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2021-08-31-accounts

REGISTERED CHARITY NUMBER: 1151282

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

FOR

THE WELCOME CENTRE (HUDDERSFIELD)

Sheards Chartered Accountants Vernon House 40 New North Road Huddersfield West Yorkshire HD1 5LS

THE WELCOME CENTRE (HUDDERSFIELD)

CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 August 2021

Page
Report of the Trustees 1 to 8
Independent Examiner's Report 9
Statement of Financial Activities 10
Balance Sheet 11 to 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 26

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2021

The trustees present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of 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 October 2019).

OBJECTIVES AND ACTIVITIES

Object of the Charity

The relief of persons suffering from poverty, sickness, disadvantage and distress arising therefrom, by providing practical advice, guidance and support.

Charitable activities

The Charity provides practical support to people experiencing extreme disadvantage in the Huddersfield area by:

The Welcome Centre (Huddersfield) has been operating since 1997. The number of people supported by The Welcome Centre has increased year on year since its inception, and The Welcome Centre now supports thousands of people each year. The Welcome Centre is meeting a real need in supplementing statutory and voluntary provision for those in crisis in our community. The Board has the objects of the charity at the front of its mind when making decisions and has regard to the guidance issued by the Charity Commission on public benefit.

Strategic Objectives

The board remain focussed on three key strategic objectives, which were out set out in our three-year plan in 2019:

Page 1

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2021

Volunteers

Volunteers are at the very heart of our organisation; they are essential to all areas of our work. We value our volunteer team greatly and strive to make volunteers feel proud of their contribution to our team.

Our volunteers come from all walks of life, and carry out a wide variety of roles at the Centre, including:

We currently have 107 volunteers at The Welcome Centre, most of whom volunteer with us regularly, and some of whom volunteer seasonally or on a more casual basis. Our volunteers are recruited, trained, inducted, and supported by our staff team.

In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

Page 2

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2021

ACHIEVEMENT AND PERFORMANCE Our achievements in 2020-21

The Welcome Centre has been successful in continuing to meet growing demand for practical crisis support in South Kirklees. We have also offered our Advice, Guidance and Support (AGS) service to our clients, helping them to transition beyond food bank dependency by providing tailored, one to one support.

We are proud of The Welcome Centre’s achievements throughout the ongoing challenges posed by the Covid-19 pandemic.

Operating in unprecedented, and rapidly changing circumstances, The Welcome Centre was able to maintain uninterrupted delivery of its core services despite unprecedented levels of demand for support.

We are especially proud that the resilience and efforts of The Welcome Centre team has enabled us to make continual progress with the expansion of our AGS service; successfully recruiting a new Service Manager and Deputy Service Manager to develop this offer, whilst still providing uninterrupted, high quality support to our growing number of clients.

Our external partners offered us additional support to ensure we were able to continue to deliver our service to the high standard. Our donors and supporters in the community showed incredible generosity in their financial support, giving us the freedom and flexibility to purchase shortages, against a backdrop of additional challenges posed by National issues with logistics and supply chain.

STATISTICAL OVERVIEW FOR 2020-2021

September 2020 - September 2019 - Percentage
August 2021 August 2020 change
Total Referrals 10,527 10,777 -2.3%
Total Number of referring agencies 126 135 -6.7%
Total Unique People Helped 4,670 4,487 4.1%
Total Unique Children Helped 1,653 1,369 20.7%
% clients with just one referral 43.1% 44.3% n/a
% clients with more than 3 referrals 29.75% 30.73% n/a
Total Pack Count 16,842 15,484 8.8%
Food Pack Count 10,224 10,495 -2.6%
Person Food Days 114,308 98,549 16%
Meals Provided 320,062 275,937 16%

As can be seen above, The Welcome Centre once again saw an increased output in 2020-2021.

Referral numbers have spiked throughout the year at expected times and as a result of short periods of regional and local lockdown. We ended this financial year with a slight overall reduction in referral numbers than in the previous year at the height of the pandemic.

We have however seen a steady increase in need per referral as family budgets become further stretched due to increasing energy and food costs. This was evidenced in the large amount of additional toiletry and homeware packs and increased requests for crisis provision of white and brown goods.

Perhaps the most distressing trend this year has been the vast increase in the number of children needing our support, despite best efforts by the Local Authority to provide the cash equivalent of Free School Meals provision throughout the school holidays.

We have responded to this with additional food provision during school holidays and developing new packs for babies and children. We have also continued to increase the nutritional value of our packs with the inclusion of eggs and additional fresh fruit and vegetables.

Page 3

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2021

Partnership working

The Welcome Centre continues to be outward looking in our work, and to seek to share best practice with and learn from others in our sector. We are a founding member of the Kirklees Food Network, which brings together emergency food providers across our region and local authority partners, to ensure a joined up, efficient approach to tackling food poverty. We are also an active participant in Feeding West Yorkshire, and the Independent Food Aid Network; respectively regional and national networks of emergency food providers. We are actively involved in the Kirklees Tackling Poverty Partnership, a large borough-wide partnership of public and third sector organisations, exploring long-term solutions to tackling poverty locally.

This year we have also worked more closely with Fusion food bank (our counterpart in North Kirklees) to better align our offer to ensure provision becomes more uniform across the Borough.

We substantially changed our operation during the height of the pandemic to a delivery model, supported by Kirklees Council and Kirklees Neighbourhood Housing (now Kirklees), who provided us with significant operational and logistical support during national lockdowns.

Through close partnership working, we were able as a group to ensure that uninterrupted, standardised provision across the whole of Kirklees remained in place. We are continuing to work closely with these partners moving forwards, to expand on these foundations as we move towards reopening our Centre and providing our clients with a hybrid model of delivery & collection.

We have focussed heavily on increasing the nutritional value of our food packs this year and have sought advice from registered dieticians to try to reduce the quantity of high fat, sugar and salt products within, prioritising work on packs for babies and children.

To assist this, we have strengthened our partnership with Yorkshire Children’s Centres and have distributed vitamins and applications for Healthy Start vouchers with our food packs.

This has been supported by joining local and regional public health networks including the Healthy Weight strategy, Healthy & Resilient Food Systems Network, Health & Wellbeing Strategic Steering Group.

Understanding our clients, referring agencies, staff and volunteers

We have once again conducted annual surveys to gather feedback from our clients, referral agencies, staff, and volunteers, so that we can continue to improve and evolve our service.

We are pleased that in all four cases the majority of replies were positive and supportive of what we already do. The feedback we received through these services has helped to feed into the Centre’s plans moving forward, so we can continue to improve. We were especially delighted that feedback from clients regarding pack quality and customer service from our delivery drivers has been exceptionally positive.

Staff

The Welcome Centre relies on a small team of three full time members of staff and four part time members of staff operating across its two sites. During 2021 we recruited a new General Assistant, AGS service manager and deputy service manager and are currently recruiting a full-time driver to start in November 2021. We aim to recruit an additional AGS worker by the end of the year.

Operations and logistics

The Welcome Centre operates over two sites. Our primary base is in Huddersfield town centre, this is where we take incoming telephone referrals, make up crisis packs for clients, and where clients come to pick up their packs, and to access our Advice, Guidance and Support service.

Our second site is a warehouse on the outskirts of Huddersfield town centre, where we sort and store incoming donations of goods. We operate a van, provided by Kirklees Council and driven by volunteers, which transports stock between our sites, and picks up donations from our collection points throughout the community.

Page 4

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2021

Ordinarily, both our sites are open to the public; our clients and referrers access our town centre base, and supporters dropping off donations access both sites. During the Covid-19 lockdown, we had to close both our sites to the public and introduce new ways of working. We have now reopened our warehouse and will be reopening our centre to the public from November 2021, we have stopped taking donations of goods at our Lord Street centre to ease space restrictions and as a further safety measure.

We continue to operate safely and efficiently in line with local advice for Covid-19 and continue to ask our supporters to support us financially rather than donating stock.

Future Plans and Priorities

Trustees have agreed the direction and ambition of a draft three-year strategic plan for 2021-2024.

This has been devised to respond to the increasing and rapid change in both current client need and the change to our client demographic seen throughout the Covid-19 pandemic.

This will encompass regional and national trends in the provision of crisis support and aims to move clients rapidly and robustly to a place of independence and dignity.

Our strategic priorities and aims are encompassed below:

To provide a high quality, flexible service to those experiencing food poverty in our area.

This service will:

To provide a first class AGS service to meet the widest range of need.

This will involve:

To expand & enhance our partnership working to secure the above.

These partnerships include: staff & volunteers, referral agencies, donors & supporters, local, regional & national networks

FINANCIAL REVIEW

Financial Position

The Welcome Centre’s financial position at the end of the 2020-21 year remains healthy, after a year in which we yet again attained a record high for income in a twelve-month period. Whilst there have been no significant changes to the range of services offered by The Welcome Centre during the year, we have seen continued growth in client demand, especially in the help we give to families.

Total income increased by 45% due to significant increase in grants (up by 252%) and donations (up by 50% on the previous year). We have continued to see a large increase in grants to support our advice work (up by 65% on the previous year).

Our services have once again seen a large increase in demand, resulting in a 20% increase in expenditure. The cash flow improved by £352k in the year, thanks largely to the significant increase in grants and gifts. Our year end cash position increased to £688k. Restricted and designated funds amount to £279k, leaving a general cash reserve of £409k, compared to £182k in August 2020.

The increase in cash reserves allows us to plan with confidence for the future, allowing us to fund a delivery service, expand our advice activities and implement changes to give our clients more choice in what they receive from us.

Page 5

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2021

Principal Funding Sources

The Welcome Centre received all of its income from five main sources:

  1. Donations and its associated gift aid from members of the public, faith organisations, schools, businesses and other charities (51% of total income).

  2. Corporate sponsorship and general grants to support the operational costs of running the centre (10% of total income).

  3. Restricted grants to fund projects, support roles, or activities within The Welcome Centre (28% of total income).

  4. Capacity building support from Kirklees Council Local Welfare Team (10% of total income).

  5. Fundraising events organised by staff, volunteers and supporters (1% of total income).

For long term sustainability, we would like to increase our income from corporate sponsorship, donations and fundraising to a level in excess of 75% of total income over the next 3 years. Work towards this target was impacted in 2020/21 due to the large value of Covid related grants (£233k) that we received.

Principal Costs and Expenses

The Welcome Centre’s expenditure falls into four main categories, described below:

  1. Goods distributed to clients, which is our most significant cost, representing 30% of total income. Around 53% of this is met from non-financial donations received from our supporters, with the balance comprising items purchased by ourselves. We have seen a significant increase in goods purchased, due to pack improvements implemented and the closure of our warehouse to the public due to Covid restrictions.

  2. Employment costs relate to salary and pension costs of our 7 staff. At 15% of total income, this is our second most significant cost.

  3. Accommodation costs cover the rent and upkeep of two premises and represents 5% of income.

  4. Grants made to clients for large household items, such as electrical goods and furniture has increased significantly in 2020/21, due to Covid related grants, that equated to over 13% of income. All of this expenditure is covered by restricted grants received from organisations.

  5. Other small items of expenditure make up the balance of costs, such as IT, telephone, insurance, professional fees, training costs and publicity materials, amounting to 5% of income.

Restricted Funding

The Welcome Centre has been fortunate again this year to receive several grants totalling £281,710 to support specific projects or restricted activities. This funding was focussed on two main areas:

  1. Donations to purchase food and other goods for distribution (£15,094)

  2. Targeted support for specific purchases made on behalf of our clients (£34,050)

  3. Covid related grants from Kirklees Council which were used to purchase food, or provide targeted support for our clients (£232,566)

Capital Expenditure

In 2020/21 zero was spent on fixed asset additions, as our expansion plans were delayed due to the pandemic. The budget for 2021/22 includes around £50,000 of capital expenditure, to cover further improvements in Lord Street to support the growth of our range of activities .

Reserves Policy

In accordance with guidance from the Charity Commission, The Welcome Centre has a policy relating to the retention and management of a financial reserve to ensure that the charity’s ongoing and future activities are reasonably protected from unexpected variances in its income and expenditure. We aim to hold a cash reserve, to provide for 6 months full operating costs for our core activities (excluding the value of donated items, designated funds and restricted expenditure). In addition, we also aim to retain a balance within our current account equivalent to one month’s operating costs. The monthly running costs in 2020/21 amounted to around £32,457 requiring a total reserve of £227,202, which is fully funded.

Page 6

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2021

Free reserves as at 31 August 2021 were £658,840 which is £431,638 above the minimum required by our reserves policy. The level of reserves will provide funding support as we develop our plans to increase our services and to respond to the unknown medium to long term ramifications of the COVID-19 outbreak. In addition, we anticipate an increased requirement for our services in the next financial year, in light of the reduction in Universal Credit, increase in National Insurance, increase in food, fuel and energy prices which will all have a negative impact on our clients.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Welcome Centre is registered as a Charitable Incorporated Organisation and its governing document (CIO conversion dated 10 January 2019, and amended 3 February 2020) is its constitution.

Recruitment and appointment of new trustees

Board of Trustees

The charity is overseen by a Board of Trustees, which consists of ten Trustees led by the Chairperson, who provide governance to the organisation. The Trustees formally meet as a Board four times a year to discuss, challenge and review the activities of the charity in line with the roles and responsibilities as defined by the Charities Commission. The Board also delegates responsibility to four sub-committees each led by a Trustee which are:

  1. Finance and Operations

  2. Marketing and Fundraising

  3. Human Resources and Volunteering

  4. Advice, Guidance and Support

The Governing document allows the trustees to meet and conduct meetings virtually which the trustees have done this year in line with Government restrictions and recommendations.

The Trustees act on a voluntary basis and receive no remuneration for the performance of their duties. Trustee activities are insured by a Trustee indemnity insurance policy paid for by The Welcome Centre.

Trustees are appointed from among full members, who are formally confirmed by the Board following an appointment process, which includes induction. Members sign a Code of Conduct and join one of the four subgroups of the Board.

New trustees undergo an orientation to brief them on their legal obligations under charity law, the Charity Commission guidance on public benefit, and the Governing Document, the committee and decision-making processes, the strategic plan and recent financial performance of the charity. They also meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

A Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity and reports to the Chairperson. To facilitate effective operations, the Chief Executive has delegated authority, within terms of delegation approved by the trustees, for operational matters.

Trustee Terms of Office

Trustees hold office for a maximum term of six years from the date of their appointment. During the year ending 31 August 2021, two trustees reached the end of their term of office or resigned, and two new trustees were appointed. One trustee has exceeded their term of office, but this was due to the stability required during the pandemic.

Risk management

The trustees have a risk management strategy which comprises:

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THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2021

The pandemic has resulted in a number of new risks being identified, including non-financial risks. These risks are managed by having robust policies and procedures in place, regular awareness training for staff working in these operational areas and detailed plans were produced in response to the Coronavirus pandemic.

Related parties

None of our trustees receive remuneration or other benefit from their work with the charity. Related party transactions are reported at note 18.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number 1151282

Registered office 15 Lord Street Huddersfield HD1 1QB

Trustees
Jeanne Watson Chair
Richard Whiteley Treasurer
John Steven Ainley Secretary
Catherine Mary Bottomley (resigned 23.11.20)
Yvonne Harding
Joy Nixon (resigned 23.11.20)
Andrew Mark Tomlinson
Julia Norman
Khalid Siddique
Henry Filloux-Bennett
Emily Smith (appointed 25.1.21)
Gill Bruce (appointed 25.1.21)

Independent Examiner Sheards Chartered Accountants Vernon House 40 New North Road Huddersfield West Yorkshire HD1 5LS

Approved by the board of Trustees on 25th October 2021 and signed on its behalf by:

J Watson – Chair of Trustees

Page 8

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE WELCOME CENTRE (HUDDERSFIELD)

Independent examiner's report to the trustees of The Welcome Centre (Huddersfield) ('the Charity')

I report to the charity trustees on my examination of the accounts of the Charity for the year ended 31 August 2021.

Responsibilities and basis of report

As the charity's trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the 2011 Act').

I report in respect of my examination of your charity's accounts as carried out under section 145 of 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 your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of 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 130 of the Act; or

  2. the accounts do not accord with those records; or

  3. the accounts 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 accounts to be reached.

Kevin Winterburn ACA Institute of Chartered Accountants in England and Wales Sheards Chartered Accountants Vernon House 40 New North Road Huddersfield West Yorkshire HD1 5LS

Date: 2 November 2021

Page 9

THE WELCOME CENTRE (HUDDERSFIELD)

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2021

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
575,845
Charitable activities
Support services and food packs 5
129,152
Other trading activities
3
8,714
Investment income
4
-
Total
713,711
EXPENDITURE ON
Charitable activities
Support services and food packs 6
417,708
Other
-
Total
417,708
NET INCOME
296,003
RECONCILIATION OF FUNDS
Total funds brought forward
362,837
TOTAL FUNDS CARRIED FORWARD
658,840		 Restricted
funds
£
34,050
247,660
-
-
281,710
260,290
-
260,290
21,420
36,108
57,528		 2021
Total
funds
£
609,895
376,812
8,714
-
995,421
677,998
-
677,998
317,423
398,945
716,368		 2020
Total
funds
£
550,794
123,826
12,957
774
688,351
562,613
1,309
563,922
124,429
274,516
398,945

The notes form part of these financial statements

Page 10

THE WELCOME CENTRE (HUDDERSFIELD)

BALANCE SHEET 31 August 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
13
3,992
CURRENT ASSETS
Stocks
14
28,050
Debtors
15
13,112
Cash at bank and in hand
636,233
677,395
CREDITORS
Amounts falling due within one year
16
(22,547)
NET CURRENT ASSETS
654,848
TOTAL ASSETS LESS CURRENT
LIABILITIES
658,840
NET ASSETS
658,840
FUNDS
17
Unrestricted funds:
General fund
Long Term Reserve
Designated Funds
Restricted funds:
Premises Expansion
Renewal of Critical Infrastructure
Additional Cold Food Storage Capacity
Volunteers Breakroom Project
ACTS 435 Provision of Grants to Clients
Sustainability
Town Foundation
Feeding Families
Family Action
Garfield Weston Fund
KMC - Local Welfare Provision
KMC – Covid Grants
TOTAL FUNDS		 Restricted
funds
£
6,144
-
-
51,462
51,462
(78)
51,384
57,528
57,528		 2021
Total
funds
£
10,136
28,050
13,112
687,695
728,857
(22,625)
706,232
716,368
716,368
431,638
194,745
32,457
658,840
4,583
-
1,493
69
1,430
-
-
9,774
-
1
18,719
21,459
57,528
716,368		 2020
Total
funds
£
13,571
38,908
26,954
335,946
401,808
(16,434)
385,374
398,945
398,945
236,516
108,275
18,046
362,837
5,583
721
1,768
84
120
663
4,960
12,108
100
1
10,000
-
36,108
398,945

The notes form part of these financial statements

continued...

Page 11

THE WELCOME CENTRE (HUDDERSFIELD)

BALANCE SHEET - continued 31 August 2021

The financial statements were approved by the Board of Trustees and authorised for issue on 25[th] October 2021 and were signed on its behalf by:

J Watson – Chair of Trustees

The notes form part of these financial statements

Page 12

THE WELCOME CENTRE (HUDDERSFIELD)

CASH FLOW STATEMENT for the year ended 31 August 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash provided by investing activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 2021
£
351,749
351,749
-
-
-
351,749
335,946
687,695		 2020
£
91,180
91,180
(659)
774
115
91,295
244,651
335,946

The notes form part of these financial statements

Page 13

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 August 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest received
Decrease/(increase) in stocks
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash provided by operations		 2021
£
317,423
3,435
-
10,858
13,842
6,191
351,749		 2020
£
124,429
5,942
(774)
(13,536)
(19,746)
(5,135)
91,180

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.20 Cash flow At 31.8.21
£ £ £
Net cash
Cash at bank and in hand 335,946 351,749 687,695
335,946 351,749 687,695
Total 335,946 351,749 687,695

The notes form part of these financial statements

Page 14

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2021

1. ACCOUNTING POLICIES

Basis of preparing the 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)', and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The Charity constitutes public benefit as defined by FRS 102.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Grants offered subject to conditions which have not been met at the year end date are noted as a commitment but not accrued as expenditure.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings - 10% on cost Computer equipment - 25% on cost

Stocks

Stocks represent goods donated or purchased which have yet to be distributed to beneficiaries. Stocks are valued on the basis of either their purchase price (bought in items) or the estimated cost of the goods in an open market (donated goods).

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

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

Donated goods

Income is recognised by the charity for goods donated at fair value based on the estimated cost of the goods in an open market, when the Charity takes control of the donated goods.

Initially the donated items are recorded as stock, with the corresponding amounts recorded as donations. When the stocks are distributed to beneficiaries, they are recognised as an expense in the SoFA.

Page 15

continued...

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

2.
DONATIONS AND LEGACIES
Donations and gifts
Gift aid
Client support payments
Corporate sponsorship
3.
OTHER TRADING ACTIVITIES
Fundraising activities
4.
INVESTMENT INCOME
Deposit account interest
5.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Grants
Support services and food packs
Grants received, included in the above, are as follows:
Kirklees Community Partnerships
Kirklees Covid Grants
Kirklees Capacity Building
One Community Foundation
Town Foundation
Howitt Homeless Trust
William Brooke Benevolent Fund
Groundwork UK
The Martin Lewis Coronavirus Charity Fund
CAF Coronavirus Emergency Fund
Co-op Community Fund
GSB Christian Trust
The Neighbourly Foundation		 2021
£
456,188
50,938
34,050
68,719
609,895
2021
£
8,714
2021
£
-
2021
£
376,812
2021
£
-
232,566
103,152
20,000
-
-
15,000
1,000
-
-
3,694
1,000
400
376,812		 2020
£
461,283
17,149
46,834
25,528
550,794
2020
£
12,957
2020
£
774
2020
£
123,826
2020
£
10,942
-
58,384
3,500
14,500
500
15,000
1,000
10,000
10,000
-
-
-
123,826

Page 16

continued...

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

6. CHARITABLE ACTIVITIES COSTS

Direct
Costs
£
Support services and food packs
547,309
7.
GRANTS PAYABLE
Support services and food packs
8.
SUPPORT COSTS
Independent examiners fees
Professional fees
9.
NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
Depreciation - owned assets		 Grant
funding of
activities
(see note
7)
£
128,617		 Support
costs (see
note 8)
Totals
£
£
2,072
677,998
2021
2020
£
£
128,617
48,558
Governance
costs
£
920
1,152
2,072
2021
2020
£
£
3,435
5,942

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2021 nor for the year ended 31 August 2020.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.

continued...

Page 17

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

11.
STAFF COSTS
Wages and salaries
The average monthly number of employees during the year was as follows:
Support staff - Full time equivalent
No employees received emoluments in excess of £60,000.
12.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
502,834
Charitable activities
Support services and food packs
74,028
Other trading activities
12,957
Investment income
774
Total
590,593
EXPENDITURE ON
Charitable activities
Support services and food packs
458,546
Other
1,309
Total
459,855
NET INCOME/(EXPENDITURE)
130,738
RECONCILIATION OF FUNDS
Total funds brought forward
232,099
TOTAL FUNDS CARRIED FORWARD
362,837		 2021
£
153,191
153,191
2021
6
Restricted
funds
£
47,960
49,798
-
-
97,758
104,067
-
104,067
(6,309)
42,417
36,108		 2020
£
135,373
135,373
2020
6
Total
funds
£
550,794
123,826
12,957
774
688,351
562,613
1,309
563,922
124,429
274,516
398,945

continued...

Page 18

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

13. TANGIBLE FIXED ASSETS

Fixtures
Short
and
Computer
leasehold
fittings
equipment
£
£
£
COST
At 1 September 2020 and 31 August 2021
3,559
24,658
27,277
DEPRECIATION
At 1 September 2020
3,559
12,055
26,309
Charge for year
-
2,467
968
At 31 August 2021
3,559
14,522
27,277
NET BOOK VALUE
At 31 August 2021
-
10,136
-
At 31 August 2020
-
12,603
968
14.
STOCKS
2021
£
Stocks
28,050
15.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Trade debtors
-
Prepayments
13,112
13,112
16.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021
£
Trade creditors
2,786
Social security and other taxes
-
Accruals and deferred income
19,839
22,625		 Totals
£
55,494
41,923
3,435
45,358
10,136
13,571
2020
£
38,908
2020
£
16,605
10,349
26,954
2020
£
1,491
5,178
9,765
16,434

continued...

Page 19

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

17. MOVEMENT IN FUNDS

Unrestricted funds
General fund
Long Term Reserve
Designated Funds
Restricted funds
Premises Expansion
Renewal of Critical Infrastructure
Additional Cold Food Storage Capacity
Volunteers Breakroom Project
ACTS 435 Provision of Grants to Clients
Sustainability
Town Foundation
Feeding Families
Family Action
Garfield Weston Fund
KMC - Local Welfare Provision
KMC – Covid Grants
TOTAL FUNDS		 At 1.9.20
£
236,516
108,275
18,046
362,837
5,583
721
1,768
84
120
663
4,960
12,108
100
1
10,000
-
36,108
398,945		 Net
movement
in funds
£
296,003
-
-
296,003
(1,000)
(721)
(275)
(15)
1,310
(663)
(4,960)
(2,334)
(100)
-
8,719
21,459
21,420
317,423		 Transfers
between
funds
£
(100,881)
86,470
14,411
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 At
31.8.21
£
431,638
194,745
32,457
658,840
4,583
-
1,493
69
1,430
-
-
9,774
-
1
18,719
21,459
57,528
716,368

continued...

Page 20

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

17. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Premises Expansion
Renewal of Critical Infrastructure
Additional Cold Food Storage Capacity
Volunteers Breakroom Project
ACTS 435 Provision of Grants to Clients
Sustainability
Town Foundation
Feeding Families
Family Action
FOODAID
KMC - Local Welfare Provision
KMC – Covid Grants
TOTAL FUNDS		 Incoming
resources
£
713,712
-
-
-
-
23,314
-
-
-
2,016
15,094
8,719
232,566
281,709
995,421		 Resources
Movement
expended
in funds
£
£
(417,709)
296,003
(1,000)
(1,000)
(721)
(721)
(275)
(275)
(15)
(15)
(22,004)
1,310
(663)
(663)
(4,960)
(4,960)
(2,334)
(2,334)
(2,116)
(100)
(15,094)
-
-
8,719
(211,107)
21,459
(260,289)
21,420
(677,998)
317,423

continued...

Page 21

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

17. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Long Term Reserve
Designated Funds
Restricted funds
Supported Volunteers Project
Provision of Client Budgeting Courses
Dugdale Trust
Premises Expansion
Renewal of Critical Infrastructure
Additional Cold Food Storage Capacity
Volunteers Breakroom Project
ACTS 435 Provision of Grants to Clients
Kids Kitchen Club
Sustainability
Town Foundation
Feeding Families
Family Action
Garfield Weston Fund
KMC - Local Welfare Provision
TOTAL FUNDS		 At 1.9.19
£
127,969
89,254
14,876
232,099
14,139
2,072
329
6,583
2,440
2,043
99
1,122
4,154
1,697
-
6,829
560
350
-
42,417
274,516		 Net
movement
in funds
£
130,738
-
-
130,738
(14,139)
(2,072)
(329)
(1,000)
(1,719)
(275)
(15)
(1,002)
-
(1,034)
4,960
1,125
(460)
(349)
10,000
(6,309)
124,429		 Transfers
between
funds
£
(22,191)
19,021
3,170
-
-
-
-
-
-
-
-
-
(4,154)
-
-
4,154
-
-
-
-
-		 At
31.8.20
£
236,516
108,275
18,046
362,837
-
-
-
5,583
721
1,768
84
120
-
663
4,960
12,108
100
1
10,000
36,108
398,945

continued...

Page 22

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

17. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Supported Volunteers Project
Provision of Client Budgeting Courses
Dugdale Trust
Premises Expansion
Renewal of Critical Infrastructure
Additional Cold Food Storage Capacity
Volunteers Breakroom Project
ACTS 435 Provision of Grants to Clients
Sustainability
Town Foundation
Feeding Families
Family Action
FOODAID
Garfield Weston Fund
KMC - Local Welfare Provision
One Community
TOTAL FUNDS		 Incoming
resources
£
590,592
-
-
1,807
-
-
-
-
21,615
-
14,501
1,126
12,390
35,298
-
10,000
1,022
97,759
688,351		 Resources
Movement
expended
in funds
£
£
(459,854)
130,738
(14,139)
(14,139)
(2,072)
(2,072)
(2,136)
(329)
(1,000)
(1,000)
(1,719)
(1,719)
(275)
(275)
(15)
(15)
(22,617)
(1,002)
(1,034)
(1,034)
(9,541)
4,960
(1)
1,125
(12,850)
(460)
(35,298)
-
(349)
(349)
-
10,000
(1,022)
-
(104,068)
(6,309)
(563,922)
124,429

continued...

Page 23

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

17. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Long Term Reserve
Designated Funds
Restricted funds
Supported Volunteers Project
Provision of Client Budgeting Courses
Dugdale Trust
Premises Expansion
Renewal of Critical Infrastructure
Additional Cold Food Storage Capacity
Volunteers Breakroom Project
ACTS 435 Provision of Grants to Clients
Kids Kitchen Club
Sustainability
Feeding Families
Family Action
Garfield Weston Fund
KMC - Local Welfare Provision
KMC – Covid Grants
TOTAL FUNDS		 At 1.9.19
£
127,969
89,254
14,876
232,099
14,139
2,072
329
6,583
2,440
2,043
99
1,122
4,154
1,697
6,829
560
350
-
-
42,417
274,516		 Net
movement
in funds
£
426,741
-
-
426,741
(14,139)
(2,072)
(329)
(2,000)
(2,440)
(550)
(30)
308
-
(1,697)
(1,210)
(560)
(349)
18,719
21,459
15,111
441,852		 Transfers
between
funds
£
(123,072)
105,491
17,581
-
-
-
-
-
-
-
-
-
(4,154)
-
4,154
-
-
-
-
-
-		 At
31.8.21
£
431,638
194,745
32,457
658,840
-
-
-
4,583
-
1,493
69
1,430
-
-
9,774
-
1
18,719
21,459
57,528
716,368

continued...

Page 24

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

17. MOVEMENT IN FUNDS - continued

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming
Resources		 Movement
resources
expended		 in funds
£ £ £
Unrestricted funds
General fund 1,304,304 (877,563) 426,741
Restricted funds
Supported Volunteers Project - (14,139) (14,139)
Provision of Client Budgeting Courses - (2,072) (2,072)
Dugdale Trust 1,807 (2,136) (329)
Premises Expansion - (2,000) (2,000)
Renewal of Critical Infrastructure - (2,440) (2,440)
Additional Cold Food Storage Capacity - (550) (550)
Volunteers Breakroom Project - (30) (30)
ACTS 435 Provision of Grants to Clients 44,929 (44,621) 308
Sustainability - (1,697) (1,697)
Town Foundation 14,501 (14,501) -
Feeding Families 1,126 (2,336) (1,210)
Family Action 14,406 (14,966) (560)
FOODAID 50,392 (50,392) -
Garfield Weston Fund - (348) (348)
KMC - Local Welfare Provision 18,719 - 18,719
One Community 1,022 (1,022) -
KMC – Covid Grants 232,566 (211,107) 21,459
379,468 (364,357) 15,111
TOTAL FUNDS 1,683,772 (1,241,920) 441,852

The Welcome Centre operates a reserve policy, such that it aims to retain an amount of cash equivalent to six month's core operating costs (excluding the value of donated items) plus an amount equivalent to one month's core operating costs to provide working funds. If the charity could no longer continue to operate, the reserve would be used to allow it to be wound up and to meet potential redundancy and lease term payments.

Page 25

continued...

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2021

18. RELATED PARTY DISCLOSURES

During the year ended 31 August 2021, a family member of a Trustee was employed on a temporary basis. Payments totalled £1,638. Approval was given by the Charity Commission prior to payment.

Page 26