Bradford Metropolitan Food Bank
Charity number 1120018
Annual Report and Financial Statements for the year ended 31 December 2022
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Bradford Metropolitan Food Bank
Annual Report and Financial Statements for the year ended 31 December 2022
| Contents | Page |
|---|---|
| Trustees' report | 2 to 5 |
| Examiner's report | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the accounts | 9 to 12 |
Prepared by West Yorkshire Community Accountancy Service CIO
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Bradford Metropolitan Food Bank
Trustees' report for the year ended 31 December 2022
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
Graham Walker Chair From 6 June 2022 Lashman Singh Chair To 6 June 2022 John Henkel Treasurer Helen Lynskey Secretary Frances Atkins Steven Barnbrook Kenneth Leach 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, as amended 6 June 2022.
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.
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Bradford Metropolitan Food Bank
Trustees' report (continued) for the year ended 31 December 2022
Objectives and activities continued
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 Food Bank has continued to respond flexibly to the ever-changing demands created by the cost of living crisis.
The demand for food has continued to increase significantly as price inflation continued to rise, particularly for some foods and fuel.
Around 21,300 food bags were distributed during the 2022 calendar year, an increase of over 12% compared to the previous calendar year, and a continuation of the pattern of increasing demand which we have witnessed over many successive years.
BMFB was able to meet this increased demand as a result of the incredible generosity of individuals, businesses and organisations as well as strong support from Bradford Council, individual councillors, as well as local churches, companies and other organisations, including Shipley Town Council. Gift Aid is claimed retrospectively on eligible donations.
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. The Food Bank had anticipated this and managed finances accordingly.
However, we are under no illusion that the task we face in being able to continue to provide a rising level of food will become even more difficult with time. We also recognise that we are not an isolated player and that food poverty itself is simply one manifestation of wider financial pressures that people across the district are coming under. To this end, we continue to liaise closely with other organisations, particularly Bradford Council, other food banks and broader partners to ensure as best we can that nobody is left unsupported.
One additional strain put upon us in 2022 was a devastating flood caused by burst pipes from the old plumbing just before Christmas, which damaged food stocks and also floor coverings. Not all the damage was covered by our insurance. The building we use is old and has many structural challenges, so a part of our forward strategy will be to look at ways to minimise premises risk.
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, schedule third party collections 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.
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.
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Bradford Metropolitan Food Bank
Trustees' report (continued) for the year ended 31 December 2022
Objectives and activities
Achievements and performance continued
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 years. In 2022 £20,000 was transferred to our current account from our deposit savings account to ensure we were able to source food.
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.
Financial review
The net income for the year was £34,468, all concerning unrestricted funds.
Reserves policy
The charity's free reserves, excluding fixed assets, at the year end were £114,458.
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:
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l Two months expenditure on the Food Bank support contract, to allow time to make alternative arrangements and to give the required notice
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l 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)
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l 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)
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l 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 2023 financial year, this sum required by the reserves policy amounts to £18,941.
The Treasurer will review the Reserves Policy and balances on an annual basis and make recommendations to the Board as necessary.
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Bradford Metropolitan Food Bank
Trustees' report (continued) for the year ended 31 December 2022
Reserves policy continued
The trustees recognise that the current level of reserves exceed the target reserves level. With this in mind a deficit budget of £35,300 has been agreed for 2023. The trustees also recognise that in future years additional cost pressures are likely to affect the charity as Council support for food is likely to reduce and the charity may have to consider relocating to new premises. Given this position the trustees plan to review their reserves position to determine what actions are needed both in terms of re-assessing their reserves policy and taking any necessary actions to manage their reserves against the target level.
Approved by the board of trustees on 5/6/2023
John Henkel (Trustee)
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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 year ended 31 December 2022, which are set out on pages 7 to 12.
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 fellow 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 fellow 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.
Rhys North ACA
19/6/2023
West Yorkshire Community Accountancy Service CIO
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 year ended 31 December 2022
| Notes Income from: Grants and donations (2) Donated food for distribution (3) Fundraising income Rates refund Bank Interest Insurance claim Total income Expenditure on: Purchase of food for distribution (3) Donated food distributed Materials and resources Utilities and trade waste Vehicle hire Administration Insurance Independent examination Food bank co-ordination fee Depreciation Bank Charges Total expenditure Net income / (expenditure) Fund balances brought forward Fund balances carried forward |
2022 Total funds £ 95,241 307,863 50 - 66 4,772 407,992 43,554 307,863 410 1,552 - 137 239 780 18,200 720 69 373,524 34,468 81,430 115,898 |
2021 Total funds £ 81,994 227,074 238 244 - - 309,550 74,599 227,074 3,192 1,984 79 327 238 720 18,200 720 22 327,155 (17,605) 99,035 81,430 |
|---|---|---|
All incoming resources and resources expended derive from continuing activities.
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Bradford Metropolitan Food Bank
Balance sheet
as at 31 December 2022
| as at 31 December 2022 Fixed assets Tangible assets (4) Total fixed assets Current assets Debtors and prepayments (5) Cash at bank and in hand (6) Total current assets Current liabilities: amounts falling due within one year Creditors and accruals (7) Total current liabilities Net current assets / (liabilities) Net assets Funds Unrestricted funds Total funds |
2022 Total £ 1,440 1,440 25,038 95,040 120,078 5,620 5,620 114,458 115,898 115,898 115,898 |
2021 Total £ 2,160 2,160 4,830 81,587 86,417 7,147 7,147 79,270 81,430 81,430 81,430 |
|---|---|---|
The financial statements were approved by the board of trustees on 5/6/2023
John Henkel (Trustee)
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Bradford Metropolitan Food Bank
Notes to the accounts
for the year ended 31 December 2022
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
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 year ended 31 December 2022
| 2 Grants and donations Bradford Metropolitan District Council Donations |
2022 Unrestricted funds £ - 81,487 81,487 13754 |
2022 Restricted funds £ - |
2022 Total funds £ - 81,487 81,487 13754 |
2021 Total funds £ 4,000 77,994 81,994 |
|---|---|---|---|---|
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 £15.50 (2021 - £14.85). The estimated value of donated food has been calculated as follows:
| Number of food bags prepared Estimated value at £15.50 per bag Less food purchased for distribution Estimated value of donated food stuffs |
2022 £ 21,298 330,119 (43,554) 307,863 |
2021 £ 19,033 282,640 (74,599) 227,074 |
|---|---|---|
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 **5 ** |
Tangible assets Cost At 1 January 2022 Additions At 31 December 2022 Depreciation At 1 January 2022 Charge for year At 31 December 2022 Net book value At 31 December 2022 At 31 December 2021 Debtors and prepayments Debtors Prepayments Other debtors |
Warehouse equipment £ 2,880 - 2,880 720 720 1,440 1,440 2,160 2022 £ - 238 24,800 25,038 |
Total £ 2,880 - 2,880 720 720 1,440 1,440 2,160 2021 £ 4,600 230 - 4,830 |
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Bradford Metropolitan Food Bank
Notes to the accounts continued
for the year ended 31 December 2022
| 6 Cash at bank and in hand 2022 £ Cash at bank 95,040 95,040 7 Creditors and accruals 2022 £ Creditors 4,840 Accruals 780 5,620 8 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 2022 £ Youthtrain Limited 18,200 18,200 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 |
2021 £ 81,587 81,587 2021 £ 6,427 720 7,147 2021 £ 18,200 18,200 |
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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 year ended 31 December 2022
| 2022 2021 Unrestricted Unrestricted funds funds £ £ Income Grants and donations 95,241 77,994 Donated food for distribution 307,863 227,074 Fundraising income 50 238 Rates refund - 244 Bank Interest 66 - Insurance claim 4,772 - Total income 407,992 305,550 Expenditure Purchase of food for distribution 43,554 64,599 Donated food distributed 307,863 227,074 Materials and resources 410 3,192 Utilities and trade waste 1,552 1,984 Vehicle hire - 79 Administration 137 327 Insurance 239 238 Independent examination 780 720 Food bank co-ordination fee 18,200 18,200 Depreciation 720 720 Bank Charges 69 22 Total expenditure 373,524 317,155 Net income / (expenditure) 34,468 (11,605) Fund balances brought forward 81,430 93,035 Fund balances carried forward 115,898 81,430 |
2022 Restricted funds £ - - - - - - - - - - - - - - - - - - - - - - |
2021 Restricted funds £ 4,000 - - - - - 4,000 10,000 - - - - - - - - - - 10,000 (6,000) 6,000 - |
2022 Total funds £ 95,241 307,863 50 - 66 4,772 407,992 43,554 307,863 410 1,552 - 137 239 780 18,200 720 69 373,524 34,468 81,430 115,898 |
2021 Total funds £ 81,994 227,074 238 244 - - 309,550 74,599 227,074 3,192 1,984 79 327 238 720 18,200 720 22 327,155 (17,605) 99,035 81,430 |
|---|---|---|---|---|
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