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2022-08-31-accounts

REGISTERED CHARITY NUMBER: 1151282

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2022

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 2022

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 22
Detailed Statement of Financial Activities 23 to 24

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2022

The trustees present their report with the financial statements of the charity for the year ended 31 August 2022. 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 1 January 2019).

OBJECTIVES AND ACTIVITIES

Object of the Charity

The relief of persons suffering from poverty, sickness, disadvantage and the 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 has three strategic objectives for the period 2022 – 2025:

Page 1

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2022

OBJECTIVES AND ACTIVITIES

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.

We currently have around 120 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 2022

STRATEGIC REPORT

Achievement and performance

Our achievements in 2021-22

The Welcome Centre has continued to provide a high quality food bank service to the growing number of people needing crisis support in south Kirklees. In autumn 2021 as we transitioned away from the Covid-19 pandemic, we reopened our doors to clients, welcoming them back into our building to access face to face support. Alongside this, we also continued to offer the home delivery service we introduced in the pandemic, for clients who find it challenging to visit us in person to collect their packs. We have worked hard in 2021-22 to make sure that the level of support we provide our clients has not been impacted by the ongoing uncertain wider environment we’ve been operating in, both in terms of Covid-19 and then the cost of living crisis.

In addition to continuing to offer a high standard of support through our food bank, we have expanded and developed our Advice, Guidance and Support (AGS) service, which helps clients transition beyond the food bank. Clients receive listening ear, signposting, and triage support from our AGS volunteers. Staff offer weekly money management drop in sessions, over the phone and face to face budgeting and benefits appointments, and a grant programme to help clients with emergency funding for essentials including utilities and furniture. Through our AGS service we have also developed a range of partnerships with other local organisations to allow our clients to access wider opportunities, including school holiday activities for children and local theatre trips.

We are incredibly proud of The Welcome Centre’s achievements in what has proved to be another very challenging year. The demand for our support has continued to rise steadily, against a wider backdrop of uncertain and rapidly changing circumstances. In 2021-22 we transitioned out of our pandemic operating conditions, but very quickly the UK’s cost of living crisis emerged. This caused not only further increasing demand for our service, but also challenges in fundraising and procurement. In spite of these challenges, The Welcome Centre was able not only to maintain uninterrupted delivery of its core services, but also continue to grow and develop our offering to clients.

These successes do not belong to The Welcome Centre alone; we would not have been able to achieve what we did in 2021-22 without our external supporters. Individuals, community groups, businesses, and funders were incredibly generous during difficult times, and without their generosity The Welcome Centre would not have been able to offer clients such a high level of consistency and quality.

STATISTICAL OVERVIEW FOR 2021-2022

September 2021 - September 2020 - Percentage
August 2022 August 2021 change
Total Referrals 12,090 10,527 14.8%
Total Number of referring agencies 133 126 5.6%
Total Unique People Helped 5,787 4,666 19.4%
Total Unique Children Helped 2,210 1651 33.9%
% clients with just one referral 40.7% 43.2% n/a
% clients with more than 5 referrals 19.1% 19.8% n/a
Total Pack Count 19,735 16,842 17.2%
Food Pack Count 11,729 10,224 14.7%
Person Food Days 129,022 114,308 12.9%
Meals Provided 361,261.6 320,062.4 12.9%

As can be seen above, The Welcome Centre once again saw an increased output in 2021-2022.

The total number of people helped by The Welcome Centre increased by almost 20%, a significant increase, indicative of the growing levels of poverty in the community in which we serve. Moreover, we have seen a much more significant increase in the total number of children helped, which has increased by a third. This indicates a noteworthy change in the type of households The Welcome Centre supports, with families with children accounting for a greater proportion of our client base in 2021-22.

In 2021-22, we also saw a small decrease in the number of people needing only one referral, suggesting more people are experiencing a longer lasting crisis. These trends are sadly unsurprising, given the national cost of living crisis that emerged in 2021.

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THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2022

Partnership working

The Welcome Centre is proud of its collaborative outlook, and recognises the benefit of learning from and sharing with others in our community and our field. The Welcome Centre continues to actively participate in relevant networks and groups, and to nurture and develop partnerships with other organisations, at a strategic and operational level.

The Welcome Centre is a founding and leading 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. Within Kirklees, The Welcome Centre is also actively involved in the Kirklees Tackling Poverty Partnership and the Kirklees Poverty Action group, both of which bring together council and third sector representatives to work collaboratively on tackling poverty in the borough. The Welcome Centre is also an active member of Feeding West Yorkshire, a collaboration of food network groups from across the county, and part of the national Feeding Britain network. Finally, The Welcome Centre is an active member of the Independent Food Aid Network, a national network of independent emergency food providers.

The Welcome Centre works in partnership with organisations from the public, private and third sector. In 2021-22 we continued to develop existing partnership working with other organisations, including Kirklees Council, Public Health, the Huddersfield Mission, Time Together, the Basement Project and KCALC. We also continued to work with the generous local supermarkets and businesses who donate surplus food to The Welcome Centre. In 2021-22, The Welcome Centre also started working with new partners; some noticeable examples include Colne Valley Help, Huddersfield Giants Community Trust and the Lawrence Batley Theatre.

Through close partnership working with other organisations, The Welcome Centre has been able to broaden and improve the services and support available to clients. In 2021-22, partnership working enabled us not only to continue delivery of our core service in challenging times, but to offer enhanced support and services to those in crisis.

Staff

During 2021-22 The Welcome Centre’s small staff team grew; we now have three full time and seven part time staff working across our two sites. We recruited two new roles, a Grants Administrator working in our AGS team and a Driver. We also recruited a new Warehouse Manager, to take over from a departing member of staff, and welcomed back our Chief Executive from a period of maternity leave.

Operations and logistics

The Welcome Centre operates two sites, a warehouse and a building in Huddersfield town centre. Our town centre building is where we take incoming telephone referrals and 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 driver delivers packs to the homes of clients who aren’t able to travel to our town Centre premises to collect their packs.

Our warehouse is on the outskirts of Huddersfield town centre, this is 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.

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THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2022

Ordinarily, both our sites are open to the public; clients and referrers access our town centre premises, and supporters drop off donations at our warehouse. During the pandemic, we had to close both our sites to the public and introduce new ways of working. In autumn 2021, we reopened our town centre premises to the public, having already reopened the warehouse earlier in the year. Throughout 2021-22, we continued to prioritise the safety of our clients, our supporters and our team, and followed government guidance on Covid-19.

Future Plans and Priorities

Trustees have agreed a new three-year strategic plan for 2022-2025, and laid the groundwork preparations for delivering our year one priorities.

Over the next 3 years we will build upon our strengths, with the continued input and support of our stakeholders, to expand and improve the service we provide and to use our influence to improve the life chances of those we support.

In practical terms this means:

In setting our strategic plan, we have taken into consideration national and regional best practice developments in crisis support provision, and the specifics of the local context in which we operate.

Our Strategic Priorities for 2022 – 2025 are:

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 and enhance our partnership working

Financial review

Financial position

The Welcome Centre's financial position at the end of the 2021-22 year remains healthy, after a year in which we continued to see a high level of activity. 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 decreased by 8% due to a reduction in donations, which were exceptionally high in 2020-21 as our

Page 5

supporters responded to the impact of Covid on our operations. We have again seen a significant increase in grants to support our advice work (up by 36% on the previous year), mainly due to assistance provided to us from Kirklees Council’s Household Support Fund.

Our services have once again seen a large increase in demand, resulting in a 36% increase in expenditure. The cash flow improved by £10k in the year, despite an operating deficit, due to improved management of working capital. Our year end cash position increased to £698k. Restricted and designated funds amount to £258k, leaving a general cash reserve of £440k, compared to £409k in August 2021.

Due to the expected cost of living crisis, we expect to see a 40% increase in demand for our services in 2022-23. This will result in a considerable reduction in the general cash reserve. We also plan to make some changes to way of operating, that will require some investment.

Page 5

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2022

STRATEGIC REPORT Financial review

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 (6% of total income).

  3. Restricted grants to fund projects, support roles, or activities within The Welcome Centre (36% of total income).

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

  5. Fundraising events organised by staff, volunteers and supporters (3% 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 Household Support grants received from Kirklees Councils (£241k) that we received.

Principal Costs and Expenses

The Welcome Centre's costs and expenses fall into four major categories, as described below:

  1. Goods distributed to clients, which is our most significant cost, representing 46% of total income. Around 42% 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 and a 17% increase in demand.

  2. Employment costs relate to salary and pension costs of our 7 staff. At 26% of total income, this is our second most significant cost.

  3. Accommodation costs cover the rent and upkeep of two premises and represents 7% 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 16% 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 7% of income.

Restricted Funding

The Welcome Centre has been fortunate again this year to receive several grants and donations totalling £309,579 to support specific projects or restricted activities. This funding was focussed on four main areas:

  1. Donations to purchase food and other goods for distribution (£6,300)

  2. Targeted support for specific purchases made on behalf of our clients (£23,883)

  3. Household Support grants from Kirklees Council which were used to purchase food, or provide targeted support for our clients (£240,942)

  4. Lottery funding to assist with the development of our advice, guidance and support activities (£38,454)

Capital Expenditure

In 2021/22 zero was spent on fixed asset additions, as our expansion plans were put on hold due to the ongoing issues relating to Covid.

The budget for 2022/23 includes around £98,000 of capital expenditure, to cover further improvements in Lord Street and our warehouse to support the ever increasing demand for our services.

Reserves policy

A review of the reserves policy identified that it was appropriate to move to a risk-based approach focusing on the resilience of key income streams and the commitment levels of charitable activity expenditure. The Trustees understand that unrestricted free reserves are not intended to cover a permanent loss of funds but to maintain service delivery through a period when income is reduced, or demand is increased. Our approach excludes any fixed assets, designated funds and restricted expenditure.

We propose that reserves are calculated as two months of food pack provision, plus three months of operating expenditure (excluding the value of goods for distribution and depreciation), plus other longer-term commitments. This would allow

Page 6

a period of adjustment to allow the charity to respond to a permanent change in financial situation e.g. reduced income, or period to allow a transition to alternative arrangements for our beneficiaries, staff and volunteers.

Page 6

THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2022

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. Project teams are used involving trustees, staff and volunteers to work on and deliver specific projects

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, 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 2022 no trustees reached the end of their term of office or resigned, and no 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:

Related parties

None of our trustees receive remuneration or other benefit from their work with the charity. Related party transactions are reported in the notes to the financial statements..

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THE WELCOME CENTRE (HUDDERSFIELD)

REPORT OF THE TRUSTEES for the year ended 31 August 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Charity number 1151282

Registered office

15 Lord Street Huddersfield HD1 1QB

Trustees

J Watson Chair J S Ainley Secretary R W Whiteley Treasurer Y Harding A M Tomlinson J F Norman K Siddique H Filloux-Bennett E R Smith G D J Bruce

Secretary J S Ainley

Independent Examiner

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

Approved by the Board of Trustees on 24[th] October 2022 and signed on the board's 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 2022.

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 2011 Act; or 2. the accounts do not accord with those records; or

  2. the accounts do not comply with the applicable requirements concerning the form and content of the accounts set out in the Charites (Accounts and Report) 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; or

  3. 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.

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: .............................................

Page 9

THE WELCOME CENTRE (HUDDERSFIELD)

STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2022

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
526,170
Charitable activities
Support services and food packs
52,184
Other trading activities
3
24,602
Investment income
4
731
Total
603,687
EXPENDITURE ON
Charitable activities
Support services and food packs 6
579,767
NET INCOME/(EXPENDITURE)
23,920
RECONCILIATION OF FUNDS
Total funds brought forward
658,840
TOTAL FUNDS CARRIED FORWARD
682,760		 Restricted
funds
£
13,245
296,334
-
-
309,579
345,366
(35,787)
57,528
21,741		 2022
Total
funds
£
539,415
348,518
24,602
731
913,266
925,133
(11,867)
716,368
704,501		 2021
Total
funds
£
609,895
376,812
8,714
-
995,421
677,998
317,423
398,945
716,368

CONTINUING OPERATIONS

All income and expenditure has arisen from continuing activities.

The notes form part of these financial statements

Page 10

THE WELCOME CENTRE (HUDDERSFIELD)

BALANCE SHEET 31 August 2022

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
12
2,814
CURRENT ASSETS
Stocks
13
19,506
Debtors
14
23,544
Cash at bank and in hand
680,841
723,891
CREDITORS
Amounts falling due within one year
15
(43,945)
NET CURRENT ASSETS
679,946
TOTAL ASSETS LESS CURRENT
LIABILITIES
682,760
NET ASSETS
682,760
FUNDS
16
Unrestricted funds:
General fund
Long Term Reserve
Designated Funds
Restricted funds:
Premises Expansion
Additional Cold Food Storage Capacity
Volunteers Breakroom Project
ACTS 435 Provision of Grants to Clients
Feeding Families
Garfield Weston Fund
KMC - Local Welfare Provision
KMC Covid Grants
Surviving Winter for the over 60s
The Neighbourly Foundation
TOTAL FUNDS		 Restricted
funds
£
4,801
-
-
16,940
16,940
-
16,940
21,741
21,741		 2022
Total
funds
£
7,615
19,506
23,544
697,781
740,831
(43,945)
696,886
704,501
704,501
441,454
241,306
-
682,760
3,583
1,218
-
-
7,614
-
1,024
-
3,472
4,830
21,741
704,501		 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

The notes form part of these financial statements

continued...

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THE WELCOME CENTRE (HUDDERSFIELD)

BALANCE SHEET - continued 31 August 2022

The financial statements were approved by the Board of Trustees and authorised for issue on ............................................. 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 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
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		 2022
£
9,355
9,355
731
731
10,086
687,695
697,781		 2021
£
351,749
351,749
-
-
351,749
335,946
687,695

The notes form part of these financial statements

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THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE CASH FLOW STATEMENT for the year ended 31 August 2022

1. RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

OPERATING ACTIVITIES
Net (expenditure)/income for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest received
Decrease in stocks
(Increase)/decrease in debtors
Increase in creditors
Net cash provided by operations		 2022
£
(11,867)
2,521
(731)
8,544
(10,432)
21,320
9,355		 2021
£
317,423
3,435
-
10,858
13,842
6,191
351,749
  1. ANALYSIS OF CHANGES IN NET FUNDS
At 1.9.21 Cash flow At 31.8.22
£ £ £
Net cash
Cash at bank and in hand 687,695 10,086 697,781
687,695 10,086 697,781
Total 687,695 10,086 697,781

The notes form part of these financial statements

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THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 August 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 20011. The financial statements have been prepared under the historical cost convention.

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.

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.

continued...

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THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

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 Capacity Building
One Community Foundation
Howitt Homeless Trust
William Brooke Benevolent Fund
Third Sector Leaders
FV & E Brook Charitable Trust
Groundwork UK
Co-op Community Fund
GSB Christian Trust
The Neighbourly Foundation
Lottery Grant
LWP Support Fund
Kirklees Covid Grants		 2022
£
421,420
47,575
11,245
59,175
539,415
2022
£
24,602
2022
£
731
2022
£
348,518		 2021
£
456,188
50,938
34,050
68,719
609,895
2021
£
8,714
2021
£
-
2021
£
376,812
2021
£
103,152
20,000
-
15,000
-
-
1,000
3,694
1,000
400
-
-
232,566
376,812
2022
£
34,384
7,638
300
15,000
1,100
2,500
1,500
-
-
6,700
38,454
240,942
-
348,518

continued...

Page 16

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

6. CHARITABLE ACTIVITIES COSTS

Direct
Costs
£
Support services and food packs
765,313
7.
GRANTS PAYABLE
Support services and food packs
8.
SUPPORT COSTS
Support services and food packs
Support costs, included in the above, are as follows:
Independent examination 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)
£
145,275		 Support
costs (see
note 8)
Totals
£
£
14,545
925,133
2022
2021
£
£
145,275
128,617
Governance
costs
£
14,545
2022
2021
£
£
1,174
920
13,371
1,152
14,545
2,072
2022
2021
£
£
2,521
3,435

continued...

Page 17

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

10. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2022 nor for the year ended 31 August 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2022 nor 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		 2022
£
233,328
233,328
2022
7		 2021
£
153,191
153,191
2021
6

No employees received emoluments in excess of £60,000.

12. TANGIBLE FIXED ASSETS

Short
leasehold
£
COST
At 1 September 2021 and 31 August 2022
3,559
DEPRECIATION
At 1 September 2021
3,559
Charge for year
-
At 31 August 2022
3,559
NET BOOK VALUE
At 31 August 2022
-
At 31 August 2021
-		 Fixtures
and
Computer
fittings
equipment
£
£
24,658
27,277
14,522
27,277
2,521
-
17,043
27,277
7,615
-
10,136
-		 Totals
£
55,494
45,358
2,521
47,879
7,615
10,136

continued...

Page 18

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

13.
STOCKS
Stocks
14.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Prepayments
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Accruals and deferred income
16.
MOVEMENT IN FUNDS
Net
movement
At 1.9.21
in funds
£
£
Unrestricted funds
General fund
431,638
23,920
Long Term Reserve
194,745
-
Designated Funds
32,457
-
658,840
23,920
Restricted funds
Premises Expansion
4,583
(1,000)
Additional Cold Food Storage Capacity
1,493
(275)
Volunteers Breakroom Project
69
(69)
ACTS 435 Provision of Grants to Clients
1,430
(1,430)
Feeding Families
9,774
(2,160)
Garfield Weston Fund
1
(1)
KMC - Local Welfare Provision
18,719
(39,154)
KMC Covid Grants
21,459
-
Surviving Winter for the over 60s
-
3,472
The Neighbourly Foundation
-
4,830
57,528
(35,787)
TOTAL FUNDS
716,368
(11,867)		 2022
£
19,506
2022
£
3,100
20,444
23,544
2022
£
24,556
11,790
7,599
43,945
Transfers
between
funds
£
(14,104)
46,561
(32,457)
-
-
-
-
-
-
-
21,459
(21,459)
-
-
-
-		 2022
£
19,506
2022
£
3,100
20,444
23,544
2022
£
24,556
11,790
7,599
43,945		 2021
£
28,050
2021
£
-
13,112
13,112
2021
£
2,786
-
19,839
22,625
At
31.8.22
£
441,454
241,306
-
682,760
3,583
1,218
-
-
7,614
-
1,024
-
3,472
4,830
21,741
704,501

continued...

Page 19

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

16. MOVEMENT IN FUNDS - continued

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

Unrestricted funds
General fund
Restricted funds
Premises Expansion
Additional Cold Food Storage Capacity
Volunteers Breakroom Project
ACTS 435 Provision of Grants to Clients
Feeding Families
FOODAID
Garfield Weston Fund
KMC - Local Welfare Provision
Surviving Winter for the over 60s
The Neighbourly Foundation
Lottery Fund
LWP Support Fund
Groundwork
Third Sector Leaders
TOTAL FUNDS		 Incoming
resources
£
603,687
-
-
-
11,245
-
4,700
-
-
7,638
5,000
38,454
240,942
500
1,100
309,579
913,266		 Resources
Movement
expended
in funds
£
£
(579,767)
23,920
(1,000)
(1,000)
(275)
(275)
(69)
(69)
(12,675)
(1,430)
(2,160)
(2,160)
(4,700)
-
(1)
(1)
(39,154)
(39,154)
(4,166)
3,472
(170)
4,830
(38,454)
-
(240,942)
-
(500)
-
(1,100)
-
(345,366)
(35,787)
(925,133)
(11,867)

continued...

Page 20

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

16. MOVEMENT IN FUNDS - continued

Comparatives for 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 21

THE WELCOME CENTRE (HUDDERSFIELD)

NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 August 2022

16. MOVEMENT IN FUNDS - continued

Comparative 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

17. RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 August 2022.

Page 22

THE WELCOME CENTRE (HUDDERSFIELD)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations and gifts
Gift aid
Client support payments
Corporate sponsorship
Other trading activities
Fundraising activities
Investment income
Deposit account interest
Charitable activities
Grants
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Accommodation costs
Insurance
Telephone
Office supplies
Publicity materials
Goods for distribution
Sundries
Volunteer expenses
Volunteer development
Depreciation of fixtures and fittings
Depreciation of computer equipment
Grants to individuals
Support costs
Governance costs
Accountancy fees
Professional fees		 2022
£
421,420
47,575
11,245
59,175
539,415
24,602
731
348,518
913,266
233,328
66,117
1,688
21,893
4,743
2,987
417,665
5,627
5,317
3,427
2,521
-
145,275
910,588
1,174
13,371
14,545		 2021
£
456,188
50,938
34,050
68,719
609,895
8,714
-
376,812
995,421
153,191
48,318
943
24,809
7,063
1,785
296,253
9,124
1,884
504
2,467
968
128,617
675,926
920
1,152
2,072

This page does not form part of the statutory financial statements

Page 23

THE WELCOME CENTRE (HUDDERSFIELD)

DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the year ended 31 August 2022

Total resources expended
Net (expenditure)/income		 2022
£
925,133
(11,867)		 2021
£
677,998
317,423

This page does not form part of the statutory financial statements

Page 24