REGISTERED CHARITY NUMBER: 1126099
Report of the Trustees and
Unaudited Financial Statements for the Year Ended 31 December 2023
for
Second Chance Association
Wright Vigar Limited Chartered Accountants & Business Advisers Northgate House Northgate Sleaford Lincolnshire NG34 7BZ
Second Chance Association
Contents of the Financial Statements for the Year Ended 31 December 2023
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | ||
| Notes to the Financial Statements | 7 | to | 11 |
| Detailed Statement of Financial Activities | 12 |
Second Chance Association
Report of the Trustees for the Year Ended 31 December 2023
The trustees present their report with the financial statements of the charity for the year ended 31 December 2023. 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 relief of those who are in need by reason of youth, age, ill health, disability, financial hardship, or for the public benefit, by making grants to charities or community organisations (and occasionally individuals where there is no charity or community organisation available) providing support in these areas.
The advancement of education in the public benefit by making grants to educational establishments working to sustain and increase individual and collective knowledge in the UK and overseas.
The advancement of citizenship through supporting youth groups and the voluntary sector by providing opportunities to volunteer in the charity's shop and charity events, and to gain work experience. Also, by making grants to youth groups to support the costs of their work and events
The advancement of Christianity by making grants to organisations supporting missionary and outreach work in the UK and abroad.
Main Activities
Second Chance Association's main activity is the running of a charity shop selling donated items from the local community. The shop sells clothes, household goods, small items of furniture, books, games etc. The sales strategy is to maintain very low prices but good quality. Donated items of higher value are sold through the shops Facebook site and an online auction site.
The charity shop also acts as a collection point for the local food bank, collects spectacles on behalf of Vision Aid, sells cards to raise money for Sightsavers and recycles unsaleable goods including clothing, shoes, bags, books and batteries. The shop has developed a reputation for being a warm and welcoming place and the volunteers offer friendship, support and help to customers.
Volunteers
We have around 24 volunteers of all ages and this will include people on Job Seekers schemes and young people on work experience.
ACHIEVEMENT AND PERFORMANCE
Charitable activities
During 2023, the shop has continued to go from strength to strength, our annual takings have increased slightly over the previous year and although some of our costs have increased, we are still turning a healthy profit. Our donations to good causes during 2023 have been low meaning that at the end of 2023 we are able to start 2024 with £54,747.27 available in our charitable reserves pot. As a result of this we will look at increasing our regular giving during the next financial year along with identifying some one-off projects that require support.
Our charitable activities on the charities commission website reads as follows:
We support and fund the advancement of education and Christian missions in UK and overseas. We also identify, support, and provide local and national relief or donations for those in specific need or for public benefit. Funds are generated by the sale of secondhand goods through our shop. We offer training and support to our volunteers. The shop acts as a centre where people meet and make friends.
Our charitable objects on the charities commission website read as follows:
The relief of those who are in need by reason of youth, age, ill health, disability, financial hardship, or for the public benefit, by making grants to charities or community organisations (and occasionally individuals where there is no charity or community organisation available) providing support in these areas. The advancement of education in the public benefit by making grants to educational establishments working to sustain and increase individual and collective knowledge in the UK and overseas. The advancement of citizenship through supporting youth groups and the voluntary sector by providing opportunities to volunteer in the charity's shop and charity events, and to gain work experience. Also, by making grants to youth groups to support the costs of their work and events. The advancement of Christianity by making grants to organisations supporting missionary and outreach work in the UK and abroad.
Page 1
Second Chance Association
Report of the Trustees for the Year Ended 31 December 2023
FINANCIAL REVIEW Financial position
Charity's principle sources of funds
Sales from the shop. This is by far the greatest source of income. The items on sale are all from donations. Very few donations are refused. If it will get through the door we will sell it.
Additional income is from sub-letting a room, small change collection boxes, selling suitable items through local salerooms, on-line sales and cash donations.
How expenditure has supported the key objectives of the charity
During 2023 Second Chance Association has donated as follows;
| £ | |
|---|---|
| Annual Donation Sleaford Little Theatre | 250 |
| Monthly Donation CAP | 300 |
| One off donation Heckington Pool | 300 |
| Monthly Donation Connecting Well | 300 |
| One off Donation glasshouse | 183 |
| One off Donation Evergreen | 600 |
| Monthly Donation Ed4Life | 1,130 |
| Monthly Donation Evergreen | 300 |
| £3,363 |
Reserves policy
Second Chance Association is a small charity with annual income of approximately £45,000 The reserves policy seeks to ensure that:
The day to day planned operational costs are covered. The business can meet its financial obligations annually. Time is allowed for the business to be turned around if not making a profit. The charity has enough cash-flow to deal with the risk of an emergency. All liabilities are covered, should the charity need to be closed. To limit the financial risk to trustees.
To achieve these aims Second Chance Association has agreed a reserves policy of holding reserves to cover 9 months running costs in the event of a major problem.
FUTURE PLANS
Our main goal for 2024 is to continue raising funds at our previous level or above and to be able to provide donations made to more charities and community groups. There are far reaching economic changes which will influence the cost of living such as inflation and the huge increase in the cost of fuel and energy along with the ongoing war in Ukraine. This could mean less money for customers to spend and become more reluctant to replace goods & clothing which would normally be donated on to us.
Therefore during 2024 we will continue to reduce the cost of lighting by replacing any remaining old equipment and to expand the variety of items we sell to include more household and electrical goods.
STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document
The charity is controlled by its governing document, a deed of trust and constitutes an unincorporated charity.
Recruitment and appointment of new trustees
The existing trustees are responsible for the recruitment of new trustees but in so doing the trustees seek the views and recommendations of other respected individuals within the local community. Potential trustees are invited to attend trustees' meetings as observers and are given more details of the charity's aims and activities and, if all agree, they are then proposed as new trustees at the subsequent trustees' meeting. This process allows due consideration of the persons eligibility, personal competence, specialist knowledge and skills.
Induction and training of new trustees
Following appointment, new trustees are introduced to their new role and given copies of the trust deed and a guide to the policies and procedures adopted by our charity. Several publications from the Charity Commission are also provided. This ensures that new trustees are aware of the scope of their responsibilities under the Charities Act.
Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.
Page 2
Second Chance Association
Report of the Trustees for the Year Ended 31 December 2023
REFERENCE AND ADMINISTRATIVE DETAILS Registered Charity number 1126099
Principal address 30 Boston Road Sleaford Lincolnshire NG34 7ET
Trustees
Mr R J Munro Mrs K D Pratchett Mrs J Adams (resigned 9.12.23) Mrs L Freeman Mr I R Freeman Mr W E Burrows Mrs D M Maltby
Independent Examiner Wright Vigar Limited Chartered Accountants & Business Advisers Northgate House Northgate Sleaford Lincolnshire NG34 7BZ
Bankers
Barclays Bank Plc Market Place Newark Nottinghamshire NG24 1DY Approved by order of the board of trustees on ............................................. and signed on its behalf by: 06/08/2024
........................................................................ Ian Freeman (Aug 6, 2024 09:04 GMT+1) Mr I R Freeman - Trustee
Page 3
Independent Examiner's Report to the Trustees of Second Chance Association
Independent examiner's report to the trustees of Second Chance Association
I report to the charity trustees on my examination of the accounts of Second Chance Association (the Trust) for the year ended 31 December 2023.
Responsibilities and basis of report
As the charity trustees of the Trust 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 Trust's accounts carried out under Section 145 of the Act and in carrying out my examination I have followed all applicable Directions given by the Charity Commission under Section 145(5)(b) of the Act.
Independent examiner's statement
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:
-
accounting records were not kept in respect of the Trust as required by Section 130 of the Act; or
-
the accounts do not accord with those records; or
-
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.
==> picture [39 x 24] intentionally omitted <==
James Sewell BA (Hons) FCA CTA
Wright Vigar Limited Chartered Accountants & Business Advisers Northgate House Northgate Sleaford Lincolnshire NG34 7BZ Date: ............................................. 07/08/2024
Page 4
Second Chance Association
Statement of Financial Activities
for the Year Ended 31 December 2023
| 2023 Unrestricted funds Notes £ INCOME AND ENDOWMENTS FROM Donations and legacies 388 Charitable activities 3 Shop 56,390 Other trading activities 2 718 Total 57,496 EXPENDITURE ON Charitable activities 4 Shop 29,890 NET INCOME 27,606 RECONCILIATION OF FUNDS Total funds brought forward 65,994 TOTAL FUNDS CARRIED FORWARD 93,600 |
2022 Total funds £ - 50,256 720 |
|---|---|
| 50,976 | |
| 41,761 | |
| 9,215 56,779 |
|
| 65,994 |
The notes form part of these financial statements
Page 5
Second Chance Association
Balance Sheet
31 December 2023
| 2023 Unrestricted funds Notes £ FIXED ASSETS Tangible assets 8 121 CURRENT ASSETS Debtors 9 509 Cash at bank 94,238 94,747 CREDITORS Amounts falling due within one year 10 (1,268) NET CURRENT ASSETS 93,479 TOTAL ASSETS LESS CURRENT LIABILITIES 93,600 NET ASSETS 93,600 FUNDS 11 Unrestricted funds 93,600 TOTAL FUNDS 93,600 |
2022 Total funds £ 160 572 66,739 |
|---|---|
| 67,311 (1,477) |
|
| 65,834 | |
| 65,994 | |
| 65,994 | |
| 65,994 | |
| 65,994 |
The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. and were signed on its behalf by: 06/08/2024
Ian Freeman (Aug 6, 2024 09:04 GMT+1) ............................................. Mr I R Freeman - Trustee
Roderick Munro
Roderick Munro (Aug 7, 2024 12:13 GMT+1) ............................................. Mr R J Munro - Trustee
The notes form part of these financial statements
Page 6
Second Chance Association
Notes to the Financial Statements
for the Year Ended 31 December 2023
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charity, 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 Charities Act 2011. The financial statements have been prepared under the historical cost convention.
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.
Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Office Equipment- cafe - 25% on reducing balance
Taxation
The charity is exempt from tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
2. OTHER TRADING ACTIVITIES
| OTHER TRADING ACTIVITIES | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Room hire | 718 | 720 |
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continued...
Second Chance Association
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
3. INCOME FROM CHARITABLE ACTIVITIES
| Activity Sales Shop 4. CHARITABLE ACTIVITIES COSTS Direct Grant Costs (see funding of note 5) activities £ £ Shop 24,957 3,363 5. DIRECT COSTS OF CHARITABLE ACTIVITIES Staff costs Rates and water Insurance Light and heat Postage and stationery Advertising Sundries Repairs and renewals Rent Cleaning Depreciation |
2023 £ 56,390 Support costs £ 1,570 2023 £ 3,179 749 1,338 3,013 386 - 765 3,100 9,200 3,189 38 24,957 |
2022 £ 50,256 |
|---|---|---|
| Totals £ 29,890 |
||
| 2022 £ 2,918 887 1,131 3,448 287 33 439 2,077 11,500 2,677 53 |
||
| 25,450 |
6. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 December 2023 nor for the year ended 31 December 2022.
Trustees' expenses
There were no trustees' expenses paid for the year ended 31 December 2023 nor for the year ended 31 December 2022.
7. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
| Unrestricted | |
|---|---|
| funds | |
| £ | |
| INCOME AND ENDOWMENTS FROM | |
| Charitable activities | |
| Shop | 50,256 |
| Other trading activities | 720 |
| Total | 50,976 |
| EXPENDITURE ON | |
| Charitable activities | |
| Shop | 41,761 |
| NET INCOME | 9,215 |
| RECONCILIATION OF FUNDS | |
| Total funds brought forward | 56,779 |
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Second Chance Association
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
| 7. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued | |||
|---|---|---|---|---|---|
| Unrestricted | |||||
| funds | |||||
| £ | |||||
| TOTAL FUNDS CARRIED FORWARD | 65,994 | ||||
| 8. | TANGIBLE FIXED ASSETS | ||||
| Office | |||||
| Equipment- | |||||
| cafe | |||||
| £ | |||||
| COST | |||||
| At 1 January 2023 and 31 December 2023 | 2,097 | ||||
| DEPRECIATION | |||||
| At 1 January 2023 | 1,937 | ||||
| Charge for year | 39 | ||||
| At 31 December 2023 | 1,976 | ||||
| NET BOOK VALUE | |||||
| At 31 December 2023 | 121 | ||||
| At 31 December 2022 | 160 | ||||
| 9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||||
| 2023 | 2022 | ||||
| £ | £ | ||||
| Prepayments | 509 | 572 | |||
| 10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR | ||||
| 2023 | 2022 | ||||
| £ | £ | ||||
| Trade creditors | 148 | 427 | |||
| Other creditors | 1,120 | 1,050 | |||
| 1,268 | 1,477 | ||||
| 11. | MOVEMENT IN FUNDS | ||||
| Net | |||||
| movement | At | ||||
| At 1.1.23 | in funds | 31.12.23 | |||
| £ | £ | £ | |||
| Unrestricted funds | |||||
| General fund | 65,994 | 27,606 | 93,600 | ||
| TOTAL FUNDS | 65,994 | 27,606 | 93,600 | ||
| Net movement in funds, included in the above are as follows: | |||||
| Incoming | Resources | Movement | |||
| resources | expended | in funds | |||
| £ | £ | £ | |||
| Unrestricted funds | |||||
| General fund | 57,496 | (29,890) | 27,606 | ||
| TOTAL FUNDS | 57,496 | (29,890) | 27,606 |
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Second Chance Association
Notes to the Financial Statements - continued
for the Year Ended 31 December 2023
11. MOVEMENT IN FUNDS - continued
Comparatives for movement in funds
| Net | |||
|---|---|---|---|
| movement | At | ||
| At 1.1.22 | in funds | 31.12.22 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 56,779 | 9,215 | 65,994 |
| TOTAL FUNDS | 56,779 | 9,215 | 65,994 |
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 50,976 | (41,761) | 9,215 |
| TOTAL FUNDS | 50,976 | (41,761) | 9,215 |
A current year 12 months and prior year 12 months combined position is as follows:
| Net | |||
|---|---|---|---|
| movement | At | ||
| At 1.1.22 | in funds | 31.12.23 | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 56,779 | 36,821 | 93,600 |
| TOTAL FUNDS | 56,779 | 36,821 | 93,600 |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 108,472 | (71,651) | 36,821 |
| TOTAL FUNDS | 108,472 | (71,651) | 36,821 |
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Second Chance Association
Notes to the Financial Statements - continued for the Year Ended 31 December 2023
12. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 December 2023.
Page 11
Second Chance Association
Detailed Statement of Financial Activities for the Year Ended 31 December 2023
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Donations and legacies | ||
| Donations | 388 | - |
| Other trading activities | ||
| Room hire | 718 | 720 |
| Charitable activities | ||
| Sales | 56,390 | 50,256 |
| Total incoming resources | 57,496 | 50,976 |
| EXPENDITURE | ||
| Charitable activities | ||
| Casual labour | 3,179 | 2,918 |
| Rates and water | 749 | 887 |
| Insurance | 1,338 | 1,131 |
| Light and heat | 3,013 | 3,448 |
| Postage and stationery | 386 | 287 |
| Advertising | - | 33 |
| Sundries | 765 | 439 |
| Repairs and renewals | 3,100 | 2,077 |
| Rent | 9,200 | 11,500 |
| Cleaning | 3,189 | 2,677 |
| Depreciation of tangible fixed assets | 38 | 53 |
| Grants to institutions | 3,363 | 14,928 |
| 28,320 | 40,378 | |
| Support costs | ||
| Finance | ||
| Bank charges | 450 | 345 |
| Governance costs | ||
| Accountancy and legal fees | 1,120 | 1,038 |
| Total resources expended | 29,890 | 41,761 |
| Net income | 27,606 | 9,215 |
This page does not form part of the statutory financial statements
Page 12