goodweave GOODWEAVE UK (A company limited by guarantee) REPORT & FINANCIAL sfATEMENTS For the Year Ended 31st December 2020 Charty Registration No: 1139218 Company Registration No: 4210546 (England & Wales)
GOODWEAVE UK (A Company Limited by Guarantee) THE FINANCIAL STATEMErirs FOR THE YEAR ENDED 31ST DECEMBER 2020 coKrENTS PAGE Legal and Administrative Information Report of Dlretto 4-7 Independent Examinerfs Rewrt Statement of Financial Activities Balan Sheet io StaterrEnt of Cash Flows 11 Notes forming part of the Flnanaal Statements 12-15 (K)ODWEAVE UK Pag¢2of 15 Finan¢ial Statements 2020
GOODWEAVE UK (A Company Limited by Guarantee) The trustees of the charity present their rep)rt and finandal statements for the year ended 31* December 2020. The accounts have been prepared in accordan with the accounting policies set out in Note I to the accounts and comply with the companvs Memorandum and Articles of As5(Kiation, the Companies Act 2006 and the Ststement of Recommended Prattice apICable to charities preparing their accounts in accordan with the nanCIal Rep)ng Stsndard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2015). REFERENCE AND ADMINIsfRATIVE INFORMATION LEGAL sfATUS Private company limited by guarantee exempt under Section 30. REGIsfERED OFFICE 7 Manor Road Teddingt Middlesex TWII 8BH OPERATIONAL ADDRESS Bloxham Mill Business Centre, Barford Road, Bloxham, Oxon OX15 4FF DIREcfoRS David Ould (lalr) ianda Bedan Jonathan Blagbrough Tery Hudghton COMPANY SECREfARY Damd Iljld INDEpENDEr EXAMINER John Mccullagh 39 The Farthings ngston Uwn Thames KF2 7PT SOLICoRs 65 Holbom Viadurt London ECIA 2FG BANKERS The Co-operative Bank plc PO PA)x ioi l Balln Street Manchester M60 4EP GOODWEAVE UK Pag¢3 of15 FiEWlCiat Sthtements 2020
GOODWEAVE UK (A Company Limited by Guardntee) DIREcfoRS' REPORT GOVERNANCE Governing Document The organisation is a charity, registered on 29th November 2010, and non-profit making company limited by guarantee, incorporated on 3TrJ May 2tK)l. The company was estab5ished under Memorandum of AsscKiation, whith established the objects and powers of the company and Is govemed under its Arbcles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1. Objectives The G(MxiWeave initiative has two objects: To relieve poverty suffering and distress in any part of the wodd; and To promote research into and education concerning the causes and effects of poverty particulady (without prejudice to that generality) in relation trj the conduct of business and to the conditions of employment (induding Self-npL0Yrnent) of w)r people in any part of the world, and to publish the use1 results of that research. In furtheran of these obieLts the organisation acts as the UK regional Offi of Goodweave International, whose aims are: to eradicate illegal thild latrK)ur in the caw Ind and such other pruCts a5 certified by the G(xJdWeave label; to provide children with concrete opportunltles for educadon, vocational training, and other means for preparing to meet the future with hopel to stimulate the employwnent of adults, so parents can support their families adequatelyt to facilitate development programmes to improve the terms and conditions of employment for adult workers in the carpet and other industries with similar employment issues, consistent intemationally recognised labour standards. go that the industy can become a model for prowding a livlng wage for skilled artisans and their families and for produong Car using environmentalty sound practi. iv) Goodweave UK h05 exdusve linSing rights fr(Th Goodweave Intematlonal (the holder of the trademark) to the GcKKJWeave label in the United ngdoM and agrees to grant importers a licence to use the Goodweave label to market carpets, rugs and other products manufactured according to the Goodweave concept on the tenns and conditions set out in the Licence Agreement ststement of Directsrs. Re5pon51bllftles Company Law requires the directors to prepare financial ststements for each finanaal year, which give a true and fair view of the state of affairs of the company as at the balan sheet date and of its incoming resources and application of resources, including income and expenditure for the financial year. In preparing those financial ststements, the d1CtorS are required to follow best Practi and: select suitable accounting poliaes and apply them consistenuy; observe the methods and princieS in the Charities SORP (FRS 102); GOODWEAVE UK Page 4 of 15 Financial Statrm¢nts 2020
GOODWEAVE UK (A Company Limited by Guarantee) DIREcfoRS' REPORT (continued) • make judgements and estimates that are reasonable and prudent; prepare the accounts on the going conrn basis unlw tt is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records which disclose with reasonabSe accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also reswnsible for safeguarding the assets of the charity and hence for tsking reasona1e steps for the prevention and detettion of fraud or other irregularities. Members of the Management Committee Members of the Management Committ*, who are Directors for the purpose of company law, who served during the financial year and up to the date of this report are set out on page 3. The Directors are selected by the E4)ard in the light of their knowledge and experfence of the issues on which Goodweave UK v40rks. In accordance with company law, as the companws directors, we certify that: so far as we are aware. there is no relevant audit information of which the compan$ independent examiner is unaware; and as the directors of the company we have tsken all steps that ought to have taken in order to make ourselves aware of any relevant audit infonnation and to establish that the companys independent examiner is aware of that infomiation. The Charities Activities and Achievements In 2020 marketing for Goodweave UK continued to be managed by GWI, employing a part-time UK-based consultant to handle regular contacts wtth the lirts in the UK. In 2020 the totsl UK licen fees were £48,324 of which £27,612 of lIn fees were eamed for education and rehabilitation work with children and their families by our partners in the carpet- producing areas of India and Nepal. This was a decrease of 230k over 2019, mainly as a result of the pandemic. Goodweave signed five new, small carpet lin$ in the UK in 2020, but this was offset by the terminatlon of three small licensees. One home textkle linSee was also signed. To date, GWI and its associates have resojed more than 7,900 chlldren, supported educatlon for 37,01)O childn, and now works with more than 140 importers woddwide to monitor their supply chains. 88,000 adults worked on sites linsed and inspetted by &x)Meave Intemational in India, and Nepal in 2020 and more than 10,(KK) in5K ye carried out. Activities in 2020 were significantly affected by the Comd 19 pandemic. Almost all linsee$ stopped activity in Q2 2020 and only slowly opened up in Q3 and Q4. Inspettions in India and Nepal restarted in Q3 2020 but generally these were only possible by intemevtelephone and other remote working methods. This meant that only the larger faalities could be inspected and related operations at smaller SubfontrrS had to be taken on trust. It is experted that the full inspection Wem will be in operation by Q2 2021. GWDWEAVE UK Page5 of15 Financial Ststements 2020
GOODWEAVE UK (A Company Limited by Guarantee) DIRECTORS. REPORT (continued) In 2020 GWI raised more than £225,000 for COVID relief, the majority of which was spent on critical food relief for vulnerable workers and frdmilies. Food reached 70,Crf)O people and we also distributed PPE to licensee supply chains, helped infomal, migrant w0erS secure bank accounts in order to receive govemment aid, estsblished learning Opp?nieS for children in our Child Friend Communities in India and underOte COVID-protocols at our IKime for rescued children in Nepal, including paying for testing and PPE and establishing separate space for wty rescued children. GWI operations in Afghanistan ended in 2020 because of the serious security problems Involved in carying out the work in that country at present. Financial Review The Directors of GcM)dWeave UK report a net defiot of £1.597 for the period under review. At the year-end there was a totsl reserve of £9,290; made up of E8,170 of unrestricted fiJnds and £1,120 of restricted funds. The deficit for the year occuThed because the Board made a grant of £5,000 from the unrestricted reserves towards the fund set up by G[WeaVe Intemational to 5UPPOrt carpet Worke and children in Nepal and India affected by the industy shutdowns during the Covid 19 pandemic. Detsils of the major items on the balan sheet can be found in the notes to the accounts. The flurtuations in debtors and creditors year on year are simEty the result of the timing of ripts and payments around the year end. Reserves and Risk Management The trustees have agreed that GLN)dWeave UK can continue its operations and cary out its charitable activities with minimal reserve5 and as a result the reseNes were kept at a basic level during 2020. The trustees are confident thaL because of the current methods of operation, this policy does not create any significant risk for the charity or ts benefiaaries. The trustees regularly examine the major risks that the charity faces and seeks to control these risks to mitigate any Impact they may have on the tharty. These figures are for 2020 and were affected by the impact of Covid 19 on the UK and intemational economy. All large OLrtstsnding lince fees for 2019 were paid and most licens5 have restarted operations in 2020. In practice the fees are simply passed thr(h the GWUK accounts and so any loss to GWUK debtors wtll be offset by the same reducbon in creditors. Publ1¢ Bffiefit Statement Direttors of a charity have a duty to report in their annual report on their charivs public benefit. The Directors have conduded that the section above on"Activities and Achievements. demonstrates that Goodweave UK'S work benefits a wide range of people and organisations in both the UK and South Asia and as a resu. the aims of the charity (L)ntinue to be charitsble. the beneffts are for the public, are not unreasonably restricted in any way and rtainlY not by abilty to pay and; there is no detriment or harn) arising from the aims or aCtities. GOODWEAVE UK Page 6 of15 Financial Ststements 2020
GOODWEAVE UK (A Company Limited by Guarantee) DIREcfoRS' REPORT (continued) Fundrdising Statement The trustees have tsken note of Sections 13 and 14 of the Charities (Protection and Social Investment) Act of 2016. Goodweave UK dcES not Use professional fvndrai*rs. Fundraising activity with the general public is limff(ed to a donation button on the website and links to this from social information platforms. No complaints a)ut such actiwty were received by the charity during 2020. Independent Examiner John Mccullagh carried out the Independent Examination of the Company. In accordan with Section 485 of the Companies Act 20, a resolution proposing the re-appointment of Mr John Mccullagh as independt examiner wll be put to first Board Meeting folk)wng the annual general meeting. Approved by the Board on the 16th March 2021 and signed on ts beha by: IL David Ould Tery Hu GCK>DWEAVE UK Pag¢7of15 Fitla1 Statun¢nts 2020
INDEPENDENT EXAMINER'S REPORT TO THE DIREcfoRS OF GOODWEAVE UK LTD I report on the financial statements of Gxeave UK Limtted for the year erKled 31t December 2020 set out on pages g - 11 and notes to the accounts on pages 12 to 15. These financial statements have b*n prepared in accordance with the CharÈtses SORP (FRS 102) under the historical cost convention and the accounting poliaes set cKrt therein. This report is made solely to the Charis trustees, as a lJ)dy, in accordance with Section 43 of the Charities Act 1993 arKI regulations made under section H of that Att. My work has been undertaken so that I might state to the charivs trustees those matters I am required to state to them in an independent examinerfs rep)rt and for no other purpose. To the extent permitted by law, I do not accept or assume responsibility to anyone other than the tharitable company and Éts trustees as a body, for my audit work, for this rert or for the opinions I have formed. Respectlve responsibilities of directors and indepwmlent examiner As described on page 4 the company's dlrectors are resFx)nsible for the preparation of the financial statements In accordance wlth applicable law and United Kbngdom accounting sLandards. My responsibility is to examine the financial statements in accordan with relevant legal and regulatory requirements and United Kingdom StsThJards. I report to you my cpinion as to whether the finanaal ststements give a bue and falr view and are properly ppared in accordantr wlth Companies Act 2CK16. 1 also reFQrt to you if, in my opinion, the Report of the Dirertors is not consi51ent with the financial statements, if the company has not kept proper accounting records, if I have not received all the information and explanations I require for the audit, or if infonnation specified by law regarding directors, remunerations with the company is not disclosed. I read the Report of the DIrorS and consider the implicatlons for my rem rf I become aware of any apparent mItatement within It. Basis of Opinion My work was conducted in accordance vth the general directions given by the Charity Commission. examination includes a review, on a test basis, of eviden relevant to the amount and disdosures in the financial statements. It also indudes an assessment of the significant estimates and judgements made by the directors in the prepardtion of the finanaal statements, and of whether the accounting Foliaes are appropriate to the companvs circumstan, consistendy applied and adequately disdosed. I planned and performed the examination as to obtain all the information and explanations which I considered necessary in order to provide me wth sufficient evidence to give reasonable assurance that the financial statements are free from misstatement, whether caused by fraud or other irregularity or error. In forThing my opinion, I also evaluated adequately the presentation of infomation in the finanaal statements. opinion In my opinion the financial statements give a true and fair view of the companvs affairs as at 31st December 2020 and of the deficit of incoming resources over resources expended for the year then ended and have been properly prepared in accordan with the Companws Att 2006 and principles of the Charities SORP (FRS 102). John Mccullagh GOODWEA VE UK Page 8 of15 Financial Ststwnents 2020
GOODWEAVE UK (A Company Limited by Guarantee) Statement of Financial Activities (Including Income & Expenditure Account) For the year ended 31st December 2020 2020 2019 Notes Unrestricted Restricted Totsl Totsl Funds £ Funds £ Funds £ Funds ean Endowments f le Activ" Grants Donations Licence Fees Consultancy Sundry Income Gift Aid Bank Interest Total Incoming Resources 10,000 4,015 62,671 3,065 688 48,324 3,753 48,324 799 255 799 655 550 3h65 50,066 53.531 77,240 Ex aritable Artiv" Direct Objectlves Grants Management & Admin. Totsi Resources Expended 49,123 943 49,123 5,943 62 63,464 10,000 78 5,0 62 5,062 50,066 55,128 73,542 Net income (expenditure) Balan at l Jan 2020 9,767 1,120 10,887 7,189 Balan at 31 Dec 2020 8,170 1,120 9,290 10,887 GOODWEAVE UK Page 9 of15 Fitwicial Statem¢nts 2020
GOODWEAVE UK (A Company Limited by Guarantee) Balance Sheet as at 31st December 2020 2020 2019 CURRE[ ASSErs Debtors and Prepayments Cash at Bank and in hand 40,706 43,011 58,323 57,727 LIABILrrIES Amounts falling due within one year (49,033) (46,840) Net Current Assets 9,290 10,887 FUNDS Unrestritted Funds General Restritted Funds 8,170 9,767 9,290 10,887 The directors are satisfied that the company is entitled to exemption from the provlsions of the Companles Act 2006 (the Att) lating to the audit of the financial ststements for the year by virtue of section 477, and that no member or member5 have requested an audlt pursuant to sectlon 476 of the Act. The direttors acknowledge thelr reswnsibilities for compIng with the requirnents of the Att with respect to accounting record5 and the preparation of finanoal statements These finanaal *dtements have bn prepared in accordance viith the provisions applicable to companies subj'ett to the small companies, regime. The Board of Directors approved these accounts on 16th March 2021. David Ould Director Tery Hudghton Director 0DwEAvE UK Pag¢ IOof15 FiDan¢ial Statements 2020
GOODWEAVE UK (A Company Limited by Guarantee) Statement of Cash Flow at 3tst December 2020 Totsl Funds Prior Year Funds Cash Flows from Operating Activities Interest 2,898 (33,784) Table g Change in cash in 2020 Cash at l January Cash at 31 December 14,716 17,617 48,496 14,716 GOODWEAVE UK Pagcllof15 Fitwicial siatements 2020
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS For the Year Ended 31st December 2020 l) Accounting policies a) Basis of preparation The finanaal statements have been prepared under the historical cost convention, modified to Indude the revaluation of rtain fixed assets, and in accordance with the Finanaal Reporting Standard for Smaller Entities (effective January 2008) and the Companies Act 2006. These accounts are the accounts of Goodweave UK These accounts have been prepared on an accruals basis and include income and expenditure as they are earned or incurred, rather than as cash is received or paid. The recommendations of the Statement of Recommended practi applicable to charities preparing their accounts in accordan with the Financial Reporting Stsndard applicable in the UK and Republic of Ireland (FRS 102) (effective l January 2015), have been followed in the preparation of the* accounts. Goodweave UK is a Public Benefit Entity as defined by FRS 102. iv) b) Going At the time of approwng the accounts, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable fijture. Thus, the Tnjstees. continue to adopt the going concem basis of accounting in preparing the accounts. b) Fund acmunting The companWs unrestricted fund consists of fijnds. whith the company may use for its purposes at Èts discretion. The companys restritted fvnds are those ¥vhere the linSee/donOr has imposed restrictions on the use of the fvnds, which are legally binding. c) Voluntary income All voluntsry income is induded upon reCpt. Grants receivable a credited to income immediately upon receipt Credit is tsken for interest when the interest falls due for payment. e) AdminislTation expenditure Administration wenditure comprises costs inCued in running the charity. Where applicable, these costs have been treated as dirett charitsble expenditure. GOODWEAVE UK Page 12of15 Finth)eial Ststements 2020
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE AccouKfs (contlnued) For the Year Ended 315t December 2020 2. Licence Fees: Importers must pay a fee to be atle to Use the trademarked Gcrfxlweave labd and logo. 57% of the fee is sent to the Goodweave office in the relevant producer country to fijnd random inspections, and welfare, education and rehabilitation actsvitses. 43% contributes to promotion of the Goodweave mark and aims in the UK Licensed importers must report on their Imports and pay the lin fee wtthin 30 days of each quarter day (March 31st June 3, September W, DeCem1r 31. Accounting is made for the quarter in which the lin fee is, or should have bn. received for imp)rts in the previous quarter. Estimates of outstsnding payments have ieen induded in these accounts because they are a significant part of total assets and of the reserve5. In 2020 GWUK had to write off £1,475 of licene debts because the companies concemed had ceased Gxhmeave related activity. This had no impact on the profit and loss as it reduced our GWT (yeditor by the same amounL Licence fee payments owed to GIIIUK at year end - £40,117 3. Grants Received: 4. Donations ReiVed. Donations ceiVed induded: Wyndham Charitable Tnst - £l,(KX) 5. Marketing Partnerlsponsor Payments Receivable: Income from marketing partner/stK)nsor = £799 (£589 receivable at the year-end) G(K)DWEAVF. UK Page 13 of 15 Financial Statem¢nts 2020
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUNTS (continued) For the Year Ended 31st December 2020 6. Direct Objectives Item of Expenditure Unrestricted Restricted Total {£) (É) (£) Goodweave Intemational Project Grant to G% Totsl Grants 5.000 5,000 Transfer of lince fees to GcK)dWeave IndialNepal Marketing and Licensing 27,612 21,511 27,612 21,511 Suppcrt to G 943 943 Management & Administration Total 62 62 62 50,128 50,066 *Note: no support costs were incurred in making the grants apart from bank charges for the transfers. 7. Liabilities 2020 (£) 23,554 18,256 (479) 2019 (£) 25,290 18,969 (479) LinCe payments to Nepal/lndia Marketing Payments to G Previous Year CorrecborVBF VAT Pdyment Total 49,033 46,840 8. Debtors Item 2020 (£) 40,117 589 40,706 2019 (£) 43,011 Licence fees Private Label Fees 43,011 G(M)DWEAVE UK Page 14of15 Finan¢i41 Ststements 2020
GOODWEAVE UK (A Company Limited by Guarantee) NOTES TO THE ACCOUP4TS (continued) For the Year Ended 31st December 2020 9. Reconciliation of Net Incomel(Expenditure) to Operating Athity Net Cash Flow 2020 2019 Net Income Ex nditure Ad ustments for: Interest Increase /Decrease in Debtors Increase/ Decrease in crltorS Net Cash Used in O rdtin AttÉvities for 2020 as r the SOFA 898 10. Share Capitsl: The company is limiteil by guardntee and does not have share capital. 11. Remuneration of Directors: No directors received any remuneration or repaent of expenses in the year. 12. Small Company Exemptions: ese finanaal statements have been prepared in accordan with the special provislons relating to small companies within Part 15 of the Companies Act 2(K16 and with the Financial Rewrting Standard for Smaller Entities (effecknve April 2CK)8). For the financial year ended 31 December 2013 the company was entitled to exemption from audit under tIOn 477 Companies Act 2006; and no notice has been deF¥)Sited under secbon 476. The dirertors acknowledge thelr responsibiifctes for ensuring that the company keeps accounting records which comply with section 386 and for preparing finanaal statements which give a tnje and fair view of the state of affairs of the company as at the end of the financial year and of its profit or loss for the finanaal year in accordan wth the requirements of settions 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.- Pase 15of15 Financial STat¢m¢nLS 2020