**Registered number: 8175815 Charity number: 1149883**
## **THE CAMBRIDGE CITY FOODBANK**
# **(A Company Limited by Guarantee)**
## **UNAUDITED**
**TRUSTEES' REPORT AND FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **THE CAMBRIDGE CITY FOODBANK**
## **(A Company Limited by Guarantee)**
## **CONTENTS**
||Page|
|---|---|
|**Reference and Administrative Details of the Charity, its Trustees and Advisers**|1|
|**Trustees' Report**|2 - 7|
|**Independent Examiner's Report**|8|
|**Statement of Financial Activities**|9|
|**Balance Sheet**|10|
|**Statement of Cash Flows**|11|
|**Notes to the Financial Statements**|12 - 24|
## **THE CAMBRIDGE CITY FOODBANK**
## **(A Company Limited by Guarantee)**
## **REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
|**Trustees**|Mr S Thornton, Chair|
|---|---|
||Mr R K Johnson|
||Dr S O'Brien|
||Ms J C Preston|
||Ms D M Hargreaves|
||Mr M R Evans|
||Dr S P Johnson|
|**Registered number**
8175815
**Charity number**
1149883
**Registered office**
2 Orwell House
Cowley Road
Cambridge
CB4 0PP
**Company secretary**
Dr D A Livesey
**Independent Examiner**
Mr M Hewett ACA DChA
Peters Elworthy & Moore
Chartered Accountants
Salisbury House
Station Road
Cambridge
CB1 2LA||
Page 1
## **THE CAMBRIDGE CITY FOODBANK**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021**
The Trustees (who are also directors for the purposes of the Companies Act) present their annual report together with the financial statements of the Charity for the year 1 October 2020 to 30 September 2021.The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Charity qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **OBJECTIVES AND ACTIVITIES**
## **a. Policies and objectives**
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit.
The principal activities of the charity are the relief of poverty by providing food to the needy and destitute in particular within a 25 miles radius of Cambridge.
## **b. Strategies for achieving objectives**
Cambridge City Foodbank is a straightforward system of collection, collation and distribution of basic food items to support people in times of crisis. The main purpose of the Charity is to give 3 day' worth of food, packed according to family unit size, to identified people who find themselves in crisis need and unable to buy food.
## **ACHIEVEMENTS AND PERFORMANCE**
## **a. Review of activities**
During the reporting year under review we operated with the cooperation of 125 active voucher distributing agencies with a roughly equal number of statutory agencies and voluntary bodies (including charities and churches). These agencies are able to identify their clients who are in crisis, needing food, and refer them to us. This ensures that our services are available to those most in need. In the period under review we have supplied 3,928 (4,020) boxes of food providing meals to around 9,874 (9,772) people, with around 38% being children (the numbers in brackets refer to the previous financial year). Overall we see a rise in demand for services continuing into the near term future.
In the same period we have collected 123.6 (136.4) metric tonnes of food through supermarket collections and donations from churches, businesses, individuals and community groups in the City, including food purchased by cash donations. Food was also purchased directly using charity funds to supplement the donations. This has enabled us to distribute 131.7 (125.8) tonnes of food to people in crisis, an increase of 30%. In addition to the distribution centres we have been providing food to our Fairbite foodclub shop and the Community food hubs.
Page 2
## **THE CAMBRIDGE CITY FOODBANK**
## **(A Company Limited by Guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **ACHIEVEMENTS AND PERFORMANCE**
## **a. Review of activities (cont.)**
The Fairbite foodclub is an initiative started in 2018 to provide longer term support for people struggling to afford food. It operates as a small shop. It has around 80 members, referred by support agencies. The shop is open 3 times a week. Members are able to shop once or twice a week, depending on the size of their family. They can choose items off the shelves, together with a selection of fresh fruit and vegetables. Members pay £2 per visit, for which they receive around £10 worth of food. The membership fee gives people the dignity of being shoppers. Food comes either from our warehouse, a local Muslim foundation, Fareshare, or a local fruit and vegetable wholeseller. During the year, we moved to a new unit. This gives us more space, including somewhere where other charities and support agencies can meet members.
We have been operating a scheme to give electricity and gas top-ups to people, referred by agencies. During the year the cost of this came to £50,000.
We have opened a distribution centre in Northstowe, a new town outside Cambridge. We are still unable to open the one remaining closed centre. All our centres are letting people into the building and allowing them some choice in their food. We have increased the provision of fresh fruit and vegetables to all centres, except Northstowe. We plan to add this provision to Northstowe in the next couple of months. Electronic vouchers have continued to be very popular, now accounting for over 90% of the redeemed vouchers.
During the year, we leased an electric van. This is in addition to our diesel van. The new van allows us to move stock between warehouses, top up centres during sessions and collect from supermarkets.
The Foodbank has 2 full time employees, including one on maternity leave, 3 part time employees and around 180 volunteers. Volunteers help at the distribution centres, in the Fairbite foodclub, in the warehouse, and with management and administration. Some of the volunteers who joined at the start of the pandemic have returned to work but others have stayed. Two of our centres are led by people who joined during the pandemic. Many of our teams remain smaller than pre-Covid.
The accounts for the year ended 30 September 2021 have been prepared on the accruals basis and show the following results:
- an increase in the value of the food distributed to £223,746 (2020: £220,220)
- an operating surplus of £213,840 (2020: £413,242) which results in:
- designated reserves of £150,000 (2020: £150,000), no restricted reserves (2020: £13,000);
- general reserves of £774,009 (2020: £547,189) and food stocks of £31,250 (2020: £28,576);
- an increase in the value of the food donated to £216,261 (2020: £238,780); and
- charitable donations of £522,044 (2020: £550,769).
## **FINANCIAL REVIEW**
## **a. Going concern**
After making appropriate enquiries, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Page 3
**THE CAMBRIDGE CITY FOODBANK (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **b. Reserves policy**
The Policy of Cambridge City Foodbank is to hold up to 12 months of total expenditure as Reserves in order to allow the charity to adapt to any changes in pattern of the income received, and expenditure incurred by the Foodbank. It has therefore, been agreed that the normal level of the Reserve Fund will be set at £250,000, which is between 9 and 12 months’ expenditure. In the exceptional circumstances brought on by the pandemic over the past 18 months, the amount of donations and income received has risen to record levels not previously seen, leading to the charity’s Reserves becoming significantly higher than have been budgeted and defined in this Policy Statement. In line with the Foodbank’s procedure for reviewing Reserves, the Management Team has developed and presented a plan which has been approved by the Trustees, for using these reserves in excess of £250,000 fulfilling its charitable objectives through the implementation of the Fair Bite expansion plan in 2022.
## **c. Material investments policy**
The Foodbank’s investment policy is that a proportion of excess reserves should be invested in a suitable ethical investment portfolio which comprises a combination of ultra-low risk and low risk funds, with a view to providing income and/or capital growth to fund the core activities of the charity and to continuing such investment until such time as the funds are needed to finance projects decided upon by the Trustees.
## **d. Financial risk management objectives and policies**
The Trustee Board has approved the risk management strategy and reviews the risk assessment regularly. Regular reviews are performed by the Trustee Board to assess the likelihood and impact, relevance of risks, current strategies applied and the strength of the strategies. The residual risk is identified and action plans are created to further mitigate risk. There are no areas which caused immediate concern and there are no factors for which a high or medium risk is combined with a high or medium impact.The Trustee Board is responsible for monitoring external developments that may impact on the organisation. Comprehensive budgeting systems and financial reporting, which indicate financial performance against the budget, and forecasts are reviewed and agreed at the Trustee Board.
The most significant risks faced by the charity have been identified by the Trustee Board and relate to the following:
- Loss of Key Trustees leading to ineffective governance, which is well mitigated by succession planning for board membership, and by having an appropriately sized board with a documented audit of its skills.
- Loss of key members of the management team, which is mitigated by cover from other team members, including paid staff, and the trustee board.
- Public perception leading to a loss of influence and loss of morale with its consequential impact of the charity’s funding. This is well mitigated by the impact of its communication strategy and policy as well as good reporting including the complaints procedure.
- Crisis management strategy, which has been robustly tested by the covid pandemic, is effective.
Page 4
## **THE CAMBRIDGE CITY FOODBANK (A Company Limited by Guarantee)**
**TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **a. Constitution**
The company is a registered charity (Charity no. 1149883) and is limited by guarantee.
The company is constituted by its Memorandum & Articles of Association dated 21 June 2012, and was registered at Companies House, company no. 08175815, on 10 August 2012.
## **b. Methods of appointment or election of Trustees**
Trustees are appointed by a resolution of the trustees at a special meeting. They are chosen with regard to the skills, knowledge and experience needed for the effective administration of the charity and their having personal values which accord with but not necessarily subscribe to those of the charity's founders and of the Trussell Trust.
The trustees who served the charity during the year were as follows:
Mr S Thornton CBE Mr R K Johnson - Appointed 05 February 2021 Dr P J C Sarkies - Appointed 05 February 2021 - Resigned 13 September 2021 Dr S O'Brien Ms J C Preston Ms D M Hargreaves - Appointed 05 February 2021 Mr M R Evans Dr S P Johnson Mr N B Emery - Resigned 27 October 2020
## **c. Organisational structure and decision-making policies**
The Cambridge City Food Bank is a member of the Trussell Trust Foodbank Network, and operates as an independent social franchise of their foodbank model. Our relationship with the Trussell Trust is based on mutual undertakings agreed when we took on the franchise. This was for an initial period of 3 years and has been extendable annually. The mutual undertakings in place are contained in the Trussell Trust’s Foodbank Operating Manual.
The organisation has role descriptions for the trustees, the chairman, the treasurer, and the company secretary and these are reviewed from time to time.
Good governance is achieved through regular quarterly meetings of the trustees which receive comprehensive, concise and timely reports on the charity’s strategic direction together with occasional meetings focussed only on strategy as well as urgent decisions taken by electronic circulation and/or additional meetings when required.
The Chief Executive is responsible to the Board:
· management, development and strategic planning
· to serve and advise the trustee board of Directors in carrying out their responsibilities, in maintaining an overview of the organisation and in making appropriate strategic, policy and financial decisions.
Page 5
## **THE CAMBRIDGE CITY FOODBANK**
## **(A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)**
## **d. Policies adopted for the induction and training of Trustees**
New trustees are recruited to fill gaps in the skill set of the continuing trustees. Trustees are either elected at the annual general meeting or co-opted until the annual general meeting. The practice is for trustees to retire from office at the third annual general meeting following their election but may be re-elected normally for one a further term. In addition to the above trustees, the following attend the board meetings as non-voting members: Margaret Saner Chief Executive Merrilyn Fry Deputy Co-ordinator David Livesey Company Secretary
New trustees are provided with an 'Induction Pack' covering such topics as legal status and governance, structure, organisation and staffing, governance, policy, and strategy. They are invited to attend the induction event for new volunteers and to visit the office and warehouse and to observe at the distribution centres and at FairBite. In addition to familiarise themselves with the charity and the context within which it operates, new trustees are invited and encouraged to attend meetings organised by the Trussell Trust and to attend specialised training where it is considered to be appropriate.
## **PLANS FOR THE FUTURE**
For the last 11 years Cambridge City Foodbank has provided 3 day emergency food parcels to people in need. The number of people using the service has increased year on year, though we are slightly down on numbers from last year. The majority of visitors only come once or twice but there are some habitual users. Through our work with professional agencies and signposting by volunteers, we aim to reduce reliance on the Foodbank. The Covid-19 pandemic has forced more people to use the Foodbank, or to use it more often. Many people report that they never expected to need to use a Foodbank. The city is still served by several food hubs. We are looking at ways to offer a broader range of support, besides the 3 day emergency food parcels.
Following on from the surveys into use of the Foodbank, we have taken on a part-time signposting co-ordinator. She will provide support and training for volunteers. We are part of the Trussell Trust STEP signposting program. This provides a search facility for volunteers to look up appropriate local agencies. We are part of the Trussell Trust Pathfinder network, exploring ways to move people away from the need to use Foodbanks. We are increasing our co-operation with other charities by offering them space in the Fairbite locations. This will serve our members.
In 2018, we opened the Fairbite foodclub in Arbury. Members pay a small subscription, per visit, and can choose items from the shelves. We are working to expand the Fairbite network. We expect to open a new location in partnership with a local Church, as a replacement for their food hub. We have plans to open another shop in the south of the City, subject to finding suitable premises. We are discussing with another food hub about converting their hub into a Fairbite shop.
Page 6
## **THE CAMBRIDGE CITY FOODBANK (A Company Limited by Guarantee)**
## **TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **Statement of Trustees' responsibilities**
The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, 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 of the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf by:
................................................
**Mr S Thornton** Trustee Date: 8 March 2022
Page 7
## **THE CAMBRIDGE CITY FOODBANK (A Company Limited by Guarantee)**
## **INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE CAMBRIDGE CITY FOODBANK ('THE COMPANY')**
I report to the charity Trustees on my examination of the accounts of the Charity for the year ended 30 September 2021.
## **RESPONSIBILITIES AND BASIS OF REPORT**
As the Trustees of the Charity (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 Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity's accounts 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 Charity'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 Institute of Chartered Accountants in England and Wales, 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:
1. accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. 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
4. 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.
This report is made solely to the Charity's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my work or for this report.
Signed:
Dated: 10 March 2022
M Hewett ACA DChA
**For and on behalf of Peters Elworthy & Moore**
Page 8
## **THE CAMBRIDGE CITY FOODBANK**
## **(A Company Limited by Guarantee)**
## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 SEPTEMBER 2021**
|**Note**
**INCOME FROM:**
Donations and legacies
2
Interest received
Other income
3
**TOTAL INCOME**
**EXPENDITURE ON:**
Raising funds
Charitable activities
4
**TOTAL EXPENDITURE**
**NET (EXPENDITURE)/INCOME**
**BEFORE NET GAINS ON**
**INVESTMENTS**
Net gains on investments
8
**NET (EXPENDITURE)/INCOME**
Transfers between funds
12
**NET MOVEMENT IN FUNDS**
**RECONCILIATION OF FUNDS:**
Total funds brought forward
Net movement in funds
**TOTAL FUNDS CARRIED FORWARD**|**Restricted**
**funds**
**2021**
**£**
**26,988**
**-**
**-**
**26,988**
**-**
**50,000**
**50,000**
**(23,012)**
**-**
**(23,012)**
**10,012**
**(13,000)**
**13,000**
**(13,000)**
**-**|**Unrestricted**
**funds**
**2021**
**£**
**494,188**
**718**
**-**
**494,906**
**562**
**260,259**
**260,821**
**234,085**
**2,767**
**236,852**
**(10,012)**
**226,840**
**697,169**
**226,840**
**924,009**|**Total**
**funds**
**2021**
**£**
**521,176**
**718**
**-**
**521,894**
**562**
**310,259**
**310,821**
**211,073**
**2,767**
**213,840**
**-**
**213,840**
**710,169**
**213,840**
**924,009**|Total
funds
2020
£
550,769
1,583
45,000|
|---|---|---|---|---|
|||||597,352|
|||||562
183,548|
|||||184,110|
|||||413,242
-|
|||||413,242
-|
|||||413,242|
|||||296,927
413,242|
|||||710,169|
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 12 to 24 form part of these financial statements.
Page 9
## **THE CAMBRIDGE CITY FOODBANK (A Company Limited by Guarantee) REGISTERED NUMBER: 8175815**
## **BALANCE SHEET AS AT 30 SEPTEMBER 2021**
|**Note**
**FIXED ASSETS**
Tangible assets
7
Investments
8
**CURRENT ASSETS**
Debtors
10
Cash at bank and in hand
Creditors: amounts falling due within one
year
11
**NET CURRENT ASSETS**
**TOTAL NET ASSETS**
**CHARITY FUNDS**
Restricted funds
12
Unrestricted funds
12
**TOTAL FUNDS**|**29,379**
**698,068**
**727,447**
**(11,103)**|**2021**
**£**
**4,898**
**202,767**
**207,665**
**716,344**
**924,009**
**-**
**924,009**
**924,009**|25,366
692,007
717,373
(9,000)|2020
£
1,796
-|
|---|---|---|---|---|
|||||1,796
708,373|
||||||
|||||710,169|
|||||13,000
697,169|
||||||
|||||710,169|
The Charity was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
## **Mr S Thornton 8 March 2022 Date:**
The notes on pages 12 to 24 form part of these financial statements.
Page 10
## **THE CAMBRIDGE CITY FOODBANK**
## **(A Company Limited by Guarantee)**
## **STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
|**CASH FLOWS FROM OPERATING ACTIVITIES**
Net cash used in operating activities
**CASH FLOWS FROM INVESTING ACTIVITIES**
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Purchase of investments
**NET CASH (USED IN)/PROVIDED BY INVESTING ACTIVITIES**
**CASH FLOWS FROM FINANCING ACTIVITIES**
**NET CASH PROVIDED BY FINANCING ACTIVITIES**
**CHANGE IN CASH AND CASH EQUIVALENTS IN THE YEAR**
Cash and cash equivalents at the beginning of the year
**CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR**
The notes on pages 12 to 24 form part of these financial statements|**2021**
**£**
**210,878**
**718**
**(5,535)**
**(200,000)**
**(204,817)**
**-**
**6,061**
**692,007**
**698,068**|2020
£
395,892
1,583
(655)
-
**928**
**-**
**396,820**
295,187
692,007|
|---|---|---|
Page 11
**THE CAMBRIDGE CITY FOODBANK**
**(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **1. ACCOUNTING POLICIES**
## **1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Cambridge City Foodbank meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **1.2 INCOME**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
## **1.3 EXPENDITURE**
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
## **1.4 INTEREST RECEIVABLE**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
Page 12
**THE CAMBRIDGE CITY FOODBANK**
**(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **1. ACCOUNTING POLICIES (continued)**
## **1.5 INTANGIBLE FIXED ASSETS AND DEPRECIATION**
Tangible fixed assets costing £NIL or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following basis:
|Motor vehicles|-|25%|straight line|
|---|---|---|---|
|Fixtures and fittings|-|25%|straight line|
|Office equipment|-|25%|straight line|
## **1.6 INVESTMENTS**
Fixed asset investments are a form of financial instrument and are initially recognised at their transaction cost and subsequently measured at fair value at the Balance Sheet date, unless the value cannot be measured reliably in which case it is measured at cost less impairment. Investment gains and losses, whether realised or unrealised, are combined and presented as ‘Gains/(Losses) on investments’ in the Statement of Financial Activities.
## **1.7 DEBTORS**
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **1.8 CASH AT BANK AND IN HAND**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1.9 LIABILITIES AND PROVISIONS**
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
Page 13
**(A Company Limited by Guarantee)**
## **THE CAMBRIDGE CITY FOODBANK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **1. ACCOUNTING POLICIES (continued)**
## **1.10 FINANCIAL INSTRUMENTS**
The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **1.11 PENSIONS**
The Charity operates a defined contribution pension scheme and the pension change represents the amounts payable by the Charity to the fund in respect of the year.
## **1.12 FUND ACCOUNTING**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
## **2. INCOME FROM DONATIONS**
|Donations
Total 2020|**Restricted**
**funds**
**2021**
**Unrestricted**
**funds**
**2021**
**£**
**£**
26,988
494,188
20,903
529,866|**Total**
**funds**
**2021**
**£**
**521,176**
550,769|Total
funds
2020
£
550,769|
|---|---|---|---|
|||||
The value of donated food in 2021 was £216,261 (Calculated as 123.578 kilos valued at £1.75 per kilo adjusted for purchased food) (2020: 133,268 kilos valued at £1.75 - £238,780).
Page 14
**(A Company Limited by Guarantee)**
## **THE CAMBRIDGE CITY FOODBANK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **3. OTHER INCOMING RESOURCES**
|Government Grants
Total 2020|**Unrestricted**
**funds**
**2021**
**£**
-
45,000|**Total**
**funds**
**2021**
**£**
**-**
45,000|Total
funds
2020
£
45,000|
|---|---|---|---|
|||||
Two grants of £10,000 each and one grant of £25,000 were received from Cambridge City Council in 2019/20. No grants were received in 2021.
## **4. ANALYSIS OF EXPENDITURE BY ACTIVITIES**
|Special items
Food costs
Staff costs
Premises expenses
Volunteer expenses
Depreciation
Fairbite premises expenses
Fairbite consumable expenses
Advocacy partnership expenses
Administration expenses
Grants to charities (see below)
Independent Examiner's and Accountancy
fees (governance)
Total 2020|**Activities**
**undertaken**
**directly**
**2021**
**£**
53,143
11,286
63,786
-
12,925
-
-
-
-
81,483
1,000
-
223,623
106,124|**Support**
**costs**
**2021**
**£**
-
-
-
65,557
-
2,433
14,940
472
-
-
-
3,234
86,636
77,424|**Total**
**funds**
**2021**
**£**
**53,143**
**11,286**
**63,786**
**65,557**
**12,925**
**2,433**
**14,940**
**472**
**-**
**81,483**
**1,000**
**3,234**
**310,259**
183,548|Total
funds
2020
£
12,389
9,097
39,585
39,686
5,021
1,049
14,066
2,165
17,500
26,532
13,500
2,958|
|---|---|---|---|---|
|||||183,548|
||||||
Page 15
## **THE CAMBRIDGE CITY FOODBANK**
## **(A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **4. ANALYSIS OF EXPENDITURE BY ACTIVITIES (continued)**
In 2020 £16,134 of the charitable expenditure was restricted and £167,414 was attributable to unrestricted funds.
The value of food distributed to clients in 2021 was £223,746 (127,885 kilos valued at £1.75 (2020: 125,840 kilos at £1.75 - £220,220).
During the year ended 30 September 2021 1 grant of £1,000 was paid to a local charity (2020: 3 grants of £1,000 and 1 grant of £500).
In 2021 special items above includes £50,000 fuel top-ups (see note 12 restricted funds). Administration expenses includes
## **5. INDEPENDENT EXAMINERS REMUNERATION**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Fees (inclusive of VAT) payable to the Charity's independent examiner for|||
|the independent examination of the Charity's annual accounts|**900**|840|
|Fees (inclusive of VAT) payable to the Charity's independent examiner in|||
|respect of:|||
|Accountancy fees|**1,554**|1,428|
|Depreciation of tangible fixed assets owed by the charity|**2,433**|1,049|
## **6. STAFF COSTS**
|Wages and salaries
Social security costs (net of employer allowance)
Contribution to defined contribution pension schemes|**2021**
**£**
**59,394**
**748**
**3,644**
**63,786**|2020
£
37,700
-
1,885|
|---|---|---|
||||
|||39,585|
The average number of persons employed by the Charity during the year was as follows:
||**2021**|2020|
|---|---|---|
||**No.**|No.|
|Average number of employees|**3**|1|
Page 16
**(A Company Limited by Guarantee)**
## **THE CAMBRIDGE CITY FOODBANK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **6. STAFF COSTS (continued)**
No employee received remuneration amounting to more than £60,000 in either year.
The key management personnel of the charity comprises the Trustees. The trustees all give their time and expertise without any kind of remuneration or other benefit in kind (2020: £nil).
During the year, no travel or subsistence expenses were reimbursed to Trustees or paid directly to third parties on their behalf (2020: £nil).
## **7. TANGIBLE FIXED ASSETS**
|**Cost or valuation**
At 1 October 2020
Additions
Disposals
At 30 September 2021
**Depreciation**
At 1 October 2020
Charge for the year
On disposals
At 30 September 2021
**Net book value**
At 30 September 2021
At 30 September 2020|**Motor**
**vehicles**
**£**
**12,825**
**-**
**(12,825)**
**-**
**12,825**
**-**
**(12,825)**
**-**
**-**
-|**Fixtures and**
**fittings**
**£**
**7,623**
**3,911**
**-**
**11,534**
**6,648**
**1,698**
**-**
**8,346**
**3,188**
975|**Office**
**equipment**
**£**
**3,774**
**1,624**
**-**
**5,398**
**2,953**
**735**
**-**
**3,688**
**1,710**
821|**Total**
**£**
**24,222**
**5,535**
**(12,825)**
**16,932**
**22,426**
**2,433**
**(12,825)**
**12,034**
**4,898**
1,796|
|---|---|---|---|---|
The charity's van was stolen in September 2021 and is not expected to be recovered. As the carrying value of the van was £nil in the accounts there was no resulting profit or loss on disposal. A new van will be purchased in 2021/2022.
Page 17
**(A Company Limited by Guarantee)**
## **THE CAMBRIDGE CITY FOODBANK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **8. FIXED ASSET INVESTMENTS**
|**Cost or valuation**
Additions
Revaluations
At 30 September 2021|**Listed**
**investments**
**£**
**200,000**
**2,767**|
|---|---|
||**202,767**|
All the fixed asset investments are held in the UK.
All investments are carried at their fair value. Holdings in common investment funds, unit trusts and open ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
The Charity is operating an investment policy that provides for a degree of diversification of holdings within different unit trust investments. The Charity has invested in a number of unit trusts in order to protect the Charity’s exposure to volatility in the market and seek low risk investments wherever possible.
The Charity does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer term growth and annual income.
The Charity has no material investment holdings in markets subject to exchange controls or trading restrictions.
## **9. STOCKS**
The value of stock donated as at 30 September 2021 was £31,250 (2020: £28,576) and in line with the accounting policy, this is valued in the accounts as £nil.
Page 18
**(A Company Limited by Guarantee)**
## **THE CAMBRIDGE CITY FOODBANK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **10. DEBTORS**
|**DUE AFTER MORE THAN ONE YEAR**
Rent deposit
**DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Prepayments and accrued income|**2021**
**£**
**7,438**
**7,438**
**-**
**8,772**
**13,169**
**29,379**|2020
£
5,500|
|---|---|---|
|||5,500
968
7,471
11,427|
||||
|||25,366|
## **11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade creditors
Other taxation and social security
Accruals and deferred income
Deferred income brought forward
Resources deferred during the year
Amounts released from previous periods|**2021**
**£**
**7,078**
**-**
**4,025**
**11,103**
**2021**
**£**
**1,563**
**-**
**(1,563)**
**-**|2020
£
3,980
862
4,158|
|---|---|---|
||||
|||9,000|
|||2020
£
-
1,563
-|
||||
|||1,563|
Page 19
**(A Company Limited by Guarantee)**
## **THE CAMBRIDGE CITY FOODBANK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **12. STATEMENT OF FUNDS**
## **STATEMENTS OF FUNDS - CURRENT YEAR**
|**UNREST-**
**RICTED**
**FUNDS**
**DESIGN-**
**ATED FUNDS**
Future
Development
Fund
**GENERAL**
**FUNDS**
General Fund
**Total**
**Unrestricted**
**funds**
**RESTRICTED**
**FUNDS**
Restricted
Fund
**Total of funds**|**Balance at 1**
**October**
**2020**
**£**
**150,000**
**547,169**
**697,169**
**13,000**
**710,169**|**Income**
**£**
**-**
**494,906**
**494,906**
**26,988**
**521,894**|**Expenditure**
**£**
**-**
**(260,821)**
**(260,821)**
**(50,000)**
**(310,821)**|**Transfers**
**in/out**
**£**
**-**
**(10,012)**
**(10,012)**
**10,012**
**-**|**Gains/**
**(Losses)**
**£**
**-**
**2,767**
**2,767**
**-**
**2,767**|**Balance at**
**30**
**September**
**2021**
**£**
**150,000**|
|---|---|---|---|---|---|---|
|||||||**774,009**|
|||||||**924,009**|
|||||||**-**|
|||||||**924,009**|
Page 20
**(A Company Limited by Guarantee)**
## **THE CAMBRIDGE CITY FOODBANK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **12. Statement of funds (continued)**
## **STATEMENT OF FUNDS PRIOR YEAR**
|**UNREST-**
**RICTED FUNDS**
**DESIGN-**
**ATED FUNDS**
Future Development fund
**GENERAL FUNDS**
General Funds
**Total Unrestricted funds**
**RESTRICTED FUNDS**
Other funds
**Total of funds**|Balance at
1 October
2019
£
150,000
146,082
296,082
845
296,927|Income
£
-
576,449
576,449
20,903
597,352|Expenditure
£
-
(167,976)
(167,976)
(16,134)
(184,110)|Transfers
in/out
£
-
(7,386)
(7,386)
7,386
-|Balance at
30
September
2020
£
150,000|
|---|---|---|---|---|---|
||||||547,169|
||||||697,169|
||||||13,000|
||||||710,169|
## **Other restricted funds**
Within other restricted funds there are sometimes several smaller funds (food, clothes, energy, and research) and when expenditure exceeds the brought forward funds and income then the deficit is covered by a transfer from general funds. In 2020/2021 the funds all related to fuel. This year a total of £10,012 (2020: £7,386) was transferred.
## **Designated funds**
A transfer of £150,000 was made to the designated fund for future development in 2017. This was unspent at 30 September 2021.
Page 21
**(A Company Limited by Guarantee)**
## **THE CAMBRIDGE CITY FOODBANK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **13. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
## **ANALYSIS OF NET ASSETS BETWEEN FUNDS - CURRENT YEAR**
|**Unrestricted**
**funds**
**2021**
**£**
Tangible fixed assets
4,898
Fixed asset investments
202,767
Debtors due after more than one year
7,438
Current assets
720,009
Creditors due within one year
(11,103)
**Total**
924,009
**ANALYSIS OF NET ASSETS BETWEEN FUNDS - PRIOR YEAR**
Restricted
funds
2020
Unrestricted
funds
2020
£
£
Tangible fixed assets
-
1,796
Debtors due after more than one year
-
5,500
Current assets
13,000
698,873
Creditors due within one year
-
(9,000)
**Total**
13,000
697,169|**Total**
**funds**
**2021**
**£**
**4,898**
**202,767**
**7,438**
**720,009**
**(11,103)**
**924,009**
Total
funds
2020
£
1,796
5,500
711,873
(9,000)
710,169|
|---|---|
|Tangible fixed assets
Debtors due after more than one year
Current assets
Creditors due within one year
**Total**||
Page 22
**(A Company Limited by Guarantee)**
## **THE CAMBRIDGE CITY FOODBANK**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **14. Reconciliation of net movement in funds to net cash flow from operating activities**
|Net income for the year (as per Statement of Financial Activities)
**Adjustments for:**
Depreciation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Decrease/(increase) in debtors
Increase/(Decrease) in creditors
**Net cash provided by operating activities**
**15.**
**Analysis of cash and cash equivalents**
Cash in hand
**Total cash and cash equivalents**
**16.**
**Analysis of changes in net debt**
**At 1**
**October**
**2020**
**£**
Cash at bank and in hand
**692,007**
**692,007**|**2021**
**£**
**213,840**
**2,433**
**(2,767)**
**(718)**
**(4,013)**
**2,103**
**210,878**
**2021**
**£**
**698,068**
**698,068**
**Cash flows**
**£**
**6,061**
**6,061**|2020
£
413,242
1,050
-
(1,583)
(12,317)
(4,500)
395,892
2020
£
692,007
692,007
**At 30**
**September**
**2021**
**£**
**698,068**
**698,068**|
|---|---|---|
Page 23
**THE CAMBRIDGE CITY FOODBANK (A Company Limited by Guarantee)**
## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2021**
## **17. OPERATING LEASE COMMITMENTS**
At 30 September 2021 the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|**Amounts Payable:**
Not later than 1 year
Later than 1 year and not later than 5 years|**2021**
**£**
**49,412**
**40,986**
**90,398**|2020
£
54,040
37,813|
|---|---|---|
||||
|||91,853|
The following lease payments have been recognised as an expense in the Statement of Financial Activities:
||**2021**|2020|
|---|---|---|
||**£**|£|
|Operating lease rentals|**71,585**|40,075|
## **18. RELATED PARTY TRANSACTIONS**
There were no related party transactions during the current or prior period.
Page 24