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2023-03-31-accounts

Trustees Report and Financial Statements Year Ended 31 March 2023

Company Number: 07577102 Charity Number: 1148645

CONTENTS
Legal and Administrative Information 1-2
Trustees Report 3
Charitable Purposes 3 - 4
Achievements and Future Plans 4 - 7
Delivering Public Benefit 7
Governance and Management 8 - 10
Fundraising 10
Financial Review 10 - 11
Statement of Trustees Responsibilities 12
Independent Auditor’s Report 13 - 16
Financial Statements 17 – 30
The following pages do not form part of the statutory financial statements
Management Information 32 - 33

LEGAL AND ADMINISTRATIVE INFORMATION

Organisation Name: Sustainable Food Trust Company Registration Number: 07577102 Charity Registration Number: 1148645 Registered office and operational address: 38 Richmond Street, Totterdown, Bristol, BS3 4TQ Trustees/Company Directors: Anthony Rodale (USA) – resigned 4[th] July 2022 Peter Segger (UK) George Kailis (Australia) Christina Lee Brown (USA) Lady (Jane) Parker (UK) – Chair Evi Steyer – appointed 29[th] November 2022 Arlo Brady – appointed 14[th] March 2023

Company Secretary: Chief Executive: Senior Management Team:

Claire Peeters

Patrick Holden, CBE

Chief Executive, Executive Director, Policy Director, Global Farm Metric Director, Head of Operations

Auditor:

Burton Sweet Limited, The Clock Tower, Farleigh Court, Old Weston Road, Flax Bourton, Bristol, BS48 1UR

Bankers:

Triodos Bank, Deanery Road, Bristol, BS1 5AS

Funders:

The SFT would like to extend our thanks to the following funders for supporting our work during the year:

 The A Team Foundation  Aurora Trust  B&J Lloyd Family Charitable Trust  CHK Foundation  Dr. John Cavill  Corton Hill Trust  Defra  EQ Foundation  Esmée Fairbairn Foundation

 The Prudence Trust  The Rothschild Foundation  Ruskin Mill Land Trust  The Serve All Trust  Sustainable Food Alliance, Inc.  Treebeard Trust  Anonymous Donors - including via Charitable Giving Payroll and Charities Trust

1

LEGAL AND ADMINISTRATIVE INFORMATION

The Sustainable Food Alliance (SFA).

The SFA is a US tax-exempt 501(c)(3) organisation which works in partnership with the Sustainable Food Trust and raises funds to support sustainable food programmes.

Donors whose generous support of the SFA benefitted the SFT during the year included:

The Frances and Benjamin Benenson Foundation; Owsley Brown III Philanthropic Foundation; Bryan and Tara Meehan; John and Jessica Moussouris; The Work in Progress Fund of the Tides Foundation; The Atlantic Foundation; Joe and Lisa Roman.

2

TRUSTEES’ REPORT

TRUSTEES’ REPORT

CHARITABLE PURPOSES

The charitable purposes of the Sustainable Food Trust (SFT), as set out in the objects contained in the company’s Articles of Association, are:

In service of these objectives, the SFT’s mission is to accelerate the transition towards more sustainable food systems.

To achieve this, we work in three areas:

Summary

There is growing international consensus amongst the climate science community, governments, public and private finance, food companies, retailers and NGOs about the urgent need for an agriculture and food systems transition.

This is underpinned by an awareness that although our current farming and food systems are major contributors to climate change, the destruction of natural ecosystems and damage to public health, the potential exists for regenerative models not only to reverse these declines, but to become part of the solution.

Although consensus may not yet have been reached on the exact nature of the farming systems that are needed to replace the ones we have at present, it is agreed by all that the transition is not taking place anywhere near fast enough, and that a key barrier is the absence of an enabling financial environment, particularly for farmers.

Our mission is to accelerate the transition to sustainable food and farming systems. Our vision is for all farming and land management to operate in harmony with nature, producing sustainable and nutritious food which nourishes both people and planet.

To achieve our aims, we work catalytically and collaboratively, through a combination of high-level lobbying,

3

TRUSTEES’ REPORT

coalition building, public campaigning, education and media networking. This is based on three key pillars of work – farming policy and practice, measuring and valuing sustainability, and public awareness-raising. This report outlines our progress during 2022/2023 and future plans for these core work areas.

ACHIEVEMENTS AND FUTURE PLANS

1. Farming Policy and Practice

Barrier to change: the lack of consensus on the nature of future sustainable agriculture, coupled with the absence of an enabling financial environment for farmers wishing to transition to such systems, continues to represent the most significant barrier currently preventing the transition we need to see.

Aim: to build a common vision for the future of farming and, through public and private sector engagement, develop a strong business case for this transition.

Achievements during the year included:

4

TRUSTEES’ REPORT

Future plans include:

2. Measuring and Valuing Sustainability

Barrier to change: the lack of common framework for measuring farm level sustainability makes it difficult for farmers to assess their impact and impossible for government, financial institutions, and food companies to set meaningful targets and incentivise change. The vast array of labelling and audit schemes also means consumers have no common yardstick to link their purchasing power to supporting sustainable, healthy food production.

Aim: to develop an internationally common framework for measuring whole farm sustainability. Use this framework to value the positive and negative impacts of agriculture and advocate for the introduction of financial measures to help all farmers transition to more sustainable food production systems.

Achievements during the year included:

5

TRUSTEES’ REPORT

Future plans include:

3. Informing and inspiring the public about the future of food and farming

Barrier to change: mass confusion has created uncertainty around the type of farming systems we need to address and promote and what individuals can do to be part of the solution.

Aim: to provide clarity, nuance and a practical perspective on the future of food and farming and share these messages with the general public, both through our own communication channels as well as by working with others.

Achievements during the year included:

6

TRUSTEES’ REPORT

Future plans include:

DELIVERING PUBLIC BENEFIT

The trustees have referred to the information contained in the Charity Commission’s general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning its future activities.

All of the SFT’s work is directed towards meeting one or more of the Charity’s purposes, as described at the start of this report. It is our belief that these purposes will be best served by a return to more integrated and holistic food and farming systems. Research has shown that such systems deliver greater protection of the environment, more prudent use of natural resources and greater health benefits than their intensive and industrialised counterparts.

However, further research is needed to clarify and confirm certain aspects of this. Advancing the case for this research is an ongoing concern for the SFT, with priorities for further research being the role of regenerative agriculture practice as part of the climate solution; sustainability metrics and valuation frameworks for measuring food systems impacts; connecting sustainability and health-implications for dietary advice; and measurement of soil carbon and fertility.

As described in section 3, there remains a significant need to improve public understanding of the benefits of sustainable food and farming and the nature of the transition that must urgently take place. For this reason, communication and awareness raising to empower citizens, governments and businesses to take action will remain a core pillar of our work.

7

TRUSTEES’ REPORT

GOVERNANCE AND MANAGEMENT

The SFT is a company limited by guarantee and was incorporated on 24th March 2011. It became a registered charity with the Charity Commission for England and Wales in August 2012. The company was established under a set of Articles of Association, which set out the objects and powers of the organisation. In the event that the company is wound up, members are required to contribute an amount not exceeding £1.

The directors of the company are also the trustees of the charity. Trustees have control of the organisation, its funds and assets, and are responsible for overall strategic and operational management. They are not subject to retirement by rotation and there are not fixed periods of service. All trustees give their time voluntarily and receive no benefits. They are inducted and trained by other trustees and in consultation with the Chief Executive.

Day to day management of the organisation is delegated to the Chief Executive and Executive Director, who manages a team of staff, consultants and interns. The structure of the SFT on 31 March 2023, is shown in fig.1 below:

The SFT’s remuneration procedure stipulates that the pay of all senior staff, including the Chief Executive, is reviewed and set by the Board of Trustees at their regular Board meetings and, as for all staff, should be guided by the principles of internal equity and external parity. Except in instances of staff roles changing, salaries are reviewed yearly and any changes based on both internal and external factors, including staff performance.

We support the involvement of volunteers / interns from time to time, and this year have worked with four volunteers.

8

TRUSTEES’ REPORT

Board meetings take place every 4 months. Prior to meetings, the Chief Executive’s report is circulated along with management accounts and any other relevant documents. In between meetings, the Board is kept up to date with regular emails from the Chief Executive and senior staff.

Tribute to Richard Young, Former Policy Director

At the time of finalising this report, the SFT is just coming to terms with the loss of one of our longest-standing and most loved and respected members of staff, Richard Young. Richard was SFT’s Policy Director from the very early days of the SFT until 2023. He was on the brink of retirement when he died, on 16[th] September 2023, but was still making active contributions to a number of reports and was expected to stay somehow ‘within the fold’ even in his retirement.

It would be impossible to overstate the contribution that Richard made - not only to the SFT - but to a great many other organisations in the organic and sustainable food movement. His encyclopaedic knowledge of food and farming issues – underpinned by his own farming practice at Kite’s Nest Farm in Gloucestershire - contributed immeasurably to the understanding of the relationship between farming practices, food quality and health. It was this knowledge, and his very personable nature and humility that led to him being held in such high regard by colleagues, scientists, campaigners and policymakers. His work was hugely influential in shifting the dial on many issues including the overuse of antibiotics on farms, the role of livestock in sustainable food systems, and the case for local food and small abattoirs.

Thankfully, reports that Richard has been working on just before his death are far enough along to be published posthumously. The SFT took on Lesley Mitchell as Policy Director earlier in 2023, and Lesley had taken the reins of the policy and research team, with Richard being able to take more of a back seat in recent months. We are very grateful to Lesley for stepping so sensitively, and effectively into such respected shoes.

Richard was a friend and mentor to many SFT staff and will be dearly missed by the entire team.

Managing Risks

The trustees have assessed the major risks to which the organisation is exposed and are satisfied that systems are in place to mitigate exposure. Policies and procedures have been drawn up to ensure compliance with relevant legislation and which enable appropriate authorisation of transactions and activities. The Board has identified the top three risks posed to the organisation, which are outlined in the table below, along with the controls that have been put in place to mitigate those risks. Our top three risks are those which we deem to have the highest number of influencing factors which are external and thus not directly or easily managed by SFT.

----- Start of picture text -----
Risks Controls Implemented
----- End of picture text -----

Risks
Controls Implemented		 Risks
Controls Implemented
Loss of key staff  Plans and projects are documented to enable effective handovers.
 Staff reviews carried out at least annually, with opportunities to raise issues in between.
 Remuneration levels bear the importance of staff retention in mind, and procedures set to
ensure internal equity and external parity.
 Staff are kept up to date with organisational developments and impact, and are
activelyengaged in organisationalplanningand strategic development.

9

TRUSTEES’ REPORT

ES’ REPORT
Poor
relationships
with funders or
unsatisfactory
returns on
fundraising		  Fundraising plan developed and regularly updated.
 System in place to monitor and record outcomes of funded activities.
 Income streams diversified where possible, although this is weighed up against time and
resources available to cultivate new potential funders.
 Major funders briefed on progress regularly.
 Head of External Relations role created with a focus on donor care.
 Funder terms and conditions reviewed carefully and complied with, including dates for
reportingback.
Government
policy has
negative
impact
Legal and regulatory changes monitored and action taken accordingly.

Fundraising

All fundraising carried out by the Sustainable Food Trust is done under the direct guidance of the Chief Executive. He keeps in regular contact with major donors and has close involvement in the preparation of grant applications. Other staff involved in fundraising include the Policy Director, Head of Operations, Head of Programmes and Head of External Relations. The SFT does not use external professional fundraisers, and neither the organisation nor any of its staff subscribe to any fundraising standards scheme. We do not employ heavy-handed or unreasonably persistent approaches to fundraising, and whilst we invite donations through our website, we do not actively pursue our supporters with direct requests. During the year, the Charity did not receive any complaints about its fundraising activities.

FINANCIAL REVIEW

Funding Sources

The SFT seeks to secure funds from diverse sources, including trusts, foundations and individual donors. During the year, 66% of funds were secured from trusts and foundations, 8% from individual donors, and 26% from consultancy and other fees.

Results and Financial Position

The SFT has a stable financial position, with our unrestricted reserves growing year-on-year.

Total income for 2022/23 was £2,153,757 and expenditure £1,826,279 giving a surplus of £327,478. With a transfer of £60,000 from our endowment fund our unrestricted funds grew by £74,946. The majority of funds came from the UK and US.

We work in partnership with the Sustainable Food Alliance, a US 501(c)(3) organisation which shares our mission and aims. The SFA acts as a fiscal partner for our fundraising endeavours in North America, with 10% of the SFT’s funding in 2022/23 being derived from trusts, foundations and donors in the US. 64% was from trusts, foundations and donors in the UK. In 2021/22, these figures stood at 32% from the US, and 47% from the UK, so the balance has shifted towards the UK this year.

At the start of the new financial year (2023/24), we had 60% of funds required for the year secured – which is 4% higher than the same time the previous year. Our situation requires an ongoing and diligent

10

TRUSTEES’ REPORT

approach to fundraising and budget management. This is increasingly important as the organisation grows and at a time of inflationary pressure.

The Harmony Project Establishment as Own Entity

The Harmony Project (THP) established itself as a charity on 1[st] April 2023, under the name Harmony in Education (charity number 1200877). Since April 2017, THP had been treated as a project within the SFT. From 1[st] April 2023 the activities of THP were transferred to Harmony in Education, to continue from thereon. Therefore, this is the final time that the activities of The Harmony Project will be reported as part of the SFT’s Trustees Annual Report and Financial Statements.

Within the SFT total income for The Harmony Project to 31[st] March 2023 was £111,180 and expenditure was £218,776 giving a deficit of £107,596. The project had carried forward funds of £107,596 from the previous year, and so ended the year with a balance of £0.

For the year Harmony in Education is considered to be a related party to the SFT. However, in future years this may not be the case as the Trustee Boards are independent and comprised of separate individuals.

Reserves Policy

The Board of Trustees has examined the organisation’s requirements for reserves in light of the main risks to which it may be exposed. It has established a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the organisation should ideally be between four and six months’ worth of expenditure. We met the requirements of this policy, as the total unrestricted reserves at 31 March 2023 was £615,386 (equivalent to 4 months’ worth) with free reserves (following a deduction of the value of fixed assets) being £608,216.

In respect of the 2023/24 financial year, at March 23 the intention was to achieve a surplus with a view to growing unrestricted reserves by approximately £100k. Our reserves are expected to enable the organisation to retain some stability in terms of staff and work capacity over the next 2-3 years, without putting the organisation at undue financial risk.

Reserves are needed to safeguard the work of the SFT and the board of trustees are confident that at this level they would be able to continue the main core services in the event of a significant drop in funding.

The reserves policy was most recently revisited during the 2021/22 financial year and deemed to be at the appropriate level. The trustees actively monitor the financial performance of the SFT and consider at every board meeting the extent to which activities and expenditure might need to be curtailed should circumstances arise that would require this. If there is any uncertainty during a scheduled board meeting, an additional process is triggered in which the board receive an interim financial report with recommendations.

Disclosure of Trustee Donations

The aggregate Trustee donations to the charity was £20,000 (2022: £15,000).

11

TRUSTEES’ REPORT

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors of Sustainable Food Trust 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:

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.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the company’s website.

Small Company Provisions

This report and the financial statements have been prepared in accordance with the Statement of Recommended Practice “Accounting and Reporting by Charities” and in accordance with the special provisions of the Companies Act 2006 (s419(2)) relating to small entities.

Approved by the Board of Trustees on 21 November 2023 and signed on its behalf by:

Lady (Jane) Parker, Chair

12

INDEPENDENT AUDITOR’S REPORT

Independent auditor’s report to the members of Sustainable Food Trust

Opinion

We have audited the financial statements of Sustainable Food Trust (the “Charity”) for the year ended 31 March 2023 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, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the Charity’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 Charity’s members those matters we are required to state in them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity’s members as a body, for our audit work, for this report, or for the opinions we have formed.

In our opinion, the financial statements:

Basis for opinion

We conducted out audit in accordance with international Standards in Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity 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 directors’ 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 charity'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 directors with respect to going concern are described in the relevant sections of this report.

13

INDEPENDENT AUDITOR’S 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 out auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees 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 they 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 Charity’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 Charity or to cease operations, or have no realistic alternative but to do so.

14

INDEPENDENT AUDITOR’S REPORT

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

15

INDEPENDENT AUDITOR’S REPORT

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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/apb/scope/private.cfm This description forms part of our auditor’s report.

Joshua Kingston ACA (Senior Statutory Auditor)

For and on behalf of Burton Sweet Limited

Statutory Auditor The Clock Tower 5 Farleigh Court Old Weston Road Flax Bourton Bristol BS48 1UR

Date: 21 November 2023

16

SUSTAINABLE FOOD TRUST STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2023

Notes
Income and endowments from:
Donations and legacies
2
Charitable activities
3
Other trading activities
Other Income
Investments
Total income
Expenditure on:
Charitable activities
4
Total expenditure
Net income/(expenditure)
6
Transfers between funds
14
Net movement in funds
Reconciliation of funds:
Total funds brought forward
14
Total funds carried forward
14		 Unrestricted
Restricted
Endowment
Total funds
Total funds
Funds
Funds
Funds
2023
2022
£
£
£
£
£
557,734
1,023,676
-
1,581,410
1,273,056
511,288
39,714
-
551,002
279,534
20,000
-
-
20,000
20,000
-
-
-
-
667
1,345
-
-
1,345
268
1,090,367
1,063,390
-
2,153,757
1,573,525
1,152,484
673,795
-
1,826,279
1,516,947
1,152,484
673,795
-
1,826,279
1,516,947
(62,117)
389,595
-
327,478
56,578
137,063
(77,063)
(60,000)
-
-
74,946
312,532
(60,000)
327,478
56,578
540,440
123,213
60,000
723,653
667,075
615,386
435,745
-
1,051,131
723,653

The comparative Statement of Financial Activity is detailed in note 8.

The company has no recognised gains or losses other than the results for the year as set out above.

All of the activities of the company are classed as continuing.

The notes on pages 21 to 30 form part of these financial statements

17

SUSTAINABLE FOOD TRUST

SUMMARY INCOME AND EXPENDITURE ACCOUNT YEAR ENDED 31 MARCH 2023

Total Income
Total Expenditure
Net Income/(Expenditure) for the year
Transfers (to)/from Expendable Endowment Fund
Net Income/(Expenditure) after transfers		 2023
£
2,153,757
1,826,279
327,478
60,000
387,478		 2022
£
1,573,525
1,516,947
56,578
40,000
96,578

The notes on pages 21 to 30 form part of these financial statements

18

SUSTAINABLE FOOD TRUST

BALANCE SHEET AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
9
Current assets
Debtors
10
Cash at bank
Creditors: Amounts falling due within one year
11
Net current assets
Total net assets
The funds of the charity:
Endowment funds
15
Restricted funds
15
Unrestricted funds
15		 2023
£
7,170
765,264
733,918
1,499,182
(455,221)
1,043,961
1,051,131
-
435,745
615,386
1,051,131		 2022
£
11,087
455,081
624,833
1,079,914
(367,348)
712,566
723,653
60,000
123,213
540,440
723,653

These financial statements were approved and signed by the directors and authorised for issued on 21 November 2023.

Lady (Jane) Parker - Trustee

Company registration number 07577102

The notes on pages 21 to 30 form part of these financial statements

19

SUSTAINABLE FOOD TRUST

CASH FLOW STATEMENT YEAR ENDED 31 MARCH 2023

Notes
12
Non-operational cash flows:
Investing activities
Purchase of fixed assets
Investment income
13
Cash flow restrictions
Net cash inflow/(outflow) from
operating activities
Net cash inflow/(outflow) for the
year		 2023
£
109,405
(1,665)
1,345
109,085		 2022
£
(4,438)
(7,357)
268
(11,527)

Charity law forbids 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.

The notes on pages 21 to 30 form part of these financial statements

20

SUSTAINABLE FOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

1 Accounting Policies

a) Basis of preparation

The financial statements have been prepared in accordance with the historical cost convention (except where otherwise stated in the accounting policy note) and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019, and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), and the Companies Act 2006.

The charity is a public benefit entity as defined under FRS102.

The Trustees consider that there are no material uncertainties about the charity’s ability to continue as a going concern. Whilst the Trustees expect there to be a significant impact on the charity’s operations in the coming months and years due to the current economic climate, the charity has sufficient reserves and support to be able to meet these challenges.

b) Income

Income is accounted for as receivable once there is a reasonable certainty of the probable economic benefit from the resource and the amount can be reliably measured. Income from donations is included when these are 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.

Grants, including grants for the purchase of fixed assets, are recognised in the income and expenditure account as they become receivable. Grants received in the accounting period in respect of future accounting periods are deferred until those periods.

Gift aid relief on eligible donations is recognised on an accruals basis at the same point as the original donation.

Gifts in kind are valued at estimated open market value at the date of the gift, in the case of assets for retention or consumption, or at the value to the organisation in the case of donated services or facilities.

c) Expenditure

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Support costs and where costs cannot be directly attributed they have been allocated to activities on a basis consistent with the use of the resource.

Governance costs are the costs associated with meeting constitutional and statutory requirements of the charity and include the independent examination fees and costs linked to the strategic management of the charity. Governance costs are included within support costs.

d) Transactions in foreign currencies

Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities are retranslated at the rate of exchange ruling at the balance sheet date. All exchange differences are taken to the SOFA.

21

SUSTAINABLE FOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

1 Accounting Policies (continued)

e) Fund accounting

Unrestricted funds contain accumulated surplus and deficits on general funds and can be used in accordance with the company objects at the discretion of the Board of Directors.

Restricted funds represent monies received for specific purposes. All income and expenditure relating to the restricted funds' movements is included in the income and expenditure account. Further details of restricted funds are shown in note 14.

Expendable Endowments are funds to be retained for the benefit of the Charity as capital although there is discretion to convert endowed capital into income.

f) Fixed assets

Fixed assets are held at cost less accumulated depreciation. Assets costing less than £500 are not capitalised.

Depreciation is calculated so as to write-off the cost of an asset, less its estimated residual value, over the useful economic life of the asset as follows:

Fixtures, fittings and equipment

25% straight line

g) Trade debtors

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

h) Cash and cash equivalents

Cash and cash equivalents comprise cash in hand on-call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

i) Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

j) Pensions

The charity has arranged a defined contribution scheme for its staff. Pension costs charged in the SOFA represent the contributions payable by the charity in the period.

22

SUSTAINABLE FOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

2 Donations and legacies

Donations
Donated goods & services
Gift aid
Prior year comparative
Donations
Donated goods & services
Gift aid		 Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
2023
2022
£
£
£
£
£
557,734
1,016,176
-
1,573,910
1,121,856
-
-
-
-
148,200
-
7,500
-
7,500
3,000
557,734
1,023,676
-
1,581,410
1,273,056
Unrestricted
Restricted
Endowment
Total
Funds
Funds
Funds
2022
£
£
£
£
779,138
342,718
-
1,121,856
148,200
-
-
148,200
3,000
-
-
3,000
930,338
342,718
-
1,273,056

Land was donated to the charity during the previous financial year and was subsequently sold for £148,200.

3
Income from charitable activities
True cost accounting &
sustainability metrics
Leadership & collaboration
Harmony project
Communications
Others		 Unrestricted
Restricted
Endowment
Total
Total
Funds
Funds
Funds
2023
2022
£
£
£
£
£
451,705
-
-
451,705
260,229
44,206
-
-
44,206
7,222
15,136
39,714
-
54,850
8,852
-
-
-
-
2,881
241
-
-
241
350
511,288
39,714
-
551,002
279,534

The income from charitable activities in the prior year was comprised of only unrestricted funds.

23

SUSTAINABLE FOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
4 Expenditure on charitable activities
Staff Direct Support Total Total
Costs Costs Costs 2023 2022
£ £ £ £ £
True cost accounting &
540,094 366,280 137,574 1,043,948 644,417
sustainability metrics
Leadership & collaboration 93,288 33,831 11,722 138,841 134,174
Research 89,340 21,712 21,606 132,658 154,568
Abattoirs Project 3,661 6,553 1,553 11,767 28,064
Communications 66,852 108,326 29,464 204,642 238,634
Sustainable diets and farming 18,314 18,547 5,531 42,392 50,874
Harmony project 125,009 93,768 33,254 252,031 266,216
936,558 649,017 240,704 1,826,279 1,516,947
Prior year comparative Staff Direct Support Total
Costs Costs Costs 2022
£ £ £ £
True cost accounting &
140,691 418,791 84,935 644,417
sustainability metrics
Leadership & collaboration 90,907 25,659 17,608 134,174
Research 131,466 2,730 20,372 154,568
Abattoirs Project 9,100 15,265 3,699 28,064
Communications 120,418 86,922 31,294 238,634
Sustainable diets and farming 11,550 32,619 6,705 50,874
Harmony project 102,891 128,243 35,082 266,216
607,023 710,229 199,695 1,516,947
5 Support costs Staff Premises Office Total Total
Costs Costs Costs 2023 2022
£ £ £ £ £
True cost accounting &
60,868 15,045 61,661 137,574 84,935
sustainability metrics
Leadership & collaboration 5,186 1,282 5,254 11,722 17,608
Research 9,559 2,363 9,684 21,606 20,372
Abattoirs Project 687 170 696 1,553 3,699
Communications 13,036 3,222 13,206 29,464 31,294
Sustainable diets and farming 2,447 605 2,479 5,531 6,705
Harmony project 14,713 3,637 14,904 33,254 35,082
106,496 26,324 107,884 240,704 199,695
----- End of picture text -----

24

SUSTAINABLE FOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

5 Support costs ( continued )

Prior year comparative
Support costs
True cost accounting &
sustainability metrics
Leadership & collaboration
Research
Abattoirs Project
Communications
Sustainable diets and farming
Harmony project		 Staff
Premises
Office
Total
Costs
Costs
Costs
2022
£
£
£
£
52,620
8,805
23,510
84,935
10,909
1,825
4,874
17,608
12,621
2,112
5,639
20,372
2,292
383
1,024
3,699
19,388
3,244
8,662
31,294
4,154
695
1,856
6,705
21,734
3,638
9,710
35,082
123,718
20,702
55,275
199,695

6 Net income/(expenditure) for the year

Net income/(expenditure) for the year
Stated after charging:
Depreciation
Auditor's fees:
Audit
Accounts preparation
Other services		 Total
Total
2023
2022
£
£
5,582
4,882
7,100
7,200
1,700
1,800
-
600
Staff costs and numbers
The aggregate payroll costs were:
Wages and salaries
Social security costs
Pension costs
Redundancy costs		 Total
Total
2023
2022
£
£
932,671
620,358
62,752
62,752
17,631
17,631
30,000
30,000
1,043,054
730,741
£60,000-£69,999
£80,000 - £89,999
£100,000-£109,999
£110,000 - £119,999
The number of employees whose total employments benefits (excluding employer
reporting period were in excess of £60,000 fall within the bands as follows:		 Total
Total
2023
2022
-
2
3
1
-
1
2
-
pension costs) for the

25

SUSTAINABLE FOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

7 Staff costs and numbers ( continued )

The total employment benefits received by key management personnel in the year were £455,754 (2022: £311,616).

The average number (headcount) of employees in the year was as follows:

Employees 2023
2022
No.
No.
22
15

No trustees received remuneration or were reimbursed expenses in the current or prior year.

8 Comparative Statement of Financial Activity

Income and endowments from:
Donations and legacies
Charitable Activities
Other trading activities
Other Income
Investments
Total income
Expenditure on:
Charitable activities
Total expenditure
Net income/(expenditure)
Transfers between funds
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 Unrestricted
Restricted
Endowment
Total funds
Funds
Funds
Funds
2022
£
£
£
£
930,338
342,718
-
1,273,056
279,534
-
-
279,534
20,000
-
-
20,000
667
-
-
667
268
-
-
268
1,230,807
342,718
-
1,573,525
1,130,430
386,517
-
1,516,947
1,130,430
386,517
-
1,516,947
100,377
(43,799)
-
56,578
89,028
(49,028)
(40,000)
-
189,405
(92,827)
(40,000)
56,578
351,035
216,040
100,000
667,075
540,440
123,213
60,000
723,653

26

SUSTAINABLE FOOD TRUST NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

9 Tangible fixed assets

Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation
At 1 April 2022
Charge for the year
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
10 Debtors
Trade debtors
Prepayments and accrued income
Gift aid receivable
Other debtors
11 Creditors: amounts falling due within one year
Other creditors
Accruals
Deferred income
Taxation and social security costs		 Fixtures
fittings &
equipment
Total
£
£
25,814
25,814
1,665
1,665
27,479
27,479
14,727
14,727
5,582
5,582
20,309
20,309
7,170
7,170
11,087
11,087
2023
2022
£
£
253,899
35,030
500,353
413,625
-
4,400
11,012
2,026
765,264
455,081
2023
2022
£
£
74,996
62,978
48,445
9,600
308,251
274,306
23,529
20,464
455,221
367,348

27

SUSTAINABLE FOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

12 Reconciliation of net movement in funds to net cash inflow from operating activities

Statement of Financial Activities: Net movement in funds
Depreciation
Investment income
Increase in creditors
Decrease/(increase) in debtors
Net cash inflow from operating activities
13 Analysis of changes in cash during the year
Cash at bank and in hand
Cash at bank and in hand
14 Movement in funds
At
1 Apr 2022
Income
£
£
Expendable Endowment fund
60,000
-
Restricted funds
46,276
809,000
Research
-
9,486
Leadership & Collaboration
-
150,000
18,048
17,690
Harmony project
58,889
77,214
123,213
1,063,390
Unrestricted funds
540,440
1,090,367
Total funds
723,653
2,153,757
Sustainable diets and farming
True cost accounting & sustainability
metrics		 2023
2022
£
£
327,478
56,578
5,582
4,882
(1,345)
(268)
87,873
296,640
(310,183)
(362,270)
109,405
(4,438)
2023
2022
Change
£
£
£
733,918
624,833
109,085
2022
2021
Change
£
£
£
624,833
636,360
(11,527)
Expenditure
Transfers
At
31 Mar 2023
£
£
£
-
(60,000)
-
(447,659)
(72,587)
335,030
(9,242)
-
244
(50,000)
-
100,000
(33,767)
(1,500)
471
(133,127)
(2,976)
-
(673,795)
(77,063)
435,745
(1,152,484)
137,063
615,386
(1,826,279)
-
1,051,131

28

SUSTAINABLE FOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

14 Movement in funds (continued)

Prior year comparative
Expendable Endowment fund
Restricted funds
True cost accounting &
sustainability metrics
Research
Abattoirs Project
Harmony project
Unrestricted funds
Total funds
Sustainable diets and farming		 At
1 Apr 2021
Income
Expenditure
Transfers
At
31 Mar 2022
£
£
£
£
£
100,000
-
-
(40,000)
60,000
33,576
168,833
(126,059)
(30,074)
46,276
-
10,000
(9,073)
(927)
-
-
15,000
(15,000)
-
-
34,966
22,500
(38,546)
(872)
18,048
147,498
126,385
(197,839)
(17,155)
58,889
216,040
342,718
(386,517)
(49,028)
123,213
351,035
1,230,807
(1,130,430)
89,028
540,440
667,075
1,573,525
(1,516,947)
-
723,653

Expendable endowment - This fund was set up by the Trustees following receipt of a major donation from the RH Southern Trust. The intention of the RH Southern Trustees was to support the longevity of the SFT by making a donation that would last several years, but that could be given in one go. It was therefore decided to set up and expendable endowment that would serve this purpose. In the year ended 31 March 2022 the trustees decided to the final £60,000 of the expendable endowment to further the purposes of the Charity in the year; as such a transfer was made from the expendable endowment fund to general funds. This brought the value of the fund to £Nil at the year end.

Restricted funds

Leadership & Collaboration - Income represents grants given towards the SFT's work on developing the leadership and communication facets of the organisation, with a particular focus on recruitment and retention of key staff.

True cost accounting & sustainability metrics - Income represents grants given towards the SFT’s strategic work on True Cost Accounting and the Global Farm Metric project. The transfer out in the year relates to applicable costs paid out from general funds.

Research - Income represents grants given towards the SFT's work on a Grazing Livestock report.

Abattoirs Projec t - Income represents grants received towards work on local abattoirs.

Sustainable diets and farming - Income represents grants towards our work on aligning healthy diets with the productive capacity of sustainable agriculture. The transfer out relates to applicable costs paid out from general funds.

Harmony project - Income represents grants given towards the SFT’s work on Harmony - a collaborative project which focuses in three main areas of work: Harmony in Food, Farming and Health; Harmony in Education; and Living in Harmony. Please see the note in the Trustees Annual Report regarding the Harmony's Project's movement to being its own charity from 1st April 2023.

29

SUSTAINABLE FOOD TRUST

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2023

15 Analysis of net assets between funds

At 31 March 2023
Restricted funds
Leadership & Collaboration
Research
Unrestricted funds
At 31 March 2022
Expendable Endowment funds
Restricted funds
Harmony project
Unrestricted funds
Sustainable diets and farming
True cost accounting & sustainability metrics
Sustainable diets and farming
True cost accounting & sustainability metrics		 Tangible
Other
Fixed assets
Net assets
Total
£
£
£
-
335,030
335,030
-
100,000
100,000
-
244
244
-
471
471
-
435,745
435,745
7,170
608,216
615,386
7,170
1,043,961
1,051,131
Tangible
Other
Fixed assets
Net assets
Total
£
£
£
-
60,000
60,000
-
46,276
46,276
-
18,048
18,048
-
58,889
58,889
-
123,213
123,213
11,087
529,353
540,440
11,087
712,566
723,653

16 Company limited by guarantee

The Company is limited by guarantee and as such has no issued share capital. In the event of the company being wound up the liability of the members is limited £1 each.

17 Related party transactions

Patrick Holden, Chief Executive of the charity, is the Executive Director of The Sustainable Food Alliance Inc. USA in the year and has disclosed his interest in Sustainable Food Trust. The charity received income of £210,181 in the year (2022: £410,706) from The Sustainable Food Alliance Inc. USA.

Patrick Holden owns the rental property in which the charity operates. A rent of £14,500 was paid by the charity in the year (2022: £13,387). At the year-end £nil was outstanding (2022 - £3,000).

The aggregate trustee donations to the charity was £20,000 (2022: £15,000).

30

SUSTAINABLE FOOD TRUST MANAGEMENT INFORMATION YEAR ENDED 31 MARCH 2023

The following pages do not form part of the statutory financial statements

31

SUSTAINABLE FOOD TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
Funds Funds Funds 2023 2022
£ £ £ £ £
Income from:
Donations and legacies
Donations 104,289 57,176 - 161,465 136,353
Sustainable Food Alliance 179,716 - - 179,716 223,315
Esmée Fairbairn 50,000 500,000 - 550,000 -
- -
General grants 117,689 117,689 288,158
Prudence Trust - 100,000 - 100,000 100,000
Prince of Wales 50,000 - - 50,000 150,000
- - -
Postcode Lottery 104,000 104,000
TIDES Foundation 6,040 - 6,040 109,030
-
Sainsburys Family Trusts 50,000 5,000 55,000 55,000
Rothschild Foundation - 100,000 - 100,000 60,000
CHK - 150,000 - 150,000 -
Gifts in kind - - - - 148,200
Gift aid - 7,500 - 7,500 3,000
Charitable activities
Ticket sales & event fees 75,060 39,678 - 114,738 28,808
NatWest 421,055 - - 421,055 248,694
Speaking events 15,173 36 - 15,209 2,032
Other trading activities
- -
Management fees 20,000 20,000 20,000
Other Income - - - - 667
Investments 1,345 - - 1,345 268
Total income 1,090,367 1,063,390 - 2,153,757 1,573,525
----- End of picture text -----

32

SUSTAINABLE FOOD TRUST

DETAILED STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 MARCH 2023

----- Start of picture text -----
Unrestricted Restricted Endowment Total Total
Funds Funds Funds 2023 2022
£ £ £ £ £
Expenditure on:
Charitable activities
-
Wages and salaries 645,842 397,214 1,043,056 730,741
-
Consultancy fees 233,825 230,015 463,840 548,956
Travel and subsistence 42,177 26,793 - 68,970 29,507
Rent and rates 26,324 - - 26,324 23,202
- -
Office expenses and equipment 6,597 6,597 7,711
Training 118 - - 118 288
Volunteer costs 60 - - 60 -
Events 68,818 820 - 69,638 13,376
- - - -
Grants paid out 5,000
Software 15,298 - - 15,298 8,149
Telephone 829 - - 829 1,038
-
Website Design 43,759 18,239 61,998 118,498
HR Costs 24,371 - - 24,371 3,450
- -
Depreciation 5,582 5,582 4,882
Legal and professional fees 17,547 714 - 18,261 12,549
Exchange gains/losses 626 - - 626 -
Bad debt 3,940 - - 3,940 -
- - -
Sundry expenses 7,971 7,971
Governance costs
Auditor's fees:
Audit 7,100 - - 7,100 7,200
- -
Accounts preparation 1,700 1,700 1,800
Other services - - - - 600
-
Total expenditure 1,152,484 673,795 1,826,279 1,516,947
-
Net income/(expenditure) (62,117) 389,595 327,478 56,578
----- End of picture text -----

33