1 January 2021
-
Charge for year
720
At 31 December 2021
720
**Net book value**
At 31 December 2021
2,160
At 31 December 2020
-
**Debtors and prepayments**
2021
£
Debtors
4,600
Prepayments
230
4,830
**Creditors and accruals**
2021
£
Creditors
6,427
Accruals
720
7,147
**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**
2021
£
Youthtrain Limited
18,200
18,200
Warehouse
equipment
No trustee received any expenses during this year or the previous year.
**Name of related**
**party**
**Relationship to**
**charity**
**Description of transaction**
Julie Woodhurst is
a trustee of the
CIO and a director
with significant
influence of
Youthtrain Limited
Provison of Food Bank co-
ordination services|Total
£
-
2,880
2,880
-
720
720
2,160
-
2020
£
4,551
204
4,755
2020
£
7,838
720
8,558
3.8.2019 -
31.12.2020
£
13,390
13,390|
|---|---|---|
10
## Bradford Metropolitan Food Bank
## Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 December 2021
|2021
3.8.2019 -
31.12.2020
Unrestricted Unrestricted
funds
funds
£
£
**Income**
Grants and donations
77,994
157,205
Donated food for distribution
227,074
324,069
Bank interest
-
38
Fundraising income
238
-
Rates refund
244
-
**Total income**
305,550
481,312
**Expenditure**
Purchase of food for distribution
64,599
64,169
Donated food distributed
227,074
324,069
Materials and resources
3,192
3,934
Utilities and trade waste
1,984
808
Vehicle hire
79
87
Administration
349
312
Insurance
238
338
Independent examination
720
720
Food bank co-ordination fee
18,200
13,390
Volunteer expenses
-
24
Depreciation
720
-
**Total expenditure**
317,155
407,851
**Net income / (expenditure)**
(11,605)
73,461
**Fund balances brought forward**
93,035
19,574
**Fund balances carried forward**
81,430
93,035|2021
Restricted
funds
£
4,000
-
-
-
-
4,000
10,000
-
-
-
-
-
-
-
-
-
-
10,000
(6,000)
6,000
-|3.8.2019 -
31.12.2020
Restricted
funds
£
6,847
-
-
-
-
6,847
847
-
-
-
-
-
-
-
-
-
-
847
6,000
-
6,000|2021
Total
funds
£
81,994
227,074
-
238
244
309,550
74,599
227,074
3,192
1,984
79
349
238
720
18,200
-
720
327,155
(17,605)
99,035
81,430|3.8.2019 -
31.12.2020
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|
|---|---|---|---|---|
11
## 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 year ended 31 December 2021, 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:
- 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
- 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: …………………………………… Name: Rhys North ACA
17/6/2022
## **West Yorkshire Community Accountancy Service CIO**
Stringer House 34 Lupton Street Leeds LS10 2QW
5