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2021-03-31-accounts

REGISTERED COMPANY NUMBER: 06809593 (England and Wales) REGISTERED CHARITY NUMBER: 1128541

Report of the Trustees and

Financial Statements for the Year Ended 31 March 2021

for

NewStarts

NewStarts

Contents of the Financial Statements for the year ended 31 March 2021

Page
Report of the Trustees 1
Independent Examiner's Report 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cashflows 16
Notes to the Financial Statements 17

NewStarts (Registered number: 06809593)

Report of the Trustees (including Directors’ Report) for the year ended 31 March 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Purpose and charitable objects

The aims of the charity are to reduce and prevent both poverty and homelessness and to reduce the effect of landfill on the environment, encouraging local people to participate in the work, whether that is through donations of furniture and/or funds and through volunteering in one of the many roles available. Our aims fully reflect the purposes that the charity was set up to further.

Vision

NewStarts' vision is to see individuals achieving their full potential, where homelessness, poverty, debt and environmental damage become things of the past, and where community challenges are solved by the local community.

Significant activities

In 2020/21 we spent £484,661 on charitable activities in the following ways:

- Emergency Intervention- providing emergency food and free furniture 92%
- Support costs 4%
-Fundraising costs 4%

Ensuring our work delivers our aims

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. The review also helps us ensure our aims, objectives and activities remain focused on our stated purposes. We have referred to the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

1

NewStarts (Registered number: 06809593)

Report of the Trustees (including Directors’ Report) for the year ended 31 March 2021

The focus of our work

Our main objectives for the year continued to be the reduction and prevention of homelessness and poverty and protection of the environment, however the Covid-19 pandemic changed the emphasis of our work from furniture to emergency food provision and sale of computers.

How our activities deliver public benefit

Our main activities and who we try to help are described below. All our charitable activities focus on the reduction and prevention of homelessness, poverty and environmental impact of landfill and are undertaken to further our charitable purposes for the public benefit. Our activities are delivered from our headquarters in Bromsgrove, our satellite site in New Frankley, south-west Birmingham, or from a partner site.

Who used and benefited from our services

Our objects and some of our funding limit the services we provide to the residents in Worcestershire, Birmingham, Warwickshire and other areas. The Covid-19 pandemic meant that almost all of those who were homeless at the time were provided with temporary accommodation through the Government’s ‘Everyone In’ initiative, which reduced the number of referrals for household items received, however at the same time, the lockdowns imposed on the nation, meant that the number of individuals and families requiring assistance with food increased. All of our referral services are provided free of charge to the recipients.

Equal access to our services is an important issue for us. We believe equal access is vital and that successful outcomes must be shared by all communities that use our services. We currently monitor those accessing our services by gender, disability and ethnicity. Over the next year we will be using the information we gather to develop marketing and fundraising strategies.

The impact of our work goes beyond those directly helped. The provision of furniture (shelter) and food is considered to be a basic requirement within Maslow’s Hierarchy of Need pyramid and consequently without them individuals and families are unable to participate even at a basic level in their community. In addition the lack of these basic needs lead to both short and long-term consequences. A tired child (due to lack of a bed) can become disruptive in a classroom not only affecting their own education but that of their peers.

2

NewStarts (Registered number: 06809593)

Report of the Trustees (including Directors’ Report)

for the year ended 31 March 2021

Furniture Bank

The furniture bank provides a range of pre-loved household items at no cost, to individuals and families that have no other way of furnishing their homes, either as a new tenant or indeed if they are an existing tenant.

In 2020/21 we provided 171 households with household items, a decrease of 294 (64%) on the previous year, however still a remarkable achievement during the period, when multiple restrictions were placed on operations, due to the pandemic.

The bar charts below show the breakdown of referrals, with Fig 1 showing the distribution of furniture provision in numbers across north Worcestershire and Birmingham, and Fig 2 showing the distribution by provision in weight of goods provided across north Worcestershire and Birmingham. The referrals provided to north Worcestershire residents tend to be much larger than those provided to Birmingham residents and will often comprise sufficient furniture to furnish a three-bedroomed house.

----- Start of picture text -----
% of Referrals.
Birmingham 62
Worcestershire 38
0 20 40 60 80
----- End of picture text -----

Fig 1

Weight of Goods provided (%)

----- Start of picture text -----
Birmingham
Worcestershire
0 10 20 30 40 50 60
Fig 2
----- End of picture text -----

3

NewStarts (Registered number: 06809593)

Report of the Trustees (including Directors’ Report) for the year ended 31 March 2021

Food parcels

During 2020/21 year the food bank provided 3,801 food parcels the equivalent of 230,000 meals. This is an increase of 3,279 (728%) on the previous year, due entirely to the Covid-19 pandemic. During the main lockdown we suspended the need for a ‘referral’ and provided seven-day parcels of food, which included fresh meat, vegetables, fruit, butter, bread, cheese. The provision of fresh items continued until October 2021, when, due to a return to a more normal way of living and the reduced levels of funding Cate— for this area of work, we decided that whilst all other fresh produce would continue, the provision of fresh meat would no longer continue. We are iat V grateful to all the businesses, individuals and grant providers who have made this momentous achievement possible.

Case Study

Alan is a young man, with a young family. Just before the pandemic he began his own business and whilst it wasn’t making much, it was bringing in money to support his partner and children. The lockdown meant he couldn’t carry on the work, leaving him struggling to afford food and not entitled to any of the government support other than Universal Credit. We were able to provide him with emergency food parcels and Christmas presents, until he was able to start working again.

Social Enterprise

NewStarts operates three successful social enterprises. Two of these sell pre-loved furniture at affordable prices, one operates from our headquarters in Bromsgrove, Worcestershire and the other from our satellite site in New Frankley, Birmingham. In this last year the income from these two social enterprises, including collection donations and house clearances, amounted to 22% of our overall income.

Our third social enterprise involves the refurbishing and selling of computers. These are collected from a variety of sources and our team are then able to refurbish them so that they can be sold on at affordable prices. Many are needed for low-income families to gain entry to employment opportunities. This work produced an additional 8% of our income in 20/21.

During the pandemic two of our three enterprises were closed, being Bromsgrove furniture for six months and New Frankley furniture for 11 months. Both of these were due to a combination of legislation and the need to keep the food bank operating in the case of New Frankley. The computers remained open and ran a click-and-collect service which was very successful, and such income increased by 40%.

We also have contracts with both County and District councils that provide a total of 50% of our overall income. We would like to increase this percentage, and we are constantly reviewing our operations in order to maximise the income from our social enterprises.

4

NewStarts (Registered number: 06809593)

Report of the Trustees (including Directors’ Report) for the year ended 31 March 2021

Volunteering

During the pandemic, much of our volunteering programme was suspended, however we were able to recruit volunteer delivery drivers, in order to deliver food parcels. As we have opened, some but not all of our pre-pandemic volunteers have returned. Over the year we have worked with 30 new volunteers. We are currently recruiting volunteers, but this is taking some time.

Environmental Impact

We are pleased to say that in 2020/21 we diverted 70 tonnes of household items from landfill (less than previous years, however this is due to the Covid pandemic), a saving of 23.5 tonnes of CO2 emissions. We are currently working on the calculations to understand our own carbon footprint and will be working towards ensuring that we are at least carbon neutral over the next few years.

----- Start of picture text -----
70 tonnes
----- End of picture text -----

----- Start of picture text -----
23.5 tonnes
----- End of picture text -----

COVID-19 Response

As has been mentioned previously in this report, the performance of the organization was heavily affected by the Covid-19 pandemic. From April 20 through to January 21 the Board of Trustees met on a weekly and then fortnightly basis with the Chief Executive. From January the Board reverted to bi-monthly meetings.

The financial impact of the pandemic has been significant, with reduced income from our social enterprises, but significantly increased income from grants, much of which was for the purchase of emergency food. During the pandemic we furloughed two members of staff, initially for three months and then one of them for a further three months during the second major lockdown. The furloughs were undertaken in order to protect the staff concerned.

Whilst a difficult time, the pandemic had been very positive for the organisation. We have been able to take on the role as a lead organisation on a number of projects in the communities within which we work, which has enabled us to:

Last but by no means least, our staff and volunteers accomplished more than we could ever have imagined during the past year and we are immensely grateful for all their hard work and commitment.

5

NewStarts (Registered number: 06809593)

Report of the Trustees (including Directors’ Report)

for the year ended 31 March 2021

Key risks and Uncertainties

The key risks and uncertainties that NewStarts faces are:

The Board of Trustees maintain an organisational risk register which identifies the risks and provides mitigation to reduce the likelihood and impact of the risks identified.

The Board of Trustees is developing a robust financial strategy supported by a digital strategy to ensure that sufficient income is available to maintain services. In addition expenditure is monitored on a monthly basis to ensure that best value for money is achieved.

Further restrictions or ‘lockdowns’ that require non-essential retailers to close would have a significant impact on the income of the organisation.

Future Plans

The Board of Trustees have been in the process of recruiting new Trustees, and will then be developing a new Strategic Plan to take forward the objects of the charity. Currently the organisation is working closely with Worcestershire County Council to imbed Asset Based Community Development in the Bromsgrove Area and will continue with this work which empowers local communities to develop their own solutions.

In addition to the new Strategic Plan the Board of Trustees will be working closely with the Executive team and volunteers to identify how services can be improved and which new services and opportunities NewStarts may be able to develop.

6

NewStarts (Registered number: 06809593)

Report of the Trustees (including Directors’ Report) for the year ended 31 March 2021

FINANCIAL REVIEW

OVERVIEW

Income

Operating activities: our main operating income (i.e. before grants and donations) decreased by 32% on last year to reach £148,568. This income is vital in helping to off-set our ever increasing running costs as we continue to expand our activities in countering poverty. The decrease of £69,139 is purely as a result of the Covid-19 pandemic and the resulting restrictions placed on non-essential premises.

Donations and Legacies: this vital income source increased by 391% in 20/21 to £476,294. This increase was almost wholly due to the increased grants for food and COVID recovery.

Expenditure

Our costs rose by £192,506 to £504,134. The increase in expenditure was mostly due to the increased spend on food for the emergency food parcels, including fresh items. In addition the Board of Trustees decided in July 2020 to commit to becoming Real Living Wage employers, as part of the organisation’s commitment to end poverty; this increased the salaries of those on National Minimum Wage and all other staff were given commensurate pay increases.

Year End Outcome

The net effect of income over expenditure resulted in our incurring a net surplus of £120,728 for the year (2020: surplus £3,035). It should be noted that the surplus includes a non-cash depreciation charge of £14,164. If these results are adjusted to show our true operating performance (i.e. excluding non-cash items) then 2021 would reveal an operating surplus of £134,892, and 2020 a surplus of £16,839. The substantial difference between the two years is due entirely to the increase in grant income.

Cash Flow

In cash flow terms our net bank balance at 31 March 2021 was £207,694 (2020: £65,643) which reflects an increase in funds from last year by £142,051. The increase, as mentioned above, is due to the much higher levels of grant funding received throughout the year.

7

NewStarts (Registered number: 06809593) Report of the Trustees (including Directors’ Report) for the year ended 31 March 2021

Principal funding sources

NewStarts' business model is a social enterprise charitable company that receives funding from various sources. The main funding categories shown in Fig 3 totalling £624,862 are:

----- Start of picture text -----
Principal funding sources %
Grants
Sales
Service Level Agreements
Delivery & Collections
Landfill Credits
0 20 40 60 80 100
Fig 3
Principal expenditure
Principal expenditure %
Salaries
Volunteer & Food Bank
Premises
Transport, Warehousing
Other Overheads
Raising Funds
0% 10% 20% 30% 40% 50%
Fig 4
----- End of picture text -----

The main categories of expenditure, shown in Fig 4 totalling £504,134 are:

8

NewStarts (Registered number: 06809593)

Report of the Trustees (including Directors’ Report) for the year ended 31 March 2021

Donations and Legacies

These amounted to £476,294 (2020: £96,956) from the following sources:

Restricted income and expenditure

Included in the above note "Donations and Legacies" are certain grants and funding that come to NewStarts with restrictions as to their use, amounting to £430,581 (2020: £87,720). NewStarts does not have discretion over how restricted funds are used other than for the nominated purpose.

A total of £335,101 (2020: £65,362) was spent as restricted expenditure against the total restricted funds of £488,108, restricted funds being carried forward are £153,007 to next year. Major restricted expenditures in the year were (1) purchase of food for our emergency food service (2) salaries

Investment policy

Most of the charity's cash resources are spent on a short-term basis. This means that NewStarts is not able to place cash on interest earning deposits without unacceptable notice periods or unavoidably low interest rates. The charity continues to review its investment policies so as to ensure that as far as possible it maximises its cash position.

Reserves policy

The Trustees have maintained their policy whereby the unrestricted funds held by the charity should aim to cover up to 3 months operating expenditure. As our unrestricted reserves at March 2021 were £41,227 (2020: £16,750), which is still short of this target, we are at present likely to remain below our required reserve levels. Accordingly the longer term strategy is to continue to build reserves whenever this is possible. Restricted reserves were £153,007 (2020: £56,756). Further details are provided in Note 18.

9

NewStarts (Registered number: 06809593)

Report of the Trustees (including Directors’ Report) for the year ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governance and management

NewStarts is an independent charity, registered on 8 March 2009, having been incorporated as a limited company by guarantee on 4 February 2009. It commenced trading in this format on 1 April 2009 (Charity registration number 1128541). The charity is controlled by its governing document, Memorandum and Articles of Association

Recruitment, appointment and induction of new trustees

The Board of Trustees may at any time appoint persons willing to act as Trustee, and Trustees are normally drawn from experienced charitable or business backgrounds. The induction of new Trustees is conducted on a one-to-one basis. Any training needs are identified and input is scheduled as soon as appropriate.

Decision making

The trustees delegate day to day management of the charity to M Kenyon (the chief executive) and relevant staff who are accountable to the Trustees.

Responsibilities of trustees

Trustees are expected to take a close interest in the operations and outcomes of the charity, and to meet regularly to review the business of the charity. The main responsibilities of the board of Trustees are:

  1. To ensure the charity is carrying out its purposes for the public benefit

  2. To comply with the charity’s governing document and the law

  3. To act in charity’s best interests

  4. To manage the charity’s resources responsibly

  5. To act with reasonable care and skill

  6. To ensure accountability within the charity, as well as when responsibility is delegated to staff or volunteers

  7. To comply with the Statutory Accounting and Reporting requirements

10

NewStarts (Registered number: 06809593)

Report of the Trustees (including Directors’ Report) for the year ended 31 March 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number 06809593 (England and Wales)

Registered Charity number 1128541

Registered office

1 Sherwood Road Aston Fields Bromsgrove Worcestershire B60 3DR

Trustees Philip Bamber (Chair) – resigned 16.09.21 Matt Bonham – joined 16.11.21 Linda Cooke Therese Down – joined 16.11.21 Rev David Ford – resigned 24.03.21 John Grundy Stuart Hood – joined 16.11.21 Nicola Martin Sarah Reece-Mills – joined 16.11.21 Edward Stott

Key Personnel

 Marion Kenyon – Chief Executive Officer  Andrew Pain – HR & Development Manager

Independent Examiner Solicitors Beyond Profit Limited Thomas Horton LLP Bolton Arena Strand House Arena Approach 70 The Strand Horwich Bromsgrove Bolton Worcestershire BL6 6LB B61 8DQ Accountants Bankers Be Buoyant Limited Barclays Bank Reinsbrook 118 High Street Sambourne Park Bromsgrove Sambourne Worcestershire B96 6PE B61 8ET

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies

11

Newstarts IRe8lstered number". 068095931 RepDrt of the Trnitees (Én¢ludillg Dlrectors. Report) for theye•r ended 31 2021 ststement oftrustee< respmsknllltles The trustees, who are also the dlrectors of Newstsrts for the purpose of company law. are responsible for preparing the Annual Trustees. Report and the financial statements In accordance wlth applicable law and Unlted Kingdom Accounting Standards (United Klngdom Generally Accepted Accounting Prarticel. Company Law requires the Trustee5 to prepare financial statements for each flnancial year which give true and fair view of the stste of affairs of the charlty and ol the incornlng resources and application of resourtes, Including the income and expenditure, of the charitsble company for that year. In preparing these flnanclal ststements. the Trustees are requlred to: select suitsble accounting policies and then apply them consistently* observe the methods and p￿ncipleS In the Charitles SORP,. Make judgements and estlmates that are reasonable and prudent; stste whether appllcable UK Accountlng Standards have been followed, subjert to any materlal dePa￿re$ dlsclosed and explalned in the flnancial ststements,. and prepare the financlal statements on the going concem basls unless It Is Inappropdate to presume that the charity will Continue In operatlon. The Trustees are reS￿nSIble for keepln8 adequate accounting records that dlsclose wlth reasonable accuracy at any time the flnancial posltlon of the charity and enable them to ensure that the financial statements compty with the Companles Act 2006. They are also responslble for safeguarding the a55ets of the charlty and hence for tak1￿ reasonable steps for the prevention and detection of fraud and other Irregularlties. Approved by order of the board of trustees on . behalf by: and slgned on Its Edward Stott - Trustee 12

Independent examlnerfs report to the trustees of Newstarts for the year ended 31 March 2021 I report to the chadty trustees on my examlnatlon of the accounts of the company for the year ended 31 March 2021 whlch are set out on pages 14 to 32. Resp<￿51b11ft1M •nd basls of report As the charfty trustees of the company land also Its dlrectors for the purposes of company lawl you are responslble for the preparatlon of the accounts In a¢cordance wlth the requlrements of the Companies Act 2LYJ6 (the 2L))6 A¢tl. Havlnl satlsfled myself that the accounts of the company are not requlred to be audlted under Part 16 of the 20CO Act and are ellglble for Independent examlnatlon, I report In respect of my examlnatSon of your company's •ccounts as carded out under sectlon 145 of the Charttles Act 20111'the 2011 ACYI. In carryln8 Out my examlnatlon I have followed the Dlrectlons glven by the chartty Comm1s51on under sectlon 14515llbl of the 2011 Act. Independent examlner's statement Sln¢e the ¢omp•ny's gross In￿me exceeded £250,000 your examlner must be a member ot a body Ilsted In sertlon 145 of the 2011 Art. I conflrm that l am quallfled to undertake the examlnatlon because l am a member of the Chartered Instltute of Management Aecountsnts. I have completed my examlnatlon. I conflrm that no matters have come to my attentlon In eonnectlon wtth the examlnJtlon glvlng me cause to belleve: a¢¢ountlng records were not kept In respect of the cornpany as requlred by stttlon 386 of the 2006 Act; or the accounts do not accord wlth those records: or the acwunts do not comply wlth the accountlng requlrements of sertlon 396 of the 2006 A¢t other than any requlrement that the accounts glve a 'true and falr vleW whlch Is not a matter consldered as part of •n Independent examlnatlon; or the accounts have not been prepared In accordan￿ w5th the methods and prlnclple5 of the ststement of Recommended Prdctlce for accountln8 and reportln8 by charltles appllcable to charltles prepjrlng thelr accounts In accordance wlth the Flnanclal Reportln8 Standard appllcable In the UK •nd Republ1¢ of Ireland IFRS 1021. I have no cmcerns •nd h•ve come across no other matters In conne¢tlon wlth the examlnatlon to whlch attentlon should be dr•wn In thls report In order to enable a proper under5tsndlrq ol the 4c¢ounts to be reached. Emma Vllllder, FCMI CGMA, CG{Afflllated) Beyond Profit Ltd. G104 Bolton Aren•, Ar•n• Approach. Hop•vlch, Bolton, BL6 6LB Oats: 17 December 2021 13

NewStarts

Statement of Financial Activities

(incorporating an Income and Expenditure Account) for the year ended 31 March 2021

Unrestricted
Note
2021
£
INCOME FROM:
Donations and legacies
2
45,713
Charitable activities
3
148,568
TOTAL INCOME
194,281
EXPENDITURE ON:
Raising funds
4
1,869
Charitable activities
5
167,164
Other
TOTAL EXPENDITURE
169,033
NET INCOME/(EXPENDITURE)
25,248
Transfer between funds
(771)
NET MOVEMENT IN FUNDS
24,477
Fund balances brought forward
16,750
TOTAL FUNDS CARRIED FORWARD
41,227		 Unrestricted
Note
2021
£
INCOME FROM:
Donations and legacies
2
45,713
Charitable activities
3
148,568
TOTAL INCOME
194,281
EXPENDITURE ON:
Raising funds
4
1,869
Charitable activities
5
167,164
Other
TOTAL EXPENDITURE
169,033
NET INCOME/(EXPENDITURE)
25,248
Transfer between funds
(771)
NET MOVEMENT IN FUNDS
24,477
Fund balances brought forward
16,750
TOTAL FUNDS CARRIED FORWARD
41,227		 Restricted
2021
£
430,581
-		 TOTALUnrestricted
2021
2020
£
£
476,294
9,236
148,568
217,707
624,862
226,943
19,473
879
484,661
245,296
-
91
504,134
246,266
120,728
(19,323)
-
-
120,728
(19,323)
73,506
36,073
194,234
16,750		 TOTALUnrestricted
2021
2020
£
£
476,294
9,236
148,568
217,707
624,862
226,943
19,473
879
484,661
245,296
-
91
504,134
246,266
120,728
(19,323)
-
-
120,728
(19,323)
73,506
36,073
194,234
16,750		 Restricted
TOTAL
2020
2020
£
£
87,720
96,956
-
217,707
87,720
314,663
8,895
9,774
56,467
301,763
-
91
65,362
311,628
22,358
3,035
-
-
22,358
3,035
34,398
70,471
56,756
73,506
194,281 430,581 624,862 226,943
1,869
167,164		 17,604
317,497		 19,473
484,661
-		 879
245,296
91
169,033 335,101 504,134 246,266
25,248
(771)		 95,480
771		 120,728
-		 (19,323)
-
24,477
16,750		 96,251
56,756		 120,728
73,506		 (19,323)
36,073
41,227 153,007 194,234 16,750

The statement of financial activities includes all gains and losses recognised during the year

All income and expenditure derive from continuing activities.

14

Newstarts Ifteilstwed number: 068095931 Balance Sheet A8 at 3J March 2021 Notes 2020 AXED ASSETS Tangible assets io 359.651 372,736 CURRENT ASSErs Debtors Cash at bank and In hand li 17,591 207.694 10,754 65.643 125,285 76,397 CREIXTORS . amounts falling due wlthin otR year 12 145,0ts) 123.1321 NEf CURRENT ASSETS 180,270 53,265 TOTAL ASSETS LESS CURRENT LIA8ILITIES 539,921 426,C(Jl CREDITORS . amounts falllng due after one year 13 1345,6871 13S2,4951 194,234 73,S06 FUNDS Unrestricted Restricted 41,227 153,007 16.750 56,756 18 TOTAL FUNOS 194.234 73,506 The cornpany was entltled to exemptlon from aud￿ under 5477 of the Companle5 Act 21)J6 relat1￿ to Small companbes Ixrt as thls company Is a charlty, ￿ Is subject to Independent examlnation under the Charities Act 2011. The members have not requlred the company to obtain an audit In accordance wlth sectlon 476 of the Companles kt 2(rf)6. The dlrectors acknowledge thelr responslbllltles for complylng wlth the requlremenls of the Companles kt wlth respect to accountln8 records and the preparation of accourts. These accounts have been wepared in accordance wlth the provlsions applicable to small companies subjert to the Small companies rtyme and in accordance wlth SORP FRSIO2. The flnan¢lal statements were approved and authorised for Issue by the Board on date behaff by: 16144 d s18r￿d on it5 E J STorr L COOKE Trnst 15

NewStarts

Statement of Cashflows for the year ended 31 March 2021

Notes
CASH INFLOW FROM OPERATING ACTIVITIES
16
CASH FLOW FROM INVESTING ACTIVITIES
Payment to acquire tangible fixed assets
CASH OUTFLOWS FROM FINANCING ACTIVITIES
Bank loan repayment
Bank interest paid
NET CASH OUTFLOW FROM INVESTING ACTIVITIES
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT THE START OF PERIOD
CASH AND CASH EQUIVALENTS AT THE END OF PERIOD
CASH AND CASH EQUIVALENTS CONSISTS OF:
Cash at bank and in hand		 2021
2020
£
£
167,747
43,994
(1,079)
(10,427)
(5,709)
(8,999)
(18,908)
(23,206)
(25,696)
(42,632)
142,051
1,362
65,643
64,281
207,694
65,643
207,694
65,643

16

NewStarts

Notes to the financial statements for the year ended 31 March 2021

1. ACCOUNTING POLICIES

Basis of Preparing Financial Statements

The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019 (SORP FRS102), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice that is SORP FRS102.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each significant restricted fund is set out in the notes to the financial statements.

Income recognition

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. The following specific polices apply:

(a) Voluntary income by way of donations and grants is included in full in the Statement of Financial Activities when it is receivable.

(b) Items donated and sold through the charity's shop are included as incoming resources within activities for generating funds when they are sold.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees’ Annual Report.

17

NewStarts

Notes to the financial statements for the year ended 31 March 2021

1. ACCOUNTING POLICIES (continued)

Expenditure recognition

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 costs 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 the resources.

Governance Costs

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity.

Offsetting

There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the SORP FRS102 or FRS 102.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold land is not depreciated Freehold land is not depreciated
Freehold buildings 2% on cost
Improvement to property 20% on cost
Plant & Machinery 33% on cost
Motor Vehicles 33% on cost
Computer Equipment 33% on cost

The minimum thresholds for capitalisation are: Land, Buildings and Improvements - £5,000

Plant and Machinery, Motor Vehicles and Computer Equipment - £1,000

18

NewStarts

Notes to the financial statements for the year ended 31 March 2021

1. ACCOUNTING POLICIES (continued)

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the SOFA unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Pension costs and other post retirement benefits

The charity operates a defined contribution pension scheme. Contributions payable to the pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Tax

The charity is exempt from corporation tax on its charitable activities. It is also relieved from VAT registration on its sale of goods, as all such sales are based on goods freely donated.

Debtors and Creditors

Debtors are measured at the undiscounted amount of cash receivable. Creditors are measured at the undiscounted amount of cash payable.

Critical accounting estimates and judgements

In the application of the charitable company's accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical evidence and experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Going concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

19

NewStarts

Notes to the financial statements for the year ended 31 March 2021

2. DONATIONS AND LEGACIES

Unrestricted
Restricted
2021
2021
£
£
Donations
25,329
12,158
Grants
20,384
418,423
45,713
430,581
Analysis of Government grants included above:
HMRC CJRS
15,884
Awards for All Lottery
10,000
Birmingham City Council
10,000
Bromsgrove District Council
48,436
DEFRA
41,000
Worcestershire County Council
5,000
15,884
114,436		 Unrestricted
Restricted
2021
2021
£
£
Donations
25,329
12,158
Grants
20,384
418,423
45,713
430,581
Analysis of Government grants included above:
HMRC CJRS
15,884
Awards for All Lottery
10,000
Birmingham City Council
10,000
Bromsgrove District Council
48,436
DEFRA
41,000
Worcestershire County Council
5,000
15,884
114,436		 Restricted
2021
£
12,158
418,423		 TOTALUnrestricted
2021
2020
£
£
37,487
8,786
438,807
450
476,294
9,236
15,884
-
10,000
10,000
48,436
41,000
5,000
130,320
-		 TOTALUnrestricted
2021
2020
£
£
37,487
8,786
438,807
450
476,294
9,236
15,884
-
10,000
10,000
48,436
41,000
5,000
130,320
-		 Restricted
TOTAL
2020
2020
£
£
1,670
10,456
86,050
86,500
87,720
96,956
-
5,000
5,000
-
-
5,000
5,000
45,713 430,581 476,294 9,236
15,884
10,000
10,000
48,436
41,000
5,000		 -
15,884 114,436 130,320 -

3. CHARITABLE ACTIVITIES

Unrestricted
2021
£
Display room income
77,493
Landfill re-use credits
3,678
IT income
43,510
Collection & delivery donations
6,037
Service level agreements
17,500
Gift aid tax
350
148,568		 Unrestricted
2021
£
Display room income
77,493
Landfill re-use credits
3,678
IT income
43,510
Collection & delivery donations
6,037
Service level agreements
17,500
Gift aid tax
350
148,568		 Restricted
2021
£
-
-
-
-
-
-		 TOTALUnrestricted
2021
2020
£
£
77,493
150,498
3,678
7,843
43,510
33,481
6,037
8,667
17,500
17,000
350
218
148,568
217,707		 TOTALUnrestricted
2021
2020
£
£
77,493
150,498
3,678
7,843
43,510
33,481
6,037
8,667
17,500
17,000
350
218
148,568
217,707		 Restricted
TOTAL
2020
2020
£
£
-
150,498
-
7,843
-
33,481
-
8,667
-
17,000
-
218
-
217,707
148,568 - 148,568 217,707

20

NewStarts

Notes to the financial statements for the year ended 31 March 2021

4. RAISING FUNDS

Unrestricted
Basis of
2021
Allocation
£
Staff Costs
Time based
1,746
Overheads
Usage
123
Support costs
1,869		 Unrestricted
Basis of
2021
Allocation
£
Staff Costs
Time based
1,746
Overheads
Usage
123
Support costs
1,869		 Restricted
2021
£
16,443
1,161		 TOTALUnrestricted
2021
2020
£
£
18,189
769
1,284
110
19,473
879		 TOTALUnrestricted
2021
2020
£
£
18,189
769
1,284
110
19,473
879		 Restricted
TOTAL
2020
2020
£
£
7,789
8,558
1,106
1,216
8,895
9,774
1,869 17,604 19,473 879

5. CHARITABLE ACTIVITIES

Note
Staff costs
9
Time based
Premises
Usage
Office costs
Usage
Repairs and maintenance
Direct
Provision of welfare
Direct
Motor and travel
Direct
Professional & Insurance
Usage
Advertising
Direct
Waste disposal
Direct
Other costs
Direct
Bank interest
Usage
Depreciation
6
Direct
Governance costs
7
Direct
TOTAL EXPENDITURE
Unrestricted funds
Restricted funds
Basis of
Allocation		 Total
Total
2021
2020
£
£
197,440
176,188
17,974
13,816
10,327
10,356
12,441
7,417
172,841
8,549
17,596
19,853
10,967
12,663
1,997
2,177
8,269
4,846
1,726
4,780
18,379
22,532
14,164
13,804
484,121
296,981
540
4,782
484,661
301,763
167,164
245,296
317,497
56,467
484,661
301,763

21

NewStarts

Notes to the financial statements for the year ended 31 March 2021

6. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging

2021 2020
£ £
Depreciation - owned assets 14,164 13,804

7. FEES FOR EXAMINATION OF THE ACCOUNTS

Independent examination for the year was £540 (2020: £4,782).

8. TRUSTEES' REMUNERATION AND EXPENSES

The trustees neither received nor waived any remuneration during the year (2020: £Nil).

The trustees did not have any personal expenses reimbursed during the year (2020: £Nil)

The trustees have indemnity cover.

22

NewStarts

Notes to the financial statements for the year ended 31 March 2021

9. STAFF COSTS AND KEY MANAGEMENT PERSONNEL

Wages and salaries
Social security costs
Pension costs
The average number of employees during the year was as follows:
Chief Executive
Staff managers
Operational and administrative staff		 2021
2020
£
£
199,449
171,264
10,748
8,705
5,432
4,777
215,629
184,746
2021
2020
Number
Number
1
1
5
4
5
5
11
10

No employee received total employee benefits (excluding employer pension costs) of more than £60,000.

The charity operates a defined contribution plan for the benefit of its employees.

During the year the total paid to key management was £56,074 (2020: £48,493)

23

NewStarts

Notes to the financial statements for the year ended 31 March 2021

10. TANGIBLE FIXED ASSETS

Cost :
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation :
At 1 April 2020
Charge for the year
Disposals
At 31 March 2021
NBV at 31 March 2021
NBV at 31 March 2020		 Freehold Improvements
Plant &
Property
to Property
Machinery
£
£
£
387,127
13,620
14,124
-
-
1,079
-
-
-
387,127
13,620
15,203
25,834
13,620
7,894
5,476
-
3,475
-
-
-
31,310
13,620
11,369
355,817
-
3,834
361,293
-
6,230		 Freehold Improvements
Plant &
Property
to Property
Machinery
£
£
£
387,127
13,620
14,124
-
-
1,079
-
-
-
387,127
13,620
15,203
25,834
13,620
7,894
5,476
-
3,475
-
-
-
31,310
13,620
11,369
355,817
-
3,834
361,293
-
6,230		 Freehold Improvements
Plant &
Property
to Property
Machinery
£
£
£
387,127
13,620
14,124
-
-
1,079
-
-
-
387,127
13,620
15,203
25,834
13,620
7,894
5,476
-
3,475
-
-
-
31,310
13,620
11,369
355,817
-
3,834
361,293
-
6,230		 Motor
Vehicles
£
38,925
-
-		 Computer
Equipment
Total
£
£
4,203
457,999
-
1,079
-
-
4,203
459,078
4,203
85,263
-
14,164
-
-
4,203
99,427
-
359,651
-
372,736
387,127 13,620 15,203 38,925
25,834
5,476
-		 13,620
-
-		 7,894
3,475
-		 33,712
5,213
-
31,310 13,620 11,369 38,925
355,817 - 3,834 -
361,293 - 6,230 5,213

Net book value at 31 March 2021 represents fixed assets used for charitable purposes.

11. DEBTORS

Trade debtors
Reserve service level agreements
Other debtors
Rent deposit
Reserve gift aid
Prepayments		 2021
2020
£
£
2,250
-
-
2,500
2,876
1,729
1,875
1,875
550
200
10,040
4,450
17,591
10,754

24

NewStarts

Notes to the financial statements for the year ended 31 March 2021

12.
Bank loans and overdrafts (see note 14)
Trade creditors
Social security and other taxes
Other creditors
Accruals
CREDITORS : Amounts falling due within one year
13.
Bank loans (see note 14)
CREDITORS : Amounts falling due after more than one year
14.
An analysis of the maturity of the loans is given below:
Amounts falling due within one year on demand:
Bank loans
Amounts falling due between one and two years:
Bank loans
Amounts falling due between two and five years:
Bank loans
Amounts falling due in more than five years:
Bank loans
BANK LOANS		 2021
£
10,682
6,323
8,196
777
19,037
45,015
2021
£
345,687
2021
£
10,682
114,725
27,311
203,651		 2020
£
9,583
1,868
2,622
777
8,282
23,132
2020
£
352,495
2020
£
9,583
10,204
129,682
212,609

25

NewStarts

Notes to the financial statements for the year ended 31 March 2021

15. SECURED DEBTS

The following secured debts are included within creditors

2021 2020
£ £
Bank loans 356,369 362,078

The Charity Bank Limited hold a charge over the company which covers the freehold property. Big Issue Invest hold a charge over the company which covers the freehold property.

The Big Issue Invest loans, with carrying values of £109,416 at the year end, were refinanced in September 2021 with a grant award, improved interest rates and the repayment term extended to March 2022.

16. NET CASH INFLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the year
Bank Interest payable
Depreciation and impairment of tangible fixed assets
(Increase)/decrease in debtors
Increase/(decrease) in creditors		 2021
2020
£
£
120,728
3,035
18,908
23,206
14,164
13,804
(6,837)
7,829
20,784
(3,880)
167,747
43,994

26

NewStarts

Notes to the financial statements for the year ended 31 March 2021

17. MOVEMENT IN FUNDS

Unrestricted Funds
Restricted Funds
Total Funds		 Balance at
Incoming
Resources
Balance at
Incoming
Resources
Balance at
1 April 2019
Resources
Expended
Transfers
1 April 2020 Resources
Expended
Transfers
31 March 2021
£
£
£
£
£
£
£
£
£
36,073
226,943
(246,266)
-
16,750
194,281
(169,033)
(771)
41,227
34,398
87,720
(65,362)
-
56,756
430,581
(335,101)
771
153,007
70,471
314,663
(311,628)
-
73,506
624,862
(504,134)
-
194,234

18. RESTRICTED FUNDS

The income funds of the charity include restricted funds comprising of the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at Incoming Resources Balance at Incoming Resources Balance at
1 April 2019 Resources Expended Transfers 1 April 2020 Resources Expended Transfers 31 March 2021
£ £ £ £ £ £ £ £ £
Access Reach 8,100 - (8,100) - - - - -
-
Albert Hunt Trust - 5,000 - 5,000 - (468) -
4,532
Alfred Haines - - - - - 1,000 (238) -
762
Awards for All - - - - - 10,000 - -
10,000
B&M Food - - - - - 1,500 (1,018) -
482
BARN Lottery - - - - - 93,748 (93,748) -
-
Big Issue - - - - - 30,000 (30,000) -
-
Birmingham City Council - 5,000 (4,999) (1) - 10,000 (7,781) -
2,219
Bromsgrove District Council - - - - - 48,436 (20,436) -
28,000
Camonets - - - - - 3,000 (3,000) -
-
Charity Aid Foundation - - - - - 70,000 (3,780) -
66,220
Co-operative - - - - - 1,803 (1,803) -
-

27

NewStarts

Notes to the financial statements for the year ended 31 March 2021

18. RESTRICTED FUNDS (cont'd) Balance at Incoming Resources Balance at Balance at Incoming Resources Balance at
1 April 2019 Resources Expended Transfers 1 April 2020 Resources Expended Transfers 31 March 2021
£ £ £ £ £ £ £ £ £
DEFRA - - - - - 41,000 (41,000) - -
DMF Ellis - - - - - 5,000 (5,000) - -
Diamond NM - - - - - 1,000 (1,000) - -
Didymus - 4,000 - - 4,000 - - - 4,000
Easter Egg Fund - - - - - 593 (593) - -
Garfield Weston Foundation - 15,000 - - 15,000 - (15,000) - -
George Henry Collins Charity - 2,000 (1,583) - 417 - (417) - -
GJW Turner - 3,000 (3,636) 636 - - - - -
Grimley Charity - 1,000 - - 1,000 - (1,003) 3 -
Grimmitt Trust - - - - - 2,500 (492) - 2,008
Groundwork UK - - - - - 500 (500) - -
Heart of England - - - - - 22,500 (8,531) - 13,969
Heart of England DTD - - - - - 12,000 (12,000) - -
Henry Smith Charity - 25,000 (23,344) - 1,656 25,000 (28,059) 1,403 -
Joseph & Henry James Sawyer Charities - 1,000 (993) (7) - - - - -
IFAN - - - - 100 (100) - -
Lasletts - 3,000 - - 3,000 - (66) - 2,934
Longbridge Going Forward 4,950 (4,950) - - - - - - -
Lord Austin Trust - 1,000 (716) - 284 - (269) (15) -
MIS Computers - - - - - 1,000 (1,000) -
Michell Marsh Trust 5,267 - (5,267) - - - - - -
Peoples' Postcode Lottery - 20,000 - - 20,000 - (17,777) - 2,223
Roger & Douglas Turner - 3,000 - - 3,000 - (1,868) - 1,132

28

NewStarts

Notes to the financial statements for the year ended 31 March 2021

18.
RESTRICTED FUNDS (cont'd)
Rowlands
Serco Foundation
Severn Trent Water
The February Fund
The Montal Charitable Trust
WCC Foodbank
William Cadbury Trust
Woodroffe & Benton
Worcestershire Community Fund
WRAP
Other restricted funds
Restricted Fund Balances		 Balance at
Incoming
Resources
Balance at
Incoming
Resources
Balance at
1 April 2019
Resources
Expended
Transfers
1 April 2020 Resources
Expended
Transfers 31 March 2021
£
£
£
£
£
£
£
£
£
3,000
(3,511)
511
-
-
-
-
-
-
-
-
-
-
1,000
(1,000)
-
-
-
-
-
-
-
7,000
(5,971)
-
1,029
-
-
-
-
-
5,000
-
-
5,000
-
-
-
-
-
5,000
-
-
5,000
-
-
-
-
-
5,000
(1,999)
-
3,001
-
2,500
(1,875)
-
625
-
(557)
(68)
-
-
500
(555)
55
-
-
-
-
-
-
-
-
-
14,508
(14,012)
-
496
-
-
-
-
-
8,758
(8,758)
-
-
13,081
1,670
(10,783)
(1,194)
2,774
3,635
(5,857)
(552)
-
34,398
87,720
(65,362)
-
56,756
430,581
(335,101)
771
153,007

29

NewStarts

Notes to the financial statements for the year ended 31 March 2021

18. RESTRICTED FUNDS (cont'd)

Funders in excess of £20,000 Description of Funding BARN Lottery Funding for food parcels, fridges and core costs Big Issue Funding for staff salary costs Bromsgrove District Council (BDC) Funding towards the Community Lunch Project which will enable a community builder to be recruited to support the local community £28,000. Foodbank costs £20,436 Charity Aid Foundation Food Bank costs DEFRA Food Bank costs to be expended by 30 June 2021 Heart of England Funding to support the foodbank and for furniture supplies to families in need Henry Smith Charity Funding for staff salary costs Peoples' Postcode Lottery Expansion of New Frankley and Covid recovery costs

The following funds also directly related to the operating costs of the Food Bank:

Awards for All B&M Food Birmingham City Council Camonets Charity Aid Foundation Diamond NM MIS Computers BDC The Montal Charitable Trust WCC Foodbank Worcestershire Community Fund WRAP The following funds also directly related to the operating costs of the Volunteer Program: Albert Hunt Trust Alfred Haines DMF Ellis Didymus George Henry Collins Charity GJW Turner Grimley Charity Joseph & Henry James Sawyer Charities Roger & Douglas Turner The February Fund Core Costs grants were provided by: Grimmitt Trust Groundwork UK Henry Smith Charity IFAN Lasletts Serco Foundation Severn Trent Water William Cadbury Trust Woodroffe & Benton The following funds supported the costs of the New Frankley expansion: Garfield Weston Foundation Lord Austin Trust Michell Marsh Trust Rowlands

The following funders provided support towards business development and IT: Access Reach Co-operative (shop)

30

NewStarts

Notes to the financial statements for the year ended 31 March 2021

NEWSTARTS

18. RESTRICTED FUNDS (cont'd)

RETRICTED FUNDS BALANCE SHEET
at 31 March 2021
FIXED ASSETS
Tangible assets
CURRENT ASSETS
Debtors
Cash at bank and in hand
CREDITORS :amounts falling due
within one year
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS :amounts falling
due after one year
FUNDS
Restricted
TOTAL RESTRICTED FUNDS		 2021
2020
£
£
£
£
-
29,840
2,000
3,606
156,455
23,309
158,455
26,915
(5,448)
-
153,007
26,915
153,007
56,755
-
-
153,007
56,755
153,007
56,756
153,007
56,756
158,455
(5,448)

19. PENSIONS AND OTHER POST-RETIREMENT BENEFITS

Defined contribution pension plans

The charity operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £5,432 (2020: £4,777)

The pension liability and expense are allocated to unrestricted or restricted based upon the role of the employee that the contribution is for.

The outstanding pension contributions at the year end amounted to £777 (2020: £777).

31

NewStarts

Notes to the financial statements

for the year ended 31 March 2021

20. RELATED PARTIES

There were no related party transactions for the trustees in the year ended 31 March 2021.

The Chief Executive Officer is married to a supplier who provides PAT testing for the charitable company. The amount paid to the supplier during the year was £2,859 (2020: £4,477)

The outstanding to the supplier at the year end amounted to £171 (2020: £489).

21. ULTIMATE CONTROLLING PARTY

The charity is controlled by the trustees.

32