**Charity Registration No. 1146082**
**Company Registration No. 07841161 (England and Wales)**
## **LAUNCESTON FOODBANK LTD**
# **ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 31 OCTOBER 2020**
## **LAUNCESTON FOODBANK LTD**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
**Trustees** Helen Davies Richard F Hopper Malcolm Jones **Secretary** Richard F Hopper **Charity number** 1146082 **Company number** 07841161 **Principal address** 13D Newport Industrial Estate Launceston Cornwall PL15 8EX **Registered office** Chinthurst 30 St Stephens Hill Launceston Cornwall PL15 8HN **Independent examiner** Andrew Baker Victoria House St Catherines Hill Launceston Cornwall PL15 7EJ
## **LAUNCESTON FOODBANK LTD**
## **CONTENTS**
||**Page**|
|---|---|
|Trustees' report|1 - 2|
|Independent examiner's report|3|
|Statement of financial activities|4|
|Balance sheet|5|
|Notes to the financial statements|6 - 14|
## **LAUNCESTON FOODBANK LTD**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
The trustees present their report and financial statements for the year ended 31 October 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution , the Companies Act 2006 and "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)".
## **Objectives and activities**
The charity's object is to relieve poverty. The policies adopted in furtherance of this object are to supply nonperishable food to people in need of emergency supplies in the Launceston and surrounding areas of Cornwall and there has been no change in these during the year.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
Full details of the activities and achievements during the year are contained in the separate annual report.
## **Financial review**
The trustees are grateful for financial support received from many sources, as summarised in the attached accounts. The financial position at the end of the year is satisfactory, with the fundraising shop (when not shut due to the Covid-19 pandemic) providing adequate funds for the main activity at present. Meanwhile the trustees have been very grateful for grant income to sustain the charity's finances while the shop has had to be closed.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
## **Structure, governance and management**
The charity is a company limited by guarantee.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Helen Davies
Richard F Hopper Malcolm Jones
The trustees are appointed by a management committee comprised of volunteers from the local community.
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The trustees delegate most day-to-day matters to part-time paid employees and volunteers, and meet bimonthly with the wider management committee to agree policy matters and oversee the running of the charity.
Launceston Foodbank is affiliated to the Trussell Trust but is independent in its own right.
- 1 -
## **LAUNCESTON FOODBANK LTD**
## **TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
The trustees' r eport was approved by the Board of Trustees.
## **Richard F Hopper**
Trustee Dated: 29 June 2021
- 2 -
## **LAUNCESTON FOODBANK LTD**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF LAUNCESTON FOODBANK LTD**
I report to the trustees on my examination of the financial statements of Launceston Foodbank Ltd (the charity) for the year ended 31 October 2020.
## **Responsibilities and basis of report**
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner's statement**
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
- 2 the financial statements do not accord with those records; or
- 3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
- 4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Andrew Baker
Chartered Accountant Victoria House St Catherines Hill Launceston Cornwall PL15 7EJ
Dated: 29 June 2021
- 3 -
## **LAUNCESTON FOODBANK LTD**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
74,705
545
Charitable activities
**4**
1,942
-
Other trading activities
**5**
39,318
-
Investments
**6**
15
-
**Total income**
115,980
545
**Expenditure on:**
Charitable activities
**7**
98,338
580
**Net income/(expenditure)**
**for the year/**
**Net movement in funds**
17,642
(35)
Fund balances at 1
November 2019
42,776
404
**Fund balances at 31**
**October 2020**
60,418
369|**Total**Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
**£**
**£**
75,250
18,845
250
1,942
2,471
-
39,318
64,792
-
15
22
-
116,525
86,130
250
98,918
88,784
415
17,607
(2,654)
(165)
43,180
45,430
569
60,787
42,776
404|Total
2019
**£**
19,095
2,471
64,792
22
86,380
89,199
(2,819)
45,999
43,180|
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 4 -
## **LAUNCESTON FOODBANK LTD**
## **BALANCE SHEET**
## _**AS AT 31 OCTOBER 2020**_
|**Notes**
**Fixed assets**
Tangible assets
**11**
**Current assets**
Debtors
**12**
Cash at bank and in hand
**Creditors: amounts falling due within**
**one year**
**13**
Net current assets
**Total assets less current liabilities**
**Income funds**
Restricted funds
**14**
Unrestricted funds|**2020**
**£**
1,549
52,188
53,737
(1,063)|**£**
8,113
52,674
60,787
369
60,418
60,787|**2019**
**£**
1,668
37,366
39,034
(1,065)|**£**
5,211
37,969
43,180
404
42,776
43,180|
|---|---|---|---|---|
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 October 2020.
The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 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.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 29 June 2021
Helen Davies **Trustee**
Richard F Hopper **Trustee**
## **Company Registration No. 07841161**
- 5 -
**LAUNCESTON FOODBANK LTD**
## **NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **1 Accounting policies**
## **Charity information**
Launceston Foodbank Ltd is a private company limited by guarantee incorporated in England and Wales. The registered office is Chinthurst, 30 St Stephens Hill, Launceston, Cornwall, PL15 8HN.
## **1.1 Accounting convention**
The financial statements have been prepared in accordance with the charity's constitution, the Companies Act 2006 and "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)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
## **1.4 Incoming resources**
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. Income from donated goods is not recognised until the point of sale of the goods because it is impracticable to measure the value prior to that point.
- 6 -
## **LAUNCESTON FOODBANK LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.5 Resources expended**
Expenditure is charged in the accounts at the time when an obligation to make payment is incurred.
Overhead costs are allocated where possible to the activity to which they relate. Other general overhead costs are allocated equally between activities.
## **1.6 Tangible fixed assets**
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment 25% per annum on net value Motor vehicles 20% per annum on net value
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.
## **1.7 Impairment of fixed assets**
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .
## **1.8 Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## **1.9 Financial instruments**
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
## _**Basic financial assets**_
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
- 7 -
## **LAUNCESTON FOODBANK LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## _**Basic financial liabilities**_
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
## _**Derecognition of financial liabilities**_
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
## **1.10 Retirement benefits**
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
## **1.11 Leases**
Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.
## **2 Critical accounting estimates and judgements**
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
- 8 -
## **LAUNCESTON FOODBANK LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**£**
**£**
Donations and gifts
27,221
545
Grant income
47,484
-
74,705
545|**Total**Unrestricted
Restricted
funds
funds
**2020**
2019
2019
**£**
£
£
27,766
14,095
-
47,484
4,750
250
75,250
18,845
250|Total
2019
£
14,095
5,000
19,095|
|---|---|---|
The trustees and management committee are grateful for many grants and donations received, including the following of £1,000 or more: Cornwall Community Funding £14,500 (including £500 for crisis fund), Cornwall Council £10,000,(Covid grant), Greenergy International £6,250, Tesco via The Trussell Trust £4,053 (2019: £3,626), Launceston Town Council £1,500, Barratt Home £1,000, Dairy Crest £1,000, FLIC £1,000, KCS Print £1,000 and Rotary Club of Launceston £1,000. We also received £9,181 furlough grant from HM Revenue & Customs.
## **4 Charitable activities**
||**Sundry**|
**Sundry**|
|---|---|---|
||**sales of**|
**sales of**|
||**donated**|
**donated**|
||**goods**|
**goods**|
||**2020**|
**2019**|
||**£**|
**£**|
|Sales within charitable activities|1,942|
2,471|
|**Other trading activities**|||
||**Unrestricted**|Unrestricted|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Charity shop sales|39,318|64,792|
## **5 Other trading activities**
- 9 -
## **LAUNCESTON FOODBANK LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **6 Investments**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2020**|2019|
||**£**|£|
|Interest receivable|15|22|
## **7 Charitable activities**
|**Provision of**
**non-**
**perishable**
**food etc.**
**Charity**
**fundraising**
**shop**
**2020**
**2020**
**£**
**£**
Staff costs
22,610
36,043
Other direct costs
1,477
1,298
24,087
37,341
Share of support costs (see note 8)
15,817
20,820
Share of governance costs (see note 8)
427
426
40,331
58,587
**Analysis by fund**
Unrestricted funds
39,751
58,587
Restricted funds
580
-
40,331
58,587
**For the year ended 31 October 2019**
Unrestricted funds
36,863
51,921
Restricted funds
415
-
37,278
51,921|**Total**
**2020**
**£**
58,653
2,775
61,428
36,637
853
98,918
98,338
580
98,918|**Total**
**2019**
**£**
51,334
2,256
53,590
34,396
1,213
89,199
88,784
415
89,199
88,784
415
89,199|
|---|---|---|
The value of volunteer time donated to the charity, measured at full national minimum wage rates, was £13,716 (2019: £12,220) at the foodbank and £15,234 (2019: £30,900) at the charity fundraising shop.
- 10 -
## **LAUNCESTON FOODBANK LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **8 Support costs**
|**Support**
**costs**
**Governance**
**costs**
**£**
**£**
Staff costs
7,849
-
Depreciation
2,361
-
Premises expenses
21,405
-
Administrative expenses
4,074
-
Staff uniforms and
volunteer expenses
948
-
Accountancy
-
800
Governance costs
-
53
36,637
853
Analysed between
Charitable activities
36,637
853|**2020**
Support
costs
Governance
costs
**£**
£
£
7,849
7,393
-
2,361
1,754
-
21,405
20,135
-
4,074
4,027
-
948
1,087
-
800
-
1,200
53
-
13
37,490
34,396
1,213
37,490
34,396
1,213|2019
£
7,393
1,754
20,135
4,027
1,087
1,200
13
35,609
35,609|
|---|---|---|
## **9 Trustees**
None of the trustees (or any persons connected with them) received any remuneration during the year, but one of them was reimbursed a total of £13 expenses (2019- two were reimbursed a total of £388).
Mr Hopper received £800 professional fees for the year for the provision of payroll services and the preparation of the statutory annual Report and Accounts.
- 11 -
## **LAUNCESTON FOODBANK LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **10 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
||**2020**|**2019**|
|---|---|---|
||**Number**|**Number**|
|Manager|1|1|
|Administrator|1|1|
|Shop|3|3|
||5|5|
|**Employment costs**|**2020**|**2019**|
||**£**|**£**|
|Wages and salaries|66,248|58,599|
|Other pension costs|254|128|
||66,502|58,727|
There were no employees whose annual remuneration was £60,000 or more.
## **11 Tangible fixed assets**
|**Fixtures,**
**fittings &**
**equipment**
**Motor**
**£**
**Cost**
At 1 November 2019
16,920
Additions
-
Disposals
(90)
At 31 October 2020
16,830
**Depreciation and impairment**
At 1 November 2019
11,709
Depreciation charged in the year
1,309
Eliminated in respect of disposals
(90)
At 31 October 2020
12,928
**Carrying amount**
At 31 October 2020
3,902
At 31 October 2019
5,211|**vehicles**
**£**
-
5,263
-
5,263
-
1,052
-
1,052
4,211
-|**Total**
**£**
16,920
5,263
(90)
22,093
11,709
2,361
(90)
13,980
8,113
5,211|
|---|---|---|
- 12 -
## **LAUNCESTON FOODBANK LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
## **12 Debtors**
|**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
**Creditors: amounts falling due within one year**
Other taxation and social security
Other creditors
Accruals and deferred income|**2020**
**£**
1,192
357
1,549
**2020**
**£**
416
18
629
1,063|**2019**
**£**
1,307
361
1,668
**2019**
**£**
218
-
847
1,065|
|---|---|---|
## **13 Creditors: amounts falling due within one year**
## **14 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|||**Movement in funds**|**Movement in funds**||**Movement in funds**|**Movement in funds**||
|---|---|---|---|---|---|---|---|
||**Balance at**|**Incoming**|**Resources**|**Balance at**|**Incoming**|**Resources**|**Balance at**|
||**1 November**|**resources**|**expended**|**1 November**|**resources**|**expended**|**31 October**|
||**2018**|||**2019**|||**2020**|
||**£**|**£**|**£**|**£**|**£**|**£**|**£**|
|For office||||||||
|furniture|186|-|(46)|140|-|(35)|105|
|For fuelbank|383|-|(119)|264|-|-|264|
|For||||||||
|Christmas||||||||
|hampers|-|250|(250)|-|545|(545)|-|
||569|250|(415)|404|545|(580)|369|
- 13 -
## **LAUNCESTON FOODBANK LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 OCTOBER 2020**_
|**15**
**Analysis of net assets between funds**
**Unrestricted**
**Restricted**
**2020**
**2020**
**£**
**£**
Fund balances at 31
October 2020 are
represented by:
Tangible assets
8,008
105
Current assets/
(liabilities)
52,410
264
60,418
369|**Total**Unrestricted
Restricted
**2020**
2019
2019
**£**
£
£
8,113
5,071
140
52,674
37,705
264
60,787
42,776
404|Total
2019
£
5,211
37,969
43,180|
|---|---|---|
## **16 Related party transactions**
There were no disclosable related party transactions during the year (2019 - none).
- 14 -