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2023-12-31-accounts

FOODCYCLE REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

COMPANY NUMBER: 07101349 CHARITY NUMBER: 1134423

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  1. Reference and administrative information

  2. Trustees’ Annual Report

  3. Independent Auditor’s Report

  4. Statement of Financial Activities (incorporating an income and

expenditure account)

  1. Balance Sheet

  2. Statement of cash flow

  3. Notes to the financial statements

FoodCycle

01. REFERENCE AND ADMINISTRATIVE INFORMATION

Charity Number
Country of 1134423 England and Wales
Registration
Company Number
Country of 07101349United Kingdom
incorporation
Registered Office and 2.16 The Food Exchange, New Covent Garden Market London, SW8 5EL
operational address
Board of 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:
Ms. Mary McGrath MBE (Chair)
Chair and Treasurer (appointed 04/01/2024) Mr. David John Mcbean West (Treasurer)
Mr. StephenJohn Catling
(Chair resigned 01/12/2023)
Trustees Ms. Kalyani Gupta
Mr. Mathew Bushby		 Ms. Frances Le Grys (appointed 23/01/23)
Mr. Nick Johnson (appointed 23/01/23)
Mr. Gareth Michael Germer (resigned 24/04/2023) Ms. Samantha Denney (appointed 17/11/23)
Mr. Mark Game (Resigned 30/10/2023) Dr. Olivia Barata Cavalcanti
Ms. Philippa Jane Garland (resigned 01/12/2023) (appointed 23/01/2023, resigned 29/01/2024)
Senior Leadership
Team		 Ms. Sophie Tebbetts (Chief Executive Officer from
01/01/2024, Head of Programmes until
31/12/2023)
Ms. Mary McGrath MBE (Chief Executive Officer
until 31/12/2023)		 Ms. Marylyn McQuaide (Head of Finance)
Ms. Carly Shutes (Head of Marketing)
Mr Peter McCabe (Head of Programmes)
Ms. Victoria Meier (Head of Fundraising)
Bankers Independent Auditors
Insurance Brokers
Professional NatWest Bank Sayer Vincent LLP
Artemis Insurance Brokers
Advisers 216 Bishopsgate
Liverpool Street
London
EC2M 4QB		 110 Golden Lane
London
EC1Y 0TG
Provident House, 13 Russell Hill
Road Purley
Surrey
CR8 2LE

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A word from the Chair of Trustees

I am honoured to welcome you to FoodCycle 2023 Annual Report. As the Chair of FoodCycle, I am delighted to share with you the journey we have embarked upon over the past year.

This report serves as a demonstration of the dedication, commitment, and unwavering support of our staff, supporters, volunteers and community partners who have joined us in our vision to make food poverty, loneliness and food waste a thing of the past for every community.

In these pages, you will find an overview of our achievements, our learnings, and the impact we have had on the lives of communities across the country.

I would like to take this opportunity to acknowledge and thank my colleagues on the board, staff and volunteers. Navigating a year of rising costs due to the impact of the cost of living crisis and ambitious growth, was never going to be straightforward, but the organisation ended the year in a strong position thanks to their commitment and leadership.

As newly appointed chair of Trustees I look forward to working closely with the Senior leadership team and the rest of the board to ensure the future success and positive impact we can have on our guests lives.

A word from the CEO

I am enormously proud of what we achieved in 2023, it was an exceptional year of growth and ended with us serving 3,000 community guests a week. Our aim was to open 20 new Projects but in true FoodCycle style, we exceeded this and launched 22, including establishing ourselves in the East Midlands for the first time.

None of it would have been possible without staff, volunteers and supporters who have worked tirelessly to help us achieve this outcome.

As we have grown, so has the support of our fantastic charitable trusts and corporate partners and it has been wonderful to build new partnerships as well as strengthen existing ones, helping us to carry on our invaluable work.

Last year was not without its challenges. Access to surplus food continues to peak and trough, but we are working hard to secure sustainable partnerships so we can keep serving nutritious and well-balanced meals. The increased cost-of-living continues to bite, resulting in rising running costs we have seen an increase on food spend. This is hugely impacting our guests with 76% worrying that their financial situation will continue to get worse.

FoodCycle community meals will run in 100 locations by the end of 2024, and we will have served over 3.5 million meals! A true cause for celebration as we mark our 15[th] birthday!

Thank you for your continued support in enabling FoodCycle to nourish communities through delicious food and conversation.

Mary McGrath MBE* Chair of Trustees

Sophie Tebbetts Chief Executive Office from January 2024

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*Legal Name Mary Jennings

02. Annual Trustee Report

The trustees present their report and financial statements for the year ended 31 December 2023

Reference and administrative information set out on page 3 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

The company is registered as a charitable company limited by guarantee and was set up by a Memorandum and Articles of Association dated 2 December 2009.

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting year. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remain focused on its stated purposes.

The trustees have referred to the guidance 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. (SORP 1.18)

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FoodCycle Vision, Mission and Aims

The objects of the charity as set out in our governing document are:

  1. The relief of poverty and the preservation and promotion of good nutrition, good health and social improvement among people who are suffering from social, economic or emotional distress.

  2. The advancement of the education of the public in reclamation of waste food and preparing healthy food.

  3. The promotion and enhancement of human health through providing information and advice in relation to healthy eating and nutrition.

  4. The conservation, protection and improvement of the environment for the public benefit by the promotion of reduction of food waste and the use of surplus food.

  5. Such other objects, as shall be exclusively charitable by the law of England and Wales, as the Trustees shall decide.

Vision

To make food poverty, loneliness and food waste a thing of the past for every community.

Mission

Week in, week out we nourish the hungry and lonely in our communities with delicious meals and great conversation, using food which would otherwise go to waste

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Delivering Public Benefit

5849Volunteers

2023

Key Achievements

time

happier after a Community Dining FoodCycle meal

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*Equivalent meals served is based on assumption an average meal is 420g – FSA 2008.

FoodCycle

Community Dining Key Achievements

FoodCycle Projects are located across England and Wales. They are volunteer-powered community Projects serving nutritious, vegetarian meals for people at risk of food poverty and social isolation. At each Project, volunteers are trained, supported and empowered to collect surplus food, cook it in community kitchens, and serve it to adults and children in need.

Working with community partners, FoodCycle welcomes vulnerable people into a warm and welcoming environment. We work with groups including older people, mental health service users, people affected by homelessness, low-income families, asylum seekers and refugees, and people who are long-term unemployed.

This year, we launched 22 new Projects, along with moving venues at our Bristol and Gloucester Projects to help support the capacity of guests attending.

We opened up a brand new region for us in the East Midlands, which immediately saw a large guest base of 50 - 60 people a week attending.

All Projects are supported by FoodCycle HQ with:

We ended the year with 83 operational projects, setting us up for success to complete our three-year strategy to reach 100 by the start of 2025.

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What does FoodCycle mean to our guests?

FoodCycle meals continue to be at the heart of the community - a warm and safe space to socialise, make new friends, and share a tasty meal.

Guests attend FoodCycle’s weekly community meals for a number of reasons, some come for the company, some come for the food. We pride ourselves on the fact that ‘everyone is welcome’, which means we see people from all walks of life, meeting together, sharing stories, making friends and enjoying a hot, nutritious meal. Each year we undertake an annual survey with our guests to understand their circumstances and the benefits of attending FoodCycle.

Who were FoodCycle guests in 2023?

46% live on their own

72% feel lonely

40% have a long-term physical health condition

69% eat most meals alone (when not at FoodCycle)

72% worry that they can’t afford to buy the food they need

63% skip meals

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How did community dining benefit our guests in 2023?

79 % eat more fresh fruit and vegetables because of FoodCycle

85% of guests have made friends at a FoodCycle meal

88% feel part of their community after attending a FoodCycle meal

89% feel more relaxed after attending a FoodCycle meal

93% feel well fed after attending a FoodCycle meal

92% feel happier

And it is not just our guests who see the benefits… Our volunteers see positive outputs from giving back to FoodCycle such as:

73% said they have met people from different backgrounds 46% have a better understanding of issues surrounding food waste 68% of volunteers feel good about themselves after volunteering 45% have made friends

40% have gained new skills or improved existing ones

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Supporting Volunteers

FoodCycle has a tiered system of volunteers – Project Leaders, who commit to helping the Project run and take responsibility for each community dining session and regular volunteers for specific roles such as food collection, cooking or hosting – both types of volunteers sign up for sessions on the Volunteer Management Portal.

Each Project is managed by up to eight Project Leaders who take turns to run each session, with support and assistance from FoodCycle employees, including Regional Managers, a Training Manager and Project Support Officers.

Project Leaders work as a team; at least one is present at each cooking and hosting session to help manage the service. Ad hoc and regular volunteers are trained when they register and in-situ at each Project to make a meal from surplus and cook for large numbers. We continued to deliver volunteer training, including accredited first aid training, safeguarding, conflict training, food safety and nutrition and allergen training, all of which will result in them being better able to meet the needs of our guests and manage any issues that arise at our Projects and have introduced volunteer trainers this year. Hence, we have more peer-to-peer training.

Volunteers join us for various reasons, some to help their community, some to help tackle loneliness. However, with many still adjusting to life postpandemic, alongside increasing living costs, we’re seeing that a lot of our volunteers have experiences similar to those of our guests. This can be felt more acutely in different ages or demographics, with 10% in the East Midlands region volunteering so they have access to a free meal and 19% of volunteers aged 18-25 wanting to help volunteer so they feel less lonely.

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Check-in and Chat

2,780 Check-in and Chat calls were made in 2023. The service was set up during lockdown so that even though we could connect in person, we could still support our guests. The service has now run its course, and we have decided to bring an end to the calls to focus on community dining and eating and connecting together in person. All service users now attend a FoodCycle community meal or have been signposted to an alternative service.

Safeguarding and keeping the organisation safe

As a values-led organisation, we are committed to keeping our staff, volunteers, and guests (beneficiaries) protected from harm, and we provide training and briefings at each project to ensure that volunteers know what to do in the event of an incident. We have comprehensive insurance in place to cover all our activities and conduct risk assessments on all our activities to ensure our guests, volunteers or stakeholders do not come to harm. During the year we continued to train our Trustees, staff and volunteers in safeguarding policies and procedures. All new staff members and project leaders are DBS-checked, ensuring they are legally able to act in their positions. Safeguarding is everyone's business at FoodCycle, and we have a culture of transparency and openness. This year, our area manager staff were trained in conducting DASH (Domestic Abuse Stalking and Harassment) Assessments to support guests further.

Food Safety

We continued to have all the kitchens we use (either hired or with partnership organisations) registered with the EHO for inspection. Project Leaders are trained to use our Kitchen Handbook to ensure food is safely prepared and that guests are aware of any allergens that may have been used in food preparation. We conduct kitchen audits during the year, as a way of assessing if we are following all our policies and procedures around kitchen safety and allergens. This year, we started the Primary Authority relationship with Peterborough Local Authority. This is a legal partnership with the local authority (known as the primary authority). Your primary authority can then provide FoodCycle with assured, consistent regulatory advice that makes it simpler and easier to comply with environmental health, trading standards and fire safety legislation.

Reducing Food Waste and Sustainability

Our volunteers continued to reclaim surplus food throughout the year - either through cycling around their cities or through collection on foot or by car. During 2023, our volunteers rescued 239 tonnes of food for FoodCycle community meals . This volume of food is the equivalent of 563,945 meals*. The food that we saved would have equated to 148,725 kg of CO2 emissions, had it have gone to landfill. Utilising food surplus is not the only way that we promote sustainability at FoodCycle; by serving vegetarian meals, we are highlighting to our guests and volunteers the importance of sustainable diets, which feeds into the Climate Change Committee (CCC) suggested target for a 35% reduction in meat per person by 2050 to help reach net zero targets. This year, we are investing further in our education on reducing food waste by creating training videos on food waste for our volunteers and teaching them how to best utilise their surplus food at Projects and at home.

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*Equivalent meals served is based on assumption an average meal is 420g – FSA 2008.

FoodCycle

Senior Management Changes

This year, we saw some big senior management changes, with Mary McGrath stepping down as CEO after ten years at FoodCycle, becoming a Trustee and taking on the role of Chair of Trustees. Sophie Tebbetts, who has been Head of Programmes for the last six years, will be stepping up to be the new CEO in January 2024. We also welcome our first-ever Head of Finance, Marylyn McQuaide, and new Head of Programmes, Peter McCabe. We had a six-month transition period with Sophie as the CEO designate to ensure a smooth transition.

Brand New Finance Systems

To mitigate the 2022 principle risk of “outgrowing our finance system”, effective July 2023, the new multi-dimensional accounting system iplicit went “live”. The new finance system has an integrated Purchase Order module, approval workflows and improved in-system tracking of Project Fund spend, which creates efficiencies and enhances our control environment. iplicit are British Assessment Bureau accredited for information management systems and quality management.

FoodCycle started using a new donation platform, FinDock, in October 2023. FinDock is more reliable than our previous system, and it is integrated with Salesforce, which allows for more streamlined reporting and donor management. Findock also has the capability to be directly linked with HMRC, which will reduce administration time for the processing of Gift Aid claims.

Your Place at the Table Report & Positioning Papers

In January 2023, we launched our first ever ‘Your Place at the Table’ report, which generated a lot of media interest and national and regional press coverage. This report shows why eating together is essential in sustaining not just the physical body but also in creating the sense of belonging that underpins a healthy society and highlights why everyone should be invited to take a place at the table, regardless of income or status.

The report found that “anchor organisations at the heart of delivering services to communities” like FoodCycle “will help us build more resilience into our society”. It also said, during a time of crisis in the UK, “the value of being able to eat with others, to share food, to feed people and to build social connections is particularly significant.” Finally, the report found that “FoodCycle creates moments of commensality (the act of eating together ) showing that they are responding to people’s need to socialise in warm, welcoming, social spaces. Sitting and eating a nutritious hot meal and having time to digest food in a relaxed, warm, and comfortable setting is something everyone cherishes. For people experiencing hardships, this need is even greater. Mealtimes are not about making the world a better place as much as making a place for better worlds.” After our launch in January, we worked with a consultancy firm to put together a positioning paper and did a mapping exercise for local MPs to highlight the research and assess whether this could galvanise further government funding and grants and influence and engage different parts of the food system to raise awareness and champion community dining.

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Structure, Governance and Management

The organisation is a charitable company limited by guarantee, incorporated on 2[nd] December 2009 and registered as a charity on 2nd December 2009. The company was established under a memorandum of association, which established the objects and powers of the charitable company and is governed by its articles of association.

Board Effectiveness

The governance of the charity is overseen by a Board of Trustees (Board). The Trustees are recruited to fill specific skill sets identified by the Board as being required to ensure the effective management of the organisation. The current skill sets are organisational strategy, financial management, legal, risk management, operations, research, diversity and charity.

The Board met five times during the year, had four quarterly meetings, and then had a strategic planning and board effectiveness meeting in November 2023. There are annual business plans that move the organisation towards its vision. These yearly business plans are created using the following process: the Board sets out the parameters within which it wishes the organisation to create the annual business plan. The Senior Management Team (SMT) examines the activities in more depth. SMT developed the annual business plan and associated budget, which are presented to the Board for discussion and approval in October.

The day-to-day management of the charity is delegated to Sophie Tebbetts, the Chief Executive Officer, who was appointed in January 2024. The previous CEO, Mary McGrath, has become Chair of the Trustees effective 4[th] January 2024.

Trustees are required to disclose all relevant interests and register them with the charity and, in accordance with the charity's policy, withdraw from decisions where a conflict of interest arises.

All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 6 to the accounts.

Appointment of Trustees

If and when there is a requirement for new Trustees, these will be identified and appointed by the remaining Board. New Trustees are interviewed by the Chair and Chief Executive Officer, with a follow up call with all the other remaining Trustees. Potential Trustees are then invited to the next board meeting to observe before the final appointment.

Trustee induction and training

The Chair is responsible for the induction of any new Trustees, which involves awareness of a trustee's responsibilities, administrative procedures, the history and philosophical approach of the charity and the role we expect the new Trustees to take on.

New Trustees are required to volunteer at one of our Projects as part of their induction and meet the staff team. Each Trustee has a specific area of expertise on which they are expected to give guidance.

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Related Parties and relationships with other organisations

We work in collaboration with a number of organisations that provide kitchen space and outreach to guests or signpost them to their services, including Barton Hill Settlement in Bristol, Creative Living Centre, Prestwich, Langworthy Cornerstone, as well as church halls and council-run community halls.

During 2023, Mark Game was a Trustee of FoodCycle and CEO of The Bread and Butter Thing (“TBBT”). FoodCycle’s CEO during 2023, Mary McGrath, was a trustee of the board of TBBT. Mark Game stepped down as a Trustee in December 2023, and Mary McGrath left the TBBT in September 2023 and stepped down as CEO of FoodCycle in December 2023. Furthermore, Mary McGrath became a member of The Fishmongers' Company in January 2024, but this poses no conflict as she does not sit on the Philanthropy and Grants Committee.

In addition, some of our Projects in the north benefit from food surplus, which we collect from TBBT. Food distribution is a large part of what they do, and we benefit from it in the same way as the other organisations who collect surplus food from them; we also incur expenditure to collect the food by way of mileage in the same way as when we collect from Fareshare or a supermarket so, there are no beneficial arrangements for FoodCycle.

We also have partnerships with organisations that run FoodCycle services as a franchise, whereby they have a manager who carries out the work of a FoodCycle Regional Manager but is based within their organisation. These partners are St Paul’s Church, Lisson Grove, London; Rushey Green Time Bank, Lewisham, London.

Remuneration Policy

The Board consider the Chief Executive Officer, the Head of Programmes, the Head of Fundraising, the Head of Finance and the Head of Marketing as the key management personnel. This Senior Management Team (SMT) of the charity is in charge of directing, controlling, and operating the charity on a day to day basis.

Details of Trustee expenses and related party transactions are disclosed in notes 6 & 8 to the accounts.

The pay of the charity's Chief Executive Officer and SMT is reviewed annually and normally increased in accordance with average earnings. In view of the nature of the charity and its economy of operations. The remuneration is also benchmarked with charities of a similar size and activity to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

Under the Pensions Act 2008, all staff are auto-enrolled on a pension scheme following three months of service.

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Equality, Diversity and Inclusion

We have a responsibility to ensure that our work is intentionally designed with and for minoritised communities if we genuinely want to connect communities and ensure that ‘everyone feels welcome’. Therefore, equality, diversity, and inclusion are at the heart of our work to ensure we are truly reflective of the diverse communities in which we operate. This year, we have taken steps to improve the accessibility to volunteering with us and accessing our services; all projects are now added to Euan's Guide, which is a national charity that reviews disabled access to venues and spaces, along with improving our equal opportunities pages with case studies and videos from volunteers who are disabled. Internally, we improved our recruitment processes to ensure that we have a more diverse workforce, provided staff training on how to be LGBTQ+ inclusive, and updated our family leave policy to reflect more inclusive language. Finally, we are proud to have been recognised as a Disability Confident Employer and to have received Pioneer status from the Recruitment Industry Disability Initiative (RIDI).

Financial Review

Income received for the year totalled £2,760,280, of which £2,566,777 was received as grants and donations, including Gift-in-Kind. Trading activities generated £64,822, primarily made up of fundraising gala income of £54,701. Corporate Food Invention Challenges generated £84,463.

No grants have been deferred to the financial year 2024.

Forward commitments from a range of funders totalled £567,478 for 2024.

Principal Risks and Uncertainties

The Trustees have ultimate responsibility for risk management and FoodCycle’s internal control systems. They are satisfied that appropriate systems and processes are in place to identify key risks and mitigate against them. The Senior Management Team reviews organisational risks and ensures that adequate internal controls are in place and operating effectively. The SMT regularly considers new and emerging risks, reviews internal controls, and assesses progress against mitigating actions. The SMT ensures that risk management processes are embedded across the organisation through the effective implementation of relevant policies and procedures. The Trustees review the strategic risks and the internal control measures put in place by the SMT to mitigate the risks. Furthermore, we have a Complaints and Whistleblowing policy in place with a dedicated mailbox for raising concerns.

The Trustees are responsible for ensuring that an effective system of internal financial control is maintained and operated by the charity by overseeing the following:

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Our principal risks are:

Safeguarding incidents that could lead to reputational damage. Every year, we conduct a full review of our Safeguarding policies and procedures, ensuring that Project Leaders, staff and Trustees are fully up to date with our policies and procedures.

The quality and effectiveness of our work rely on the continued motivation, support and commitment of our staff and volunteers. We continue to attract large numbers of high-calibre volunteers with our excellent marketing and comprehensive volunteer training.

Reliance on systems that could be hacked and data exploited.

All our systems are cloud-based with multi-factor authentication. Our platforms are owned and managed by IT companies that globally manage this risk.

External events affecting imports and surplus food supply.

We have plans to increase our spending on food to ensure our meals continue to be nutritious.

Requirement for funding to grow year on year as we expand

whilst simultaneously experiencing an increase in costs. We have continued to steward very important fundraising relationships and developed our pipeline for new funders, both corporate and trusts and foundations. We will expand our fundraising team and widen our income streams further in 2024.

Cost-of-living driving up costs.

Increase in venue hire and salary costs to retain staff; increased volume of volunteers claiming expenses.

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Reserves Policy and Going Concern

The total funds the charity held at December 31st 2023, was £1,617,065 which included restricted funds of £399,322.

In 2020, the Board of Trustees agreed to designate £450,000 over three years towards FoodCycle’s expansion across the country. During 2023, the Expansion Fund was charged with £139,950 to support the growth of new Projects across the country. The Expansion Fund balance of £155,683 will be used in the same manner in 2024 when this Fund is anticipated to be fully utilised.

The amount of general unrestricted reserves, excluding Fixed Assets at the end of the 2023 reporting year, after making allowances for any restricted funds and designations is £1,040,245

Our reserves policy is set to ensure that our work is protected from the risk of disruption at short notice due to a lack of funds whilst at the same time ensuring that we do not retain income for longer than required. The Trustees have determined that the charity needs free reserves for the following purposes:

The Trustees further determined that FoodCycle should be holding enough disposable cash reserves, equivalent to six months of unrestricted reserves forecast activity levels.

The cash position at December 31st 2023the accounts is £1,599,728 equivalent to over six months of cover of forecast expenditure. Accordingly, FoodCycle has no material uncertainty for 2024.

Fundraising

During 2023, we saw generous support from corporates, trusts, and individuals, recognising FoodCycle’s contribution to connection communities tackling the cost-of-living crisis and enabling us to raise £2,720,377 Principle grant funding was provided by The Julia and Hans Rausing Trust, City Bridge Trust, AKO Foundation, Rothschild Foundation, the Fishmongers’ Company’s Charitable Trust, Dulverton Trust, and Moondance Foundation.

It proved another strong year for corporate support. We are grateful to our long-standing partner, Just Eat, whose teams have been involved in fundraising and volunteering. The year culminated with the Winter Meal Appeal, which went on until March 2023. Our partnership with Quorn went from strength to strength as well as financial support; we are grateful for their support in co-commissioning our Your Place at the Table Report. We also embarked on a major new 3-year partnership with Danone, who is supporting us with enhanced

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nutritional training. FoodCycle received continued funding from the Compass Group Foundation to support volunteer training and development.

Our thanks go to employees of several corporations for nominating FoodCycle to be their charity partner of the year in 2023. Calastone Boursin, Fortem Capital and Zurich Community Trust all continued their support whilst Pen Underwriting embarked on a new partnership with FoodCycle.

Food Invention Challenges

2023 was our busiest year ever for our Food Invention Challenges, with 22 companies taking part; these fun sessions bring teams together to create three-course meals using surplus food, which are then donated to local organisations supporting communities in South London. Over the course of the year, over 360 participants produced over 880 three-course meals and rescued over a tonne of surplus food.

Roots and Shoots Gala Dinner & Italian Feast Dinner

In the Spring we held a gala dinner. Some of the UK’s top chefs, including FoodCycle Patron Danilo Cortellini, Ben Tish, Luke Tipping, Stefan Pini and Lorenzo Salami, donated their time to cook an exquisite meal for over 100 diners. The event would not have been possible without our sponsor, Just Eat, and The Fishmongers’ Company, who kindly gifted the use of their livery hall and their staff’s time, Compass Group’s chefs who created the canapés, as well as all the generous companies who gifted drinks, food and auction prizes. In the Autumn we held an Italian Feast Dinner. Supported by FoodCycle volunteers, talented chef and FoodCycle patron Danilo Cortellini whipped up a delicious fourcourse Italian feast. The evening was generously sponsored by Calastone, and all the food and wine were donated by Danilo’s suppliers.

We do not use professional fundraisers, but we do use commercial participator agreements. We are a member of the Fundraising Regulator and comply with its codes. We have also signed up to the Fundraising Preference Service and have received no complaints. Helping people is at the heart of FoodCycle’s values as an organisation, and consequently, we endeavour to never ask a vulnerable person for financial support. We believe this approach protects vulnerable people.

Press and Marketing

The cost of living has been at the forefront of the media agenda, which has given FoodCycle the perfect opportunity to talk about our services and how they can benefit the community and are available to anyone who needs them. Throughout 2023, more than 360 articles, features, and mentions of FoodCycle were published. This included interviews with guests and volunteers and highlighting some of our corporate partnership activities. This also included our Community Dine with Me campaign, which saw generous media partners donate £200,000 worth of time and advertising space.

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Plans for the Future

FoodCycle plans to continue expanding in 2024 to reach 100 Projects and to reach the milestone of 3.5 million meals served during our 15[th] birthday year.

We will be launching our pilot programme of after-school community dining meals. The aim of the schools programme is to create regular dining events outside of school hours throughout the whole year, where students and their families can come together, bond, and enjoy healthy, balanced meals that help develop a connection through conversations. We'll also integrate educational components into the dining experience, such as nutrition awareness, healthy eating habits, sustainability, and social skills. We will be piloting our first two schools in the second quarter of the year with the Ark Academy. Our intended impact is well-fed and happy students and families, a positive school environment that promotes social interaction and a sense of belonging, and students empowered with knowledge about healthy eating habits and sustainable eating practices. We will be hiring a Schools Coordinator to deliver and facilitate the programme.

At the end of last year, we designed our next 3-year strategy whichs launches in 2025, with a focus on championing community dining. This year, we will be focusing on ensuring that the strategy has the right reporting metrics to be as impactful as possible.

Sustainability will be a focus for us this year. FoodCycle recognises that our operations have an impact on a range of stakeholders, such as the communities we work in, our employees, our donors, and the natural resources we continue to rely upon. We aim to have a deeper review of positive and negative impacts and to take appropriate action.

We will build upon the work of the Your Place at the Table report to create an annual research report into the benefits of community dining to help influence wider systemic change; this year's focus will be on how community dining helps improve healthy eating choices.

Statement of Responsibilities of Trustees

The Trustees (who are also directors of FoodCycle for the purposes of company law) are responsible for preparing the Trustees’ annual report, including the strategic 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 year. In preparing these financial statements, the Trustees are required to:

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The Trustees are responsible for keeping adequate 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 to prevent and detect 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.

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 on 31 December was 8 (2022:7). The Trustees are members of the charity, but this entitles them only to voting rights. The Trustees have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed willingness to continue in that capacity.

The Trustees’ annual report has been prepared in accordance with the special provisions applicable to companies subject to the small companies regime.

The Trustees’ annual report has been approved by the Trustees on 29 April 2024 and signed on their behalf by

David West Treasurer

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FoodCycle

03. INDEPENDENT AUDITORS REPORT

Opinion

We have audited the financial statements of Foodcycle (the ‘charitable company’) for the year ended 31 December 2023, which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102, The Financial Reporting Standard applicable in the UK Republic of Ireland (the 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: 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 regarding 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 FoodCycle’s ability to continue as a going concern for a year 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.

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. The trustees are responsible for the other information contained within the annual report. 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. 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 course of the audit or otherwise appears to be materially misstated.

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FoodCycle

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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 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 trustees’ annual 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:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities set out in the trustee's annual report, 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 concerned 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.

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FoodCycle

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 extent to which our procedures are capable of detecting irregularities, including fraud, are set out below.

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

We enquired of management, which included obtaining and reviewing supporting documentation concerning the charity’s policies and procedures relating to:

Because of the inherent limit at ions 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our audit or report.

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FoodCycle

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 and 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.

Joanna Pittman (Senior statutory auditor)

for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, London, EC1Y 0TG Date: 21 May 2024

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FoodCycle

0 4. STATEMENT OF FINANCIAL ACTIVITIES INCORPORATING INCOME AND EXPENDITURE ACCOUNTS

For the year ended 31 December 2023 2023 2022
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
Income from:
Donations 2 1,689,876 876,901 2,566,777 984,503 783,321 1,767,824
Charitable activities -
Food Invention Challenges 84,463 - 84,463 49,904 - 49,904
Franchise fees for community meals 3,715 - 3,715 4,132 - 4,132
Recharge to partner organisations 600 - 600 843 - 843
Other trading activities 3 64,002 820 64,822 27,686 1,083 28,769
Investments 36,863 - 36,863 2,137 - 2,137
Other income 3,040 - 3,040 34 - 34
Total income 1,882,559 877,721 2,760,280 1,069,239 784,404 1,853,643
Expenditure on:
Raising funds 318,030 - 318,030 224,720 - 224,720
Charitable activities
Community meals 1,189,587 824,027 2,013,614 953,827 520,957 1,474,784
Total expenditure 4a 1,507,617 824,027 2,331,644 1,178,547 520,957 1,699,504
Net income / (expenditure) for the year 5 374,942 53,694 428,636 (109,308) 263,447 154,139
Transfers between funds - - - 376 (376) -
Net income / (expenditure) before other
recognised gains and losses		 374,942 53,694 428,636 (108,932) 263,071 154,139
Reconciliation of funds:
Total funds brought forward 842,801 345,628 1,188,429 951,733 82,557 1,034,290
Total funds carried forward 1,217,743 399,322 1,617,065 842,801 345,628 1,188,429

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16a to the financial statements.

Food Invention Challenge income is now presented within charitable activities for both 2023 and 2022.

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FoodCycle

05. BALANCE SHEET

05. BALANCE SHEET
As at 31 December 2023 Company no. 07101349
Note
10
11
12
13
16a
Total unrestricted funds
Total charity funds
General funds
Designated funds
Fixed assets:
Tangible assets
Investments
Current assets:
Debtors
Short term deposits
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within one year
Net current assets
Total net assets
The funds of the charity:
Restricted income funds
Unrestricted income funds:		 £
128,642
894,620
705,108		 2023
£
21,814
1		 £
179,075
461,625
656,734		 2022
£
18,112
1
21,815
1,595,251		 18,113
1,170,316
1,728,371
(133,120)		 1,297,434
(127,118)
1,062,060
155,683		 547,168
295,633
1,617,065 1,188,429
399,322
1,217,743		 345,628
842,801
1,617,065 1,188,429

Approved by the trustees on 29 April 2024 and signed on their behalf by

David West Treasurer

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FoodCycle

06. STATEMENT OF CASHFLOWS

For the year ended 31 December 2023

Reconciliation of net income / (expenditure) to net cash flow from operating activities

Net income for the reporting year
(as per the statement of financial activities)
Depreciation charges
Dividends, interest and rent from investments
Loss on the disposal of fixed assets
Decrease / (increase) in debtors
Increase in creditors
Net cash provided by operating activities
Cash flows from operating activities
Net cash provided by operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments Purchase of
fixed assets
Purchase of short term deposits
Net cash (used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the yearCash
and cash equivalents at the end of the year		 £
£
533,120
(36,863)
(14,888)
(432,995)
(484,746)
~~#~~
48,374
656,734
705,108
2023		 £
£
533,120
(36,863)
(14,888)
(432,995)
(484,746)
~~#~~
48,374
656,734
705,108
2023		 2023
£
428,636
9,685
36,863
1,501
50,433
6,002		 2022
£
154,139
8,963
2,137
299
(75,854)
61,323
533,120 151,007
48,374
656,734		 (324,421)
981,155
705,108 656,734

28

FoodCycle

07. NOTES TO FINANCIAL STATEMENTS

For the year ended 31 December 2023

1 Accounting policies

a) Statutory information

Foodcycle is a charitable company limited by guarantee and is incorporated in England and Wales.

The registered office address is Unit 2.16 The Food Exchange, New Covent Garden Market, LONDON SW8 5EL.

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

Foodcycle has a trading subsidiary, Foodcycle Trading Limited but this company is dormant. These accounts are presented for Foodcycle as a charitable company.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

c) Public benefit entity

The charitable company meets the definition of a public benefit entity under FRS 102.

d) Going concern

The trustees consider that there are no material uncertainties about the charitable company’s ability to continue as a going concern. Key judgements that the charitable company has made which have a significant effect on the accounts include estimating the value of venues that are provided free of rent and the deferral of funding from multiyear grant commitments.

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 amounts of assets and liabilities within the next reporting year.

e) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that 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 the provision of a specified service is deferred until the criteria for income recognition are met.

f) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation 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), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.

On receipt, donated gifts, 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 year

g) 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.

h) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

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FoodCycle

07. NOTES TO FINANCIAL STATEMENTS

For the year ended 31 December 2023

1 Accounting policies (continued)

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.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration, comprising the salary and overhead costs of the central function, is apportioned based on an estimate of staff time attributable to each activity.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £100. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

m) Investments in subsidiaries

Investments in subsidiaries are at cost.

n) 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.

o) 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.

p) 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.

q) 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.

r) Pensions

FoodCycle contributes to a defined contributions scheme. Payments in respect of the current service contributions are charged in the accounts as they fall due.

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FoodCycle

07. NOTES TO FINANCIAL STATEMENTS

For the year ended 31 December 2023

2 I ncome from donations

Income from donations
Gifts
Grants and donations from
trusts and foundations Gifts
in Kind		 Unrestricted
£
1,396,758
209,688
83,430		 £
102,845
774,056
-
Restricted		 2023
Total
£
1,499,603
983,744
83,430		 Unrestricted
£
734,415
185,307
64,781		 Restricted
£
125,788
657,533
-		 2022
Total
£
860,203
842,840
64,781
1,689,876 876,901 2,566,777 984,503 783,321 1,767,824

Gifts in kind received in the year largely comprise use of venues for some projects and use of a training platform for staff and volunteers.

Food Invention Challenge income is now presented within charitable activities for both 2023 and 2022.

3 Income from other trading activities

Sales of merchandise
Central fundraising initiatives
Project fundraising and events
Fees for use of the charity logo
Fundraising gala		 Unrestricted
£
(1,465)
-
3,636
7,130
54,701		 2023
Restricted
Total
£
£
-
(1,465)
-
-
820
4,456
-
7,130
-
54,701
820
64,822		 2023
Restricted
Total
£
£
-
(1,465)
-
-
820
4,456
-
7,130
-
54,701
820
64,822		 Unrestricted
2,864
3,567
6,142
15,113
-		 Restricted
-
-
505
578
-		 2022
Total
£
2,864
3,567
6,647
15,691
-
64,002 820 64,822 27,686 1,083 28,769

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FoodCycle

07. NOTES TO FINANCIAL STATEMENTS

For the year ended 31 December 2023

4a Analysis of expenditure (current year)

Total expenditure 2023
Total expenditure 2022
Staff costs (Note 6)
Project running costs
Administrative and office costs Consultancy and
legal fees
Travel (including food pick-ups) Fundraising and
central marketing Volunteer costs
IT costs
Staff recruitment and training
Project marketing and advertising - support
Monitoring and evaluation
Trustee recruitment, training and expenses
Audit fees
Other
Support costs
Governance costs		 Raising funds
£
226,756
-
-
-
3,051
82,149
5,970
-
104
-
-
-
-
-		 Community meals
and other food
provision
£
842,971
404,244
6,714
46,461
61,956
500
67,011
-
12,885
-
23,067
-
-
-		 Governance
costs
£
-
-
-
4,770
-
-
-
-
-
-
-
5,944
13,020
-		 Support costs
£
299,179
7,923
63,540
1,693
12,000
-
-
85,707
27,137
16,332
-
-
-
10,560		 2023
£
1,368,906
412,167
70,254
52,924
77,007
82,649
72,981
85,707
40,126
16,332
23,067
5,944
13,020
10,560		 2022
£
1,027,465
255,977
80,420
71,929
60,113
48,114
39,554
27,958
23,911
20,634
18,797
12,000
10,020
2,612
318,030
-
-		 1,465,809
524,071
23,734		 23,734
-
(23,734)		 524,071
(524,071)
-		 2,331,644
-
-		 1,699,504
-
-
318,030 2,013,614 - - 2,331,644 -
224,720 1,474,784 - - - 1,699,504

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FoodCycle

07. NOTES TO FINANCIAL STATEMENTS

For the year ended 31 December 2023

4b Analysis of expenditure (prior year)

Staff costs (Note 6)
Project running costs
Administrative and office costs Consultancy and
legal fees
Travel (including food pick-ups) Fundraising and
central marketing Volunteer costs
IT costs
Staff recruitment and training
Project marketing and advertising - support
Monitoring and evaluation
Trustee recruitment, training and expenses
Audit fees
Other
Support costs
Governance costs
Total expenditure 2022		 Raising funds
£
175,540
-
-
-
-
48,114
-
-
1,066
-
-
-
-
-
224,720
-
-
224,720		 Community meals
and other food
provision
£
678,146
255,977
6,873
69,558
49,383
-
39,554
-
10,251
-
18,797
-
-
-
1,128,539
321,552
22,653
1,474,784		 Governance
costs
£
-
-
-
620
-
-
-
-
-
-
-
12,000
10,020
13		 Support
costs
£
173,779
-
71,507
1,751
10,730
-
-
27,958
12,594
20,634
-
-
-
2,599
321,552
(321,552)
-
-		 2022
£
1,027,465
255,977
80,420
71,929
60,113
48,114
39,554
27,958
23,911
20,634
18,797
12,000
10,020
2,612
22,653
-
(22,653)
-		 1,699,504
-
-
1,699,504

FoodCycle

33

07. NOTES TO FINANCIAL STATEMENTS

For the year ended 31 December 2023

5 Net income / (expenditure) for the reporting year

This is stated after charging / (crediting):

This is stated after charging / (crediting):
2023 2022
£ £
Depreciation 9,685 8,963
Loss or profit on disposal of fixed assets Operating lease 1,501 299
rentals:
Property 21,788 20,986
Other 716 521
Independent auditor's remuneration (excluding VAT):
Audit 10,850 8,350
Other services 1,800 1,700

6 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

Staff costs were as follows:
Salaries and wages
Social security costs
Employer’s contribution to defined contribution pension schemes
Other forms of employee benefits		 2023
£
1,219,822
113,419
30,770
4,895		 2022
£
919,638
79,395
25,849
2,583
1,368,906 1,027,465

The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:

2023 2022
No. No.
£60,000 - £69,999 1 1
£70,000 - £79,999 1 -

The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £313,958 (2022: £260,994).

The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2022: £nil). None of the current charity trustees were paid for professional services supplied to the charity in the year (2022: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £300 (2022: £nil). The charity paid £844 for trustee training (2022: £nil) and £4,800 for trustee recruitment (2022:£12,000).

7 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was 39.08 (2022: 33.58).

8 Related party transactions

With the exception of the trustee disclosures in note 6, during 2023 Mark Game was a trustee of FoodCycle and CEO of The Bread and Butter Thing (“TBBT”). FoodCycle’s CEO during 2023 (Mary McGrath) was a trustee of the board of TBBT. Mark Game step down as a Trustee in December 2023 and Mary McGrath left the TBBT September 2023 and stepped down as CEO in December 2023. In addition, some of our Projects in the north benefit from food surplus which we collect from TBBT. Food distribution is a large part of what they do and we benefit from it in the same way as the other organisations who collect from them; we also incur expenditure to collect the food (mileage) in the same way as when we collect from FareShare or a supermarket so there are no beneficial arrangements. There are no other related party transactions to disclose for 2023.

There were donations of £50 received from one trustee in 2023 (2022: £18.99 from 1 trustee) and no restricted donations from related parties.

9 Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

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FoodCycle

07. NOTES TO FINANCIAL STATEMENTS

For the year ended 31 December 2023

10
Tangible fixed assets
Cost
At the start of the year
Additions in year
Disposals in year
At the end of the year
Depreciation
At the start of the year
Charge for the year
Eliminated on disposal
At the end of the year
Net book value
At the end of the year
At the start of the year
All of the above assets are used for charitable purposes.		 Fixtures and
fittings
£
3,996
-
-		 Office
equipment
£
54,771
14,888
(8,335)		 Total
£
58,767
14,888
(8,335)
3,996 61,324 65,320
3,627
176
-		 37,028
9,509
(6,834)		 40,655
9,685
(6,834)
3,803 39,703 43,506
193 21,621 21,814
369 17,743 18,112

11 Investments

FoodCycle holds a £1 investment (2022: £1) in its wholly owned subsidiary, FoodCycle Trading Limited. Within the year the trading subsidiary was dormant.

12 Debtors

Trade debtors
Prepayments
Accrued income
Creditors: amounts falling due within one year
Trade creditors
Taxation and social security
Other creditors
Accruals
Deferred income (see note 14)		 2023
£
10,637
37,737
80,268		 2022
£
64,730
25,108
89,237
128,642 179,075
2023
£
32,069
49,432
9,064
42,555
-		 2022
£
28,746
43,650
7,306
45,616
1,800
133,120 127,118

13 Creditors: amounts falling due within one year

14 Deferred income

Deferred income comprises advance payments received for Corporate Cooking Challenges.

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2023
£
1,800
(1,800)
-		 2022
£
8,250
(8,250)
1,800
- 1,800

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FoodCycle

07. NOTES TO FINANCIAL STATEMENTS

For the year ended 31 December 2023

15a Analysis of net assets between funds (current year)

Tangible fixed assets
Investments
Net current assets
Net assets at 31 December 2023		 General
unrestricted
£
21,814
1
1,040,245		 Designated
unrestricted
£
-
-
155,683		 Restricted
£
-
-
399,322		 Total funds
£
21,814
1
1,595,250
1,062,060 155,683 399,322 1,617,065

15b Analysis of net assets between funds (prior year)

Tangible fixed assets
Investments
Net current assets
Net assets at 31 December 2022		 General
unrestricted
£
18,112
1
529,055		 Designated
unrestricted
£
-
-
295,633		 Restricted
£
-
-
345,628		 Total funds
£
18,112
1
1,170,316
547,168 295,633 345,628 1,188,429

16a Movements in funds (current reporting year)

Restricted funds:
Community meals and general project activity Check in
and chat
Community dining Research
Total restricted funds
General funds
Designated funds
Total unrestricted funds
Total funds		 At 1 January
2023
£
326,776
2,643
16,209		 Income &
gains
£
864,223
13,498
-		 Expenditure
& losses
£
(796,906)
(10,912)
(16,209)		 Transfers
£
-
-
-		 At 31
December
2023
£
394,093
5,229
-
345,628 877,721 (824,027) - 399,322
547,168
295,633		 1,882,559
-		 (1,367,667)
(139,950)		 -
-		 1,062,060
155,683
842,801 1,882,559 (1,507,617) - 1,217,743
1,188,429 2,760,280 (2,331,644) - 1,617,065

The narrative to explain the purpose of each fund is given at the foot of the note below.

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FoodCycle

07. NOTES TO FINANCIAL STATEMENTS

For the year ended 31 December 2023

16b Movements in funds (prior year)

Restricted funds:
Community meals and general project activity
Covid-19 activity
Check in and chat
Community dining Research
Total restricted funds
General funds
Designated funds
Total unrestricted funds
Total funds		 At 1 January
2022
£
79,262
1
3,294
-		 Income &
gains
£
744,235
-
15,169
25,000		 Expenditure
& losses
£
(496,345)
(1)
(15,820)
(8,791)		 Transfers
£
(376)
-
-
-		 At 31
December
2022
£
326,776
-
2,643
16,209
82,557 784,404 (520,957) (376) 345,628
590,634
361,099		 1,069,239
-		 (1,113,081)
(65,466)		 376
-		 547,168
295,633
951,733 1,069,239 (1,178,547) 376 842,801
1,034,290 1,853,643 (1,699,504) - 1,188,429

Purposes of restricted funds

Community meals and general project activity – Every year FoodCycle benefits from a number of grants and donations that fund our core activity of providing community meals. The majority of these are restricted to specific projects or geographical regions and each grant is tracked separately to ensure these requirements are met.

Check in and chat – Our check in and chat service involves a team of volunteers making regular telephone conversations to guests who have signed up to receive them, in order to combat loneliness and provide additional support. We have received a small number of grants to fund this service.

Community dining research - FoodCycle received a gift from a corporate partner, which enable us to commission Dr Marsha Smith of Coventry University to compile research to demonstrate the social and nutritional value of community meals and eating together. The aim of the research was to initiate the change in conversations from Food Banks and instead highlight the need for community dining. The report was released in January 2023 and received several media pieces and helped highlight the impact of community dining.

Purposes of designated funds

Expansion Fund - In 2020, the Board of Trustees agreed to designate £450,000 over three years towards FoodCycle’s expansion across the country. During 2023, the Expansion Fund was charged with £139,950 to support the growth of new Projects across the country. The Expansion Fund balance of £155,683 will be used in the same manner in 2024 when this Fund is anticipated to be fully utilised.

Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods

17

Less than one year
One to five years		 Property
2023
£
5,513
-		 2022
£
7,000
-		 2023
2022
£
£
492
520
140
632
Equipment		 2023
2022
£
£
492
520
140
632
Equipment
5,513 7,000 632 1,152

18 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

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FoodCycle