Charity Registration No. 1150934
WEST CHESHIRE FOODBANK
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
WEST CHESHIRE FOODBANK
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Ian Oulton Nigel Paramor Rev Dr Ron Reid Amanda Peatfield James Forrester (Appointed 14 March 2023) Linda Tompkins (Appointed 14 March 2023) Diane Jenkins (Appointed 12 September 2023) Charity number 1150934 Principal address Units 3 and 4 Stanney Mill Industrial Estate Dutton Green Chester Cheshire CH2 4SA Independent examiner McLintocks (NW) Limited 2 Hilliards Court Chester Business Park Chester Cheshire CH4 9QP
WEST CHESHIRE FOODBANK
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 8 |
| Statement of trustees' responsibilities | 9 |
| Independent examiner's report | 10 |
| Statement of financial activities | 11 - 12 |
| Balance sheet | 13 |
| Notes to the financial statements | 14 - 25 |
WEST CHESHIRE FOODBANK
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
The Trustees of West Cheshire Foodbank would like to extend their heartfelt thanks to all those who have been involved in making the achievements summarised in this report possible, particularly its volunteers without whom none of this work would be possible.
The trustees present their annual report and financial statements for the year ended 31 March 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The charity trustees have complied with their duty to have due regard to the guidance on public benefit published by the commission in exercising their powers or duties.
Objectives and activities
The charity's objects are the prevention or relief of poverty in the Chester, Ellesmere Port, Neston and contiguous areas, by means of :
(a) in particular the provision of emergency food supplies to individuals in need in the Chester, Ellesmere Port, Neston and contiguous areas
(b) sharing food supplies with charities, or other organisations working to prevent or relieve poverty primarily in Chester, Ellesmere Port, Neston and contiguous areas, but also elsewhere in England and Wales
(c) commissioning and dissemination of research into the causes and alleviation of poverty, primarily food poverty
(d) any other similar charitable purposes as the trustees shall determine from time to time.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
West Cheshire Foodbank has worked towards the achievement of its charitable objects by focusing on three key activities during the report period. These are outlined below.
Emergency food provision (relief)
West Cheshire Foodbank has worked to provide relief to individuals or families in crisis particularly in West Cheshire, through the provision of emergency food supplies.
Signposting (relief and/or prevention)
West Cheshire Foodbank has worked to provide practical, mental and spiritual support either directly or through referral to approved partner agencies to enable individuals and families to avoid future crises.
Raising awareness (prevention)
West Cheshire Foodbank has worked to raise awareness of the causes of food poverty and to encourage both policy makers and local people to take action. West Cheshire Foodbank collaborates specifically with partners and agencies involved in the local umbrella association The Welcome Network in order to inform its fulfilment of its charitable objectives. Good relationships exist between West Cheshire Foodbank and the local authority, Cheshire West and Chester Council.
Elimination of the need for foodbanks (prevention)
The trustees have long recognized that work needed to be done to achieve the desire that foodbanks should be eliminated in Britain. During this reporting year, it has set up and developed significant initiatives under the auspices of the Pathfinder programme initiated by the Trussell Trust.
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WEST CHESHIRE FOODBANK
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Achievements and performance
Vision
In the reporting year, West Cheshire Foodbank adopted a new vision statement which is used to benchmark its activities and direction.
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WEST CHESHIRE FOODBANK
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
General
West Cheshire Foodbank is part of the Trussell Trust foodbank network. Membership of this network provides key means of evaluating the extent to which the charity meets its charitable objectives
West Cheshire Foodbank collates data from across its operation primarily using the foodbank information system developed by the Trussell Trust. Analysis is carried out to provide robust statistical indicators for quantifiable aspects of the charity's performance.
West Cheshire Foodbank is an established and effective well supported foodbank, having a good public image. This is reflected in the variety of individuals and organisations which support it by donating food and funds.
It provided food to 16412 people in the financial year 2022-2023 and maintained positive working relationships with a wide range of partner agencies. The foodbank has a committed team of regular volunteers as well as five members of staff during the reporting year. It has an organisational structure which includes a dedicated board of trustees which normally meets monthly. An operations team meeting is held regularly and reports to the trustee meeting.
Raising awareness of food poverty
West Cheshire Foodbank has taken significant steps to raise awareness about the causes of poverty including local ' media coverage and communication with MP s, Councillors, local policy makers and other influential local persons. It works with local agencies and charities through an umbrella coordinating project, the Welcome Network. The shared vision is for a network of hospitable, local Meeting Places which combine the provision of emergency food supplies with advice and support plus activities to counter social isolation and increase skills and confidence.
In pursuing this vision, the Welcome Network has cultivated links with a very wide range of community food projects and has been able to network beyond West Cheshire Foodbank's operational area to cover the whole of Cheshire West and Chester. Learning is shared with other practitioners endeavouring to develop sustainable provisions for people living with food poverty.
West Cheshire Foodbank enjoys a strong partnership with Citizens Advice Cheshire West, whose staff provide skilled support in developing meeting places, professional expertise in supporting those who need to use the foodbank, and an ability to report on policy impact at a detail level.
West Cheshire Foodbank has used a variety of approaches to raise awareness of the causes of food poverty and to encourage both policy makers and local people to take action. Much of this is focussed through the Pathfinder Project and is discussed later.
West Cheshire Foodbank especially through Pathfinder works alongside local referral partners, the University of Chester and the Trussell Trust to collect and analyse hard data and stories providing insight into why people fall into food poverty and their coping mechanisms.
The foodbank maintains an online presence to help communicate the narratives of local people in crisis. This includes a website (www.westcheshire.foodbank.org.uk), facebook page (search west cheshire foodbank) and X (twitter) account (@westcheshirefb). A regular newsletter is available on-line and distributed by email to a large number of recipients.
Emergency food provision
West Cheshire Foodbank provided parcels of emergency food supplies to 16412 people (13065 people in FY21/22) in the report year. 5977 (4687 in FY21/22) of those confirmed to be in crisis by referral agencies were children under 16 years of age. Analysis of vouchers issued shows that the main types of crisis were Low Income (55%); Debt (12%); Homeless (8%).
Some 95 volunteers worked for the foodbank during the year with new volunteers joining the foodbank on a regular basis. Volunteer turnover is low; many current volunteers have been with foodbank since it began in 2012. Volunteers clearly enjoy the work they do and have good camaraderie between them. The Trustees express their heartfelt thanks to the volunteers, without whom the foodbank could not operate.
Community donations have been very generous, allowing the foodbank to meet the demand placed on it for emergency food supplies. In total the foodbank distributed 167,016kg of food (110,348kg in FY21/22) to local people in crisis during the report period. Food received was 163,565kg (127,789kg in FY21/22).
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WEST CHESHIRE FOODBANK
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
A Graphical Picture of some statistics for 2022-2023
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WEST CHESHIRE FOODBANK TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 No. of Adults by Crisi5 Type Total 10435 413 587 607 855 1082 Low Income . eefiefil Ddays Befjelil Chawes Delayed Ways Homeless hef No iecme io wblk funds • M15C • Otbt ckfie Oomestlc 01•(• No. of Children by Crisis Type Total 5977 187 255 258 3893 493 Low Incomt Other 8en¢fit Oel omeltss • Oèbt . Benef Charyes Sickness No recourse to wbli¢ lurtls
WEST CHESHIRE FOODBANK TRUSTEES, REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023 No. of Vouchers Fulfilled by Family Size Total 7647 756 1416 1044 428 4CQ3 Couple • Farni • Other * Skn8le • 51n8le Parent Number of People Involved by Age Group Total 16342 14J7 1527 1717 8285 376 287 • Adufts117 . 24 $) Adulis (Unk tyel ChikIrlS- 11 Adults125 64 yrsl Childr*n10- 4 YTSI ch(n lunknowni8el • 141$ lover 65 ysl • Cfvldren112- 16 wsl
WEST CHESHIRE FOODBANK
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Financial review
During the year the charity generated total income of £839k, an increase of £263k compared to £576k in 2022. Expenditure in the year totalled £667k, an increase of £195k compared to £472k in 2022.
Overall this has resulted in total funds carried forward of £612k at 31 March 2023 (2022: £440k). Of this, £40k (2022: £33k) was restricted and £380k (2022: £212k) was designated for particular purposes, leaving £192k for general purposes.
Pathfinder Project
The Pathfinder project became established with a number of staff appointed to carry out the work. There is a strong emphasis on inclusion, and workers with lived experience of food poverty were prioritised. A reference group of such people was established to ensure that the programme of work was grounded in reality.
Initially, much of the work was directed to understanding the nature and drivers of food poverty in the area and what was available “on the ground” to alleviate this. Work in raising awareness of need and changing minds was undertaken, particularly with the local authority, but also avenues of communication with local residents and businesses were explored. As always, communication is an area where improvement has always to be sought.
A number of initiatives have been developed. Successes include the financial inclusion project where advisers are present at meeting place sessions and the development of “cash first” approaches whereby supermarket vouchers are provided rather than food parcels where appropriate. Exploration of how to encourage handover of people from the foodbank to, for example, social supermarkets has been undertaken while remaining within our charitable objectives.
Narrative review of the year
The year under review was one of transition, moving from a time of severely restricted activities under the restraints of the Covid-19 pandemic back towards one in which “normal” activities could gradually be resumed. It started when face to face meeting had been all but impossible and activity was more or less restricted to the receipt of donations or purchases of food and its delivery to collection centres or to individuals isolating or shielding. By the end it was back to the sharing of conversation, cups of tea and meals in warm meeting places alongside the giving out of food parcels and much-needed advice, support and signposting. Once again, people in need could be treated with dignity and our volunteers could feel that they were directly making a real difference. The trustees are profoundly grateful to all who helped to “keep the show on the road” through a very difficult time.
One of the features of Covid times was the rapid growth of local community-led food provision facilities (“hubs” in our terminology), often facilitated by local Councillors. West Cheshire Foodbank acted as a major distributor of food to these hubs. It had been felt that some of these hubs would cease to operate as society opened up and people returned to work and a more normal style of life. However this has proved not to be the case and hubs have continued to operate. Many have become established as local meeting places. In general, hubs do not have any formal structures or status, so, in consultation with the hubs, West Cheshire Foodbank has developed and signed Memoranda of Understanding so that the legal responsibilities of, and expectations on, both parties are clearly understood.
A growing area of demand during the year was the necessity of responding to the needs of the homeless, asylum seekers and refugees. Many such people fall outside the referral systems which are in place or simply do not understand how such systems work. There are often cultural difficulties or misunderstandings. West Cheshire Foodbank has implemented flexible systems to respond to these needs by supplying culturally appropriate food and other supplies and guiding people towards relevant longer term sources of help and advice.
As the year went on, the cost of living crisis began to be clearly felt with need rising and food donations no longer sufficient to meet the need, so West Cheshire Foodbank has had to use reserves for food purchases. While reserves are sufficient for this for the near future, it is less clear how need can be met over time unless there is a clear change in direction in society and national policy.
The board of trustees has examined the requirements for the reserves policy considering the severity and likelihood of the primary risks to the charity as part of its Risk Register. It has established a policy whereby unrestricted funds not committed or invested in tangible fixed assets held by the charity should be between 3 and 6 months of projected expenditure for the following financial year.
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WEST CHESHIRE FOODBANK
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
Plans for future periods
West Cheshire Foodbank will carry out a rigorous evaluation of the Pathfinder Project in conjunction with Trussell Trust to identify the learning points which will show the way to achieve its ambition to remove the need for foodbanks in the United Kingdom at the earliest opportunity.
Meantime, having emerged from the responsive mode during the pandemic, West Cheshire Foodbank will seek to improve its communications with the public, community influencers and its team of volunteers. It will also endeavour to ensure that volunteers and staff are supported to the best of its abilities in areas of pastoral care, training and developmental opportunities.
It will also ensure that the structure and mode of operation of Foodbank is “fit for purpose” in achieving its objectives.
Structure, governance and management
The charity is a CIO - foundation registered on 22 February 2013 with the Governing document amended on 10 December 2013 and 6 April 2017.
The trustees who served during the year and up to the date of signature of the financial statements were:
Ian Oulton Diane Jenkins (Retired 30 September 2022) Nigel Paramor Rev Dr Ron Reid Richard Whatmough (Resigned 10 January 2023) Amanda Peatfield Rev Ceri Gardner (Resigned 13 June 2023) James Forrester (Appointed 14 March 2023) Linda Tompkins (Appointed 14 March 2023) Diane Jenkins (Appointed 12 September 2023)
Trustees are appointed in accordance with the governing document of the charity. None of the trustees has any beneficial interest in the company.
All trustees have defined areas of responsibility commensurate with their skills and experience and undertake training in relevant subjects.
An appropriate Financial Control Policy is in place and is reviewed regularly by the trustees, as are policies on Handling Complaints; Grievance; Capability; Disciplinary and Dismissal; Whistleblowing; Safeguarding; Dignity at Work; Violence; Harassment and Bullying; Risk; Gifts and Hospitality; Bribery and anti-corruption; Data Protection; Data Privacy; Health and Safety; Social Media.
Funds held as custodian trustee
West Cheshire Foodbank and/or its trustees did not hold funds as custodian trustee on behalf of others for the reporting period.
The trustees' report was approved by the Board of Trustees.
.............................. Ian Oulton Trustee
Date: .............................................
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WEST CHESHIRE FOODBANK
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2023
The trustees 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).
The law applicable to charities in England and Wales 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 charity and of the incoming resources and application of resources of the charity for that year.
In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping sufficient accounting records that 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 Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.
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WEST CHESHIRE FOODBANK
INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF WEST CHESHIRE FOODBANK
I report to the trustees on my examination of the financial statements of West Cheshire Foodbank (the charity) for the year ended 31 March 2023.
Responsibilities and basis of report
As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).
I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
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 ICAEW, which is one of the listed bodies.
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with 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) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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1 accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Stephanie Baker BA(Hons) ACA McLintocks (NW) Limited 2 Hilliards Court Chester Business Park Chester Cheshire CH4 9QP
Dated: .........................
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WEST CHESHIRE FOODBANK
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
| Current financial year Unrestricted Unrestricted Restricted funds funds funds general designated 2023 2023 2023 Notes £ £ £ Income from: Donations and legacies 2 471,274 247,985 114,291 Investments 3 5,137 - - Total income 476,411 247,985 114,291 Expenditure on: Charitable activities 4 448,046 168,277 51,053 Net incoming resources before transfers 28,365 79,708 63,238 Gross transfers between funds (32,167) 88,227 (56,060) Net (expenditure)/income for the year/ Net movement in funds (3,802) 167,935 7,178 Fund balances at 1 April 2022 195,322 212,312 32,844 Fund balances at 31 March 2023 191,520 380,247 40,022 |
Restated Total Total 2023 2022 £ £ 833,550 575,762 5,137 16 838,687 575,778 667,376 471,865 171,311 103,913 - - 171,311 103,913 440,478 336,565 611,789 440,478 |
Restated Total Total 2023 2022 £ £ 833,550 575,762 5,137 16 838,687 575,778 667,376 471,865 171,311 103,913 - - 171,311 103,913 440,478 336,565 611,789 440,478 |
|---|---|---|
| 575,778 | ||
| 471,865 | ||
| 103,913 - |
||
| 103,913 336,565 |
||
| 440,478 |
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
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WEST CHESHIRE FOODBANK
STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
| Prior financial year Unrestricted Unrestricted Restricted funds funds funds general designated 2022 2022 2022 Notes £ £ £ Income from: Donations and legacies 2 489,619 73,634 12,509 Investments 3 16 - - Total income 489,635 73,634 12,509 Expenditure on: Charitable activities 4 361,660 77,437 32,768 Net incoming resources before transfers 127,975 (3,803) (20,259) Net (expenditure)/income for the year/ Net movement in funds 127,975 (3,803) (20,259) Fund balances at 1 April 2021 67,347 216,115 53,103 Fund balances at 31 March 2022 195,322 212,312 32,844 |
Total 2022 £ 575,762 16 |
|---|---|
| 575,778 | |
| 471,865 | |
| 103,913 | |
| 103,913 336,565 |
|
| 440,478 |
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WEST CHESHIRE FOODBANK
BALANCE SHEET
AS AT 31 MARCH 2023
| Notes Fixed assets Tangible assets 9 Current assets Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Income funds Restricted funds 12 Unrestricted funds Designated funds 13 General unrestricted funds |
2023 £ 13,132 602,213 615,345 (3,556) 380,246 191,521 |
£ - 611,789 611,789 40,022 571,767 611,789 |
2022 £ 5,944 433,357 439,301 (1,260) 212,312 195,322 |
£ 2,437 438,041 |
|---|---|---|---|---|
| 440,478 | ||||
| 32,844 407,634 |
||||
| 440,478 |
The financial statements were approved by the Trustees on .........................
.............................. Ian Oulton Trustee
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
Charity information
West Cheshire Foodbank is a CIO Foundation registered on 22 March 2013.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Designated funds comprise funds which have been set aside at the discretion of the trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
(Continued)
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Donated goods are recognised when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use of the item is probable and that economic benefit can be measured reliably.
Donated goods are included in income at the estimated value of the gift to the charity when received, based on the amount that the charity would have been prepared to pay for these goods had it been required to purchase them, with a corresponding entry in the appropriate expenditure heading for the same amount.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
1.5 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 are allocated on the portion of the asset’s use.
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
at varying rates between 25% and 50% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
1.7 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
1 Accounting policies
(Continued)
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.10 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
2 Donations and legacies
| **Unrestricted ** | Unrestricted | Restricted | Total | **Unrestricted ** | Unrestricted | Restricted | Total | |
|---|---|---|---|---|---|---|---|---|
| funds | funds | funds | funds | funds | funds | |||
| general | designated | general | designated | |||||
| 2023 | 2023 | 2023 | 2023 | 2022 | 2022 | 2022 | 2022 | |
| £ | £ | £ | £ | £ | £ | £ | £ | |
| Donations and gifts | 83,623 | 247,985 | 114,291 | 445,899 | 186,759 | 73,634 | 12,509 | 272,902 |
| Donated goods | 387,651 | - | - | 387,651 | 302,860 | - | - | 302,860 |
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3 Investments
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| general | general | |
| 2023 | 2022 | |
| £ | £ | |
| Interest receivable | 5,137 | 16 |
4 Charitable activities
| Provision of | Provision of |
|
|---|---|---|
| Foodbank | Foodbank |
|
| Services | Services | |
| 2023 | 2022 | |
| £ | £ | |
| Staff costs | 186,886 | 99,574 |
| Depreciation and impairment | 2,437 | 3,757 |
| Rent and water | 14,850 | 14,917 |
| Volunteer social events | 5,903 | 1,730 |
| Centre costs | 2,403 | 3,190 |
| Warehouse costs | 2,729 | 2,475 |
| Vehicle costs | 4,255 | 3,372 |
| Food, equipment and operating expenses | 438,832 | 334,459 |
| 658,295 | 463,474 | |
| Share of support costs (see note 5) | 7,821 | 7,131 |
| Share of governance costs (see note 5) | 1,260 | 1,260 |
| 667,376 | 471,865 | |
| Analysis by fund | ||
| Unrestricted funds - general | 448,046 | 361,660 |
| Unrestricted funds - designated | 168,277 | 77,437 |
| Restricted funds | 51,053 | 32,768 |
| 667,376 | 471,865 |
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
5 Support costs
| Light and heat Office, administration and phone Communications and publicity Miscellaneous Independent exam fees Analysed between Charitable activities |
Support costs Governance costs £ £ 2,907 - 3,409 - 1,505 - - - - 1,260 7,821 1,260 7,821 1,260 |
2023Support costs Governance costs £ £ £ 2,907 2,195 - 3,409 2,948 - 1,505 1,502 - - 486 - 1,260 - 1,260 9,081 7,131 1,260 9,081 7,131 1,260 |
2022 £ 2,195 2,948 1,502 486 1,260 |
|---|---|---|---|
| 8,391 | |||
| 8,391 |
6 Trustees
None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.
7 Employees
The average monthly number of employees during the year was:
| The average monthly number of employees during the year was: | ||
|---|---|---|
| Employment costs Wages and salaries |
2023 Number 5 2023 £ 186,886 |
2022 Number 3 |
| 2022 £ 99,574 |
Remuneration to key management personnel in the year totalled £NIL (2022: £NIL)
There were no employees whose annual remuneration was more than £60,000.
8 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
| 9 Tangible fixed assets Cost At 1 April 2022 At 31 March 2023 Depreciation and impairment At 1 April 2022 Depreciation charged in the year At 31 March 2023 Carrying amount At 31 March 2022 10 Debtors Amounts falling due within one year: Other debtors 11 Creditors: amounts falling due within one year Other taxation and social security Other creditors Accruals and deferred income |
Plant and equipment £ 12,381 12,381 9,944 2,437 12,381 2,437 2023 2022 £ £ 13,132 5,944 2023 2022 £ £ 2,287 - 9 - 1,260 1,260 3,556 1,260 |
Plant and equipment £ 12,381 12,381 9,944 2,437 12,381 2,437 2023 2022 £ £ 13,132 5,944 2023 2022 £ £ 2,287 - 9 - 1,260 1,260 3,556 1,260 |
|---|---|---|
| 12,381 | ||
| 9,944 2,437 |
||
| 12,381 | ||
| 2,437 | ||
| 2022 £ 5,944 |
||
| 2022 £ - - 1,260 |
||
| 1,260 |
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
12 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Movement in funds Balance at 1 April 2021 Incoming resources Resources expended Balance at 1 April 2022 r £ £ £ £ Westminster foundation 6,163 - - 6,163 COVID/Specific donations 41,142 12,509 (32,768) 20,883 Big lottery 5,798 - - 5,798 Cheshire Community Foundation - - - - Cheshire West Annual grant - - - - Cllr Rudd IT grant - - - - 53,103 12,509 (32,768) 32,844 |
Movement in funds Incoming esources Resources expended Transfers Balance at 31 March 2023 £ £ £ £ 40,000 (2,300) (6,163) 37,700 67,791 (44,575) (44,099) - - - (5,798) - 2,500 (1,661) - 839 3,000 (2,517) - 483 1,000 - - 1,000 114,291 (51,053) (56,060) 40,022 |
Movement in funds Incoming esources Resources expended Transfers Balance at 31 March 2023 £ £ £ £ 40,000 (2,300) (6,163) 37,700 67,791 (44,575) (44,099) - - - (5,798) - 2,500 (1,661) - 839 3,000 (2,517) - 483 1,000 - - 1,000 114,291 (51,053) (56,060) 40,022 |
|---|---|---|
| 40,022 |
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
12 Restricted funds
(Continued)
Westminster Foundation
A grant to fund ongoing activities for the Foodbank session at Wesley Church – the latter centre closed at the start of the Pandemic in March/April 2020. WF have now agreed to a transfer of the grant to other Chester based activities.
COVID/Specific Food Donations
Any donations received specifying expenditure on Covid related one off costs and /or food purchases have been allocated to this restricted fund to ensure effective control and monitoring.
Big Lottery
Represents the final year of a 3-year Big Lottery grant in conjunction with Feeding Britain, Citizens Advice Cheshire and Welcome Network (latter funded by Cheshire West and Cheshire Council) to develop foodbank sessions into ‘Meeting Places’ where underlying causes of foodbank referrals are addressed. A full evaluation report was undertaken by Chester University academics and is available upon request. Big Lottery have agreed that residual funds at the project end may be used for training needs of session volunteers – latter delayed until face-to-face training can be restarted.
Cheshire Community Foundation grant
A specific grant to finance the enhancement of fruit and vegetable provision at Neston Foodbank. In response to increasing calls for 'no cook' food provision we now look to expand to provision of bread/similar non cook food.
CWAC Annual Grant
This fund has now been classified as a designated fund see note 13 for further details.
Cllr Rudd IT grant
A grant by Cllr Bob Rudd during his year as Sheriff from Councillors allowances to be expended on IT equipment.
Fund Transfers
In the year a transfer of £6,163 from restricted funds to unrestricted funds took place, this is in relation to a donation of funds from the Westminster Foundation unused during 31 March 2023.
In the year a transfer of £5,798 from restricted funds to designated unrestricted funds took place, this is in relation to a donation of funds from the Big Lottery unused during 31 March 2023.
In the year £93,843 was transferred to designated unrestricted funds, being £49,774 from unrestricted reserves and £44,099 in relation to a COVID/Specific donations unused as at 31 March 2023.
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
13 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| Movement in funds Balance at 1 April 2021 Incoming resources Resources expended Balance at 1 April 2022 r £ £ £ £ Pathfinder reserve 216,115 73,634 (77,437) 212,312 Annual CWAC Grant - - - - COVID/Specific food donations - - - - 216,115 73,634 (77,437) 212,312 |
Movement in funds Incoming esources Resources expended £ £ 240,985 (166,529) 7,000 (1,749) - - 247,985 (168,278) |
Transfers Balance at 31 March 2023 £ £ (5,616) 281,152 - 5,251 93,843 93,843 88,227 380,246 |
Transfers Balance at 31 March 2023 £ £ (5,616) 281,152 - 5,251 93,843 93,843 88,227 380,246 |
|---|---|---|---|
| 380,246 |
Pathfinder Reserve
WCFB is one of a small number of Foodbanks working with Trussell Trust to pilot ways of ending the need for foodbanks in the UK. WCFB Trustees have committed a substantial amount from reserves towards this project matched by an annual grant from TT (receivable in 2022) to fund the cost of a Pathfinder Project Lead and development staff.
Cheshire West and Chester Council Annual Grant
A designated sinking fund against monthly rent to CWAC.
COVID/Specific Food Donations
Any donations received specifying expenditure on Covid related one off costs and /or food purchases have been allocated to this restricted fund to ensure effective control and monitoring.
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WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
14 Analysis of net assets between funds
| Analysis of net assets between funds | ||
|---|---|---|
| Unrestricted funds Designated funds Restricted funds 2023 2023 2023 £ £ £ Fund balances at 31 March 2023 are represented by: Tangible assets - - - Current assets/(liabilities) 191,521 380,246 40,022 191,521 380,246 40,022 |
Total Unrestricted funds Designated funds Restricted funds 2023 2022 2022 2022 £ £ £ £ - 2,437 - - 611,789 192,885 212,312 32,844 611,789 195,322 212,312 32,844 |
Total 2022 £ 2,437 438,041 |
| 440,478 |
- 24 -
WEST CHESHIRE FOODBANK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023
15 Related party transactions
There were no disclosable related party transactions during the year (2022 - none).
16 Prior Period Errors
A material prior period misclassification error has been amended during the year, impacting the 2022 comparative as follows: An amount of £77,437 has been reclassified from Big lottery expenditure to Staff costs (£76,460), Centre costs (£891), and Volunteer events (£86).
There has been a change in the accounting policy for donated goods which has resulted in a prior period adjustment, resulting in and additional £302,860 recognised as both Donated goods income and Food, Equipment and operating expenditure.
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