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2021-03-31-accounts

Company number: 3556346 Charity Number: 1132944

Annual Report and Financial Statements For the year ended 31st March 2021

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EMERGE 3Rs

Reference and administrative information

For the year ended 31 March 2021

Company number 3556346

Charity number 1132944

Registered office and operational address

Melanie Maynard House, New Smithfield Market, Manchester M11 2WJ

Trustees

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Andrew Chicken Christopher Shearlock Anthony Baldwinson Erinma Bell Michelle Duncalf Brigit Egan Fiona King Margaret Walker Ben Barnaby Shirley Jones (appointed 27 May 2020) Aileen Edmunds (appointed 17 June 2020) Robin Barnett (appointed 21 July 2020)

Company secretary

Lucy Danger

Key management personnel

Lucy Danger Chief Executive Jayrissa Thompson Finance Controller Elizabeth Lauder Volunteer & Employability Programmes Manager Miranda Kaunang Head of Development FareShare GM Derek Shelton Head of Operations FareShare GM

Bankers

The Co-operative Bank plc PO Box 101 Manchester M60 4ER

Auditors

Third Sector Accountancy Limited, Holyoake House, Hanover Street, Manchester M60 0AS

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EMERGE 3Rs

Trustees’ Annual Report for the year ended 31 March 2021

The Trustees present their report and the audited group financial statements for the year ended 31st March 2021.

Reference and administrative information set out above on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

The purposes of EMERGE 3Rs as set out in its governing document are, in summary:

Our intention in everything we do at EMERGE 3Rs is to link the activities we undertake to our legal purposes and objectives. As such, the main activities undertaken by EMERGE 3Rs in relation to the above purposes continue to be:

We work closely with our sister social enterprise to promote the real 3Rs, EMERGE Recycling Limited, who provide high quality waste recycling and confidential shredding services, governed by ISO9001 and the British Standard (BSEN15713) in Confidential Shredding, enabling businesses, schools and organisations in Manchester and the surrounding area to reduce their waste, re-use and recycle more. EMERGE Recycling Limited is a separate community benefit society.

The Trustees broadly review the aims, objectives and activities of EMERGE 3Rs each year. This document summarises what EMERGE 3Rs has achieved and its outcomes in the reporting period. The review also helps our Trustees ensure the Group’s aims, objectives and activities remain focused on its stated purposes.

The Trustees have referred to the notes contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

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EMERGE 3Rs

Trustees’ Annual Report for the year ended 31 March 2021

Vision and Values

The EMERGE 3Rs’s Vision is to be a leading charitable enterprise that, across Greater Manchester:

EMERGE 3Rs’s Values are:

  1. Integrity – we are honest and act in a decent, fair and truthful way.

  2. Respectful - we value difference and diversity and treat people respectfully; we are polite, well-mannered, considerate, obliging and attentive.

  3. Innovative - we pioneer innovative solutions; we are explorers, trail-blazers and eager to try out new ways of working.

  4. Responsible - we are accountable to our wider community, our customers and sponsors, our volunteers, staff our board and ourselves; As a social business it’s important to us to be answerable to the wider community and responsible for our actions.

  5. Change-makers - we influence social and environmental change in Greater Manchester and beyond; we seek to guide and affect positive behaviours and we want to make the world a better place.

EMERGE 3Rs seeks to tackle a number of issues through the following activities:

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EMERGE 3Rs

Trustees’ Annual Report for the year ended 31 March 2021

Achievements and performance

EMERGE’s main activities and who we work to help are described below. All of EMERGE 3Rs’ charitable activities are focused on the objectives set out in our governing documents and are undertaken to further EMERGE 3Rs’ charitable purposes for the public benefit.

Volunteering & Employability

Over the period, in spite of COVID19 we maintained our Volunteering Programme, continuing to split the work of the small staff team between recruiting, inducting, supporting and retaining volunteers, mainly for FareShare and to a far lesser extent, for Touch Wood, matching the scale of activities as far as possible. This would have been impossible without continued support from our major donor and a key Recycling account, CDL, a leading UK software firms, based in Stockport. CDL Owners very generously backed our Volunteering initiatives once more in 2021, enabling us to once again develop positive employability programmes for job-seekers and long term unemployed people including those with mental and physical health challenges. This help is hugely appreciated at a time when fundraising continues to be challenging, with our limited resources.

Volunteering

At the height of lockdown, registrations soared, however Covid guidelines forced us to operate a waiting list. Despite experiencing a year of restrictions, volunteers showed that there were no limits to their generosity in terms of giving their time and skills to help us meet the need for increased food redistribution.

Our employability programme was affected due to closures of community organisations however in linking with Manchester Refugee Support Network, we were able to provide a small skills training programme involving refugee and asylum seekers.

Alongside our work with regular volunteers, we also introduced a new project working with the Community Payback service, which has proved successful and has been well received within the service. The project averaged 16 volunteers a month, giving 1970 hours of involvement.

Later in the year, we also embarked upon a Kickstart work placement scheme and, although difficult to secure trainees, there are green shoots showing and this programme promises to be successful for us.

----- Start of picture text -----
FareShare Volunteer Mix 2020-21
Unemployed
Supported Travelling
4%
Volunteer 1%
1%
Student
13%
Semi-Retired
0% Employed
31%
Self-Employed
1%
Retired
19%
Furlough
Refugee/Asylum
9%
4% Redundant
Parent Jobseeker
1%
2% 14%
----- End of picture text -----

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EMERGE 3Rs

Trustees’ Annual Report for the year ended 31 March 2021

----- Start of picture text -----
FS VOLUNTEERS APRIL 20-MARCH 21: LEAVER PROGRESSION
----- End of picture text -----

----- Start of picture text -----
Back to Work
Unknown
18%
21%
Emergency
Childcare
1%
Furlough ended
University 5%
5%
Travelling
1%
Suspended
4%
Gained
Placement ended
1% Employment
20%
Personal
11%
Moved out of
Non-Starter area
4% 9%
----- End of picture text -----

FS Active Volunteers 2020-21 and 2021-22 (Qtr 1 & Qtr 2) 2021/22)

----- Start of picture text -----
160
140 137
140
119 124 123 123 120 121
114
120 107 110
100 89 86 87 87 89
80 6566 5781 6079 69 61 63 72 74 78 80 77
60
40
20
0
No. Volunteers 2019-2020 No. Volunteers 2020-21 No. Volunteers 2021-22
----- End of picture text -----

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EMERGE 3Rs Trustees’ Annual Report for the year ended 31 March 2021

FARESHARE ACTIVE MONTHLY HOURS SUMMARY: APRIL 2019- MARCH 2020 AND APRIL 2020- MARCH 2021 (& Qtr1 & Qtr 2 2021/22)

----- Start of picture text -----
2019- 2020-2021 2021-
2022
3641
3222 3198
2877
2721 2714
2654
2581
2524 24962313 2454 2406 2358
2096 2059 2010
1789
1782 1723 1754 1730 1810 1818
1638
1417 1449
1341 1366
1255
0 0 0 0 0 0
Month
Hours Given
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Employability

Our employability programme was under great pressure during COVID and most structured activities had to be undertaken remotely, other than health and safety briefings. We have an exciting plan to get ‘back on track’ in 202122 with a dedicated Trainer in place and additional funding to support this work, applied for, notably to employ a ‘Progression Support’ worker who will assist participants to get further work placements in partner organisations and firms.

FareShare Greater Manchester

Performance & operations

In mid-March 2020, along with the whole FareShare Network, EMERGE took the decision to keep the FareShare Greater Manchester (FSGM) operation running despite all the unknowns at that time. Three lockdowns later, over the course of the financial year April 2020-March 2021, the team distributed 3,406 tonnes of food, which is the equivalent of over 8 million meal portions. FSGM supplied 312 frontline charities and schools, and gained 151 new Community Food Members (CFMs). The top three categories of food distributed were vegetables, tinned and fruit.

Thanks to the efforts of FareShare UK, over 250 organisations donated or supplied food. Funded large purchases by Tesco and DEFRA of long life ambient foods enabled FSGM to supply the switch to food parcel distribution that most of the membership undertook. Approximately 75% of the FSGM output went to children and families on low incomes. To promote safe working practices, the working day was extended to 12 hours. At the start of April 2020 in Lockdown 1, 47% of our volunteers had to self-isolate but thankfully new volunteers from all walks of life stepped forward and helped keep everything going.

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EMERGE 3Rs

Trustees’ Annual Report for the year ended 31 March 2021

----- Start of picture text -----
Measure 2019-20 2018-19 Notes / Source
Food Received 3337 1475 Based on FSUK database
tonnes
Food Distributed 3406^ 1268 ^This figure will include stock from
tonnes prior year
CFM income £470,569 £265,455 Accounts
CFM £ per tonne £138.15 £209.35 Income dvd by tonnage
CFM £ as % of total 34% 56% Overall costs were £499k cf £386k for
income previous year
Waste % 12% 8.04% See below
CFMs at year end 312 232 312 CFMs at end of year; 151 ‘new’
recruited in COVID lockdowns whilst
others shut
Meal Portions 8,052,009 3,470,449 Based on FSUK estimate of 423g per
portion
CO2 saving 14,591 5,432 tonnes Saved from AD (based on FSUK
tonnes conversion model)
----- End of picture text -----*

During the height of lockdown 1, FareShare GM was reaching approx. 50,000 people through the frontline Community Food Members, and by the end of the year the reach was approximately 37,000 people per week

Other FSGM highlights

A number of special projects were also undertaken across the year with valued existing and new partners:

FareShare received unprecedented levels of recognition and support nationally which impacted very positively upon us at a regional level. Footballer Marcus Rashford’s involvement and campaigning work also led to an increase in donations, an increase in food supplies, and a raised profile for FSGM, which has helped to sustain the doubling of output. The team were delighted to be the chosen FareShare Regional Centre for filming of the BBC documentary about Marcus and the campaign to end child food poverty. Six weeks later the team were further honoured to host a visit by Their Royal Highnesses the Duke and Duchess of Cambridge, who addressed the whole FareShare Network (via a zoom link to our depot on a big screen) and thanked everyone for their efforts.

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EMERGE 3Rs Trustees’ Annual Report for the year ended 31 March 2021

The worst of times brought amazing people together – from all walks of life – and all determined to help others in need of food support. The FareShare GM team worked very hard to make the very best of every food donation, and can look the world in the eye and say “we did our best”.

Going forward

Since the Covid-19 year apparently came to an end, the FareShare team have faced the immediate challenge of the driver shortages and national haulier crisis which has had a big impact on certainty of food supplies. But there are many opportunities on the horizon to grow the operation and its reach:

Touch Wood

Volunteering & Employability support

Touch Wood was in transition this year as we handed over the reins to EMERGE Recycling to manage this operation. In spite of COVID19 wood continued to be collected by EMERGE Recycling, across most of the year, after the initial lockdown. Over one third of this was retained for reuse in the workshop, an impressive 105 tonnes (an increase to 37%) with the rest passed on for recycling.

The small team were enhanced during the year by Mike Taylor, as Development lead. Mike made numerous in-roads with various partner organisations including Salford Foundation, with a view to bespoke orders, potential volunteers and new ways of working for the greater good. The work was supported by the Social Enterprise Support Fund (SESF) thanks to Anne Woolhouse and the team at Resonance who saw our vision and backed it. This support meant upgrading various tools and securing substantial training for staff, enabling them to better support the volunteer programme planned in 2022.

The team will be further enhanced by the Kickstarter programme in 2021, which looks extremely promising, thanks to our major partners, the National Community Wood Recycling Project, who we continue to work closely with.

Future Plans

Replacement van and fit out of F Block (opposite Cheshire House), is definitely on the cards along with staff team and strategy development through EMERGE Recycling. The charity will continue to support with more volunteers engaged and trained.

Huge thanks as always to all the Touch Wood volunteers who, week in week out, put in many days over the year in dedicated hard work and effort, stripping pallets, de-nailing, participating in product creation, cutting wood for customer orders, sanding and waxing; see below graph for hours donated.

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EMERGE 3Rs

Trustees’ Annual Report for the year ended 31 March 2021

TOUCH WOOD MONTHLY HOURS SUMMARY APRIL 19- MARCH

----- Start of picture text -----
2019-2020 2020-2021
250
220
200
156
146
150
128
110
92 94
100 86 86 82 85 85 85
73
62 57
42 46 50
50 31
24
13 7 8
0
MONTH
HOURS GIVEN
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Governance, Policies, Procedures & Continuous Improvements

The maturity of the Board continued to develop during 2020/21 despite the ongoing issues with COVID. Brigit Egan led the Board for the first part of the financial year overseeing the implementation of a Governance sub-committee (GSC) specifically to ensure the Board is fulfilling its duties. Fiona King stepped in as Interim Chair in September 2020.

Part of the process was the formalisation of further sub-committees monitoring areas where the GSC felt there were the greatest risks. The Finance sub-committee was already established to review the accounts prior to the Board and has been greatly enhanced by the leadership and work put in by our Treasurer, Shirley Jones. The following further committees also continued during the year:

Support was also provided to the charity by Board member using their expertise in other areas such as fundraising, marketing and volunteer/ safeguarding.

The GSC drove the review and update of the Memorandum and Articles using the new Charity Commission template. These will be ratified at the AGM on 8 December 2021.

The Board members will take part in a workshop in January 2022 to discuss the future strategy for EMERGE 3Rs and develop the vision and objectives going forward.

The Board were deeply saddened when Brigit had to step away from the role as Chair due to illness. Fiona King stepped in as acting chair and a new role of vice chair was formally introduced that was taken by Rob Barnett to help with this period of change.

Thanks to all trustees for their continued support, expertise and guidance through the year. We are sorry to be losing Maggie Walker as a Trustee in the 2021 but we are hopeful that Maggie will continue to support the charity. Maggie has steered the GSC with great wisdom, tenacity and foresight, intent on bringing practices and procedures up to 2021 standards, in a range of ways, to enable the charity to perform better. We are hugely grateful for her work in this group and in general, on the board of Trustees.

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EMERGE 3Rs Trustees’ Annual Report for the year ended 31 March 2021

EMERGE recycling continues to work alongside EMERGE 3Rs and we have successfully maintained an ‘EMERGE Group’ ethos and joint working, wherever feasible.

Financial review

The year 2020/21 has been a difficult year for everyone and EMERGE 3Rs has been at the forefront of supporting vulnerable families and individuals across GM. This focus has driven our financial and business strategy during the year and enabled us to build our financial resilience for the future.

FareShare UK has supported our operations with additional funding and support for the CFM partners to enable them to continue their work as part of the COVID response. We continue to move our FareShare operations towards full cost recovery, with more income generated from the supply of food, however, this has been challenging. We have been extremely grateful for the additional support by FSUK and its partners, especially DEFRA (food supplies) but also specific funders who helped us during this time as well as on the building refurbishment.

Income increased by 113% our expenditure increased by 45%, leading to an overall increase in reserves of £371,394 excluding the funding raised for Melanie Maynard House. We generated an unrestricted surplus of £243,998 that enabled the reserves to recover from previous years and also facilitated a commitment to the Real Living Wage for all staff, as a minimum.

Grants and donations drove growth in income. This was a fantastic achievement with donations doubling compared to last year. This increase was due to the focus on food poverty during the year and the support from Marcus Rashford’s campaign to retain school meals throughout the year. FareShare were at the forefront of achieving this ambition and for our part, we certainly continued to support these families throughout the pandemic.

The increase in expenditure was largely attributable to increase activity as we continued and increased operations throughout the year.

The impact of the increase in reserves can be seen in our balance sheet, at the year-end cash balances included income for Maynard House, so even though it was substantially bigger than last year, this cash is not solely for operations. Our cash position has continued to remain in a good position since the year end and we continue to monitor the cash flow management required for day to day operations, including the required investment to purchase assets such as vehicles for food delivery funded through hire purchase. We took advantage of the extended tax payment periods that the UK Government offered to businesses in response to COVID 19, this has helped cash flow but led to an increase in creditors.

We made significant progress towards our capital fundraising target of £1million, for the refurbishment and fit out of Melanie Maynard House with a move date of September. This will facilitate the long overdue move to more appropriate premises significantly improving the efficiency of food distribution and working conditions for our staff team. We continue to fundraise and develop the facilities at Melanie Maynard House with further investment for EMERGE recycling to move into the building and gain efficiencies there also.

EMERGE Recycling converted to a community benefit society on 11[th] November 2019 and now operates independently from the charitable company. There remain some shared costs, including central staff costs and premises, which are invoiced by the charity to EMERGE Recycling on a full cost recovery basis with agreed terms.

Our over reliance on grant funding remains an important risk for the charity. The aim of the Asda and National Lottery Community Fund funds secured by FareShare UK on behalf of a number of FareShare operations, was to support the organisations to become more financially resilient, generating more income from the supply of food.

Our Senior Management Team developed a Tactical plan for 2020/21 to address the funding gap generating more income from charges for food to shift our FareShare operation further towards full cost recovery. However, some of these plans were affected during the current period of uncertainty. Fundraising remains a focus going forward but with

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EMERGE 3Rs Trustees’ Annual Report for the year ended 31 March 2021

the ideal of full cost recovery in place so that we can increase our reach and give stronger support to our communities in the coming years.

Reserves

EMERGE 3Rs reserves policy is to hold a minimum of two months running costs in unrestricted reserves to provide a cash flow buffer, to cover day to day expenditure for example if there are any delays in grant payments. During 2020/21 the reserves policy has been achieved, however, we continue to be mindful of costs to maintain the financial position but also remain vigilant with cash flows to ensure we have the funds to pay expenses when they arise.

Principal Funding Sources

Although we generate some income from our activities, it would be impossible to operate without the continuing support of our funders, friends and supporters to whom we owe a huge vote of thanks.

We continued to benefit from support from the FareShare UK’s food and fundraising team including a donation from Cargill, transition funding, help for CFM fees and lots of help funding our depot refurbishment; also the support from Tesco via the PCP’s in stores. We are hugely grateful for all this. Likewise, we continued to benefit our share of funding secured by the UK team from Asda and the National Lottery Community Fund, which underpinned our plans to improve the financial resilience of our FareShare operation with funding for key core roles and drivers.

Invaluable support was given in this year to our FareShare operation from the following companies, trusts and individuals:

Corporates: Kellogg's & Forever Manchester, Valero (Texaco), Jan and Marble Brewery, the Sage Foundation, AJ Bell, PWC Foundation, Jacobs, TrAdewind Recruitment, BDP Ltd, CDL, BUPA Foundation. CDL continued as a key corporate sponsor of EMERGE 3Rs with support for Give and Gain, our Volunteering & Employability Programme, Touch Wood and essential core functions. Volunteers are as essential as ever to the day to day operation of the FareShare warehouse and food distribution and Touch Wood and without this support, things would have been even more challenging.

Grants and Trusts: SESF and Resonance, Manchester City Council, WRAP, Dowager Countess Eleanor Peel Trust, We Love Manchester, Greater Manchester High Sheriff Police Fund, The Archer Trust. ESF Community Grant, Salford CVS, Rhododendron Trust, Broome Charitable Trust, The Slater Foundation, Beaverbrook’s, Rachel Charitable Trust, Derwent Capital - Albert Gubay Trust, Lee Bakigirian Family Trust, The Grace Trust, Skelton Charity, Souther Charitable Trust, Aizenberg Charitable Trust, Andy Burnham and the GM Mayors Fund, United Utilities, Sainsbury c/of FSUK, Woodroffe Benton, MACC, the Zochonis Charitable Trust, Charities Aid Foundation (COVID relief).

Many, many individuals and companies who kindly donated to us in various innovative ways, from runs, Tai Chi and cycling to events and fairs. We would like to say a massive thank you for donations from everyone who supported our work through Virgin Giving, Just Giving, Facebook and HMRC Gift aid; also to AQA Education, Joshua Dawson Good Beer Club, Littleborough FC, Tesco PCP, Pagoda Project, United Retired Members NW, Coop LCF, DD Williamson, the Charities Aid Foundation, O Scholes Rashford pins, TCSDF - Charity Service emergency fund, Tai Chi for Health-Hazel Grove, Cheadle Hulme Grammar School, St John the Evangelist, Meadow AFC and Linda Edmondson.

We remain extremely grateful to all the individuals, companies and staff who continued to volunteer with us and help find food or raise money on our behalf, both pre Covid 19 and also during it and hopefully beyond! Also, a big thank you to our patrons and supporters more generally.

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EMERGE 3Rs Trustees’ Annual Report for the year ended 31 March 2021

In terms of the refurbishment of Cheshire House, we are indebted to the following groups, individuals and companies, during the period Apr20-Mar21, for believing in us and this crucial project:

The Zochonis Trust Joseph Cox Foundation The Duchy of Lancaster Charitable Fund ASDA Mr Chris Eldridge The Greater Manchester High Sheriff Marble Beers Better Building Appeal Permira Chillag Family Charitable Trust Micromass UK Ltd (Waters) United Utilities All those who supported with small donations Livingstone Jack Charitable Trust PHMG Latham and Watkins WRAP United Utilities

Plans for the future

Strategy

EMERGE 3Rs has moved into Melanie Maynard House but the work on the building is ongoing, anticipated to complete by May 2022.

We will be developing a new 3-year plan with the teams in early 2022 as well as embarking on a concerted plan for greater learning and development of our people, both staff and volunteers in the coming years.

Structure, governance and management

The organisation is a charitable company limited by guarantee, originally incorporated on 1[st] May 1996 and later registered as a charity on 24[th] November 2009.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2019 was 116. The Trustees are members of the charity but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

All Trustees give their time voluntarily and receive no benefits from the charity, other than as disclosed below. Any expenses reclaimed from the charity are set out in note 12 to the accounts.

The EMERGE Board decided in the interested of transparency and independence we would change our external auditors from March 2022. We would like to thank Patrick Morello and Third Sector Accountancy Limited (TSA) for their excellent service, knowledge, and support over the last few years. An auditor tender process is underway for the financial year from April 2021.

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EMERGE 3Rs

Trustees’ Annual Report for the year ended 31 March 2021

Related parties and relationships with other organisations

Lucy Danger, the Chief Executive, was a Trustee on the Board of FareShare UK, representing a practitioner’s view at the strategic level though standing down in October 2020. Four trustees are also directors of EMERGE Recycling Limited, our sister social enterprise.

Managing our risks

EMERGE 3Rs manages the uncertainty as we respond to changes within the food industry and the wider politicaleconomic environment to ensure that should any risks crystalise we are in a good position to mitigate the impact. The Board monitors any risks that could materially impact our ability to achieve our objectives and continue to supply food to the under-served in our community. The Board in cognisant that effective management of risks is therefore essential to our long-term goals.

EMERGE 3Rs manages risk in accordance with the Risk Appetite Framework set by the Board. Each risk is detailed in the Risk Register with the inherent and residual impact ratings and mitigating controls in place. A consistent approach is used in the identification, evaluation, mitigation and monitoring of our principal and emerging risks listed below.

In the course of our work, the Trustees have assessed the major risks to which EMERGE is exposed, in particular those relating to the finances and operation of the charity and are satisfied that the correct systems are in place to mitigate our exposure to these major risks.

----- Start of picture text -----
Principal Risk Impact Mitigation Update
Health and Safety in Moderate Health and Safety sub-committee The health and safety of our
workplace including Food A Health and Safety Officer to oversee and employees became a priority
Safety resolve issues. during the COVID pandemic with
Clear Health and Safety policy with a number isolating or working
employee training and awareness from home due to health issues.
programme These were supported during this
FareShare National Annual Audit period.
Food Safety Regime Additional training was available
to ensure that existing staff
understood and followed safety
guidelines.
Policies were strengthened
including developing safe
distancing guidelines. These
included operating over longer
hours and zoning to reduce traffic
to certain areas.
Safeguarding for Staff, Moderate External professional advice EMERGE was supported by Vic
Volunteers, Beneficiaries Clear Safeguarding policy with employee Karmazyn an external associate
and Customers training and awareness programme and trainer who became our
Knowledge and experience of supervisors official “COVID safeguarding
to ensure compliance champion”, helping with staff and
volunteer training.
Policies around safeguarding staff
and volunteers against COVID 19
were strengthened.
People – Attraction, Moderate Dashboard overview of current staff The HR committee developed
Succession and Retention supervision during the year alongside the
Regular team meetings revised staff handbook
Staff training and induction programme There has been increased training
Board HR committee and awareness to raise awareness
of good practices during COVID.
----- End of picture text -----

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EMERGE 3Rs

Trustees’ Annual Report for the year ended 31 March 2021

EMERGE 3Rs
Trustees’ Annual Report for the year ended 31 March 2021		 EMERGE 3Rs
Trustees’ Annual Report for the year ended 31 March 2021		 EMERGE 3Rs
Trustees’ Annual Report for the year ended 31 March 2021		 EMERGE 3Rs
Trustees’ Annual Report for the year ended 31 March 2021
Funding and Grant
maintenance
Major
Clear funding plans and application
process
Sustainable business plans and budgets to
identify funding requirements
External professional advice
Build a good relationship with funding
partners and comply with requirements
Strong Board support and experience with
applications
Funding applications have been
ongoing and are under constant
review and monitoring against the
business plans and budget to
ensure they remain on track
Addition of an Aileen Edmunds to
the Board with experience in
fundraising
Income Generation
Principle and emerging
risk
Major
Monthly review of Financial Position
Oversight of Finance sub-committee
Budget ownership and control with the
management team
Ensuring there is a mixed income stream
Development of reserves to cover a
period of costs
Regular Board meetings and
discussion of the figures through
the Finance sub-committee
Development during the year of
the finance papers and
information supplied to the Board
with key performance indicators
to show the financial position
Clear reservespolicyinplace
Business Resilience to
ensure continued
operations
Principle and emerging
risk
Moderate
(under COVID
19 conditions)
Regular reviews of internal systems
Steering Groups approach to project
management utilising Board expertise
Clear Health and Safety policies
Staff training and awareness
During the COVID period Business
Resilience has been put under
pressure with some staff self-
isolating and other staff working
from home
Areas within the business have
been following the Government
guidelines including social
distancing and the wearing of
masks
Macro-economic factors
Principle and emerging
risk		 Moderate Monthly review of Management Accounts
Regular Horizon scanning of the macro-
economic environment
Maintain good relations with key
stakeholders including customers
Awareness of the environment including
new / emerging competitors		 EMERGE has been a cornerstone
supplying food to families who
have been struggling during the
pandemic through its FSGM
operation.
EMERGE supported Marcus
Rashford’s campaign by supplying
free school meals during the
COVID period.
EMERGE continues to be part of
the economic solution to support
families struggling to cover their
costs through our FSGM CFMs.

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EMERGE 3Rs Trustees’ Annual Report for the year ended 31 March 2021

Statement of responsibilities of the Trustees

The Trustees (who are also directors of EMERGE 3Rs for the purposes of company law) are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

In so far as the trustees are aware:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the provisions applicable to companies’ subject to the small companies’ regime of the Companies Act 2006.

The Trustees’ annual report has been approved by the Trustees on 8[th] December 2021 at the AGM and signed on their behalf by

Name: Fiona King Signature: Title: Interim Chair of Trustees

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Independent auditor’s report to the members of EMERGE 3Rs

Opinion

We have audited the financial statements of EMERGE 3Rs (the ‘charitable company’) for the year ended 31 March 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other matter

The corresponding figures for the year ended 31 March 2020 have not been audited.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the trustees report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the

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Independent auditor’s report to the members of EMERGE 3Rs

financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the trustees’ report, which includes the directors’ report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the

require ~~s~~ us to report to you if, in our opinion:

• the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 14, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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Independent auditor’s report to the members of EMERGE 3Rs

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the charity and the environment in which it operates, we identified the principal risks of non-compliance with laws and regulations related to pension legislation, tax legislation, employment legislation, health and safety legislation, food hygiene and safety, and other legislation specific to the sector in which the charity operates, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the reporting requirements under the Charities SORP and FRS102, and the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and, the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Patrick Morrello (Senior Statutory Auditor) For and on behalf of Third Sector Accountancy Limited, Statutory Auditor Holyoake House Hanover Street Manchester M60 0AS

14 / 12 / 2021

Date

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EMERGE 3Rs

Statement of Financial Activities

(including Income and Expenditure account) for the year ended 31 March 2021

----- Start of picture text -----
Unrestricted Restricted Total funds Unrestricted Restricted Total funds
funds funds 2021 funds funds 2020
Note £ £ £ £ £ £
Income from:
Donations and legacies 3 296,467 - 296,467 100,416 34,080 134,496
Charitable activities 4 854,033 800,804 1,654,837 307,426 161,980 469,406
Other trading activities 5 2,532 - 2,532 7,208 - 7,208
Costs Recharged to Emerge Recycling 67,569 - 67,569 77,073 - 77,073
Total income 1,220,601 800,804 2,021,405 492,123 196,060 688,183
Expenditure on:
Raising funds 6 9,971 - 9,971 3,384 - 3,384
Charitable activities 7 677,109 243,233 920,342 409,519 221,656 631,175
Costs recharged to Emerge Recycling 67,569 - 67,569 77,073 - 77,073
Total expenditure 754,649 243,233 997,882 489,976 221,656 711,632
Net income/(expenditure) for the year 9 465,952 557,571 1,023,523 2,147 (25,596) (23,449)
Transfer between funds 522,944 (522,944) - -
Net movement in funds for the year 988,896 34,627 1,023,523 2,147 (25,596) (23,449)
Reconciliation of funds
Total funds brought forward 47,356 20,073 67,429 45,209 45,669 90,878
Total funds carried forward 1,036,252 54,700 1,090,952 47,356 20,073 67,429
----- End of picture text -----

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

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EMERGE 3Rs

Company number 3556346

Balance sheet as at 31 March 2021

----- Start of picture text -----
Note 2021 2020
£ £ £ £
Fixed assets
Tangible assets 14 705,934 58,101
Total fixed assets 705,934 58,101
Current assets
Debtors 15 192,669 58,045
Cash at bank and in hand 390,635 29,229
Total current assets 583,304 87,274
Liabilities
Creditors: amounts falling
due in less than one year 16 (195,145) (64,303)
Net current assets 388,159 22,971
Total assets less current liabilities 1,094,093 81,072
Creditors: amounts falling
due after more than one year 17 (3,141) (13,643)
Net assets 1,090,952 67,429
The funds of the charity:
Restricted income funds 18 54,700 20,073
Unrestricted income funds 19 1,036,252 47,356
Total charity funds 1,090,952 67,429
----- End of picture text -----

These accounts are prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The notes on pages 21 to 39 form part of these accounts.

13/12/2021

Approved by the trustees on _____ and signed on their behalf by:

13 / 12 / 2021 Shirley Jones (Treasurer) Date signed

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EMERGE 3Rs

Statement of Cash Flows

for the year ending 31 March 2021

----- Start of picture text -----
Note 2021 2020
£ £
Cash provided by/(used in) operating activities 21 1,040,099 (2,322)
Cash flows from investing activities:
Purchase of tangible fixed assets (668,191) (18,662)
Cash provided by/(used in) investing activities (668,191) (18,662)
Cash flows from financing activities:
Increase/(Repayment) of borrowing - HP payments (10,502) 4,776
Cash provided by/(used in) financing activities (10,502) 4,776
Increase/(decrease) in cash and cash
equivalents in the year 361,406 (16,208)
Cash and cash equivalents at the beginning of the year 29,229 45,437
Cash and cash equivalents at the end of the year 390,635 29,229
----- End of picture text -----

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EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2021

1 Accounting policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a Basis of preparation

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 (FRS 102) issued in October 2019 - (Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

EMERGE 3Rs meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £ sterling.

b Judgments and estimates

The trustees have made no key judgments which have a significant effect on the accounts.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.

c Preparation of the accounts on a going concern basis

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

The trustees have reviewed the charity’s forecasts and projections and, in particular, have considered the potential implications of the Coronavirus (COVID-19) pandemic. Whilst the eventual financial impact of the pandemic on the charity, and on the overall economy, remains uncertain, the trustees are confident that the charity will be able to remain operational throughout the pandemic.

With the benefit of government support packages available to help businesses through the pandemic, the trustees have a reasonable expectation that the charity will have adequate resources to continue in operational existence for the foreseeable future.

The charity therefore continues to adopt the going concern basis in preparing its financial statements.

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EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2021 (continued)

d Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met.

e Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised; refer to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

The charity receives donations of food which it distributes to the members of its FareShare programme. It would be impractical to measure the value of food donated and the value of these donations has not been recognised in the accounts.

f Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity.

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

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EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2021 (continued)

g Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 8.

i Tangible fixed assets

Individual fixed assets costing £1,000 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a reducing balance basis as follows:

Vehicles 25%
Office equipment 33%
Other equipment 33%
Other longer life equipment 10%

j Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

k Cash at bank and in hand

Cash at bank and cash in hand includes cash only.

l Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

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EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2021 (continued)

m Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

n Pensions

Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity’s contribution is restricted to the contributions disclosed in note 10. There were no outstanding contributions at the year end. The costs of the defined contribution scheme are included within support and governance costs and allocated to the funds of the charity using the methodology set out in note 8.

2 Legal status of the charity

The charity is a company limited by guarantee registered in England and Wales and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The registered office address is disclosed on page 1.

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EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2020

3 Income from donations and legacies

Donations
Grants
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Duchy of Lancaster
GM High Sheriff Police Trust
Permira
Micromass (UK) Ltd
United Utilities
PHMG
Other
FareShare UK - IT infrastructure
ASDA Capital fund
Zochonis Charitable Trust
Waste and Resources Action
Melanie Maynard House		 Designated
£
-
-
-
Designated
£
30,000
20,000
39,000
10,000
23,000
12,750
43,490
-
-
-
-		 Unrestricted
£
171,050
125,417
296,467
Unrestricted
£
-
-
-
-
-
-
-
-
-
-
-		 Restricted
£
-
-
-
Restricted
£
-
-
-
-
-
-
-
7,500
177,719
250,000
46,200		 Total 2021
£
171,050
125,417
296,467
Total 2021
£
30,000
20,000
39,000
10,000
23,000
12,750
43,490
7,500
177,719
250,000
46,200		 Unrestricted
£
100,416
-
100,416
Unrestricted
£
-
-
-
-
-
-
-
-
-
-
-		 Restricted
£
3,480
30,600
34,080
Restricted
£
-
-
-
-
-
-
-
-
-
-
-		 Total 2020
£
103,896
30,600
134,496
Total 2020
£
-
-
-
-
-
-
-
-
-
-
-

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EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2020

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Designated Unrestricted Restricted Total 2021 Unrestricted Restricted Total 2020
£ £ £ £ £ £ £
Derwent Capital account (AGF) - - 32,300 32,300 - - -
FareShare UK - - 25,000 25,000 - - -
FareShare UK- Asda - - - - 70,000 70,000
FareShare UK- TNLCF - - 49,000 49,000 - 53,250 53,250
FareShare UK Transition fund - - 35,000 35,000 - - -
FareShare UK VAN & Driver - - 25,700 25,700 - - -
FareShare UK Volunteer Fund - - 4,738 4,738 - - -
Food Response Fund - 25,000 - 25,000 - - -
Greater Manchester Mayor's Charity - - 50,000 50,000 - - -
Greater Manchester High Sheriff Police
Trust - 5,000 - 5,000 - - -
Manchester City Council - - 19,980 19,980 - 19,980 19,980
MACC - - 9,000 9,000 - - -
Souter Charitable Trust - 3,000 - 3,000 - - -
The Archer Trust - 2,000 - 2,000 - - -
Dowager Countess Eleanor Peel Trust - 5,000 - 5,000 - - -
United Utilities - 68,200 - 68,200 - - -
We Love Manchester - 3,000 - 3,000 - - -
WRAP - - 64,232 64,232 - - -
Other Miscellaneous - 10,200 - 10,200 - - -

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EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2020

----- Start of picture text -----
Income from charitable activities (continued)
Designated Unrestricted Restricted Total 2021 Unrestricted Restricted Total 2020
£ £ £ £ £ £ £
Charitable trading - - -
Supply of donated goods - 307,885 - 307,885 249,589 - 249,589
FareShare membership subs - 162,696 - 162,696 14,598 - 14,598
FareShare product income - - - - 1,594 - 1,594
Other income - - - - 5,752 - 5,752
Subtotal for FareShare GM 178,240 591,981 796,369 1,566,590 271,533 143,230 414,763
Give and Gain
Grants
ESF Community Grant - - 4,435 4,435 - - -
Subtotal for Give and Gain - - 4,435 4,435 - - -
Touch Wood
Grants
Big Lottery Community fund - 40,000 - 40,000 - - -
Manchester City Council - 5,000 - 5,000 - - -
One Manchester Ltd - - - - - 12,500 12,500
Manchester Innovation Fund - - - - - 6,250 6,250
Charitable trading
Wood recycling - 38,812 - 38,812 35,865 - 35,865
Other income - - - - 28 - 28
Subtotal for Touch Wood - 83,812 - 83,812 35,893 18,750 54,643
Total 178,240 675,793 800,804 1,654,837 307,426 161,980 469,406
----- End of picture text -----

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EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2020

5 Income from other trading activities

undraising
Other income

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overnance costs (see
ote 8)
upport costs (see note 8)		 Designated
-
-
-
Designated
£
-
-
-
-		 Unrestricted
£
-
2,532
2,532
Unrestricted
£
8,523
133
1,315
9,971		 Restricted
£
-
-
-
Restricted
£
-
-
-
-		 Total 2021
£
-
2,532
2,532
2021
£
8,523
133
1,315
9,971		 Unrestricted
£
3,954
3,254
7,208
Unrestricted
£
3,000
55
329
3,384		 Restricted
£
-
-
-
Restricted
£
-
-
-
-		 Total 2020
£
3,954
3,254
7,208
2020
£
3,000
55
329
3,384

6 Cost of raising funds

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EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2020

7 Analysis of expenditure on charitable activities

FareShare
GM
£
taff costs
370,443
ccommodation
29,364
roject costs
253,245
epreciation
14,860
oan interest
2,080
5,787
57,160
732,939
estricted expenditure
nrestricted expenditure

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taff costs
remises
dministration
onsultancy
epreciation
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udit fees
ndependent examination
upport costs (see note 8)
overnance costs (note 8)		 Give and gain
£
32,774
19,684
43,320
-
-
512
5,057
101,347
Basis of
apportionment
Salary costs
Salary costs
Salary costs
Salary costs
Salary costs
Salary costs
Salary costs
Salary costs		 Touch Wood
£
48,665
8,027
20,730
365
-
760
7,509
86,056
Support
£
57,701
(9,126)
17,626
-
4,840
-
-
-
71,041		 Total 2021
£
451,882
57,075
317,295
15,225
2,080
7,059
69,726
920,342
243,233
677,109
920,342
Governance
£
5,443
-
-
-
-
1,700
4,000
-
11,143		 FareShare
GM
£
300,950
43,724
116,855
18,175
2,153
5,555
33,032
520,444
Total 2021
£
63,144
(9,126)
17,626
-
4,840
1,700
4,000
-
82,184		 Give and gain
£
32,361
-
2,456
-
-
597
3,552
38,966
Support
£
26,078
2,741
10,744
-
1,893
-
-
-
41,456		 Touch Wood
£
41,396
13,344
11,389
329
-
764
4,544
71,766
Governance
£
5,222
-
-
-
-
-
-
1,750
6,972		 Total 2020
£
374,707
57,068
130,700
18,504
2,153
6,916
41,128
631,176
221,656
409,519
631,175
Total 2020
£
31,300
2,741
10,744
-
1,893
-
-
1,750
48,428

8 Analysis of governance and support costs

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9 Net income/(expenditure) for the year

Notes to the accounts for the year ended 31 March 2020

his is stated after charging/(crediting):
epreciation
nterest payable
ccounts preparation fee
uditor's remuneration - audit fees

t
a
f
f
c
o
s
t
s
taff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs
A
l
l
o
c
a
t
e
d
a
s
f
o
l
l
o
w
s
:
Cost of raising funds
Charitable activities
Support costs
Governance costs
ndependent examiner's fee		 2021
£
20,358
2,080
1,700
4,000
-
2021
£
519,768
32,272
10,953
562,993
8,523
491,326
57,701
5,443
562,993		 2020
£
20,845
2,153
-
1,750
2020
£
376,933
23,490
8,583
409,006
3,000
374,706
26,078
5,222
409,006

10 Staff costs

No employees has employee benefits in excess of £60,000 (2020: Nil).

The average number of staff employed during the period was 23 (2020: 21).

The average full time equivalent number of staff employed during the period was 19.2 (2020: 14.3).

The key management personnel of the charity comprise the trustees, the Chief Executive Officer and operational management. The total employee benefits of the key management personnel of the charity were £138,017 (2020: £154,486).

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Notes to the accounts for the year ended 31 March 2020

11 Trustee remuneration and expenses, and related party transactions

Neither the management committee nor any persons connected with them received any remuneration or reimbursed expenses during the year (2020: Nil) with the exception of the transactions shown below.

No member of the management committee received travel and subsistence expenses during the year (2020: Nil).

There were no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

Lucy Danger, the Chief Executive Officer, was also a Trustee on the Board of FareShare UK, representing a practitioner's view at the strategic level, until 1 October 2020. The charity received £146,938 funding from FareShare UK during the year.

Andrew Chicken, a trustee, received £2,000 for consultancy services, and Roger Barnett, a trustee, received £2,500 for consultancy services, on normal commercial terms.

Lucy Danger, Brigit Egan, Shirley Jones and Andrew Chicken, who are trustees of EMERGE 3Rs, are also directors of EMERGE Recycling Limited, which trades with Emerge 3Rs. During the year Emerge 3Rs paid £17,531 for services received from Emerge Recycling, and received £67,569 for recharged costs.

Apart from the above matters no trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2020: Nil).

12 Government grants

The government grants recognised in the accounts were as follows:

Manchester City Council
Big Lottery Community fund
FareShare UK - The National Lottery Community
Fund		 2021
£
49,000
24,980
40,000
113,980		 2020
£
53,250
19,980
73,230

There were no unfulfilled conditions and contingencies attaching to the grants.

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Notes to the accounts for the year ended 31 March 2020

13 Corporation tax

The charity is exempt from tax on income and gains falling within Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

14 Fixed assets: tangible assets

----- Start of picture text -----
Land & Office Other
Buildings Vehicles equipment equipment Total
Cost £ £ £ £ £
At 1 April 2020 - 105,685 33,575 28,520 167,780
Additions 592,801 70,840 599 3,951 668,191
At 31 March 2021 592,801 176,525 34,174 32,471 835,971
Depreciation
At 1 April 2020 - 59,685 29,097 20,897 109,679
Charge for the year - 17,247 1,567 1,544 20,358
At 31 March 2021 - 76,932 30,664 22,441 130,037
Net book value
At 31 March 2021 592,801 99,593 3,510 10,030 705,934
At 31 March 2020 - 46,000 4,478 7,623 58,101
The net book value of assets subject to hire purchase contracts was as follows:
At 31 March 2021 85,985 - - 85,985
At 31 March 2020 26,782 - - 26,782
----- End of picture text -----

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Notes to the accounts for the year ended 31 March 2020

15 Debtors

----- Start of picture text -----
2021 2020
£ £
Trade debtors 91,522 52,508
Prepayments and accrued income 5,681 5,537
Other debtors 95,466 -
192,669 58,045
16 Creditors: amounts falling due within one year
2021 2020
£ £
Trade creditors 138,036 31,053
Hire purchase liabilities 10,052 9,135
Other creditors and accruals 35,508 11,915
Taxation and social security costs 11,549 12,200
195,145 64,303
17 Creditors: amounts falling after more than one year
2021 2020
£ £
Hire purchase liabilities 3,141 13,643
3,141 13,643
----- End of picture text -----

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Notes to the accounts for the year ended 31 March 2020

18 Analysis of movements in restricted funds

----- Start of picture text -----
Balance at 1 Balance at 31
April 2020 Income Expenditure Transfers March 2021
£ £ £ £ £
FareShare GM
Derwent Capital
account (AGF) - 32,300 (32,300) - -
FareShare UK:
Asda partnership 14,791 - - (14,791) -
National Lottery
Community Fund 1,182 49,000 (39,327) - 10,855
FareShare UK - 25,000 (25,000) - -
UK Transition fund
- 35,000 (25,000) - 10,000
VAN & Driver - 25,700 (11,481) (9,234) 4,985
Volunteer Fund 4,100 4,738 (6,356) - 2,482
Greater Manchester
Mayor's Charity - 50,000 (13,913) (25,000) 11,087
Manchester City
Council - 19,980 (19,980) - -
Recharge: Food
Acquisition Worker - 9,000 (4,441) - 4,559
Waste and Resources
Action Programme -
Covid 49,967 (49,967) -
Waste and Resources
Action Programme - 14,265 (14,265) - -
20,073 314,950 (242,030) (49,025) 43,968
Give and Gain
ESF Community Grant - 4,435 - 4,435
- 4,435 - - 4,435
----- End of picture text -----

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Notes to the accounts for the year ended 31 March 2020

Analysis of movements in restricted funds (continued)

g
f
u
n
d

r
a
t
i
v
e
p
e
r
i
o
d
a
r
e
G
M
nvestment
is Charitable
are UK - Asda
and Resources
Programme
are UK IT
ucture
apital fund
are UK - The
al Lottery
unity Fund
ester City
l
er Eleanor Peel
ershaw Trust
haritable Trust
ella Charitable
Charitable
ester Guardian

er Charity		 -
-
-
-
-
20,073
Balance at 1
April 2019
£
-
-
7,299
14,448
-
-
-
-
-
-
-
-



 177,719
250,000
46,200
7,500
481,419
800,804
Income
£
3,480
3,480
70,000
53,250
19,980
5,000
3,000
500
1,000
100
3,000
5,000		 -
-
-
(1,203)
(1,203)
(243,233)
Expenditure
£
(3,480)
(3,480)
(62,508)
(62,416)
(19,980)
(5,000)
(3,000)
(500)
(1,000)
(100)
(3,000)
(5,000)		 (177,719)
(250,000)
(46,200)
-
(473,919)
(522,944)
Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
6,297
6,297
54,700
Balance at
31 March
2020
£
-
-
14,791
5,282
-
-
-
-
-
-
-
-

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Notes to the accounts for the year ended 31 March 2020

Analysis of movements in restricted funds (continued)

----- Start of picture text -----
Souter Charitable - 1,000 (1,000) - -
W O Street Charitable
Foundation - 2,000 (2,000) - -
21,747 163,830 (165,504) - 20,073
Give and Gain
CDL 23,922 - (23,922) - -
Wates - 5,000 (5,000) - -
23,922 5,000 (28,922) - -
Building Fund
One Manchester Ltd - 12,500 (12,500) - -
Manchester
Innovation Fund - 6,250 (6,250) - -
Wates - 5,000 (5,000) - -
- 23,750 (23,750) - -
Total 45,669 196,060 (221,656) - 20,073
----- End of picture text -----

Name of restricted fund

Description, nature and purposes of the fund

Core

Social investment fund

to assist the group to become investment ready, final payment for consultancy

FareShare GM Manchester City for a specific project working with four other partners to alleviate food poverty Council "Tackling in Manchester, we are the lead/accountable body for this project Food Poverty FareShare UK - Asda to support wages for FareShare Driver and van for FareShare to be more sustainable organisation

for a specific project working with four other partners to alleviate food poverty in Manchester, we are the lead/accountable body for this project

FareShare UK - The to support FareShare wages of Key staff for help FareShare to be a sustainable National Lottery organisation all other grants and to support the operation of FareShare donations

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Notes to the accounts for the year ended 31 March 2020

Analysis of movements in restricted funds (continued)

Give and Gain CDL to fund the Give and Gain project all other donations funding to support our "Give and Gain" Volunteering and Employability Training and grants Programme

Touch Wood One Manchester Ltd social investment to create jobs and to be sustainable organisation Manchester social investment to create jobs and to be sustainable organisation Innovation Fund

Building Fund All donations and Restricted funding for the refurbishment of Melanie Maynard House grants

Transfers

The transfers from restricted funds to unrestricted funds represent the purchase of fixed assets with restricted fund money.

19 Analysis of movement in unrestricted funds

ated funds:
a
r
a
t
i
v
e
p
e
r
i
o
d
al fund
al fund
urbishment
d
ed assets
erve		 Balance at 1
April 2020
£
47,356
-
-
47,356
Balance at
1 April 2019
£
45,209
45,209		 Income
£
1,042,361
178,240
-
1,220,601
Income
£
492,123
492,123		 Expenditure
£
(754,649)
-
-
(754,649)
Expenditure
£
(489,976)
(489,976)		 Transfers
£
(78,899)
(104,091)
705,934
522,944
Transfers
£
-
-		 As at 31
March 2021
£
256,169
74,149
705,934
1,036,252
As at 31
March 2020
£
47,356
47,356

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Notes to the accounts for the year ended 31 March 2020

Name of

unrestricted fund Description, nature and purposes of the fund

General fund The free reserves after allowing for all designated funds Refurbishment fund Funds set aside for the refurbishment of Melanie Maynard House Fixed assets reserve The net book value of the fixed assets, as these funds are not freely available for the charity's operations.

20 Analysis of net assets between funds

----- Start of picture text -----
General Designated Restricted
fund funds funds Total 2021
£ £ £ £
Tangible fixed assets 705,934 - - 705,934
Net current assets/(liabilities) (446,624) 780,083 54,700 388,159
Creditors of more than one year (3,141) - - (3,141)
Total 256,169 780,083 54,700 1,090,952
Comparative period
General Designated Restricted
fund funds funds Total 2020
£ £ £ £
Tangible fixed assets 58,101 - - 58,101
Net current assets/(liabilities) 2,898 - 20,073 22,971
Creditors of more than one year (13,643) - - (13,643)
Total 47,356 - 20,073 67,429
Reconciliation of net movement in funds to net cash flow from operating activitieseconciliation of net movement in funds to net cash flow from operating activitiesconciliation of net movement in funds to net cash flow from operating activitiesonciliation of net movement in funds to net cash flow from operating activitiesnciliation of net movement in funds to net cash flow from operating activitiesciliation of net movement in funds to net cash flow from operating activitiesiliation of net movement in funds to net cash flow from operating activitiesliation of net movement in funds to net cash flow from operating activitiesiation of net movement in funds to net cash flow from operating activitiesation of net movement in funds to net cash flow from operating activitiestion of net movement in funds to net cash flow from operating activitiesion of net movement in funds to net cash flow from operating activitieson of net movement in funds to net cash flow from operating activitiesn of net movement in funds to net cash flow from operating activities of net movement in funds to net cash flow from operating activitiesf net movement in funds to net cash flow from operating activities net movement in funds to net cash flow from operating activitieset movement in funds to net cash flow from operating activitiest movement in funds to net cash flow from operating activities movement in funds to net cash flow from operating activitiesovement in funds to net cash flow from operating activitiesvement in funds to net cash flow from operating activitiesement in funds to net cash flow from operating activitiesment in funds to net cash flow from operating activitiesent in funds to net cash flow from operating activitiesnt in funds to net cash flow from operating activitiest in funds to net cash flow from operating activities in funds to net cash flow from operating activitiesn funds to net cash flow from operating activities funds to net cash flow from operating activitiesunds to net cash flow from operating activitiesnds to net cash flow from operating activitiesds to net cash flow from operating activitiess to net cash flow from operating activities to net cash flow from operating activitieso net cash flow from operating activities net cash flow from operating activitieset cash flow from operating activitiest cash flow from operating activities cash flow from operating activitiesash flow from operating activitiessh flow from operating activitiesh flow from operating activities flow from operating activitieslow from operating activitiesow from operating activitiesw from operating activities from operating activitiesrom operating activitiesom operating activitiesm operating activities operating activitiesperating activitieserating activitiesrating activitiesating activitiesting activitiesing activitiesng activitiesg activities activitiesctivitiestivitiesivitiesvitiesitiestiesiesess
2021 2020
£ £
Net income/(expenditure) for the year 1,023,523 (23,449)
Adjustments for:
Depreciation charge 20,358 20,845
Decrease/(increase) in debtors (134,624) (7,328)
Increase/(decrease) in creditors 130,842 7,610
Net cash provided by/(used in) operating activities 1,040,099 (2,322)
----- End of picture text -----

21 Reconciliation of net movement in funds to net cash flow from operating activitieseconciliation of net movement in funds to net cash flow from operating activitiesconciliation of net movement in funds to net cash flow from operating activitiesonciliation of net movement in funds to net cash flow from operating activitiesnciliation of net movement in funds to net cash flow from operating activitiesciliation of net movement in funds to net cash flow from operating activitiesiliation of net movement in funds to net cash flow from operating activitiesliation of net movement in funds to net cash flow from operating activitiesiation of net movement in funds to net cash flow from operating activitiesation of net movement in funds to net cash flow from operating activitiestion of net movement in funds to net cash flow from operating activitiesion of net movement in funds to net cash flow from operating activitieson of net movement in funds to net cash flow from operating activitiesn of net movement in funds to net cash flow from operating activities of net movement in funds to net cash flow from operating activitiesf net movement in funds to net cash flow from operating activities net movement in funds to net cash flow from operating activitieset movement in funds to net cash flow from operating activitiest movement in funds to net cash flow from operating activities movement in funds to net cash flow from operating activitiesovement in funds to net cash flow from operating activitiesvement in funds to net cash flow from operating activitiesement in funds to net cash flow from operating activitiesment in funds to net cash flow from operating activitiesent in funds to net cash flow from operating activitiesnt in funds to net cash flow from operating activitiest in funds to net cash flow from operating activities in funds to net cash flow from operating activitiesn funds to net cash flow from operating activities funds to net cash flow from operating activitiesunds to net cash flow from operating activitiesnds to net cash flow from operating activitiesds to net cash flow from operating activitiess to net cash flow from operating activities to net cash flow from operating activitieso net cash flow from operating activities net cash flow from operating activitieset cash flow from operating activitiest cash flow from operating activities cash flow from operating activitiesash flow from operating activitiessh flow from operating activitiesh flow from operating activities flow from operating activitieslow from operating activitiesow from operating activitiesw from operating activities from operating activitiesrom operating activitiesom operating activitiesm operating activities operating activitiesperating activitieserating activitiesrating activitiesating activitiesting activitiesing activitiesng activitiesg activities activitiesctivitiestivitiesivitiesvitiesitiestiesiesess

40

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