AMENDED
**REGISTERED COMPANY NUMBER: 07400060 (England and Wales) REGISTERED CHARITY NUMBER: 1139983**
**Report of the Trustees and**
**Financial Statements**
**for the Year Ended 31 December 2021**
**for**
**Changing Lives Together**
Bennett Brooks & Co Limited Chartered Accountants
& Statutory Auditors St George's Court Winnington Avenue Northwich Cheshire CW8 4EE
**Changing Lives Together**
## **Contents of the Financial Statements for the year ended 31 December 2021**
|||**Page**||
|---|---|---|---|
|**Report of the Trustees**|1|to|5|
|**Report of the Independent Auditors**|6|to|8|
|**Statement of Financial Activities**||9||
|**Balance Sheet**||10||
|**Cash Flow Statement**||11||
|**Notes to the Cash Flow Statement**||12||
|**Notes to the Financial Statements**|13|to|21|
|**Detailed Statement of Financial Activities**|22|to|23|
**Changing Lives Together**
## **Report of the Trustees for the year ended 31 December 2021**
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
Page 1
**Changing Lives Together**
## **Report of the Trustees for the year ended 31 December 2021**
## **OBJECTIVES AND ACTIVITIES**
## **Overview**
We are a Social Enterprise committed to delivering meaningful environmental, social and community impact and making a difference to the people of Cheshire. We provide creative solutions to social and environmental issues. Structured as a charitable company, we aim to be financially sustainable through enterprise but our social impacts (the way we help change people's lives) are at the core of why we do what we do.
We work extensively within our community to support people through a variety of work, training and volunteering programmes for long term unemployed, those with learning difficulties, ex-offenders, vulnerable, disabled and the excluded and isolated. We help give back that self-esteem that is often lost when life's difficulties get on top of us.
2021 was a year of challenges, tough times but it also saw new and exciting projects taking shape. We further experienced the social and economic upheaval in society caused by the response to and recovery from the covid-19 coronavirus pandemic. We were also involved in other incidents affecting our community such as the floods in January 2021 in Northwich.
This disrupted our people, plans and stakeholders. As a charity we have evolved, responded, and survived. As people, we have all been touched by the grief and difficulties experienced by so many during the pandemic and the massive upheaval and change to both our personal and professional lives.
## **Operations & Retail**
## Affordable Furniture
Our warehouse team continued throughout the year to help the environment by collecting domestic Bulky Waste to reuse and recycle items that would otherwise be sent to landfill or other waste destinations. We work with our membership organisation, the Reuse Network, in providing "take-back" schemes for a number of national retailers where we help reduce waste as well as bringing damaged and "orphan" items back in to use. These activities of repair and "up-cycling" provide work placement opportunities for the individuals we support.
During 2021 we sold directly to the public as much as we could outside the enforced lockdown periods- at our Winsford Warehouse Store & Registered Office on the Winsford Industrial Estate, at our Winsford Outlet Store in the Winsford Cross shopping centre and at our Changing Lives in Ellesmere Port shop in the covered market.
## **Emergency Assistance**
We operate contracts with Local Authorities and Housing Associations to provide their welfare assistance schemes. We supply starter packs, furniture and white goods to hundreds of people and families in need every year in Cheshire East, Cheshire West & Chester and Warrington. These schemes ensure those in need gain access to essential household items and receive an efficient delivery and installation process. In 2021, we supported over 2,500 families.
## **Bulky Waste**
Not all large household waste goes to landfill. We are proud to support Cheshire West Recycling Limited and Warrington Borough Council in collecting bulky domestic waste - and we try and repair, reuse and recycle as much as we can.
## **Community engagement**
Our Buddying and Befriending scheme has been successful in securing a grant from The National Lottery Community Fund from April 21 for a period of 3 years. This will enable us to continue our great work helping those who are over 50 living across Cheshire West and Cheshire East and are experiencing loneliness and social isolation. The service received 453 referrals and 295 matches in its first year to end of March 2022.
We also secured funding from the ICG's and CCG's for our Wellbeing support project. Sessions aim to support people whose quality of life is being affected by emotionally impactful issues such as low mood, anxiety, poor confidence and loss of routine. Many of these issues have affected people during the Covid-19 pandemic in particular; and for others, the pandemic has exacerbated issues which were already in place. The aim of the Wellbeing sessions is to enable clients to set personal goals and identify barriers that are currently preventing these goals from being reached. We have since received a second year of funding for the project.
Throughout the year our team of Family Support team continued their exceptional work in their school placements helping to help improve attendance, behaviour and achievement. They focus on early intervention, helping parents to develop the necessary coping skills and helping them to access a broad range of services. If our team can't help, they will put families in touch with somebody who can and arrange introductions.
## **The Cheshire Food Hub**
Since starting out in 2020, the food hub has gone from strength to strength in its provision of food across Cheshire West. In receiving foods that are short shelf life, over supplied or donated we have kept food moving to food groups at a time of need supporting thousands of families and saving food from landfill.
Page 2
**Changing Lives Together**
## **Report of the Trustees for the year ended 31 December 2021**
In June 2021 we opened our own community shop and we are now serving an average of 120 shoppers per session, 3 times a week. Our shoppers pay £4 a shop and take away around £15-£20 of food, helping them stretch their budgets whilst reducing food waste. With the looming cost of living crisis this service will see a huge increase in demand and we are working hard with our partners to secure food for the whole community.
The other part of the work at the hub is the bringing together of volunteering opportunities. From warehousing, distribution, box projects, shop support, café service, gardening projects and building maintenance there is something for everyone. We have seen over 300 hundred volunteers come through the hub. Each one of our volunteers has been passionate about supporting their community.
## Community Transport
We continued to operate our Community Transport minibus services, which is contracted by Cheshire West and Chester Council, with suitably adjusted routes and procedures for the changing circumstances we faced. The services we provide are Home to School, Adult Social Care, Dial A Ride and other contracts as required. These services provide, either free or subsidised, access to schools, care centres, the high street, leisure and other services for members of the community who might otherwise miss out. With over 5,000 school trips and over 6,000 adult social care trips, the team transported over 17,000 passengers in 2021.
## **How many lives did we change in 2021?**
We made a difference to our community by:
- Arranging thousands of Community Transport journeys,
- Providing affordable furniture, electrical items, beds and bedding through our shops,
- Helping hundreds of people with a Buddy & Befriending pairs to reduce loneliness and isolation amongst the over 50's,
- Supporting many families in crisis across Cheshire and Warrington (working with 3 Local Authorities and their Local Welfare
- Assistance Schemes),
- Giving our people employment, training and development opportunities.
And we made a difference to the environment by:
- Saving over 585 tons of waste - commercial furniture & electrical waste - from landfill,
- Saving over 1,000 tons of CO2 from our atmosphere,
- Supporting 2,758 families with furniture and white goods.
All of this has only been possible by the hard work, sacrifice and dedication of so many of our people - staff, volunteers and friends - and donors and funding partners, particularly in local government. The trustees sincerely thank you all.
## **FINANCIAL REVIEW**
## **Financial position**
Our long-term policy has been to stand on our own feet with sustainable results and without excessive dependence on grant income. We reinvest when we can in our people and we are slowly building our reserves to a normal level for a charity of our size and complexity.
Total income in 2021 was £2,582,393 (2020 £2,361,432) and this generated a surplus of £224,190 (2020 £144,772).
In the course of 2021, we continued to repay according to schedule our blended grant / loan from Livv Investment and our Bounce Back Loan.
We also benefited from the various national business support schemes. Grants and donations included funds from The National Lottery, Cheshire Community Foundation, CCG's, Westminster Foundation, DEFRA and more. We are very grateful for every donation, no matter what size, which supports our work and our community.
To support colleagues on furlough we received further funds from the Coronavirus Job Retention scheme. The final payment was received in September 2021.
## **Investment policy**
Available funds are transferred to interest bearing bank or building society accounts to maximise returns.
## **Reserves policy**
The Trustees have agreed that the appropriate level of unrestricted liquid reserves should be sufficient to cover 3 months of routine expenditure i.e. to provide working capital to cover delays in the receipt of payments and grants and to provide a cushion for unexpected emergencies.
We are close to achieving this. Our reserves at 31 December 2021 were £561,745.
## **Re-appointment of the Auditors**
In accordance with the Articles of Association the board has re-appointed the auditors, Bennett Brooks & Co Limited, for a further year.
Page 3
**Changing Lives Together**
## **Report of the Trustees for the year ended 31 December 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Incorporation and Objects**
Changing Lives in Cheshire (charity 1139983 and company 07400060) was incorporated on 7 October 2010 and commenced trading on the same date. The principal governing document is the Articles of Association adopted on 21 March 2019.
The objects of the charity are:
1. The relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage, in particular but not exclusively, by the provision of affordable furniture, recycled and reused items and the provision of training, voluntary positions and work experience.
2. The protection and preservation of the physical and natural environment in particular but not exclusively by the promotion of sustainable waste management practices.
3. To provide transport facilities in particular but not exclusively in Cheshire and the surrounding area for people who have special need of such facilities because they are elderly, poor or disabled, people with young children or those living in isolated areas where there are no adequate public transport facilities.
## **Trustees**
We have a written policy for the recruitment and induction of new trustees that gives all candidates a fair chance to see us in action and to deliver efficient support on appointment.
## **Management and Governance**
We continue to develop our Management and Governance structures. Since the merger with Cheshire Community Development Trust in 2019 the trustees have delegated the day-to-day running for the charity to the Chief Executive, Mike Jenkins.
In 2020 Gary Cliffe, formerly CEO then Head of Business Development, and one of two co-founders moved on to pastures new. We owe him a great deal and wish him well. In memory of Deina Smith, our other co-founder, and Gary's vision and incredible support over the years we have established a "Founders Fund". This will pay from time to time for the little extras our staff and volunteers may need to help them develop, or even just cope with what life throws at them.
## **Risk Management**
The trustees have regard to the Charities Commission guidance on Public Benefit and a robust approach to Risk Management. The trustees monitor risk by ensuring that the identification, assessment and mitigation of risk is linked to the achievement of the charity's operational objectives.
The trustee board at each meeting reviews Health and Safety performance, Safeguarding and Management Information (financial and operational) with a review of current and future contractual obligations. The trustee board also reviews the financial impact of risk as part of operational budget planning and monitoring. Full consideration is given to the risks attached to significant new activities or opportunities, as is risk associated with external factors such as new legislation or new requirements from funders.
## **DORMANT SUBSIDIARY COMPANIES**
The charity has three wholly owned dormant subsidiary companies:
Changing Lives in Cheshire Limited (registered in England & Wales number 11935815), Changing Lives in Ellesmere Port Limited (registered in England & Wales number 11534973), Changing Lives in Warrington Limited (registered in England & Wales number 9842887).
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Company number**
07400060 (England and Wales)
## **Registered Charity number**
1139983
## **Registered office**
Bridge Building, Unit 12 Road Two Winsford Industrial Estate Winsford Cheshire CW7 3QL
Page 4
**Changing Lives Together**
## **Report of the Trustees for the year ended 31 December 2021**
## **Trustees**
Mrs H E L Dilliway-Nickson Mr B G Dunn Mr G Sherman (resigned 18.11.21) Miss R Waterman (resigned 23.4.21) Mr P Price Mrs S M Tilling Mrs S T Taylor (appointed 7.6.21) M B Clarke (appointed 19.11.21)
## **Auditors**
Bennett Brooks & Co Limited Chartered Accountants & Statutory Auditors St George's Court Winnington Avenue Northwich Cheshire CW8 4EE **Bankers** Santander UK plc Bridle Road Merseyside L30 4GB **Solicitors** Browne Jacobson LLP Mowbray House Castle Meadow Road Nottingham NG2 1BJ
## **STATEMENT OF TRUSTEES' RESPONSIBILITIES**
The trustees (who are also the directors of Changing Lives Together for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charity SORP;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company's auditors are unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
Approved by order of the board of trustees on 29 September 2022 and signed on its behalf by:
Mr B G Dunn - Trustee
Page 5
**Report of the Independent Auditors to the Members of Changing Lives Together**
## **Opinion**
We have audited the financial statements of Changing Lives Together (the 'charitable company') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
- In our opinion the financial statements:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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:
- the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Trustees has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees.
Page 6
## **Report of the Independent Auditors to the Members of Changing Lives Together**
## **Responsibilities of trustees**
As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Our 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 a Report of the Independent Auditors 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.
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 Independent auditors' 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, is detailed below.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation and regulations which govern the preparation of financial statements, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue, through management bias in manipulation of accounting estimates or accounting for significant transactions outside the normal course of business.
Audit procedures performed included:
- Enquiry of management around actual and potential litigation and claims and instances of non-compliance with laws and regulations;
- Auditing the risk of management override of controls, through testing journal entries and other adjustments for appropriateness, testing accounting estimates (because of the risk of management bias), and evaluating the business rationale of significant transactions outside the normal course of business;
- Reviewing financial statement disclosures and agreeing to supporting documentation to assess compliance with applicable laws and regulations.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.
Page 7
**Report of the Independent Auditors to the Members of Changing Lives Together**
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' 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.
Jason Leach FCA (Senior Statutory Auditor) for and on behalf of Bennett Brooks & Co Limited Chartered Accountants & Statutory Auditors St George's Court Winnington Avenue Northwich Cheshire CW8 4EE
29 September 2022
Page 8
**Changing Lives Together**
## **Statement of Financial Activities for the year ended 31 December 2021**
|Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
3
7,229
**Charitable activities**
Charitable activities
658,828
Other trading activities
4
1,372,767
Investment income
5
4,656
Other income
63,026
**Total**
2,106,506
**EXPENDITURE ON**
Raising funds
7
952,395
**Charitable activities**
8
Charitable activities
929,921
**Total**
1,882,316
**NET INCOME**
224,190
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
337,555
**TOTAL FUNDS CARRIED FORWARD**
561,745|Restricted
funds
£
-
475,888
-
-
-
475,888
-
475,888
475,888
-
-
-|2021
Total
funds
£
7,229
1,134,716
1,372,767
4,656
63,026
2,582,394
952,395
1,405,809
2,358,204
224,190
337,555
561,745|2020
Total
funds
£
5,557
882,088
1,211,895
3,071
258,821
2,361,432
678,905
1,537,755
2,216,660
144,772
192,783
337,555|
|---|---|---|---|
The notes form part of these financial statements
Page 9
## **Changing Lives Together**
## **Balance Sheet 31 December 2021**
|Unrestricted
Restricted
fund
funds
Notes
£
£
**FIXED ASSETS**
Tangible assets
15
22,487
-
Investments
16
3
-
22,490
-
**CURRENT ASSETS**
Stocks
17
108,634
-
Debtors
18
202,093
-
Cash at bank
541,953
66,496
852,680
66,496
**CREDITORS**
Amounts falling due within one year
19
(189,980)
(66,496)
**NET CURRENT ASSETS**
662,700
-
**TOTAL ASSETS LESS CURRENT LIABILITIES**
685,190
-
**CREDITORS**
Amounts falling due after more than one year
20
(123,445)
-
**NET ASSETS**
561,745
-
**FUNDS**
23
Unrestricted funds
**TOTAL FUNDS**|2021
Total
funds
£
22,487
3
22,490
108,634
202,093
608,449
919,176
(256,476)
662,700
685,190
(123,445)
561,745
561,745
561,745|2020
Total
funds
£
35,418
3
35,421
91,129
344,390
355,623
791,142
(417,489)
373,653
409,074
(71,519)
337,555
337,555
337,555|
|---|---|---|
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 29 September 2022 and were signed on its behalf by:
Mr B G Dunn - Trustee
The notes form part of these financial statements
Page 10
## **Changing Lives Together**
|**Cash Flow Statement**
**for the year ended 31 December 2021**
2021
Notes
£
**Cash flows from operating activities**
Cash generated from operations
1
214,317
Interest paid
(8,298)
Net cash provided by operating activities
206,019
**Cash flows from investing activities**
Purchase of tangible fixed assets
(1,148)
Interest received
421
Net cash used in investing activities
(727)
**Cash flows from financing activities**
New loans in year
79,653
Loan repayments in year
(32,119)
Net cash provided by financing activities
47,534
**Change in cash and cash equivalents in the**
**reporting period**
252,826
**Cash and cash equivalents at the beginning of**
**the reporting period**
355,623
**Cash and cash equivalents at the end of the**
**reporting period**
608,449|2020
£
184,930
(896)
184,034
(1,570)
544
(1,026)
50,000
(26,161)
23,839
206,847
148,776
355,623|
|---|---|
The notes form part of these financial statements
Page 11
**Changing Lives Together**
## **Notes to the Cash Flow Statement for the year ended 31 December 2021**
## **1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|**Net income for the reporting period (as per the Statement of Financial**
**Activities)**
**Adjustments for:**
Depreciation charges
Interest received
Interest paid
Increase in stocks
Decrease/(increase) in debtors
(Decrease)/increase in creditors
**Net cash provided by operations**|2021
£
224,190
14,079
(421)
8,298
(17,505)
142,297
(156,621)
214,317|2020
£
144,772
17,126
(544)
896
(50,940)
(50,859)
124,479
184,930|
|---|---|---|
## 2. **ANALYSIS OF CHANGES IN NET FUNDS**
|**Net cash**|At 1.1.21
Cash flow
At 31.12.21
£
£
£|
|---|---|
|Cash at bank|355,623
252,826
608,449|
||355,623
252,826
608,449|
|**Debt**||
|Debts falling due within 1 year|(36,896)
4,392
(32,504)|
|Debts falling due after 1 year|(71,519)
(51,926)
(123,445)|
||(108,415)
(47,534)
(155,949)|
|**Total**|247,208
205,292
452,500|
The notes form part of these financial statements
Page 12
**Changing Lives Together**
## **Notes to the Financial Statements for the year ended 31 December 2021**
## **1. STATUTORY INFORMATION**
Changing Lives Together is a private company, limited by guarantee, registered in England and Wales. The company's registered number, registered charity number and registered office can be found in the Reference and Administrative Details section of the Trustees' Report.
The presentation currency of the financial statements is Pounds Sterling (£).
## **2. ACCOUNTING POLICIES**
## **Basis of preparing the financial statements**
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Changing Lives Together meets the definition of a public benefit entity under FRS 102.
The charitable company has a number of dormant subsidiary companies which have been dormant since incorporation, consolidated accounts have not been prepared as no material effect would be present in the Statement of Financial Activities or Balance Sheet.
These represent amended accounts following a reclassification of deferred income between general and restricted funds.
## **Going Concern**
The charitable company meets its day to day working capital requirements through its cash resources and available loan facilities. The trustees have reviewed current and forecast activity and cash requirements for a period of at least 12 months from the date of the signing of the financial statements which show, taking into account reasonably possible changes in performance and any potential impact from the Coronavirus pandemic, that the charitable company should be able to operate within its available cash resources. After making enquiries, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements.
## **Income**
The policies adopted for the recognition of income are as follows:
## **Sale of goods**
Income from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of income can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.
## **Rendering of services**
When the outcome of a transaction can be estimated reliably, income is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to a notable milestone.
Where the outcome cannot be measured reliably, income is recognised only to the extent of the expenses recognised that are recoverable.
## **Grants**
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.
## **Expenditure**
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
## **Goodwill**
Goodwill relates to the amount paid in connection with the acquisition of a business, and is now fully amortised.
continued...
Page 13
**Changing Lives Together**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
## **2. ACCOUNTING POLICIES - continued**
## **Tangible fixed assets**
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:
Plant and machinery - 20% on cost Fixtures and fittings - 25% on cost Computer equipment - 33% on cost
## **Stocks**
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. Stocks of unsold donated goods are valued only at the cost of bringing the items to their present location as it is not considered practical to estimate the fair value due to their cost being nil and their value is uncertain until sold.
## **Taxation**
The charity is exempt from corporation tax on its charitable activities.
## **Fund accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
## **Hire purchase and leasing commitments**
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability.
Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.
## **Pension costs and other post-retirement benefits**
The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.
## **Short term debtors and creditors**
Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
## **Cash and cash equivalents**
Cash and cash equivalents includes cash in hand, cash held with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **Loans and borrowings**
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.
continued...
Page 14
**Changing Lives Together**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
## **3. DONATIONS AND LEGACIES**
|Donations
**4.**
**OTHER TRADING ACTIVITIES**
Shop income
Waste credits, recycling, scrap and waste collection
Training and work experience
**5.**
**INVESTMENT INCOME**
Rents received
Interest receivable
**6.**
**INCOME FROM CHARITABLE ACTIVITIES**
Activity
Transport
Charitable activities
Grants
Charitable activities
Grants received, included in the above, are as follows:
Grants
**7.**
**RAISING FUNDS**
**Other trading activities**
Opening stock
Purchases
Closing stock
Hire of plant and machinery
Vehicle hire
Licences
Bad debts
Motor expenses
Sub contractors
Other direct costs|2021
£
7,229
2021
£
1,038,429
327,138
7,200
1,372,767
2021
£
4,235
421
4,656
2021
£
416,723
717,993
1,134,716
2021
£
717,993
2021
£
91,129
689,860
(108,634)
7,437
60,424
4,129
12,000
72,014
81,427
42,609
952,395|2020
£
5,557
2020
£
926,944
278,741
6,210
1,211,895
2020
£
2,527
544
3,071
2020
£
461,429
420,659
882,088
2020
£
420,659
2020
£
40,189
567,285
(91,129)
8,097
57,959
2,479
974
74,571
-
18,480
678,905|
|---|---|---|
continued...
Page 15
**Changing Lives Together**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
## **8. CHARITABLE ACTIVITIES COSTS**
|Charitable activities
**9.**
**SUPPORT COSTS**
Charitable activities
**10.**
**NET INCOME/(EXPENDITURE)**
Net income/(expenditure) is stated after charging/(crediting):
Auditors' remuneration
Depreciation - owned assets
Hire of plant and machinery
Other operating leases|Support
Direct
costs (see
Costs
note 9)
£
£
1,379,708
26,101
Governance
Finance
costs
£
£
2,309
23,792
2021
£
17,622
14,079
7,437
156,088|Totals
£
1,405,809
Totals
£
26,101
2020
£
8,500
17,126
8,985
165,530|
|---|---|---|
## **11. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the year ended 31 December 2021 nor for the year ended 31 December 2020.
## **Trustees' expenses**
There were no trustees' expenses paid for the year ended 31 December 2021 nor for the year ended 31 December 2020.
## **12. STAFF COSTS**
|Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Management team
Warehouse/reuse
Administrative
Retail
Community hubs
Community engagement
Community transport|2021
£
1,081,578
57,096
16,995
1,155,669
2021
5
24
9
5
3
12
17
75|2020
£
1,167,453
69,747
20,206
1,257,406
2020
6
24
11
6
11
19
-
77|
|---|---|---|
No employees received emoluments in excess of £60,000 (2020: £60,000).
Total emoluments for key management personnel totalled £197,808 (2020: £195,103).
continued...
Page 16
**Changing Lives Together**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
|**13.**
**COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES**
Unrestricted
fund
£
**INCOME AND ENDOWMENTS FROM**
Donations and legacies
5,557
**Charitable activities**
Charitable activities
489,619
Other trading activities
1,211,895
Investment income
3,071
Other income
258,821
**Total**
1,968,963
**EXPENDITURE ON**
Raising funds
678,905
**Charitable activities**
Charitable activities
1,145,286
**Total**
1,824,191
**NET INCOME**
144,772
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
192,783
**TOTAL FUNDS CARRIED FORWARD**
337,555
**14.**
**INTANGIBLE FIXED ASSETS**
**COST**
At 1 January 2021 and 31 December 2021
**AMORTISATION**
At 1 January 2021 and 31 December 2021
**NET BOOK VALUE**
At 31 December 2021
At 31 December 2020|Restricted
funds
£
-
392,469
-
-
-
392,469
-
392,469
392,469
-
-
-|Total
funds
£
5,557
882,088
1,211,895
3,071
258,821
2,361,432
678,905
1,537,755
2,216,660
144,772
192,783
337,555
Goodwill
£
6,157
6,157
-
-|
|---|---|---|
continued...
Page 17
**Changing Lives Together**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
## **15. TANGIBLE FIXED ASSETS**
|**TANGIBLE FIXED ASSETS**|||||
|---|---|---|---|---|
|||Fixtures|||
||Plant and|and|Computer||
||machinery|fittings|equipment|Totals|
||£|£|£|£|
|**COST**|||||
|At 1 January 2021|58,878|6,791|33,297|98,966|
|Additions|1,148|-|-|1,148|
|At 31 December 2021|60,026|6,791|33,297|100,114|
|**DEPRECIATION**|||||
|At 1 January 2021|33,958|6,292|23,298|63,548|
|Charge for year|5,455|229|8,395|14,079|
|At 31 December 2021|39,413|6,521|31,693|77,627|
|**NET BOOK VALUE**|||||
|At 31 December 2021|20,613|270|1,604|22,487|
|At 31 December 2020|24,920|499|9,999|35,418|
## **16. FIXED ASSET INVESTMENTS**
The charity owns 100% of the Ordinary share capital in the below three companies. Each of the companies has been dormant from incorporation.
- Changing Lives in Cheshire Limited (11935815)
- Changing Lives in Ellesmere Port Limited (11534973)
- Changing Lives in Warrington Limited (9842887)
## **17. STOCKS**
|Stocks
**18.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Prepayments|2021
£
108,634
2021
£
167,356
10,352
24,385
202,093|2020
£
91,129
2020
£
267,027
56,710
20,653
344,390|
|---|---|---|
continued...
Page 18
**Changing Lives Together**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
## **19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|2021
£
Other loans (see note 21)
32,504
Trade creditors
46,635
Social security and other taxes
26,882
VAT
6,556
Other creditors
2,920
Deposits held on account
22,723
Accrued expenses and deferred income
118,256
Deina Smith bursary
-
256,476
**20.**
**CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR**
2021
£
Other loans (see note 21)
123,445
**21.**
**LOANS**
An analysis of the maturity of loans is given below:
2021
£
Amounts falling due within one year on demand:
Other loans
32,504
Amounts falling between one and two years:
Other loans - 1-2 years
34,251
Amounts falling due between two and five years:
Other loans - 2-5 years
89,194
**22.**
**LEASING AGREEMENTS**
Minimum lease payments under non-cancellable operating leases fall due as follows:
2021
£
Within one year
56,190
Between one and five years
217,800
In more than five years
117,975
391,965
**23.**
**MOVEMENT IN FUNDS**
Net
movement
At 1.1.21
in funds
£
£
**Unrestricted funds**
General fund
337,555
224,190
**TOTAL FUNDS**
337,555
224,190|2020
£
36,896
60,533
88,492
15,794
15,605
56,227
143,860
82
417,489
2020
£
71,519
2020
£
36,896
36,519
35,000
2020
£
61,606
14,274
-
75,880
At
31.12.21
£
561,745
561,745|
|---|---|
continued...
Page 19
**Changing Lives Together**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
## **23. MOVEMENT IN FUNDS - continued**
Net movement in funds, included in the above are as follows:
|Incoming
resources
£
**Unrestricted funds**
General fund
2,106,506
**Restricted funds**
Break Free Grant
9,608
Groundworks
33,000
Family support
94,851
National Lottery Community Fund
91,943
Edsential community
147,691
DEFRA - Food hub
32,385
Wellbeing
28,507
Slowcooker Grant
37,903
475,888
**TOTAL FUNDS**
2,582,394
**Comparatives for movement in funds**
At 1.1.20
£
**Unrestricted funds**
General fund
192,783
**TOTAL FUNDS**
192,783
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
1,968,963
**Restricted funds**
Tudor Grant
4,167
Break Free Grant
2,350
Brightlife
18,835
Groundworks
41,970
Family support
72,260
National Lottery Community Fund
154,374
Edsential community
78,977
DEFRA - Food hub
19,536
392,469
**TOTAL FUNDS**
2,361,432|Resources
expended
£
(1,882,316)
(9,608)
(33,000)
(94,851)
(91,943)
(147,691)
(32,385)
(28,507)
(37,903)
(475,888)
(2,358,204)
Net
movement
in funds
£
144,772
144,772
Resources
expended
£
(1,824,191)
(4,167)
(2,350)
(18,835)
(41,970)
(72,260)
(154,374)
(78,977)
(19,536)
(392,469)
(2,216,660)|Movement
in funds
£
224,190
-
-
-
-
-
-
-
-
-
224,190
At
31.12.20
£
337,555
337,555
Movement
in funds
£
144,772
-
-
-
-
-
-
-
-
-
144,772|
|---|---|---|
continued...
Page 20
**Changing Lives Together**
## **Notes to the Financial Statements - continued for the year ended 31 December 2021**
## **24. RELATED PARTY DISCLOSURES**
During the year the charity received donations totalling £Nil (2020: £10,000) from a company that Gordon Dunn is also a director of.
Page 21
**Changing Lives Together**
## **Detailed Statement of Financial Activities for the year ended 31 December 2021**
|**INCOME AND ENDOWMENTS**
**Donations and legacies**
Donations
**Other trading activities**
Shop income
Waste credits, recycling, scrap and waste collection
Training and work experience
**Investment income**
Rents received
Interest receivable
**Charitable activities**
Transport
Grants
**Other income**
Government grants
**Total incoming resources**
**EXPENDITURE**
**Other trading activities**
Opening stock
Purchases
Waste disposal
Hire of plant and machinery
Vehicle hire
Licences
Bad debts
Motor expenses
Sub contractors
Other direct costs
Closing stock
**Charitable activities**
Wages
Social security
Pensions
Rent, rates and water
Insurance
Light and heat
Telephone
Postage and stationery
Advertising
Carried forward|2021
£
7,229
1,038,429
327,138
7,200
1,372,767
4,235
421
4,656
416,723
717,993
1,134,716
63,026
2,582,394
91,129
672,781
17,079
7,437
60,424
4,129
12,000
72,014
81,427
42,609
(108,634)
952,395
1,081,578
57,096
16,995
95,664
16,840
1,381
12,949
15,664
1,028
1,299,195|2020
£
5,557
926,944
278,741
6,210
1,211,895
2,527
544
3,071
461,429
420,659
882,088
258,821
2,361,432
40,189
553,771
13,514
8,097
57,959
2,479
974
74,571
-
18,480
(91,129)
678,905
1,167,453
69,747
20,206
107,571
13,553
12,700
14,964
16,795
798
1,423,787|
|---|---|---|
This page does not form part of the statutory financial statements
Page 22
**Changing Lives Together**
## **Detailed Statement of Financial Activities for the year ended 31 December 2021**
|**Charitable activities**
Brought forward
Sundries
Training
Travel costs
Volunteer costs
Repairs & renewals
Computer & internet
Cleaning
Subscriptions & memberships
Community Engagement Core Cost
ACL Programme Costs
Plant and machinery
Fixtures and fittings
Computer equipment
Loan
**Support costs**
**Finance**
Bank charges
**Governance costs**
Auditors' remuneration
Hire of plant and machinery
VAT charges
Accountancy and legal fees
Total resources expended
**Net income**|2021
£
1,299,195
7,836
15,846
339
5,168
1,434
20,084
6,417
1,012
-
-
5,455
229
8,395
8,298
1,379,708
2,309
17,622
-
5,668
502
23,792
2,358,204
224,190|2020
£
1,423,787
11,030
17,442
2,998
8,697
9,088
17,585
11,491
1,184
80
283
6,376
1,698
9,052
896
1,521,687
5,955
8,500
888
-
725
10,113
2,216,660
144,772|
|---|---|---|
This page does not form part of the statutory financial statements
Page 23