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2021-03-31-accounts

South Leeds Alternative Trading Enterprise Limited

Charity number 1149293

A company limited by guarantee number 06394383

Annual Report and Financial Statements

for the year ended 31 March 2021

South Leeds Alternative Trading Enterprise Limited

Annual Report and Financial Statements for the year ended 31 March 2021

Contents Page
Trustees' report 2 to 5
Examiner's report 6
Statement of financial activities 7
Balance sheet 8
Statement of cash flows 9
Notes to the accounts 10 to 16

Prepared by West Yorkshire Community Accounting Service

1

South Leeds Alternative Trading Enterprise Limited

Trustees' report for the year ended 31 March 2021

Reference and administrative details of the charity, its trustees and advisors

The trustees during the financial year and up to and including the date the report was approved were: Name Position Dates

Jude McCarthy Frances Woolaston Edward Carlisle Richard Wixey Keith Garrard Alison Ward Alex Cheung

Deceased September 2021

Charity number 1149293 Registered in England and Wales Company number 06394383 Registered in England and Wales

Registered and principal address Bankers Unit 1 Balm Road Industrial Park Lloyds Bank plc 2 The Headrow Leeds LS1 6PN Balm Road, Hunslet Co-operative Bank plc PO Box 250, Skelmersdale, WN8, 6WT Leeds Triodos Bank UK Ltd Deanery Road. Bristol. BS1 5AS LS10 2BG

Independent examiner

Simon Bostrom FCIE West Yorkshire Community Accounting Service

Stringer House 34 Lupton Street Leeds LS10 2QW

Structure, governance and management

The charity is a company limited by guarantee and was formed on 9 October 2007. It is governed by a memorandum and articles of association as amended by special resolutions on 1 October 2012 and 9 October 2012. The liability of the members in the event of the company being wound up is limited to a sum not exceeding £10. The company was registered as a charity on 11 October 2012.

Method of recruitment and appointment of trustees

The trustees of the charity are also the directors for the purposes of company law and are appointed by the members at the AGM.

2

South Leeds Alternative Trading Enterprise Limited

Trustees' report (continued) for the year ended 31 March 2021

Objectives and activities

The charity's objects

(1) To further such charitable purposes falling within the description of charitable purposes. Being the advancement of citizenship or community development - Charitable purposes that fall within this description being:

(2) To advance education and training for the public benefit.

(3) To relieve those in need and to promote social inclusion for the public benefit by preventing people from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society - "Socially excluded" means being excluded from society, or part of society, as a result of being a member of a socially and economically deprived community - by undertaking charitable activities which assist those by reason of their age, ill-health, disability, financial hardship or other disadvantage.

(4) To protect and preserve the environment for the public benefit by the promotion of waste reduction, refuse reclamation, recycling, the re-use and repair of recycled products and the use of surplus.

(5) To further such other charitable purposes as the trustees may determine from time to time. The aim being to address the well-being of socially and economically disadvantaged communities in Leeds. 'Well-being' shall mean ensuring the basic needs of individuals and the community are met in relation to health, education, financial security, employment, the built environment and access to public services, amenities and recreation facilities.

The charity's main activities

To carry on activities which benefit the community and in particular (without limitation) to contribute to the social, environmental and economic well-being of the people of South Leeds by setting up not for profit social enterprise businesses with environmental and social aims which offer work opportunities to people with learning and other difficulties.

Public benefit statement

In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit.

Achievements and performance

We continue to provide volunteering and employment for people with learning disabilities. We have continued to support two ring fenced posts for adults with learning disabilities to work as driver's mate assisting with the delivery and collection of our furniture and other items. We also support a number of volunteers with learning disabilities to experience a work style environment that is supportive and encouraging to build their confidence and work related skills. We have also continued to offer volunteering opportunities to people with mental health issues and other disabilities to ensure that they can increase their skills, confidence and employability. Our shops have recovered well following the Covid -19 lockdowns and restrictions. We have continued to receive a good number of furniture donations following the lifting of restrictions.

3

South Leeds Alternative Trading Enterprise Limited

Trustees' report (continued) for the year ended 31 March 2021

Achievements and performance continued

Our shops would not exist without the generous people who donate their unwanted, pre-loved furniture. We continue to provide free collection of quality used furniture, helping people de-clutter their houses, dispose of “old“ things when they are buying new, or find a home for a deceased relative's treasured possessions. Thank you to all our donors! We are also grateful to Leeds City Council Waste Management, who encourage us to collect from the Holmewell Road Waste Sorting Site in Middleton.

The Feel Good Café operates in Gipton and it has seen a steady recovery from the Covid -19 lockdowns. This allows us to offer training and volunteering in catering to adults with learning disabilities and other members of the local community.

Sadly, we lost one of our trustees in September of this year. Frances Woolaston had been with the charity since April 2012 and we are grateful for her long and dedicated service. She will be greatly missed.

Financial review

The net income for the year was £182,570, including net income of £159,561 on unrestricted funds and net income of £23,009 on restricted funds.

Reserves policy

The trustees aim to maintain sufficient reserve funds to cover between 3 and 6 months operating expenditure. This would equate to approximately £140k to £280k

The charity's free reserves, excluding fixed assets, at the year end were £332,114.

This is a little over our upper limit, however, given the uncertain economic climate we will keep the reserves under review.

Plans For The Future

We aim to continue to take a careful and considered approach to deal with the challenges of Covid 19 to ensure that the organisation is stable and secure for the future. We hope to continue to develop our training centre focused around furniture repair and practical skills. We hope that this will allow us to offer more training, employment and volunteering opportunities to people with learning disabilities and other difficulties

4

South Leeds Alternative Trading Enterprise Limited Trustees' report (continued) for the year ended 31 March 2021

Statement of trustees' responsibilities

The trustees (who are also the directors for the purposes of company law) are responsible for preparing the Trustees report and the financial statements in accordance with the applicable law and UK Accounting Standards.

Company law requires the trustees to prepare financial accounts for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and apply them consistently;

observe the methods and principles in the Charities SORP;

make judgements and 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;

prepare the accounts on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP (FRS102)), and in accordance with the special provisions of the Companies Act 2006 relating to small companies.

Signed on behalf of the board of trustees on 7/12/2021

Jude McCarthy (Trustee)

5

South Leeds Alternative Trading Enterprise Limited

Independent examiner's report to the trustees of South Leeds Alternative Trading Enterprise Limited

I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 March 2021, which are set out on pages 7 to 16.

Responsibilities and basis of report

As the charity's trustees of the charitable company (and also 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 charitable 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 ('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 charitable 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 ACIE which is one of the listed bodies.

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

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.

Simon Bostrom FCIE

9/11/2021

West Yorkshire Community Accounting Service

Stringer House 34 Lupton Street Leeds LS10 2QW

6

South Leeds Alternative Trading Enterprise Limited

Statement of Financial Activities

(including summary income and expenditure account) for the year ended 31 March 2021

Notes
2021
Unrestricted
funds
£
Income from:
Donations and legacies
(2)
105,109
Charitable activities
(3)
287,540
Other trading activities
(4)
78,224
Bank interest
201
Total income
471,074
Expenditure on:
Charitable activities
(5)
311,513
Total expenditure
311,513
Net income / (expenditure)
159,561
Fund balances brought forward
200,103
Fund balances carried forward
(6)
359,664		 2021
Restricted
funds
£
-
250,238
-
-
250,238
227,229
227,229
23,009
-
23,009		 2021
Total
funds
£
105,109
537,778
78,224
201
721,312
538,742
538,742
182,570
200,103
382,673		 2020
Total
funds
£
66,025
414,586
119,798
361
600,770
575,488
575,488
25,282
174,821
200,103

All incoming resources and resources expended derive from continuing activities.

7

South Leeds Alternative Trading Enterprise Limited

Balance sheet

as at 31 March 2021
2021
Unrestricted
£
Fixed assets
Tangible assets
(7)
27,550
Total fixed assets
27,550
Current assets
Debtors and prepayments
(8)
49,475
Cash at bank and in hand
(9)
293,623
Total current assets
343,098
Current liabilities:
amounts falling due within one year
Creditors and accruals
(10)
9,317
Total current liabilities
9,317
Net current assets / (liabilities)
333,781
Total assets less current liabilities
361,331
Creditors: amounts falling due after one year
(11)
1,667
Net assets
359,664
Funds
Unrestricted funds
359,664
Restricted funds
-
Total funds
359,664		 2021
Restricted
£
-
-
-
23,009
23,009
-
-
23,009
23,009
-
23,009
-
23,009
23,009		 2021
Total
£
27,550
27,550
49,475
316,632
366,107
9,317
9,317
356,790
384,340
1,667
382,673
359,664
23,009
382,673		 2020
Total
£
37,200
37,200
28,631
160,320
188,951
17,715
17,715
171,236
208,436
8,333
200,103
200,103
-
200,103

For the year ending 31 March 2021 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476. The trustees (who also the directors for the purposes of company law) acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and with FRS 102 (effective January 2019).

The financial statements were approved by the board of trustees on 7/12/2021

Jude McCarthy (Trustee)

8

South Leeds Alternative Trading Enterprise Limited

Statement of cash flows

for the year ended 31 March 2021

Cash flows from operating activities:
Net cash provided by (used in) operating activities
Cash flows from investing activities:
Dividends and interest
Proceeds of sale of assets
Purchase of tangible fixed assets
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Repayments on borrowing
Cash inflows from new borrowing
Net cash provided by (used in) financing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
Adjustments for:
Depreciation charges
Dividends and interest from investments
Loss / (profit) on sale of fixed assets
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash provided by (used in) operating activities
Analysis of cash and cash equivalents
Notice deposits (less than 30 days)
Total cash and cash equivalents
Reconciliation of net movement in funds to net cash flow
from operating activities
Net movement in funds for the reporting period (as per the
statement of financial activities)
Cash in hand		 2021
£
162,778
201
-
-
201
(6,667)
-
(6,667)
156,312
160,320
316,632
2021
£
182,570
9,650
(201)
-
(20,844)
(8,397)
162,778
2021
£
305
316,327
316,632		 2020
£
60,989
361
9,915
(41,250)
(30,974)
(5,000)
20,000
15,000
45,015
115,305
160,320
2020
£
25,282
10,738
(361)
(4,275)
20,257
9,348
60,989
2020
£
2,017
158,303
160,320

9

South Leeds Alternative Trading Enterprise Limited

Notes to the accounts

for the year ended 31 March 2021

1 Accounting policies

Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared 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) (effective 1 January 2019) and with the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102. There has been no change to the accounting policies since last year.

No changes have been made to the accounts for previous years.

Going concern

The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.

Grants and donations

Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.

Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance.

Donated goods for resale are valued at the amount actually realised upon their sale.

Donated assets, facilities or services are valued at their estimated value to the charity. This is the price that the charity estimates it would pay in the open market for equivalent items; or services and facilities of equivalent utility to the charity.

Investments

Investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year.

Expenditure and liabilities

Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.

Taxation

As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.

10

South Leeds Alternative Trading Enterprise Limited

Notes to the accounts

for the year ended 31 March 2021

1 Accounting policies continued

Tangible fixed assets

Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows:

Motor vehicles: over 5 years Fixtures and fittings: over 5 years Equipment: over 4 years

Pensions

The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable.

Fund accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

Leases

Rents under operating leases are charged on a straight line basis over the lease term or to an earlier date if the lease can be determined without financial penalty.

11

South Leeds Alternative Trading Enterprise Limited

Notes to the accounts continued

for the year ended 31 March 2021

2 Donations and legacies
2021
Unrestricted
funds
£
Revive Leeds CIC
104,514
Other donations
595
105,109
3 Charitable activities
2021
Unrestricted
funds
£
HMRC Job Retention Scheme
-
LCC Covid support funding
100,738
Leeds City Council - Adult Social Care (ASC)
-
Royal Bank of Scotland Social & Community Capital
WEEE Fund
-
The Key Fund
-
Gift aid claims
2,387
Furniture sales
164,883
Cafe sales
19,532
287,540
4 Other trading activities
2021
Unrestricted
funds
£
Revive CIC management charges
17,538
Direct placement fees
53,940
Recycling credits
4,906
Profit on sale of asset
-
Other income
1,840
78,224		 2021
Restricted
funds
£
-
-
-
2021
Restricted
funds
£
158,506
-
37,000
45,188
9,544
-
-
-
-
250,238
2021
Restricted
funds
£
-
-
-
-
-
-		 2021
Total
funds
£
104,514
595
105,109
2021
Total
funds
£
158,506
100,738
37,000
45,188
9,544
-
2,387
164,883
19,532
537,778
2021
Total
funds
£
17,538
53,940
4,906
-
1,840
78,224		 2020
Total
funds
£
63,269
2,756
66,025
2020
Total
funds
£
-
-
37,000
-
-
3,000
15,846
266,719
92,021
414,586
2020
Total
funds
£
32,695
63,340
17,360
4,275
2,128
119,798

12

South Leeds Alternative Trading Enterprise Limited

Notes to the accounts continued

for the year ended 31 March 2021

5 Charitable activities
Salaries, NIC's and payroll costs
5a
Freelancers / outsourcing
Staff travel
Volunteer expenses
Conference and training
Furniture store purchases
Cafe purchases
Repairs and renewals
Vehicle maintenance and fuel
Postage, phone and internet
Office and administration
Advertising and publicity
Registrations and subscriptions
Rent, rates and utilities
Insurance
Clothing and uniforms
Bank charges
Independent examination
Loan interest payable
Depreciation
Bad debts
Legal and professional
5a Staff costs and numbers
Gross salaries
Social security costs
Payroll charges
Pensions		 2021
Unrestricted
funds
£
112,545
7,470
1,283
2,638
2,969
37,849
7,877
8,576
7,738
4,682
6,073
2,072
3,479
76,805
5,487
5,827
2,475
1,700
1,300
9,650
-
3,018
311,513		 2021
Restricted
funds
£
226,222
-
1,007
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
227,229		 2021
Total
funds
£
338,767
7,470
2,290
2,638
2,969
37,849
7,877
8,576
7,738
4,682
6,073
2,072
3,479
76,805
5,487
5,827
2,475
1,700
1,300
9,650
-
3,018
538,742
2021
£
328,069
6,470
(4,000)
8,228
338,767		 2020
Total
funds
£
343,120
13,139
2,687
6,227
8,063
28,533
31,400
3,329
10,656
5,084
7,786
4,515
2,211
79,906
9,742
769
4,908
1,700
975
10,738
-
-
575,488
2020
£
314,842
16,986
3,017
8,275
343,120

The average number employees during the year was 19, being an average of 15 full time equivalent (2020: 22, 16.5 FTE). There were no employees with emoluments above £60,000.

Defined contribution pension scheme 2021 2020
£ £
Costs of the scheme to the charity for the year 8,228 8,275
Amount of any contributions outstanding at the year end - -
Amount of any contributions prepaid at the year end - -

13

South Leeds Alternative Trading Enterprise Limited

Notes to the accounts continued

for the year ended 31 March 2021

Restricted funds
LCC ASC (delivery team)
HMRC Job Retention Scheme
Royal Bank of Scotland
WEEE Fund		 Balance b/f
£
-
-
-
-
-		 Incoming
£
37,000
158,506
45,188
9,544
250,238		 Outgoing
£
37,000
158,506
22,179
9,544
227,229		 Transfers
£
-
-
-
-
-		 Balance c/f
£
-
-
23,009
-
23,009

6 Restricted funds

Fund name

Purpose of restriction

LCC ASC (delivery team) HMRC Job Retention Scheme Royal Bank of Scotland

WEEE Fund

To provide alternative day care services

Towards the salaries for furloughed staff

Social and Community Capital funding towards employing 4 people from the local community as van support, van drivers and shop support.

Funding to increase testing and mending of items in order to divert more items classed as waste through recruitment and training of staff and providing funding for more hours.

7
8
**9 **		 Tangible assets
Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020
Debtors and prepayments
Debtors
Prepayments
Cash at bank and in hand
Cash at bank
Cash in hand		 14,263
-
14,263
10,063
1,400
11,463
2,800
4,200
Fixtures
and fittings		 £
1,200
-
1,200
1,200
-
1,200
-
-
Equipment		 £
41,250
-
41,250
8,250
8,250
16,500
24,750
33,000
2021
£
45,613
3,862
49,475
2021
£
316,327
305
316,632
Vehicles		 Total
£
56,713
-
56,713
19,513
9,650
29,163
27,550
37,200
2020
£
23,891
4,740
28,631
2020
£
158,303
2,017
160,320

14

South Leeds Alternative Trading Enterprise Limited

Notes to the accounts continued

for the year ended 31 March 2021

10 Creditors and accruals
Creditors
Accruals
Loans
11 Creditors: amounts falling due after one year
Loans		 2021
£
950
1,700
6,667
9,317
2021
£
1,667
1,667		 2020
£
7,648
3,400
6,667
17,715
2020
£
8,333
8,333

12 Related party transactions

Trustee expenses

During the year no trustee was paid expenses (previous year: 1 trustees and £121 in respect of travel).

Trustee remuneration and benefits

No trustee received any remuneration or benefit during this or the previous year.

Remuneration and benefits received by key management personnel

The key management personnel of the charity include the trustees and Operations Director. The total employee benefits received by the Operations Director were £37,185 (previous year: £33,309).

No trustee received any remuneration or benefit in this capacity during this or the previous year.

13 Operating leases

Within one year
In the second to fifth years inclusive
Over five years from the balance sheet date
Expected future minimum lease payments over the remaining life of the
lease, analysed into the period in which the commitment falls due:		 2021
£
31,150
165,333
15,100
211,583		 2020
£
50,750
98,333
-
149,083

14 Joint ventures

South Leeds Alternative Trading Enterprise Limited (SLATE) and St Vincent's are the sole members of Revive Leeds CIC, a company limited by guarantee.

There is currently no formal joint venture agreement in place and so the rules for accounting for joint ventures have not been applied.

SLATE does not have any monetary investments in Revive Leeds CIC.

Each year Revive Leeds CIC donates its profits in equal portion to the two member charities.

During the year a donation of £104,514 was made by Revive Leeds CIC to SLATE (previous year: £63,269)

15

South Leeds Alternative Trading Enterprise Limited

Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 March 2021

2021
2020
Unrestricted Unrestricted
funds
funds
£
£
Income
Donations and legacies
105,109
66,025
Charitable activities
287,540
374,586
Other trading activities
78,224
119,798
Bank interest
201
361
Total income
471,074
560,770
Expenditure
Charitable activities
311,513
522,047
Total expenditure
311,513
522,047
Net income / (expenditure)
159,561
38,723
Transfers between funds
-
3,000
Net movement in funds
159,561
41,723
Fund balances brought forward
200,103
158,380
Fund balances carried forward
359,664
200,103		 2021
Restricted
funds
£
-
250,238
-
-
250,238
227,229
227,229
23,009
-
23,009
-
23,009		 2020
Restricted
funds
£
-
40,000
-
-
40,000
53,441
53,441
(13,441)
(3,000)
(16,441)
16,441
-		 2021
Total
funds
£
105,109
537,778
78,224
201
721,312
538,742
538,742
182,570
-
182,570
200,103
382,673		 2020
Total
funds
£
66,025
414,586
119,798
361
600,770
575,488
575,488
25,282
-
25,282
174,821
200,103

16