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2022-03-31-accounts

EMERGE 3Rs

Annual Report and Financial Statements For the year ended 31st March 2022

Company number: 3556346 Charity Number: 1132944

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Company number 3556346 Charity number 1132944

Registered office and operational address

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:

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 (resigned 21 September 2022)
Shirley Jones
Aileen Edmunds
Robin Barnett
Bertrand Stern-Gillet (appointed 21 September 2022)
Company secretary Lucy Danger
Key management Lucy Danger Chief Executive
personnel Jayrissa Thompson Finance Controller
Elizabeth Lauder Head of Volunteer & Employability
Programmes
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 Christy Yun Hing Lau FCCA CTA DChA, Slade & Cooper Limited
Beehive Mill, Jersey Street, Ancoats Manchester, M4 6JG

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The Trustees present their report and the audited financial statements for the year ended 31st March 2022.

Reference and administrative information set out above on page 2 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 & Activities

EMERGE 3Rs is an environmental charity whose primary activities include:

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

  1. To promote for the benefit of the public the conservation protection and improvement of the physical and natural environment by the promotion of waste reduction, reuse, recycling, use of recycled products and the sustainable management of resources.

  2. To advance the education of the public in the conservation, protection and improvement of the physical and natural environment, in particular all aspects of waste regeneration, resource management and waste reduction, re-use and recycling.

  3. The relief of poverty.

  4. The preservation and protection of good health, in particular by the promotion of good nutrition.

We work closely with our allied social enterprise, EMERGE Recycling Limited, as part of the EMERGE Group. EMERGE Recycling provides waste recycling and confidential shredding services, governed by ISO9001 and the British Standard (BSEN 15713) in Confidential Shredding, enabling businesses, schools and organisations in Manchester and the surrounding area to reduce their waste, reuse and recycle more.

EMERGE Recycling also operates Touch Wood, who reclaim waste wood from a wide variety of sources, including construction and demolition sites, for reuse, recycling or repurposing it to create bespoke wooden products for use by and sale to, the general public.

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The EMERGE Vision, revised in May 2021, is to be a leading charitable group that is, across Greater Manchester:

Linked to this, our Group Mission statement is:

Together we make a real difference, inspiring change by

EMERGE Group’s Values are:

  1. We have integrity – we are honest and act in a decent, fair and truthful way.

  2. We value difference and diversity and treat everyone respectfully – we are polite, well-mannered, considerate, obliging and attentive.

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

  4. We are accountable to our wider community, our customers, our volunteers, staff our board and ourselves: As a social business it’s important to us to be answerable to the wider community.

  5. We influence social and environmental change in Greater Manchester and beyond: We seek to guide and affect positive behaviours.

This report provides information on the activities of EMERGE 3Rs from 1 April 2021 to 31 March 2022 and has two key parts:

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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Our Activities & Impact

In the year 2021-2022 we have continued to work towards realising all five of our mission aims through our services (listed above) as well as our numerous projects and initiatives.

Poverty levels in Greater Manchester are, in many pockets across conurbation, relatively higher than in many other parts of the UK and this continues to be a key challenge and opportunity for improvement. According to the 2019 Index of Multiple Deprivation (IMD), Manchester ranks 6 out of 326 local authorities in England, where 1 is the most deprived. Low income combined with poor living conditions can result in families and individuals being malnourished and experiencing hunger, amongst other detrimental effects. For children, living in poverty can have a negative impact in terms of educational attainment and future employment prospects.

By providing good quality food to those in need through FareShare GM, EMERGE 3Rs has been able to alleviate some of the symptoms of living in poverty, and help the most vulnerable in our society. Money saved on food bills can be re-invested into other aspects of their life including paying for heating and energy bills, quality clothing and transport. See Table 1 below.

Volunteering & Employability

As we have emerged out of the COVID-19 pandemic, Manchester also saw some of the lowest employment rates in the country at 65.1%. EMERGE 3Rs has sought to combat low employment rates by providing training and volunteering opportunities, assisting those that struggle to find full-time employment due to mental and physical health challenges, low educational attainment or absence of opportunity.

In the year 2021-2022 we witnessed a general downwards trend in the number of ‘Active Volunteers’, declining from 140 in April 2021 to 104 in March 2022 (See Figure 1). This may result, in part, from the national Job Retention Scheme (furlough) coming to an end during this period; also due to a continuing reticence, by some people to engage in public facing activities, due to the fear of or risk of contracting COVID.

Number of Volunteers by Type (21/22)

----- Start of picture text -----
140
150 119 124 123 123 120 116 112 111 105 104
91
100 73
50 17 20 26 29 3514 50 47 5721 45 38 41
0 0 0 0 0 0 2 0 1 1 0 1 6 0 1 0 0 0 0 0 0 0
0
Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22
Active Volunteers Placements Community Payback Corporate
----- End of picture text -----

Figure 1

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Our volunteer hours were supplemented by a new project working with the Community Payback service (CP). CP helps to support individuals on probation provide reparation to the community and get their lives back on track. During this year we received 4014 hours of Community Payback. The project managed to boost our total volunteer hours to 29,520 for the year, an increase on the previous year (See Figure 2).

----- Start of picture text -----
Total of Volunteers and Hours
4000 200
3000 150
2000 100
1000 50
0 0
Total Hours Number of Volunteers
----- End of picture text -----

Figure 2

The Government funded Kickstart scheme during this period also enabled us to provide temporary employment to seven 16-24 year olds who were previously claiming Universal Credit and at risk of long-term unemployment. EMERGE 3Rs voluntarily topped up the pay for these positions to ensure that all employees were receiving the Real Living Wage as per the company policy. Ensuring staff receive the Real Living Wage means that we recognise the of the importance of financial wellbeing amongst our employees.

Our Employability programme was under great pressure during the height of COVID-19 and most structured activities had to be undertaken remotely. In 2021 it was exciting to resume inperson activities. Our Volunteering and Employment Programme would not have been so successful without the continued support

from our major donor and key recycling account, CDL, a leading UK software firm, based in Stockport. CDL owners have very generously funded our Volunteering initiatives once more in 2021-22, enabling us to continue developing our employability programmes.

We embarked upon a funded ‘Green Employment & Skills Partnership’ developed and run by One Manchester Housing with various community sector partners, during the year. This impressive scheme resulted in us recruiting five work placements from the Manchester area initially. Paid to work 21 hours per week with us, on the living wage, with a package of training, this was a major boost to our operations. The scheme continued to go from strength to strength across the remainder of 2022, gaining significant momentum and achieving multiple positive outcomes both for EMERGE and the individuals concerned.

Corporate Volunteering by the employees of companies suffered hugely during this period, with only two companies offering staff due to COVID restrictions. We were grateful to

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Cranswick and Unify Solutions who sent groups to help out our FareShare operations. We hope to respond to many more requests to engage with employer supported volunteering in 2022.

FareShare Greater Manchester

At the end of March 2021, the DEFRA-funded food we had been distributing ended, and we returned to a surplus-only model. Despite this, we have endeavoured to continue providing good quality, fresh food to our beneficiary organisations, who we call our ‘Community Food Members’ (CFMs), who in turn support individuals and families living in poverty across the region. By distributing to these groups, we are able to support more than 25,000 individuals each week to achieve a varied and healthy diet. Previous research conducted by FareShare UK estimated that it would cost CFMs approximately £7,900 per year to replace the food that they receive from FareShare. Please see table 1 below for an overview of our outputs.

Wherever we can, we contribute to ‘healthy eating’ projects through FareShare Greater Manchester food redistribution work. As far as is practicable, we try to influence the supplies we receive, to secure a wide range of food types, in order to support the diverse dietary requirements of our wider community. During the year we supported Healthy Me Healthy Communities, a Manchester initiative who work to improve public engagement in health and wellbeing, as well as providing food services and support for economically disadvantaged individuals. Through supporting 17 school breakfast clubs during this period we have also been able to improve attitudes towards healthy breakfast. A systematic review carried out by the British Nutrition Foundation found that children who eat breakfast cereals regularly tend to have a lower BMI and are less likely to be overweight than those who eat breakfast cereals infrequently.

Table 1

Measure 2021-2022 2020-2021 Notes/ Source
Food received (tonnes) 2392 3337 Based on FSUK database,
Gladys’ & Power BI
Food redistributed
(tonnes)		 2158 3406^ ^ This figure includes
stock frompreviousyear
CFM contribution £499,881 £470,569 Accounts
Income achieved per
tonne		 £231.64 £138.15 Income/ tonnage
CFM income as % of total
income		 41% 56%
Waste % 11.5% 8.04%
CFMs atyear end 250 312
Meal portions 5,101,655 8,052,009 Based on FSUK estimate
of 423g perportion
CO2 saving (tonnes) 10,458 14, 591 Based on FSUK conversion
model

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Highlights

FareShare Plus

Our secondary service offering, FareShare Plus, was well underway this year. The model, which enables charities and community groups to come and choose food and drink items from our depot, in bulk, has enabled us to increase our capacity and serve even more beneficiaries.

The Rafiki Project

The Rafiki Project is an initiative that we have run in partnership with the Manchester BME Network CIC. The aim of the project is to provide more culturally diverse foods to communities experiencing racial inequalities in the Greater Manchester area. By the end of the year, the project had engaged 19 organisations, who each provided food for between 30-100 families each week.

“We’re thrilled we’ve been able to support so many families and organisations to join FareShare Greater Manchester. Greater Manchester and Manchester are places of rich community diversity, with many different cultures, faiths, languages and needs. We know there are very high levels of inequality and poverty.”

-Atiha Chaudry, Chair of the GM BAME Network

Our collaboration on this project meant that we were shortlisted for the Spirit of Manchester Awards in the category ‘Partnership and Collaboration’.

#FoodOnPlates Campaign

In September, FareShare UK launched their #FoodOnPlates campaign, calling for funding of £5m a year to help farmers and food producers cover the cost of storing and transporting unsold food. If successful, the fund would enable FareShare to double the amount of food it can redistribute to those in need.

“It’s a scandal that good food is left to rot in our fields or be thrown into biogas digesters or landfill when so many families are still dependent on food aid in the wake of the crisis, with thousands more unable to afford healthy fruit and veg. France rescues six times more unsold food than we do in the UK, in part thanks to tax breaks that cover the additional costs of getting that food to charities. That’s why we’re calling on the government to reinstate lifeline funding to save good food and get it onto people’s plates.”

-FareShare UK CEO, Lindsey Boswell.

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Regional Food Sourcing

In November 2021 we hired our new Regional Food Sourcing Coordinator, Ruth Downes. The role of Regional Food Sourcing Coordinator is to engage with the food industry to represent FareShare Greater Manchester, to develop and grow volumes of surplus food distributed. Ruth has begun work to cultivate existing and new business relationships, helping to grow our supply base and ensure sustainable and collaborative

partnerships. We are hugely grateful to all our food donors and delighted to also now be working with Cranswick Bury, Greencore Warrington, Gusto Warrington, The Bread Factory, Wrights in Crewe, Co-op Lea Green and Warburton’s over the last year thanks to Ruth’s endeavours.

We are also hugely appreciative for all the efforts to help us sustain food supplies by the FareShare UK teams, especially food sourcing team; thanks also to Tesco’s for the PCP donations.

Moving into Maynard House

In December 2021, with the major refurbishment of the building, formerly known as Cheshire House, largely complete, the FareShare GM warehouse was declared officially ‘fit for purpose’ by our partners, FareShare UK and the operation moved into our new premises on New Smithfield Market. Maynard House, named after Marcus

Rashford’s mum, Melanie, in recognition of her work during the pandemic, has already significantly improved our capacity. We moved into the offices in October 2021, though numerous aspects were still in progress including the canteen area, patio and roof terrace, heating system and other infrastructure. The majority of works were to be completed in the following months, leading to a Grand Opening in September 2022 (more on that in next year’s annual report!).

We are extremely grateful to all our funders, sponsors and those who gave time and materials, and without whom, our HQ refurbishment would not have been possible. Namely: The Zochonis Charitable Trust, FareShare UK & Lindsay Boswell CEO, The Sunday Times Appeal, Sir Alex Ferguson & Sir Michael Moritz, Marcus Rashford; Micromass UK Ltd (Waters), United Utilities, The Bupa UK Foundation, The Joseph Cox Charitable Trust, The Hobson Charity,

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Greater Manchester High Sheriff’s Trust, The National Lottery Community Fund, WRAP, Marble Beers, Topps Tiles, Pfleidora, The Duchy of Lancaster Benevolent Fund, ASDA Foundation, McVeigh Offsite Ltd & McVeigh Projects Ltd, Chris Eldridge, Peter Davys (Orrest Ltd), HMG Paints Ltd, Little Greene Paint Company, Crown Decorating Centre (Openshaw branch), Permira, The Chillag Family Charitable Trust, PHMG, Jack Livingstone Charitable Trust, Latham & Watkins LLP, The Garfield Weston Foundation, CDL Software, Polyfloor Ltd, Sian Astley, Searchlight, Howden’s and local store manager Charlotte Read; Casa Ceramica, JLA; to Dave Hawley and Jason Palin for supporting our kitchen refurbishments. And to our hard working contractors, Calder Shopfitters, HBCL, Optimum Electrical, and specifically Dave Ratcliffe and Warren Craddock, Craig Lovett, Jonathan Nadin and Jim McVeigh. Big thanks also to Nigel Blyth and John Bolshaw at Fairhurst’s and to our Trustee, Andy Chicken for all their guidance and project management support and numerous others for moral support and encouragement in what has proved to be a major undertaking!

Huge Thanks to all our Funders & Supporters

As always, we are incredibly grateful to all the funders who have directly assisted us by supporting our various activities. To our major ongoing supporters like CDL Software, as well as all the donors, grants, trusts and foundations who support our activities and projects at different times across the years. This year we wish to say a huge thank you to Manchester United Foundation, Broome Family Trust, Manchester Guardian Society, Chillag Family Trust, FareShare UK, Souter Charitable Trust, The Big Give Trust (Big Give Champion), Green Match Fund (Big Give Champion), Casa Stella Trust, The Beaverbrook’s Charitable Trust, Manchester City Council OMVCS, The National Lottery Community Fund, WRAP, Young Manchester Covid Recovery Grant, Manchester Green Economy Employment Partnership, Chris Eldridge, Charities Aid Foundation, Dowager Countess Eleanor Peel, Transport for Greater Manchester, Business Support Ltd (Business Growth Hub), Manchester City Council.

Also big thanks to the following companies, organisations and individuals for their generous donations: Deloitte, AJ Bell, Enterprise RAC UK Ltd, Forever Manchester/Kellogg’s, Cargill, Arnold Clark, AQA, Bryan Cave, Vermillion, Teads Ltd, Atherton RLFC, Howden’s, Ingredion and Arch Architects.

Massive thanks to the many individuals who donated to us via Virgin Giving, Just Giving, Giving.com, other platforms or directly to us, we are very grateful, including Gift Aid, which gives a lovely boost to individual giving. And to everyone who gave their valuable time, which is the equivalent of paid staff, to the charity. We are hugely indebted and appreciative for all the kind support and commitment provided.

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Touch Wood

In April 2021, by agreement with the Charity Board, SLT and key stakeholders, EMERGE Recycling took formal control over the entirety of the Touch Wood services - both collections as well as the upcycling of redundant timber which, up until this point, sat within EMERGE 3Rs. EMERGE Recycling and Touch Wood play an active role as the social enterprise part of the EMERGE Group, supporting the charity, EMERGE 3Rs. EMERGE 3Rs continues to provide trainees and volunteers to gain employability, training and work experience through Touch Wood. The outcomes for 2021-22 are in the table above.

Touch Wood successfully engaged Manchester City Council Town Hall and its refurbishment contractors as part of our drive to improve wood stock levels becoming the exclusive wood partner for the 5-year project resulting in the receipt of 150-year-old pitch pine floor boards and joists into our wood store. Significant progress has been made at Touch Wood in both increasing wood stock levels and increasing income from timber sales and commissions, indeed, income generated in 2021/22 increased by 119% from 2020/21, largely thanks to our focus on commissioned work for corporate partners. Some examples of our significant and corporate partners below:

EMERGE Recycling

In the year April 2021 to March 2022 EMERGE Recycling continued to navigate the fallout from a combination of COVID and wider socio-economic factors (Brexit, cost of living crisis). The main priorities during this period were to take stock and ensure a continued high quality of service for our customers who have equally been adapting to the ‘new normal’, whilst

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supporting our team through the changes arising from the move to Maynard House and the F-Block.

In February 2022 EMERGE Recycling launched a community share offer to gain investment in a 3-year business growth plan, seeking support to fit out our bigger, better waste recycling depot and develop capacity within the North West waste industry. This concluded in May 2022, having raised £215k including £25k of shares purchased by social investors Power to Change through their Community Shares Booster Programme, administered by Co-op’s UK.

Going Forward: Plans for the future

April 2021-March 2022 has been an exciting financial year for EMERGE 3Rs with the move to Maynard House and the new opportunities that this promises to open up in the future. Following our Board Strategy Day our Senior Leadership and staff teams have been working on improving existing work and developing new projects for EMERGE 3Rs, keeping its founding principles at heart.

EMERGE Group Themes for our Tactical Plans for 2021-2022 were: ‘Pulling together’ and ‘Striving for Excellence’ and with a focus on better communications, staff and partner engagement, volunteer feedback and retention. Specifics include:

Going forward our strategic development themes come under the headings of ‘growth’, ‘influence’, ‘sustainable operating model’ and ‘effective team feeling successful’. More detailed work is planned to take place in early 2023. As part of this process we will be consulting our teams and involve them in the strategic planning for 2022-25.

A key plank in our forward plan and thinking is to engage more of our partners fully, through a specific engagement strategy, with criteria around mutual and active involvement.

Governance & Structure

EMERGE 3Rs is a charitable company limited by guaranteed (no 3556346), originally incorporated on 1[st] May 1998 under the name ‘EMERGE Recycling’. We registered with the

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Charity Commission as a charity in England and Wales (no 1132944), on 24[th] November 2009 and changed the name and company rules. EMERGE 3Rs continues to be governed under its rules (known as Memorandum and Articles of Association) which underwent a thorough review during the year by EMERGE 3Rs’ Board and CEO, bringing them up to date and in line with charity best practice.

The Trustees are simultaneously company directors and members of the charity; this entitles them to voting rights but no beneficial interest in the charity. Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up.

All Trustees give their time voluntarily and receive no benefits from the charity, other than as disclosed in Note 11 to the accounts.

Trustees are recruited with a wide range of skills, experience and diverse backgrounds to meet any gaps that need to be filled to ensure the sound governance and decision making towards the mission and strategy of EMERGE. Newly appointed Trustees receive an induction based on their current knowledge including making them aware of their legal responsibilities, EMERGE policies, decision making and strategic plan.

The Trustees constitute the Board that is the charities governing body. The Board meets quarterly with sub-committees, listed below, meeting in between Board meetings and reporting discussions.

Fiona King and Rob Barnett continued to act as Interim Chair (in Brigit Egan’s absence due to ongoing treatment) and Vice Chair during this period. Fiona led the Board in overseeing the implementation of the Governance sub-committee (GSC) specifically to ensure the Board is fulfilling its duties. Areas of focus during 2022 for the GSC were the overall skillset of the Board including formal Board Trustee requirements, and the development of the Risk Management Policy and Framework.

There are several established sub-committees and they continued to mature:

Additional support is provided to the charity’s staff using Board member expertise in other areas such as fundraising, marketing and volunteer safeguarding. Recruitment for certain roles continue to be challenging but we are using all available recruitment methods, with a number of roles filled by volunteers, graduates or work placements, as appropriate and with the ethos of growing our own talent, wherever possible.

The Trustees approve the strategic plan and annual budgets as well as overseeing policy changes and regularly reviewing the financial position and the year-end accounts. The Senior Leadership Team (SLT), led by the Chief Executive, is responsible for implementing the organisation’s strategy and for progressing towards agreed key aims and objectives. All key

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operational decisions are delegated by the Trustees to the Chief Executive and SLT. The SLT are listed on page 2. Cohesiveness and collaboration between the Board of Trustees and Senior Team was rekindled, post COVID, during 2021/22 and plenty of ideas were generated at a joint strategy away day.

Huge thanks to all Trustees for their continued support, expertise and guidance throughout the year. We would like to thank Ben Barnaby for his dedication and time and we are sorry to see him go during this financial year.

In terms of the methods we use to recruit and appoint new charity trustees, we follow the good practice charity governance code; we have an open and inclusive recruitment ethos and actively seek to represent our wider community in terms of race, ethnicity, gender, disability and sexuality. We have a formal application process which we use for both cooptions (in between Annual General Meetings) and annually, we follow our constitutional provisions for appointment, with election to post at our Annual General Meeting. EMERGE Recycling (our fellow Community Benefit Society) is entitled to appoint one of our charity trustees to their Non-Executive Board, for the purpose of accountability, in relation to the stated objective, to apply up to 33% of net annual profits to EMERGE 3Rs.

Structure

In November 2019 the subsidiary of EMERGE, EMERGE Recycling, was divested and became a Community Benefit Society (‘Ben Comm’) 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.

In April 2021 the Board supported the decision to move Touch Wood into EMERGE Recycling. EMERGE Recycling continues to work alongside EMERGE 3Rs and we have successfully maintained an ‘EMERGE Group’ ethos and joint working, wherever feasible.

The charity and the ben comm are separate entities but share key personnel, support systems and their operational base as detailed in the Finance section.

Brigit Egan, Andy Chicken and Shirley Jones are Trustees of EMERGE 3Rs and also NonExecutive Directors of EMERGE Recycling (our fellow Community Benefit Society). Jayrissa Thompson and Lucy Danger are both Executive Directors of EMERGE Recycling whilst being also employees of EMERGE 3Rs.

Staff Pay Policy

Our approach to staff pay is designed to ensure we can attract and retain the right people who have the experience, values and skills we need to achieve our mission and deliver our strategic goals. It is applied consistently across the whole organisation including the SLT.

We aim to pay competitively whilst also affordably using external salary surveys and other tools to help us benchmark our salaries. During the year the Board supported the principle of

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the Real Living Wage for all employees with increases kept in line with inflation expectations and we became an accredited member of the Living Wage Foundation.

Annual increases are discussed whilst setting the budget considering inflation and the current economic conditions faced by our staff. These are approved by the Board and applied to all employees.

Related parties and relationships with other organisations

Other than EMERGE Recycling, there are no other connections with other organisations outside of standard trading terms and conditions.

EMERGE 3Rs is part of the FareShare food redistribution network of independent charities and organisations wherein we formally partner with FareShare UK (the national charity) to run the FareShare operation in a geographical region. In our case, the region is Greater Manchester, High Peak and East Cheshire, at this time. Accordingly, all partner organisations, including EMERGE 3Rs, runs its FareShare operation in line with the food safety policies and procedures set out by FareShare UK, in its Operational Guidelines. There are no governance implications about this relationship at this time, as our CEO is no longer a Trustee of FareShare UK.

Financial Review

EMERGE 3Rs continues at the forefront of supporting vulnerable families and individuals in Greater Manchester as the country moves into a period of high inflation, rising fuel costs and reducing food supplies. Our focus for the financial and business strategy, during the year, is to build our financial resilience for the future to maintain our operations to supply food and volunteering opportunities within the community.

We continue to strive to move our FareShare operations towards full cost recovery, with more income generated from the supply of food, however, this has been challenging in the current climate due to a reduction in volumes of food and the continued financial struggle for many of the Community Food Members whom we supply.

The charity’s total income reduced by 24%, demonstrating the pressure on food supplies, offset with an increase of our Volunteering and Employability activities which were boosted with a programme of funded support from the Charities Aid Foundation (CAF). Expenditure increased by 18.7%, leading to an overall decrease in our general fund of £117,514 including a Board-agreed contribution towards the refurbishment of Maynard House. Our balance sheet currently holds an unrestricted amount of £1,289,560, which, crucially, includes the amount raised for and invested in the redevelopment, of Maynard House of £1,150,905. This amount represents the current equity of our investment in the capital refurbishments, it is a non-realisable non-cash amount. In line with our Reserves Policy (see below for more info), we hold the difference of £138,655 as ‘available’, unrestricted funds.

In terms of our fundraising, grants and donations remained reasonably buoyant complementing our income generation and continuing the fantastic achievement from last year in supporting and developing our activities. The reduction in funds raised in 2021-22 is

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due largely to the positive effect we had seen in 2020-21 resulting from the support of Marcus Rashford towards FareShare and food poverty nationally which has been difficult to sustain without his direct involvement.

The charity’s assets have been boosted by the capitalisation of Maynard House. These assets have been depreciated based on their expected economic life for the period of occupation. Year-end cash balances reflect the time of the CAF grant having been received just before year end.

Our cash position has remained healthy, but we continue to monitor cash flow and manage requirements for day-to-day operations, including investment to replace assets such as vehicles for food delivery as the fleet ages and falls outside of current emission regulations.

Achievement of the long-term goal to move to more appropriate premises significantly improved our efficiency in food distribution as well as the working environment for our volunteers and employees. We continue to fundraise and develop the facilities at Maynard House; this is further boosted by the completion of the investment by EMERGE Recycling following the very successful community share offer.

Fundraising

Raising money remains an ongoing and clear focus going forward with a full operational cost recovery goal in place so that we can increase our reach and give stronger support to our communities in the coming years.

EMERGE 3Rs has a dedicated fundraising team involving direct support and expertise from the Chief Executive. Our approach is to strive to comply with good practice standards across all of our fundraising activities, albeit we are not currently bound by the terms of any specific scheme. All of our fundraising is currently managed by our own staff. We do not employ any third-party professional fundraising organisations to carry out our activities, other than using a third-party payment platform to receive and assist us to achieve online donations. The platform used provides security processes to protect donors and the charity, and their funds, and reduces our administrative burden and costs. We are aware of the potential for complaints from supporters (although we didn’t formally receive any during the year) which tend to relate to the fees charged by the payment platform; consequently, we are mindful and attentive to the ongoing issues around value for money of this service. We are fully committed to addressing any expressions of dissatisfaction or issues raised on the part of our supporters and to examining ways to improve the levels of our service to them.

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 2021/22 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 flow to ensure we have the funds to pay expenses when they arise.

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The reserves have been increased following the fundraising for and investment in refurbishing Maynard House and look bolstered as a result, however, these funds were raised specifically for and invested for the future operational savings purpose with income and cash flow continuing to remain tight for ordinary activities. As stated above in our financial review, we currently hold the difference of £138,655 as ‘available’, unrestricted funds.

Managing Risk

EMERGE 3Rs manages the uncertainty as we respond to changes within the food industry and the wider political-economic environment to ensure that should any risks crystallise 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.

Principal Risk Impact Mitigation Update
Health and Safety
in workplace
including Food
Safety		 Moderate Health and Safety sub-
committee
A Health and Safety Officer
to oversee and resolve
issues.
Clear Health and Safety
policy with employee
training and awareness
programme
FareShare National Annual
Audit
Food Safety Regime		 The health and safety of
our employees
continues to be a
priority with the
continued general
unease around COVID.
Staff training and safety
sessions continue with
the move to Maynard
house and the change
in operational
processes and the
implementation of new
ones.
Safeguarding for
Staff, Volunteers,
Beneficiaries and
Customers		 Moderate External professional
advice
Clear Safeguarding policy
with employee training and
awareness programme
Knowledge and experience
of supervisors to ensure
compliance		 Policies around
safeguarding staff and
volunteers against
COVID 19 were
strengthened.
With an update to the
Employee handbook for
manyimportantpolicies

Page 17 of 45

and this being a focus
for the Governance
Committee
People –
Attraction,
Succession and
Retention		 Moderate Dashboard overview of
current staff supervision
Regular team meetings
Staff training and induction
programme
Board HR committee		 The HR committee
continued to develop
during the year
alongside the revised
staff handbook
There has been
increased training to
raise awareness of good
practices post COVID.
Recruitment has been
difficult during the year,
but we continue to
attract employees that
follow our ethos
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 monitoring
against the business
plans and budget to
ensure they remain on
track
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
financial position
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 reserves policy in
place
Business Resilience
to ensure		 Moderate
(under		 Regular reviews of internal
systems		 Business Resilience
continues to develop
post COVID and with

Page 18 of 45

continued
operations
Principle and
emerging risk		 COVID 19
conditions)		 Steering Groups approach
to project management
utilising Board expertise
Clear Health and Safety
policies
Staff training and
awareness		 the move to Maynard
House.
The Health and Safety
committee is still in its
early stages but
continues to support
the Charity with clear
and supportive
guidance
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
and now during the
economic crisis.
EMERGE have been
grateful for the support
of all donors and
funders enabling
EMERGE to be part of
the economic solution
to support families
struggling to cover their
costs.

Emerging Risks

Cost of living crisis – As we are part of the solution for many families struggling with the cost of living crisis we are monitoring GMCA and national Government policy in this area and the potential wider world economic downturn as well as talking regularly to our partners, FareShare UK, who are doing concerted work and lobbying on this, on behalf of the FareShare Network.

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:

Page 19 of 45

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.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Auditors

Slade & Cooper Ltd were re-appointed as the charitable company's auditors during the year and have expressed their willingness to continue in that capacity.

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 15[th] December 2022 and signed on their behalf by

Name: Shirley Jones Title: Treasurer

Page 20 of 45

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 2022, which comprise the Statement of Financial Activities (including the income and expenditure account), the Balance Sheet, the Statement of Cash Flows and the related notes. 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.

Conclusions relating to Going Concern

In auditing the financial statements, we have concluded that the trustees’ 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 trustees with respect to going concern are described in the relevant sections of this report.

Page 21 of 45

Other information

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

Matters on which we are required to report by exception

In the light of our 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 trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Page 22 of 45

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement set out on page 19-20, the Trustees (who are also the 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.

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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Page 23 of 45

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-foraudit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our 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.

Christy Yun Hing Lau FCCA DChA CTA Senior Statutory Audit for and on behalf of

Slade & Cooper Limited Statutory Auditors Beehive Mill Jersey Street Manchester M4 6JG

29[th] December 2022

Page 24 of 45

EMERGE 3Rs

Statement of Financial Activities (including Income and Expenditure account) for the year ended 31 March 2022

Unrestricted
funds
Note
£
Income from:
Donations and legacies
3
302,953
Charitable activities:
4
FareShare GM
542,401
Building fund
24,000
Core and Give & Gain
5,252
Touch Wood
-
5
-
73,389
Touch Wood
41,955
Total income
989,950
Expenditure on:
Raising funds
6
12,594
Charitable activities:
7
FareShare GM
817,247
Core and Give & Gain
103,373
Touch Wood
-
73,389
Touch Wood
41,955
Total expenditure
1,048,558
(58,608)
9
(58,608)
Transfer between funds
311,916
Net movement in funds for the year
253,308
Reconciliation of funds
Total funds brought forward
1,036,252
Total funds carried forward
1,289,560
Other trading activities
Net income/(expenditure) before
net gains/(losses) on investments
Net income/(expenditure) for the
year
Costs Recharged to Emerge
Recycling
Costs Recharged to Emerge
Recycling		 Restricted
funds
£
-
67,088
300,000
176,839
-
-
-
543,927
-
111,637
14,166
-
-
-
125,803
418,124
418,124
(311,916)
106,208
54,700
160,908		 Total funds
2022
£
302,953
609,489
324,000
182,091
-
-
73,389
41,955
1,533,877
12,594
928,884
117,539
-
73,389
41,955
1,174,361
359,516
359,516
-
359,516
1,090,952
1,450,468		 Total funds
2021
£
296,467
906,931
659,659
4,435
83,812
2,532
67,569
-
2,021,405
9,971
732,939
101,347
86,056
67,569
-
997,882
1,023,523
1,023,523
-
1,023,523
67,429
1,090,952

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

A full comparative SOFA is available on the last page of the financial statements.

Page 25 of 45

EMERGE 3Rs Company number 03556346

Balance sheet as at 31 March 2022

Note
£
£
Fixed assets
Tangible assets
14
1,259,362
Total fixed assets
1,259,362
Current assets
Debtors
15
92,040
Cash at bank and in hand
16
249,002
Total current assets
341,042
Liabilities
Creditors: amounts falling
due in less than one year
17
(135,717)
Net current assets
205,325
Total assets less current liabilities
1,464,687
Creditors: amounts falling
due after more than one year
18
(14,219)
Net assets
1,450,468
The funds of the charity:
Restricted income funds
19
160,908
Unrestricted income funds
20
1,289,560
Total charity funds
1,450,468
2022		 £
£
705,934
705,934
192,669
390,635
583,304
(195,145)
388,159
1,094,093
(3,141)
1,090,952
54,700
1,036,252
1,090,952
2021		 £
£
705,934
705,934
192,669
390,635
583,304
(195,145)
388,159
1,094,093
(3,141)
1,090,952
54,700
1,036,252
1,090,952
2021
705,934
388,159
1,094,093
(3,141)
1,090,952
54,700
1,036,252
1,090,952

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 28 to 45 form part of these accounts.

Approved by the trustees on 15/12/2022 and signed on their behalf by:

Shirley Jones (Treasurer)

Page 26 of 45

EMERGE 3Rs

Statement of Cash Flows for the year ending 31 March 2022

Note
Cash provided by/(used in) operating activities
22
Cash flows from investing activities:
Proceeds from sale of tangible fixed assets
Purchase of tangible fixed assets
Cash provided by/(used in) investing activities
Cash flows from financing activities:
Repayment of borrowing - HP Payments
Cash provided by/(used in) financing activities
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Increase/(decrease) in cash and cash
equivalents in the year		 2022
£
448,550
4,232
(603,434)
(599,202)
9,019
9,019
(141,633)
390,635
249,002		 2021
£
1,040,099
-
(668,191)
(668,191)
(10,502)
(10,502)
361,406
29,229
390,635

Page 27 of 45

EMERGE 3Rs

1 Accounting policies

Notes to the accounts for the year ended 31 March 2022

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), second edition - 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 and UK Generally Accepted Accounting Practice.

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.

b 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 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.

Page 28 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

c 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.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

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

d 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.

e Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

Page 29 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

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.

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 straight line basis as follows:

Building 3.33%
Vehicle 25%
Office equipment 33%
Other equipment 33%
Other longer life equipment 5 - 20%

Page 30 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

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 and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

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.

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 £1,017 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.

Page 31 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

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 2.

3 Income from donations and legacies

Current reporting period
Donations
Corporates
Give and Gain
Grants
MCC COVID response Grant
Kickstart
Total
Previous reporting period
Donations
Grants
Total		 Unrestricted
£
63,521
203,050
3,490
9,245
23,647
302,953
Unrestricted
£
171,050
125,417
296,467		 Restricted
£
-
-
-
-
-
-
Restricted
£
-
-
-		 Total 2022
£
63,521
203,050
3,490
9,245
23,647
302,953
Total 2021
£
171,050
125,417
296,467

Page 32 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

4 Income from charitable activities

Current reporting period
FareShare GM
Grants
Broome Family Trust
Manchester Guardian Society
Chillag Family Trust
FareShare UK (North West Construction Safety Group (NWCSG) Fund)
Souter Charitable Trust
The Big Give Trust (Big Give Champion)
Green Match Fund (Big Give Champion)
Casa Stella Trust
The Beaverbrooks Charitable Trust
MCC – Our Manchester Voluntary and Community Sector Grants
FareShare UK – TNLCF
WRAP – Small Scale Food Waste Prevention Fund
Young Manchester Covid Recovery Grant
Manchester Green Economy Employment Partnership
FareShare UK Volunteer Fund
Other
Charitable trading
Supply of donated goods
Subtotal for FareShare GM
Building fund
Grants
FareShare UK
CDL Software
Chris Eldridge
Subtotal for Maynard House
Core and Give & Gain
Grants
Charities Aid Foundation
Dowager Countess Eleanor Peel
TFGM - Cycle Store
GM Business Support Ltd (Business Growth Hub)
MCC-NIF Grant
Other
Subtotal for Give and Gain
Total		 Unrestricted
£
15,000
5,000
5,000
3,000
3,000
2,120
2,056
1,000
550
-
-
-
-
-
5,794
499,881
542,401
-
15,000
9,000
24,000
-
5,000
-
-
-
252
5,252
571,653		 Restricted
£
-
-
-
-
-
-
-
-
-
19,980
12,000
13,069
19,555
1,500
984
-
-
67,088
300,000
-
-
300,000
164,841
-
5,000
4,998
2,000
-
176,839
543,927		 Total 2022
£
15,000
5,000
5,000
3,000
3,000
2,120
2,056
1,000
550
19,980
12,000
13,069
19,555
1,500
984
5,794
-
499,881
609,489
300,000
15,000
9,000
324,000
164,841
5,000
5,000
4,998
2,000
252
182,091
1,115,580

Page 33 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

4 Income from charitable activities (Cont.)

Previous reporting period
FareShare GM
Grants
Derwent Capital account (AGF)
FareShare UK
FareShare UK- TNLCF
FareShare UK Transition fund
FareShare UK VAN & Driver
FareShare UK Volunteer Fund
Salford CVS - Food Response Fund
Greater Manchester Mayor's Charity
Greater Manchester High Sheriff Police Trust
Manchester City Council
MACC
Souter Charitable Trust
The Archer Trust
Dowager Countess Eleanor Peel Trust
United Utilities via FareShare UK
We Love Manchester
WRAP
Other Miscellaneous
Charitable trading
Supply of donated goods
FareShare membership subs
Subtotal for FareShare GM
Building fund
Grants
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
Subtotal for Maynard House
Core and Give & Gain
Grants
ESF Community Grant
Subtotal for Give and Gain
Touch Wood
Grants
The National Lottery Community Fund - SESF
Manchester City Council
Charitable trading
Wood recycling
Subtotal for Touch Wood
Total		 Unrestricted
£
-
-
-
-
-
-
25,000
-
5,000
-
-
3,000
2,000
5,000
68,200
3,000
-
10,200
307,885
162,696
591,981
30,000
20,000
39,000
10,000
23,000
12,750
43,490
-
-
-
-
178,240
-
-
40,000
5,000
38,812
83,812
854,033		 Restricted
£
32,300
25,000
49,000
35,000
25,700
4,738
-
50,000
-
19,980
9,000
-
-
-
-
-
64,232
-
-
-
314,950
-
-
-
-
-
-
-
7,500
177,719
250,000
46,200
481,419
4,435
4,435
-
-
-
-
800,804		 Total 2021
£
32,300
25,000
49,000
35,000
25,700
4,738
25,000
50,000
5,000
19,980
9,000
3,000
2,000
5,000
68,200
3,000
64,232
10,200
307,885
162,696
906,931
30,000
20,000
39,000
10,000
23,000
12,750
43,490
7,500
177,719
250,000
46,200
659,659
-
4,435
4,435
40,000
5,000
38,812
83,812
1,654,837

Page 34 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

5 Income from other trading activities

Income from other trading activities
Other income 2022
£
-
-		 2021
£
2,532
2,532

All income from other trading activities is unrestricted. There were no other income generated in 2021/22.

6 Cost of raising funds

Cost of raising funds
Staff costs
Support costs (see note 8)
Governance costs (see note 8)		 2022
£
12,594
-
-
12,594		 2021
£
8,523
133
1,315
9,971

All expenditure on cost of raising funds is unrestricted.

Page 35 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

7 Analysis of expenditure on charitable activities

Current reporting period
Staff costs
Accommodation
Project costs
Depreciation
Loan interest
Governance costs (see note 8)
Support costs (see note 8)
Previous reporting period
Staff costs
Accommodation
Project costs
Depreciation
Loan interest
Governance costs (see note 8)
Support costs (see note 8)
Restricted expenditure
Unrestricted expenditure		 FareShare
GM
£
370,443
29,364
253,245
14,860
2,080
5,787
57,160
732,939		 FareShare
GM
£
440,040
93,283
247,824
45,774
2,789
11,212
87,962
928,884
Core and
Give & Gain
£
32,774
19,684
43,320
-
-
512
5,057
101,347		 Core and Give
& Gain
£
78,165
28,222
1,680
-
-
480
8,992
117,539
Touch Wood
£
48,665
8,027
20,730
365
-
760
7,509
86,056
2022
£
125,803
920,620
1,046,423		 Total 2022
£
518,205
121,505
249,504
45,774
2,789
11,692
96,954
1,046,423
Total 2021
£
451,882
57,075
317,295
15,225
2,080
7,059
69,726
920,342
2021
£
243,233
677,109
920,342

Page 36 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

8 Analysis of governance and support costs

Current reporting period
Staff costs
Salary costs
Premises
Floor area
Administration
Usage
Consultancy
Usage
Accountancy fees
Usage
Audit fees
Usage
Previous reporting period
Staff costs
Salary costs
Premises
Salary costs
Administration
Salary costs
Depreciation
Salary costs
Accountancy fees
Salary costs
Audit fees
Salary costs
Basis of
apportionment
Basis of
apportionment		 Support
£
82,450
10,539
3,364
601
-
-
96,954
Support
£
57,701
(9,126)
17,626
4,840
-
-
71,041		 Governance
£
6,892
-
-
-
1,800
3,000
11,692
Governance
£
5,443
-
-
-
1,700
4,000
11,143		 Total 2022
£
89,342
10,539
3,364
601
1,800
3,000
108,646
Total 2021
£
63,144
(9,126)
17,626
4,840
1,700
4,000
82,184

Page 37 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

9 Net income/(expenditure) for the year

This is stated after charging/(crediting):

This is stated after charging/(crediting):
Depreciation
Interest payable
Auditor's remuneration - audit fees
Auditor's remuneration - accountancy fees
Staff costs
Staff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs
Allocated as follows:
Cost of raising funds
Charitable activities
Support costs
Governance costs		 2022
£
45,774
2,789
3,000
1,800
2022
£
559,542
47,157
13,442
620,141
12,594
518,205
82,450
6,892
620,141		 2021
£
20,358
2,080
4,000
1,700
2021
£
519,768
32,272
10,953
562,993
8,523
491,326
57,701
5,443
562,993

10 Staff costs

No employees has employee benefits in excess of £60,000 (2021: Nil).

The average number of staff employed during the period was 33 (2021: 23). The average full time equivalent number of staff employed during the period was 24.29 (2021: 19.2).

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 £169,322 (2021: £138,017).

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 (2021: Nil).

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

Project Energy Ltd., of which Andrew Chicken is a director, received £3,953 (£3,294 net of VAT) for consultancy services (2021: £2,000) and Robin Barnett (T/A What's going on?), received £1,462 for consultancy services (2021: £2,500), on normal commercial terms.

Brigit Egan, Andrew Chicken and Shirley Jones are Trustees of EMERGE 3Rs and also Non-Executive Directors of EMERGE Recycling Limited (our fellow Community Benefit Society). Jayrissa Thompson and Lucy Danger are both Executive Directors of EMERGE Recycling whilst being also Key Management Personnel/employees of EMERGE 3Rs. EMERGE Recycling trades with Emerge 3Rs. During the year Emerge 3Rs paid £34,956 for services received from Emerge Recycling, and received £115,344 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 (2021: nil).

Page 38 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

12 Government grants

The government grants recognised in the accounts were as follows:

FareShare UK - The National Lottery Community Fund
Manchester City Council
Big Lottery Community fund		 2022
£
-
31,225
-
31,225		 2021
£
49,000
24,980
40,000
113,980

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

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

Cost
Additions
Disposals
Depreciation
Charge for the year
Disposals
Net book value
At 31 March 2021
At 1 April 2021
At 31 March 2022
At 1 April 2021
At 31 March 2022
At 31 March 2022		 Buildings
£
592,801
347,526
-
940,327
-
7,836
-
7,836
932,491
592,801		 Vehicles
£
176,525
19,000
-
195,525
76,932
29,190
-
106,122
89,403
99,593		 Office
equipment
£
34,174
4,542
-
38,716
30,664
1,068
-
31,732
6,984
3,510		 Other
equipment
£
32,471
232,366
(5,871)
258,966
22,441
7,680
(1,639)
28,482
230,484
10,030		 £
835,971
603,434
(5,871)
Total
1,433,534
130,037
45,774
(1,639)
174,172
1,259,362
705,934

Page 39 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

15 Debtors

Trade debtors
Other debtors
Prepayments and accrued income
16
Cash at bank and in hand
Cash at bank and on hand
17
Creditors: amounts falling due within one year
Trade creditors
Other creditors and accruals
Taxation and social security costs
Hire purchase liabilities
18
Creditors: amounts falling after more than one year
Hire purchase liabilities		 2022
£
50,544
30,485
11,011
92,040
2022
£
249,002
249,002
2022
£
88,626
26,935
12,163
7,993
135,717
2022
£
14,219
14,219		 2021
£
91,522
95,466
5,681
192,669
2021
£
390,635
390,635
2021
£
138,036
35,508
11,549
10,052
195,145
2021
£
3,141
3,141

Page 40 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

19 Analysis of movements in restricted funds

FareShare GM
FareShare UK:
National Lottery Community Fund
UK Transition fund
VAN & Driver
Greater Manchester Mayor's Charity
Recharge: Food Acquisition Worker
Building fund
FareShare UK IT infrastructure
FareShare UK
Core and Give & Gain
ESF Community Grant
Charities Aid Foundation
TFGM - Cycle Store
MCC-NIF Grant
Total
Current reporting period
National Lottery Community Fund
(Volunteer Fund)
Manchester Green Economy
Employment Partnership
MCC – Our Manchester Voluntary and
Community Sector Grants
WRAP – Small Scale Food Waste
Prevention Fund
Young Manchester Covid Recovery
Grant
Resource Efficiency Grant (Heat
Recovery)		 Balance at 1
April 2021
£
10,855
10,000
4,985
2,482
11,087
4,559
-
-
-
-
43,968
6,297
-
6,297
4,435
-
-
-
-
4,435
54,700		 Income
£
12,000
-
-
984
-
-
19,980
13,069
19,555
1,500
67,088
-
300,000
300,000
-
164,841
5,000
4,998
2,000
176,839
543,927		 Expenditure
£
(22,855)
(10,000)
(4,985)
(3,466)
(11,087)
(4,559)
(19,980)
(10,469)
(18,755)
(1,500)
(107,656)
(3,981)
-
(3,981)
(4,435)
(4,733)
-
(4,998)
-
(14,166)
(125,803)		 Transfers
£
-
-
-
-
-
-
-
(2,600)
-
-
(2,600)
(2,316)
(300,000)
(302,316)
-
-
(5,000)
-
(2,000)
(7,000)
(311,916)		 Balance at
31 March
2022
£
-
-
-
-
-
-
-
-
800
-
800
-
-
-
-
160,108
-
-
-
160,108
160,908

Page 41 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

19 Analysis of movements in restricted funds (Cont.)

FareShare GM
Derwent Capital account (AGF)
FareShare UK:
Asda partnership
National Lottery Community Fund
FareShare UK
UK Transition fund
VAN & Driver
Volunteer Fund
Greater Manchester Mayor's Charity
Manchester City Council
Recharge: Food Acquisition Worker
Waste and Resources Action Programme
Building fund
ASDA Capital fund
Zochonis Charitable Trust
Waste and Resources Action Programme
FareShare UK IT infrastructure
Core and Give & Gain
ESF Community Grant
Total
FareShare GM
Building Fund
Core and Give & Gain
Name of
restricted fund
Previous reporting period
Waste and Resources Action Programme -
Covid		 Balance at 1
April 2020
Income
Expenditure
Transfers
Balance at
31 March
2021
£
£
£
£
£
-
32,300
(32,300)
-
-
14,791
-
(14,791)
-
1,182
49,000
(39,327)
-
10,855
-
25,000
(25,000)
-
-
-
35,000
(25,000)
-
10,000
-
25,700
(11,481)
(9,234)
4,985
4,100
4,738
(6,356)
-
2,482
-
50,000
(13,913)
(25,000)
11,087
-
19,980
(19,980)
-
-
-
9,000
(4,441)
-
4,559
-
49,967
(49,967)
-
-
-
14,265
(14,265)
-
-
20,073
314,950
(242,030)
(49,025)
43,968
-
177,719
-
(177,719)
-
-
250,000
-
(250,000)
-
-
46,200
-
(46,200)
-
-
7,500
(1,203)
-
6,297
-
481,419
(1,203)
(473,919)
6,297
-
4,435
-
-
4,435
-
4,435
-
-
4,435
20,073
800,804
(243,233)
(522,944)
54,700
Description, nature and purposes of the fund
to support the operation of FareShare
funding for the refurbishment of Maynard House
funding to support our "Give and Gain" Volunteering and Employability Training
Programme		 Balance at
31 March
2021
£
-
-
10,855
-
10,000
4,985
2,482
11,087
-
4,559
-
-
43,968
-
-
-
6,297
6,297
4,435
4,435
54,700

Transfers

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

Page 42 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

20 Analysis of movement in unrestricted funds

Building fund
Fixed assets reserve
Building fund
Fixed assets reserve
General fund
Building fund
Fixed assets reserve
Name of
unrestricted fund
General fund
Previous reporting period
General fund
Designated funds:
Designated funds:
Current reporting period		 Balance at 1
April 2021
Income
Expenditure
Transfers
As at 31
March 2022
£
£
£
£
£
256,169
965,950
(1,048,558)
(34,906)
138,655
-
74,149
24,000
-
1,052,756
1,150,905
705,934
-
-
(705,934)
-
1,036,252
989,950
(1,048,558)
311,916
1,289,560
Balance at
1 April 2020
Income
Expenditure
Transfers
As at 31
March 2021
£
£
£
£
£
47,356
1,042,361
(754,649)
(78,899)
256,169
-
178,240
-
(104,091)
74,149
-
-
-
705,934
705,934
47,356
1,220,601
(754,649)
522,944
1,036,252
Description, nature and purposes of the fund
The free reserves after allowing for all designated funds
The net book value of the fixed assets, as these funds are not freely available for
the charity's operations.
Funds set aside for the net book value of Maynard House (this includes the
refurbishment of the building and other longer life equipment).		 As at 31
March 2022
£
138,655
-
1,150,905
-
1,289,560
As at 31
March 2021
£
256,169
74,149
705,934
1,036,252

Page 43 of 45

EMERGE 3Rs

Notes to the accounts for the year ended 31 March 2022 (continued)

21 Analysis of net assets between funds

Current reporting period
Tangible fixed assets
Net current assets/(liabilities)
Creditors of more than one year
Total
Previous reporting period
Tangible fixed assets
Net current assets/(liabilities)
Creditors of more than one year
Total		 General
fund
£
108,457
44,417
(14,219)
138,655
General
fund
£
-
259,310
(3,141)
256,169		 Designated
funds
£
1,150,905
-
-
1,150,905
Designated
funds
£
705,934
74,149
-
780,083		 Restricted
funds
£
-
160,908
-
160,908
Restricted
funds
£
-
54,700
-
54,700		 Total
£
1,259,362
205,325
(14,219)
1,450,468
Total
£
705,934
388,159
(3,141)
1,090,952

22 Reconciliation of net movement in funds to net cash flow from operating activities

Net income/(expenditure) for the year
Adjustments for:
Depreciation charge
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by/(used in) operating activities		 2022
£
359,516
45,774
100,629
(57,369)
448,550		 2021
£
1,023,523
20,358
(134,624)
130,842
1,040,099

Page 44 of 45

EMERGE 3RS

Statement of Financial Activities (including Income and Expenditure account) for the year ended 31 March 2021

Income from:
Donations and legacies
Charitable activities:
FareShare GM
Building fund
Core and Give & Gain
Touch Wood
Total income
Expenditure on:
Raising funds
Charitable activities:
FareShare GM
Core and Give & Gain
Touch Wood
Total expenditure
Transfer between funds
Net movement in funds for the year
Reconciliation of funds
Total funds brought forward
Total funds carried forward
Costs Recharged to Emerge
Recycling
Other trading activities
Costs Recharged to Emerge
Recycling
Net income/(expenditure) before
net gains/(losses) on investments
Net income/(expenditure) for the
year		 Unrestricted
funds
£
296,467
591,981
178,240
-
83,812
2,532
67,569
1,220,601
9,971
489,706
101,347
86,056
67,569
754,649
465,952
465,952
522,944
988,896
47,356
1,036,252		 Restricted
funds
£
-
796,369
-
4,435
-
-
-
800,804
-
243,233
-
-
-
243,233
557,571
557,571
(522,944)
34,627
20,073
54,700		 Total funds
2021
£
296,467
1,388,350
178,240
4,435
83,812
2,532
67,569
2,021,405
9,971
732,939
101,347
86,056
67,569
997,882
1,023,523
1,023,523
-
1,023,523
67,429
1,090,952		 Total funds
2020
£
134,496
414,763
-
-
54,643
7,208
77,073
688,183
3,384
520,443
38,966
71,766
77,073
711,632
(23,449)
(23,449)
-
(23,449)
90,878
67,429

Page 45 of 45