FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
Registered charity number: 1146401 Company number: 07324296
OFFICERS AND PROFESSIONAL ADVISORS
TRUSTEES who have served during the year and up until the date of signing the report are: Nigel Goodway Roger Wooldridge Jonathan Evans
TRUSTEES who were either appointed or resigned during the period and prior to signing these accounts: Lorraine Patch – resigned 29 May 2021
Colin Sainsbury CMC FIC – appointed 12 August 2021
INDEPENDENT MANAGEMENT ADVISOR
INDEPENDENT HR ADVISOR
Anstey Barton Consulting Huntsham Tiverton EX16 7NG
BrightHR Peninsula Consulting Victoria Place Manchester M4 4FB
FINANCIAL OFFICER
Sue McQuaid Libra Accounting Services Ltd 54 Petherton Gardens Hengrove, Bristol BS14 9BS
BANKERS
INSURERS
HSBC Bank plc 431 Oxford Street London W1C 2DA
Zurich Insurance plc The Zurich Centre 3000 Parkway Whiteley, Fareham PO15 7JZ
PRINCIPAL OFFICE OF THE CHARITY
REGISTERED OFFICE OF THE CHARITY
10 Filwood Broadway Knowle Bristol BS4 1JL
3[rd ] Floor 207 Regent Street London W1B 3HH
INDEPENDENT ACCOUNTS EXAMINER
IMPACT MONITORING ADVISORS
Andy Forse FMAAT Clarity CIC Causeway Accountancy The Old Bakery, Old Road 279 Lodge Causeway Harbertonford Bristol BS16 3RA Totnes TQ9 7TA
CASE MANAGEMENT SOFTWARE
Fully integrated bespoke case management and impact monitoring system designed on the APRICOT® software platform and underpinned by The Matthew Tree Project ‘Theory of Change Framework’.
REPORT OF THE TRUSTEES
The Board of Trustees present their annual report and the independently examined financial statements for the year ended 31 December 2021. These are prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity’s Trust Deed, the Charities Act 2011 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) and Financial Reporting Standard 102 and the Companies Act 2006.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Mathew Tree Project was established in July 2010 and is a registered charity, number 1146401. The charitable company is registered as a company limited by guarantee, as defined by the Companies Act 2006. The governing document is its Memorandum and Articles of Association, and it is a registered company (number 7324296).
The Charitable Company has no share capital, but under the terms of the Memorandum of Association, every member is liable to contribute a sum not exceeding £10 in the event of the Charitable Company being wound up.
The principal objects of the Charitable Company are:
“To relieve financial hardship amongst all peoples of all ages in the local communities in accordance with a Christian ethos.”
RISK MANAGEMENT
The Trustees confirm that they regularly review the significant risks facing the Trust and have systems and procedures in place to mitigate those risks. The risk policy has adopted a risk mapping methodology that is applied to each identified risk, assessing the likelihood of it occurring and the severity of the impact of occurrence on the Trust.
OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT
The Trustees have complied with their duty to have due regard to the guidance on public benefit published by the Charity Commission when exercising their powers and duties.
RESULTS FOR THE YEAR
The charity received income for the year of £625,644, (2020: £989,302), including £389,117 (2020: £449,225) of food gifts for distribution to those in need. Expenditure for the year was £659,329 (2020: £845,530).
RESERVES POLICY
The trustees aim to hold no more than £100,000 of free reserves. Any funds over this level are reinvested in the development of client services. At the end of the year, free reserves were £34,530, and at the end of 2020 free reserves were £124,268.
GOING CONCERN
After making enquiries, the Trustees have a reasonable expectation that the Trust has adequate resources to continue its objectives and activities for the public benefit for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
Further details regarding the adoption of the going concern basis are in note 1 ‘Accounting Policies’ in the financial statements.
Covid-19 Pandemic
Covid-19 was first reported during the previous reporting period. The World Health Organization declared the outbreak a Public Health Emergency of International Concern on 30 January 2020, and a pandemic on 11 March 2020.
As a result, 2021 has been a brutal year for so many people because of the worldwide pandemic which has claimed the lives of circa 208,000 people in the UK (people who died within 28 days of testing positive for Covid-19) as of 7 October 2022.
The crisis support services provided by The Matthew Tree Project has meant that the charity is regarded as a provider of key frontline emergency support services. Covid-19 has sharply increased demand on the charity: open case load rose from 320 people to 671 people between March 2020 and February 2021; and has significantly increased operational costs.
Covid-19 has placed un-imaginable pressure on the resources and processes of the charity – at entry point by way of food supplies and further down the line in addressing the underlying causes of the crisis. Due to Covid-19, the way services are delivered has been completely repurposed:
Support Centres / Community Hubs Temporarily Closed
All five ‘Rebuilding Lives Community Hubs’ closed for the safety of the clients, many of whom are vulnerable, and our volunteers and staff.
City-wide Home Delivery Foodservice Launched
Weekly home delivery foodservice introduced. By the end of December 2021, The Matthew Tree Project were distributing the food equivalent of circa. 9000 meals per week – up from 6000 (Feb, 2020).
New Crisis Support Phone Line Launched
A (lifeline) weekly crisis support phone service has been introduced which has enabled the programme to continue to help people address their crisis situation and rebuild a better future.
RELATED PARTIES
The Matthew Tree Project wholly own Rise Social Enterprise Limited, company limited by shares number 10740064.
AWARDS
The Matthew Tree Project were awarded the following accolades:
Winner of Bristol Prestige Award for ‘Best in Charitable Community Services’ in 2020, 2021, and 2022.
TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
The trustees (who are also directors of The Matthew Tree Project for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating the strategic report and directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom 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 income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
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 adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the Trustees on ……………………………..……………and signed on their behalf by: 31/10/2022
Colin Sainsbury CMC FIC – Trustee Chair 31 October 2022
INDEPENDENT EXAMINERS REPORT
Independent examiner’s report to the trustees of The Matthew Tree Project
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2021 .
.
Responsibilities and basis of report
As the charity’s trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company 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 your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
Since the Company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the ‘Association of Accounting Technicians’, which is one of the listed bodies.
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:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts 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
-
the accounts 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 accounts to be reached.
Andy Forse FMAAT Causeway Accountancy 279 Lodge Causeway Fishponds Bristol BS15 3RA
Date: …………………………..
THE MATTHEW TREE PROJECT: FINANCIAL ACCOUNTS 2021
| NOTE Income from: Donations Grants receivable Charitable activities Other sources Total income Expenditure on: Raising funds Charitable activities 2 Total expenditure Net income/(expenditure) and net movement in funds 3 Total funds at 1 January 2021 10 Total funds at 31 December 2021 10 |
Unrestricted Restricted Total Funds Total Funds Funds Funds 2021 2020 £ £ £ £ 55,161.30 389,117.64 444,278.94 503,976.00 70,770.14 106,590.50 177,360.64 481,165.00 - - - - 4,004.50 - 4,004.50 4,161.00 129,935.94 495,708.14 625,644.08 989,302.00 10,406.29 - 10,406.29 18,208.00 48,682.53 600,240.20 648,922.73 827,322.00 59,088.82 600,240.20 659,329.02 845,530.00 70,847.12 - 104,532.06 - 33,684.94 143,772.00 188,773.00 193,474.00 382,247.00 238,475.00 259,620.12 88,941.94 348,562.06 382,247.00 |
|---|---|
There are no recognised gains or losses other than the results for the year as set out above.
All activities are classed as continuing.
Fund-accounting comparative transactions are shown in note 4.
| NOTE Fixed assets Tangible fixed assets 6 Investments 7 Current assets Debtors 8 Food stocks Rise loan account Cash at bank Creditors: amounts falling due within one year 9 Net current assets Restricted and unrestricted funds Unrestricted funds 11 Restricted funds 11 Total funds |
2021 £ 34,081.96 1.00 34,082.96 1,250.00 34,642.09 221,239.04 62,030.12 319,161.25 - 4,681.85 348,562.36 88,941.95 259,620.08 348,562.03 |
2020 £ 42,744.00 1.00 |
|---|---|---|
| 42,745.00 1,250.00 32,918.00 163,886.00 149,111.00 |
||
| 347,165.00 - 7,663.00 |
||
| 382,247.00 | ||
| 188,773.00 193,474.00 |
||
| 382,247.00 |
| Net cash flow from operating activities Non-operational cash flows: Investing activities Investment income Payments for tangible fixed assets Net cash inflow/(outflow) for the year A |
- 87,080.88 - - 2,083.98 - 89,164.86 |
112,127.00 2.00 - 4,873.00 |
|---|---|---|
| 107,256.00 |
Cashflow Restrictions
Charity law prohibits the use of net cash inflows on any endowed or other restricted fund to offset net cash outflows on any fund outside its own objects, except on special authority. In practice, this restriction has not had any effect on cash flows for the year.
| A Analysis of changes in cash during the year Cash at bank and in hand Cash at bank and in hand B Analysis of changes in net debt Cash and cash equivalents Cash Total Cash and cash equivalents Cash Total |
At 01-Jan-21 £ 149,111.00 |
2021 2020 Change £ £ £ 62,030.12 149,111.00 - 87,080.88 |
|---|---|---|
| 2020 2019 Change £ £ £ 148,111.00 41,855.00 107,256.00 |
||
| Cash flows Non cash flows At 31-Dec-21 £ £ £ - 87,080.88 - 62,030.12 |
||
| 149,111.00 | - 87,080.88 - 62,030.12 |
|
| At 43,831.00 £ 41,855.00 |
Cash flows Non cash flows At 44,196.00 £ £ £ 107,256.00 - 149,111.00 |
|
| 41,855.00 | 107,256.00 - 149,111.00 |
1 Accounting Policies
a) The financial statements have been prepared in accordance with the Charities Act 2011, the Companies Act 2006, Financial Reporting Standard FRS102, and the Charities' Statement of Recommended Practice (FRS102). Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
The charity meets the definition of a public benefit entity under FRS102.
The trustees consider that the charity is able to continue as a going concern for at least the next twelve months. Please refer to the trustees' consideration in the Trustees' Report.
b) Income from donations is included when it is receivable, except as follows:
I. When donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods;
II. When donors impose conditions, which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred until the pre-conditions have been met.
c) Gifts in kind includes donated services and facilities which are recognised at a reasonable estimate of their gross value to the Charity. An equivalent amount has been included as expenditure under the appropriate heading in the Statement of Financial Activities.
d) Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure includes attributable VAT, which cannot be recovered.
e) Grants payable is charged in the year when the offer is conveyed to the recipient except in those cases where the offer is conditional, such grants being recognised when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year-end are noted as a commitment, but not accrued as expenditure. f) Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition.
| expenses of acquisition. | |
|---|---|
| Depreciation is calculated so as to write off | the cost of an asset, less its estimated residual value, over the useful |
| economic life of that asset as follows: | |
| Equipment | 5% per annum on a reducing balance |
| basis | |
| Office equipment, furniture and fixtures | 5% per annum on a reducing balance |
| basis | |
| Motor vehicles | 5% per annum on a reducing balance |
| basis |
g) Cash at bank includes cash and short-term highly liquid investments with a notice of withdrawal period of three months or less.
h) Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
i) Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
j) Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees.
l) 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. Expenditure which meets these criteria is charged to the fund, together with a fair allocation of management and support costs. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
2 Costs of activities in furtherance of charity's objectives
| Direct costs Food costs Premises Salaries Strategic partner grants Hardship grants Support costs Salaries Employer's pension costs Other staff costs Printing and stationery Meeting costs IT costs Evaluation and consultancy costs Motor and travel expenses Insurance Depreciation Miscellaneous expenses Governance costs Legal and professional fees Independent examiner's fee Accountancy |
Total Funds Total Funds 2021 2020 £ £ 395,076.97 551,843.00 - 539.86 7,925.00 132,252.39 111,792.00 3,750.00 30,000.00 530.00 250.00 |
|---|---|
| 531,069.50 701,810.00 72,598.41 83,259.00 2,768.36 2,565.00 717.35 581.00 9,880.04 9,821.00 416.35 565.00 6,529.91 7,573.00 6,438.03 5,296.00 10,701.12 6,630.00 2,382.21 5,519.00 3,350.28 1,664.00 - - 2,071.20 2,039.00 |
|
| 117,853.26 125,512.00 |
|
| 648,922.76 827,322.00 |
| 4 Fund-accounting comparative figures Income from: Donations Grants receivable Charitable activities Other sources Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income/(expenditure) and net movement in funds Total funds at 1 January 2021 Total funds at 31 December 2021 5 Salaries Salaries National Insurance Employer's pension contributions |
General Funds £ 55,157.80 70,774.14 - 4,004.00 |
Restricted Total Funds Funds 2021 £ £ 389,117.64 444,275.44 106,590.50 177,364.64 - - - 4,004.00 |
|---|---|---|
| 129,935.94 | 495,708.14 625,644.08 |
|
| 10,406.00 48,682.86 |
- 10,406.00 600,240.19 648,923.05 |
|
| 59,088.86 | 600,240.19 659,329.05 |
|
| 70,847.08 124,268.00 |
- 104,532.05 - 33,684.97 257,979.33 382,247.33 |
|
| 195,115.08 | 153,447.28 348,562.36 |
|
| 2021 2020 £ £ 190,531.85 181,004.00 14,318.95 14,047.00 2,768.36 2,564.00 |
||
| 207,619.16 197,615.00 |
6 Tangible Fixed Assets
| Cost At 1 January 2021 Additions At 31 December 2021 Depreciation At 1 January 2021 Charge for the year At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020 7 Investments 100% holding in subsidiary |
Office equipment, Equipment fixtures & fittings £ £ 65,753.00 26,351.00 1,538.98 |
Motor vehicles Total £ £ 13,297.00 105,401.00 500.00 2,038.98 |
|---|---|---|
| 65,753.00 27,889.98 |
13,797.00 107,439.98 |
|
| 36,863.00 14,720.00 8,278.91 1,736.07 |
11,074.00 62,657.00 686.14 10,701.12 |
|
| 45,141.91 16,456.07 |
11,760.14 73,358.12 |
|
| 20,611.09 11,433.91 |
2,036.86 34,081.86 |
|
| 28,890.00 11,631.00 |
2,223.00 42,744.00 |
|
| 2021 2020 £ £ 1 1 |
RISE Social Enterprise Ltd (company number 10740064) is a subsidiary of the charity. At the end of the year, the company owed The Matthew Tree Project £221,239 (2020: £163,886) for equipment and other services.
| 8 Debtors Rental deposits |
2021 2020 £ £ 1250 1250 |
|---|---|
| 1250 1250 |
9 Creditors falling due within one year
| Creditors falling due within one year | |
|---|---|
| Creditors PAYE and NI, salaries |
2021 2020 £ £ 1.00 982.00 4,680.85 6,681.00 |
| 4,681.85 7,663.00 |
10 Movement in funds
| Restricted funds Key personnel salaries Food distribution operations Rebuilding Lives RISE Social Enterprise Data Analysis Officer Designated funds; Food stock funds Unrestricted general funds Total funds |
At 1 Janaury Income Expenditure Transfers At 31 December 2021 2021 £ £ £ £ £ 43,934.30 - 43,934.00 - 0.30 41,975.07 30,000.00 56,975.07 - 15,000.00 15,347.00 51,590.50 66,937.50 - 20,000.00 - 20,000.00 - - 12,500.00 25,000.00 25,000.00 - 12,500.00 59,717.93 389,117.64 387,393.62 61,441.95 |
|---|---|
| 193,474.30 495,708.14 600,240.19 - 88,942.25 |
|
| 188,773.00 129,935.94 59,088.86 - 259,620.08 |
|
| 382,247.30 625,644.08 659,329.05 - 348,562.33 |
Movement in funds - prior year
| Movement in funds - prior year | |
|---|---|
| Restricted funds Key personnel salaries Food distribution operations Rebuilding Lives RISE Social Enterprise Money Smart Work Wise Mobile Foodstore Data Analysis Officer Food for clients during Covid Unrestricted general funds Designated funds; Food stock funds |
At 1 Janaury Income Expenditure Transfers At 31 December 2020 2020 £ £ £ £ £ 34,967.00 53,800.00 - 44,833.00 - 43,934.00 61,675.00 30,000.00 - 15,000.00 - 76,675.00 30,347.00 82,017.00 - 97,017.00 - 15,347.00 5,000.00 20,463.00 - 463.00 - 25,000.00 5,000.00 - - - 5,000.00 15,018.00 - - - 15,018.00 12,500.00 - - - 12,500.00 - 67,499.00 - 67,499.00 - |
| 164,507.00 253,779.00 - 224,812.00 - 193,474.00 |
|
| 9,463.00 735,523.00 - 620,718.00 - 124,268.00 64,505.00 - - - 64,505.00 |
|
| 238,475.00 989,302.00 - 845,530.00 - 382,247.00 |
Unrestricted funds are available to be used at the discretion of the trustees in line with the charity's purposes.
Designated funds - The Food Stock fund represents gifts of food received during the year and food distributed to those in need. The balance at the end of the year is the value of food stocks held by the charity. Restricted funds - The Key personnel salaries fund includes grants received to fund the Chief Executive Officer's salary. The Food Distribution Operations fund includes grants received to fund the supervisor of this work. The Rebuilding Lives fund includes grants received towards running the charity's Rebuilding Lives Crisis Support Programme. Rise Social Enterprise fund - funds were received for setup costs and for a kitchen. Money Smart Work Wise - funds were received to enable work on this project Mobile Foodstore funds were received to help with the purchase of a lorry to set up a mobile store. The Data Analysis fund enables the charity to see where our work is needed most and evaluate the results of its operations.
| 11 Analysis of Net Assets Between Funds Restricted funds Unrestricted funds Prior Year Restricted funds Unrestricted funds |
Tangible Fixed Other Net Total Funds Assets Assets 2021 £ £ £ 88,942.25 88,942.25 34,082.96 225,537.12 259,620.08 |
|---|---|
| 34,082.96 314,479.37 348,562.33 |
|
| Tangible Fixed Other Net Total Funds Assets Assets 2020 £ £ £ 193,474.00 193,474.00 42,745.00 146,028.00 188,773.00 |
|
| 42,745.00 339,502.00 382,247.00 |
12 Related parties
There were no related party transactions during this, or the prior year, other than those noted elsewhere in the accounts. No trustees received or waived expense payments during either the current, or previous year.