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2021-05-31-accounts

Company number: 08488814 Charity Number: 1153131

Fairfield Environment Trust

Group report and financial statements For the year ended 31 May 2021

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Fairfield Environment Trust Reference and administration information

Company number 08488814 Charity number 1153131

Registered office and operational address

Bridge 5 Mill, 22a Beswick Street, Ancoats, Manchester M4 7HR

Trustees

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Ian Trippier - Secretary

Neil Corney

Chris Walsh - Chair

Helen Woodcock

Darren Pegram

Lee Minchin (appointed 21 October 2021)

Key management personnel

The key management personnel were Michelle Lannaway (manager of Bridge 5 Mill Limited); Richard Garth Jones (manager of Fairfield Environmental Services Limited), and Helen Woodcock and Chris Walsh (managers of The Kindling Trust Limited), and the trustees.

Bankers

Co-operative Bank plc Triodos Bank N.V.

Solicitors

Christopher Murphy Whitehead’s Solicitors 6 Water Street Newcastle-under-Lyme Staffordshire ST5 1HR

Auditor

Third Sector Accountancy Limited, Holyoake House, Hanover Street, Manchester M60 0AS.

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Fairfield Environment Trust

Trustees’ annual report for the year ended 31 May 2021

The trustees present their report and the audited financial statements for the year ended 31 May 2021. Included within the trustees’ report is the directors’ report as required by company law.

Reference and administrative information forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

The purposes of the charity are:

Sustainable development means “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

Through its wholly-owned trading subsidiary Fairfield Environmental Services Limited (“FES”) the charity provides a leading-edge waste re-use and recycling service at New Smithfield Market in East Manchester specialising in fresh foodstuffs and their packaging. This activity is not considered to be a charitable activity due to the commercial manner in which it is carried out, and the income and expenditure has been included in “Income from other trading activities” and “Expenditure on raising funds” respectively.

Through its wholly-owned trading subsidiary Bridge 5 Mill Limited (“B5M”) the charity provides serviced office accommodation, conference and meeting spaces for the voluntary and environmental sector in Bridge 5 Mill, Ancoats, Manchester.

Through its wholly-owned subsidiary The Kindling Trust Limited (“KT”) the charity delivers sustainable food projects, improving health and well-being and increasing skills and knowledge through: education, volunteering opportunities, and increased access to fresh food . Additionally it is accomplishing all these charitable objects through its work to establish the Kindling Community Farm.

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Fairfield Environment Trust

Trustees’ annual report for the year ended 31 May 2021

Through all these enterprises it has created employment and volunteering opportunities and provided workexperience places to local residents and provided a home for a number of community and voluntary sector groups.

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

Achievements and performance

The charity's main activities and who it tries to help are described below. All its charitable activities focus on sustainability and are undertaken to further Fairfield Environment Trust’s charitable purposes for the public benefit.

Financial performance

The charity’s assets rented out to its trading subsidiary Fairfield Environmental Services Limited (“FES”) have yielded most of the charity’s income.

The last financial year has been one of major upheaval with the forced relocation of the businesses operational site and the Covid 19 pandemic. Manchester City council requested that we move to a new operational base on the market to facilitate a new infrastructure development. This was a major undertaking which has now been completed within the budget provided by MCC.

The other significant factor was the Covid pandemic where operational and haulage changes were required as a result of social distancing requirements. We ceased to depackage fruit and veg. waste and sent all produce to be processed at the local AD facility in Trafford. This saved considerable labour costs and haulage costs as we previously hauled naked waste to a plant in North Wales.

Further refinements to operational systems saw increased productivity and reduced both labour and repair /maintenance costs for plant and machinery. Savings were also made on insurance.

Increased productivity meant we were able to reduce employee numbers over the year which was achieved due to natural wastage. All health and safety, first aid and driver training was refreshed where required. The biannual inspection by the Health and Safety executive was a complete success with no improvements required. Volumes of material processed remain the same as previous years with the total volume recycled remaining around 85%.

The main financial challenge was to remain profitable and overturn the accumulated negative balance sheet of recent years. This was achieved despite the volatility in the markets for recyclate and leaves the business in a solid position to start repaying loans and make a significant contribution to FET next year.

Bridge 5 Mill continued to be adversely affected by the Covid-19 pandemic. All the office spaces in the Mill were fully let, although some tenants gave up leases due to working from home, new tenants moved into office space. The Mill now has a more diverse range of tenants. Unfortunately, due to Covid we had to restructure our staffing, with some staff moving onto new jobs and 2 staff being made redundant. One new staff position was created to support the Mill and tenants. Almost no events took place due to Covid. Trustees are hopeful that as restrictions ease we will see a gradual return of bookings for our event spaces, and a new publicity and marketing plan is being developed.

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Fairfield Environment Trust

Trustees’ annual report for the year ended 31 May 2021

For the Kindling Trust, as with most (if not all) organisations, the pandemic continued to have an impact on project delivery in 2021. The main challenge was in not being able to hold indoor cooking activities and in the limitation on numbers for our community events, however, as activity at Kindling’s Woodbank Community Food Hub is largely based outdoors, we were able to continue supporting our stakeholders as much as we possibly could. The main highlights of the Kindling year include:

Employment, Training and Volunteering

For the year in question the charity’s subsidiaries had an average staff of 19 employed staff. The reduction from previous years has been achieved largely through natural wastage arising out of a change in practice at Fairfield Environmental Services. FES, B5M and Kindling continued to provide its staff with additional training and to update mandatory training as required.

Charitable objectives and activities

The charity’s environmental objects have been carried out in a number of ways through its wholly-owned subsidiaries:

Bridge 5 Mill Limited - offering environmentally friendly office and event space for those seeking it in Manchester, specifically for charities and social enterprises by offering reduced rates for event space for these types of organisations.

The Kindling Trust - held a number of community activities at Woodbank Community Food Hub to engage people in environmental and social issues. This included a social prescribing programme for people suffering from ill health and social isolation, a range of community activities to engage the public and volunteering opportunities engaging over 150 people on the land and improving their wellbeing and sense of community. The Kindling Trust also continued work to establish the Kindling Community Farm where it aims to build on and expand these charitable activities.

Financial review

The charity’s main income derives from its ownership of its trading subsidiaries Fairfield Environmental Services Limited and Bridge 5 Mill Limited. The charity hires out equipment it owns to its subsidiaries and also receives the

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Fairfield Environment Trust

Trustees’ annual report for the year ended 31 May 2021

subsidiaries’ profit as a donation at the end of each financial year. The subsidiaries hold a substantial local authority contract which is subject to periodic review. The charity and the directors of the subsidiaries, which it appoints, are aware of the need to diversify the income of the subsidiaries and certain investments have been made to bring this about. This year Fairfield Environment Trust was awarded two grants of:

Additionally the Kindling Trust we generously offered an extension of their core funding from the Joseph Rowntree Charitable Trust, to support them through the challenges of the pandemic.

Reserves policy

Fairfield Environment Trust is committed to maintaining the subsidiaries which carry out its charitable activities. These subsidiaries require a level of reserves, so our reserve policy is at a group level.

The reserves policy is based on 3 months group core costs which we estimate to be £50,000. This is based on the amount that would be needed to fill the gap in core salaries in the situation that Bridge 5 Mill were to have no event bookings over 3 months and a core wage to run down the activities of the other subsidiaries. Current free reserves have risen over the year to £90,942 after allowing for reserves tied up in fixed assets (the designated funds). The trustees remain committed to reaching the desired level of reserves through our marketing strategy for Bridge 5 Mill, our diversification strategy for Fairfield Environment Services and our fundraising strategy for the Kindling Trust and the group as a whole.

Fairfield Environment Trust has no employees or other financial commitments and has a limited but reasonably constant income from group companies, so does not need reserves of its own.

Risk management

Internal financial risks are controlled by the directors through the receipt of a monthly financial report from the General Manager encompassing management accounts, bank statements and reconciliation reports.

Internal control risks are managed by the adoption of a set of policies and procedures implemented by the General Manager covering Health and Safety and Standard Operating Procedures.

External risks to the charity are subject to constant review by the directors and will, in time, result in a strategic plan designed to minimise or eliminate their potential effects.

The charity trustees have given consideration to the major risks to which the charity is exposed and satisfied themselves that systems or procedures are established in order to manage those risks.

Plans for the future

The charity will continue with its current activities and attempt to diversify them through the development of additional services. FES has been successful in repairing the balance sheet and moving back to profitability. However, volatility in the recyclate market remains an issue but generally, income has been higher in the last financial year. The FES focus for the next year will be on the continued successful delivery of MCC contract TC014 whilst

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Fairfield Environment Trust

Trustees’ annual report for the year ended 31 May 2021

positioning ourselves for a successful bid to win the next contract. We will also continue to look for other opportunities to diversify our activities and increase our customer base.

Some investment has been made by the charity in the Bridge 5 Mill Limited’s building, and will continue to be invested in as we go forward to maximise income generated from the office and events space. Fairfield Environment Trust are staying up to date with the progress of the Kindling Farm and in this year became an official supporter member of Kindling Farm through community shares investment.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 15 April 2013 and registered as a charity on 30 July 2013.

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 May 2018 was 4 (2018: 4). The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 12 to the accounts.

The board of trustees administers the charity. The board normally meets monthly. A General Manager is appointed by the trustees to manage the day-to-day operations of the charity.

Appointment of trustees

As set out in the Articles of Association trustees are elected annually by the members of the charitable company attending the Annual General meeting. The directors of the company are also charity trustees for the purposes of charity law and under the charity’s articles are known as directors. Directors serve for three years with one third of the board of directors retiring every year. Directors are elected at the Annual General Meeting.

As disclosed in note 12, the Trustees received remuneration for their paid roles as employees of subsidiary companies. This did not include their duties as trustees and was a continuation of their paid roles within the organisations that have now became part of the group. None of the Trustees received any remuneration or benefits for their duties as Trustees. The payment of trustees is permitted by the charity’s governing document.

Trustee induction and training

New trustees are generally recruited from individuals who have had some previous experience of or involvement in the charity. New trustees are welcomed with an induction pack containing the Memorandum and Articles, latest published accounts and a set of the charity’s adopted policies and procedures.

Related parties and relationships with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity, except as disclosed above and in note 12. Any connection between a trustee or senior manager with any service providers must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. In the current year no such related party transactions were reported.

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Fairfield Environment Trust

Trustees’ annual report for the year ended 31 May 2021

Remuneration policy for key management personnel

The charity was in the process of conducting a full staffing and structure review when the pandemic started, but the challenges and increased workload brought about by the pandemic and changing lockdown rules and regulations meant that we put this on hold. Our aim is to continue this review in the coming year. This will include a review of the pay scales with the levels of responsibility of the management personnel for each subsidiary. The pay scale reflects management level regarding number of staff, health and safety risk and responsibility and budget and financial management and responsibility.

Statement of responsibilities of the trustees

The trustees (who are also directors of Fairfield Environment Trust for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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Fairfield Environment Trust

Trustees’ annual report for the year ended 31 May 2021

Auditors

Third Sector Accountancy Limited were re-appointed as the charitable company's auditors and have expressed their willingness to continue in that capacity.

This report has been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime of the Companies Act 2006.

25 / 02 / 2022

The trustees’ annual report has been approved by the trustees on ______ and signed on their behalf by

Ian Trippier

Trustee

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Independent Auditor’s Report to the Members and Trustees of Fairfield Environment Trust

Opinion

We have audited the financial statements of Fairfield Environment Trust (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 May 2021 which comprise the Consolidated Statement of Financial Activities, The Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s or parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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Independent Auditor’s Report to the Members and Trustees of Fairfield Environment Trust

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and parent charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 6, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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Independent Auditor’s Report to the Members and Trustees of Fairfield Environment Trust

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Capability of the audit in detecting irregularities, including fraud

Based on our understanding of the group and environment in which it operates, we identified the principal risks of non-compliance with laws and regulations related to pension legislation, tax legislation, employment legislation, health and safety legislation, and other legislation specific to the industry in which the group operates, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, the reporting requirements under the Charities SORP and FRS102, and the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principle risks were related to the pressure on management to achieve particular results. Audit procedures performed by the group engagement team included:

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members and its trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Patrick Morrello (Senior Statutory Auditor)

For and on behalf of Third Sector Accountancy Limited, Statutory Auditor Holyoake House, Hanover Street, Manchester M60 0AS

25 / 02 / 2022

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Fairfield Environment Trust

Consolidated Statement of Financial Activities (including Income and Expenditure account) for the year ended 31 May 2021

----- Start of picture text -----
Unrestricted Restricted Total funds Unrestricted Restricted Total funds
funds funds 2021 funds funds 2020
Note £ £ £ £ £ £
Income from:
Donations and legacies 3 17,284 2,868 20,152 480 2,384 2,864
Charitable activities 4 93,830 256,967 350,797 173,766 146,072 319,838
Other trading activities 5 1,038,472 - 1,038,472 1,017,237 - 1,017,237
Investments 6 8 - 8 - - -
Total income 1,149,594 259,835 1,409,429 1,191,483 148,456 1,339,939
Expenditure on:
Raising funds 7 1,074,184 - 1,074,184 1,005,284 - 1,005,284
Charitable activities 8 104,267 186,878 291,145 158,812 143,258 302,070
Total expenditure 1,178,451 186,878 1,365,329 1,164,096 143,258 1,307,354
Net income/(expenditure) for the year 10 (28,857) 72,957 44,100 27,387 5,198 32,585
Transfer between funds - - - (3,134) 3,134 -
Net movement in funds for the year (28,857) 72,957 44,100 24,253 8,332 32,585
Reconciliation of funds
Total funds brought forward 624,168 84,425 708,593 599,915 76,093 676,008
Total funds carried forward 595,311 157,382 752,693 624,168 84,425 708,593
----- End of picture text -----

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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Fairfield Environment Trust Company number 08488814

Balance Sheets

as at 31 May 2021

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The group The Charity
Note 2021 2020 2021 2020
£ £ £ £
Fixed assets
Tangible assets 14 549,482 556,748 478,704 484,629
Investments 15 45,000 - 40,002 2
Total fixed assets 594,482 556,748 518,706 484,631
Current assets
Stock 18 2,666 570 - -
Debtors 19 43,169 31,240 24,513 62,893
Cash at bank and in hand 411,120 347,126 76,121 61,124
Total current assets 456,955 378,936 100,634 124,017
Liabilities
Creditors: amounts falling
due in less than one year 20 (231,822) (181,978) (8,156) (5,060)
Net current assets 225,133 196,958 92,478 118,957
Total assets less current liabilities 819,615 753,706 611,184 603,588
Creditors: amounts falling
due after more than one year 21 (66,922) (45,113) - -
Net assets 752,693 708,593 611,184 603,588
Funds of the charity:
Restricted income funds 22 157,382 84,425 - -
Unrestricted income funds 23 595,311 624,168 611,184 603,588
Total charity funds 752,693 708,593 611,184 603,588
----- End of picture text -----

These accounts are prepared in accordance with the special provisions of part 15 of the Companies Act 2006 relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

The notes on pages 14 to 34 form part of these accounts.

25 / 02 / 2022

Approved by the trustees on _______ and signed on their behalf by:

Helen Woodcock (Trustee)

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Fairfield Environment Trust

Consolidated Statement of Cash Flows

for the year ending 31 May 2021

----- Start of picture text -----
Note 2021 2020
£ £
Cash provided by/(used in) operating activities 27 127,788 107,650
Cash flows from investing activities:
Dividends, interest, and rents from investments 8 -
Proceeds from sale of tangible fixed assets -
Purchase of tangible fixed assets (40,611) (5,826)
Cash provided by/(used in) investing activities (40,603) (5,826)
Cash flows from financing activities:
Repayment of borrowing (19,743) (18,141)
Investments in community shares (45,000)
Cash inflows from new borrowing 41,552 -
Cash provided by/(used in) financing activities (23,191) (18,141)
Increase/(decrease) in cash and cash
equivalents in the year 63,994 83,683
Cash and cash equivalents at the beginning of the year 347,126 263,443
Total cash equivalents at the end of the year 411,120 347,126
----- End of picture text -----

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021

1 Accounting policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a Basis of preparation

The financial statements have been prepared in accordance with 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) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Fairfield Environment Trust meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

b Group financial statements

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiaries Fairfield Environmental Services Limited, The Kindling Trust Limited, and Bridge 5 Mill Limited on a line by line basis. A separate Statement of Financial Activities and Income and Expenditure account are not presented for the charity itself following exemptions afforded by section 408 of the Companies Act 2006.

c Preparation of the accounts on a going concern basis

The trustees consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.

d Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met.

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

e Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

f Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity.

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the charity.

g Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charity's programmes and activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 9.

i Operating leases

Operating leases are leases in which the title to the assets, and the risks and rewards of ownership, remain with the lessor. Rental charges are charged on a straight line basis over the term of the lease.

Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

k Fixed asset investments

The charity holds investments in the subsidiary companies and an equity investment. Kindling Trust also holds an equity investment.

Investments in subsidiaries are stated at cost but eliminated on consolidation.

The charity holds a £40,000 programme related / mixed motive equity investment in a community benefit society, Kindling Farm Limited. The subsidiary, The Kindling Trust Limited, holds a £5,000 equity investment in Kindling Farm Limited (see note 15).

l Stock

Stock is included at the lower of cost or net realisable value. In general, cost is determined on a first in, first out basis. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving, and defective stocks. Donated items of stock are recognised at fair value which is the amount the charity would have been willing to pay for the items on the open market.

m Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

n Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

o Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

p Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

q Pensions

Employees of the charity are entitled to join a defined contribution scheme. The charity’s contribution is restricted to the contributions disclosed in note 11. There were no outstanding contributions at the year end. The costs of the defined contribution scheme are included within support and governance costs and allocated to the funds of the charity using the methodology set out in note 9.

2 Legal status of the charity

The charity is a company limited by guarantee registered in England and Wales and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The registered office address is disclosed on page 1.

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

----- Start of picture text -----
3 Income from donations and legacies
Unrestricted Restricted Total 2021 Unrestricted Restricted Total 2020
£ £ £ £ £ £
Donations - sustainable food production 17,284 2,868 20,152 480 2,384 2,864
Total 17,284 2,868 20,152 480 2,384 2,864
4 Income from charitable activities Unrestricted Restricted Total 2021 Unrestricted Restricted Total 2020
£ £ £ £ £ £
Sustainable food production
Grants - 256,967 256,967 - 146,072 146,072
Charitable trading:
Events and programme fees 3,345 - 3,345 4,574 - 4,574
Consultancy 991 - 991 10,538 - 10,538
Vegetable sales 10,046 - 10,046 4,611 - 4,611
14,382 256,967 271,349 19,723 146,072 165,795
Sustainable venue and office space
Charitable trading:
Events - - - 62,744 - 62,744
Office rentals and services 56,664 - 56,664 90,597 - 90,597
Other income 22,784 - 22,784 702 - 702
79,448 - 79,448 154,043 - 154,043
Total 93,830 256,967 350,797 173,766 146,072 319,838
----- End of picture text -----

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

----- Start of picture text -----
5 Income from other trading activities
Unrestricted Restricted 2021 Unrestricted Restricted 2020
£ £ £ £ £ £
Sustainable waste management 1,037,653 - 1,037,653 1,014,055 - 1,014,055
Other income 561 - 561 194 - 194
Tuck shop sales 258 - 258 2,988 - 2,988
1,038,472 - 1,038,472 1,017,237 - 1,017,237
6 Investment income
Unrestricted Restricted Total 2021 Unrestricted Restricted Total 2020
£ £ £ £ £ £
Income from bank deposits 8 - 8 - - -
8 - 8 - - -
----- End of picture text -----

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

----- Start of picture text -----
7 Cost of raising funds
Unrestricted Restricted 2021 Unrestricted Restricted 2020
£ £ £ £ £ £
Sustainable waste management
Wages 450,175 - 450,175 457,656 - 457,656
Premises 76,364 - 76,364 76,364 - 76,364
Vehicles and equipment 173,522 - 173,522 153,665 - 153,665
Waste disposal 249,241 - 249,241 175,825 - 175,825
Insurance 16,995 - 16,995 17,571 - 17,571
Other costs 13,751 - 13,751 17,603 - 17,603
Depreciation 34,020 - 34,020 34,646 - 34,646
1,014,068 - 1,014,068 933,330 - 933,330
Sustainable venue and office space
Cost of goods sold - tuck shop 357 - 357 4,165 - 4,165
Support costs 56,064 - 56,064 64,133 - 64,133
Governance costs 3,695 - 3,695 3,656 - 3,656
1,074,184 - 1,074,184 1,005,284 - 1,005,284
----- End of picture text -----

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

8 Analysis of expenditure on charitable activities

Sustainable Sustainable Sustainable Sustainable
food venue and food venue and
production office space Total 2021 production office space Total 2020
£ £ £ £ £ £
Staff costs 106,697 36,882 143,579 74,107 62,111 136,218
Premises 141 1,076 1,217 (85) 1,275 1,190
Equipment and vehicle rental 10,397 - 10,397 7,802 - 7,802
Cost of sales - 2 2 - 11,421 11,421
Repairs and maintenance 3,159 18,196 21,355 1,437 30,684 32,121
Insurance 3,585 1,029 4,614 965 921 1,886
Miscellaneous 1,589 305 1,894 435 - 435
Office costs 3,976 6,489 10,465 3,579 6,683 10,262
Professional fees 2,248 605 2,853 2,854 753 3,607
Training 4,212 - 4,212 5,207 - 5,207
Vehicle costs 987 - 987 1,073 - 1,073
Licences 433 - 433 391 - 391
Advertising, promotion and marketing 4,153 647 4,800 575 342 917
Bad debts (6,876) 611 (6,265) 30 3,996 4,026
Depreciation 6,892 6,779 13,671 5,187 6,891 12,078
Other project costs 35,142 - 35,142 19,929 - 19,929
Irrecoverable VAT 6,208 - 6,208 - - -

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

Analysis of expenditure on charitable activities (continued)

estricted expenditure
nrestricted expenditure
upport costs (see note 9)
overnance costs (see note 9)		 Sustainable
food
production
£
24,367
962
208,272
186,878
21,394
208,272		 Sustainable
venue and
office space
£
9,909
343
82,873
-
82,873
82,873		 Total 2021
£
34,276
1,305
291,145
186,878
104,267
291,145		 Sustainable
food
production
£
28,541
732
152,759
143,258
9,501
152,759		 Sustainable
venue and
office space
£
23,622
612
149,311
-
149,311
149,311		 Total 2020
£
52,163
1,344
302,070
143,258
158,812
302,070

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

9 Analysis of governance and support costs

taff costs
epairs
nsurance
iscellaneous
ffice costs
rofessional fees
raining
ravel
epreciation

l
l
o
c
a
t
e
d
a
s
f
o
l
l
o
w
s
,
i
n
p
r
o
p
o
r
t
i
o
n
t
o
s
t
a
f
f
c
o
s
t
aising funds
ustainable food production
ustainable venue and office space		 Support
£
77,590
7,372
1,481
991
120
2,600
-
-
186
90,340

s
:
56,064
24,367
9,909
90,340		 Governance
£
-
-
-
-
-
5,000
-
-
-
5,000
3,695
962
343
5,000		 Total 2021
£
77,590
7,372
1,481
991
120
7,600
-
-
186
95,340
59,759
25,329
10,252
95,340		 Support
£
105,065
4,465
2,073
459
120
370
2,655
625
464
116,296
64,133
28,541
23,622
116,296		 Governance
£
-
-
-
-
-
5,000
-
-
-
5,000
3,656
732
612
5,000		 Total 2020
£
105,065
4,465
2,073
459
120
5,370
2,655
625
464
121,296
67,789
29,273
24,234
121,296

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

10 Net income/(expenditure) for the year

This is stated after charging/(crediting): 2021 2020
£ £
Depreciation 47,876 47,704
Loss/(profit) on disposal of fixed assets - -
Interest payable 2,905 3,852
Operating lease rentals:
Property 76,364 76,364
Auditor's remuneration - audit fees 4,000 4,000
Auditor's remuneration - accountancy fees 1,000 1,000

----- Start of picture text -----
Staff coststaff costsaff costsff costsf costs costsostsststss
Staff costs during the year were as follows:
2021 2020
£ £
Wages and salaries 560,175 590,839
Social security costs 39,200 39,971
Pension costs 55,854 61,221
Other staff costs 15,849 6,908
671,078 698,939
----- End of picture text -----

11 Staff coststaff costsaff costsff costsf costs costsostsststss

No employees has employee benefits in excess of £60,000 (2020: Nil).

The average number of staff employed by the group during the period was 30 (2020: 31). The average number of staff employed by the charity during the period was Nil (2020: Nil).

The key management personnel of the charity are trustees and the managers of the three subsidiaries. In one of the subsidiaries, the managers were paid trustees. The total employee benefits of the key management personnel of the charity were £100,982 (2020: £102,376).

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

12 Trustee remuneration and expenses, and related party transactions

In accordance with the charity's governing document, the following trustees received remuneration for carrying out the activities of the subsidiaries. No trustee was paid for their work as trustees.

The remuneration of trustees was as follows:

H
e
l
e
n
C
h
r
i
s
 W
a
l
s
h		 W
o
o
d
c
o
c
k
Employed by The Kindling The Kindling
Trust Ltd Trust Ltd
Gross pay 16,664 16,090
Pension contributions 1,700 1,307
Reimbursed expenses 925 -

Apart from the above, neither the trustees nor any persons connected with them received any remuneration or reimbursed expenses during the year.

Chris Walsh and Helen Woodcock were directors of Veg Box People Limited. During the year, The Kindling Trust Limited made sales of £4,485 (2020: £1,150) to Veg Box People Limited, and Veg Box People Limited made sales of £2,283 (2020: £3,375) to The Kindling Trust Limited. Fairfield Environmental Services Limited made sales of £14,000 to Veg Box People Limited. All these sales were on

Fairfield Environment Trust made a loan of £15,000 (2019: £15,000) to its wholly owned subsidiary Bridge 5 Mill Limited. This loan is unsecured, interest free, and has no fixed repayment date.

Fairfield Environmental Trust hold a £40,000 (2020: nil) equity investment in Kindling Farm Limited, a community benefit society. A £5,000 (2020: nil) investment in Kindling Farm Limited is held by the The Kindling Trust Limited. Chris Walsh and Helen Woodcock are directors of Kindling Farm Limited.

Apart from the above, no trustee or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, during the year (2020: nil).

13 Corporation tax

The charity is exempt from tax on income and gains falling within Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

The charity's trading subsidiaries gift aid available profits to the parent charity. No tax charges arose in the subsidiary companies.

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

14 Fixed assets: tangible assets

----- Start of picture text -----
The group Plant and Land and
Vehicles equipment buildings Total
£ £ £ £
Cost
At 1 June 2020 47,961 217,161 473,374 738,496
Additions 14,000 26,611 - 40,611
Disposals (9,321) (3,766) - (13,087)
At 31 May 2021 52,640 240,006 473,374 766,020
Depreciation
At 1 June 2020 38,207 125,691 17,850 181,748
Charge for the year 6,977 37,045 3,855 47,877
Disposals (9,321) (3,766) - (13,087)
At 31 May 2021 35,863 158,970 21,705 216,538
Net book value
At 31 May 2021 16,777 81,036 451,669 549,482
At 31 May 2020 9,754 91,470 455,524 556,748
----- End of picture text -----

Net book value of group plant and equipment subject to hire purchase agreements was £56,227 (2020: £75,307).

Plant and equipment with net book value £20,637 was sold after the year end for £36,000, following the discontinuation of the Manchester Markets contract.

a
r
i
t
y
ns
c
i
a
t
i
o
n
for the year

o
k
v
a
l
u
e
ne 2020
May 2021
ne 2020
May 2021
May 2021
May 2020		 Vehicles
£
36,940
-
36,940
27,188
4,877
32,065
4,875
9,752		 Plant and
equipment
£
72,472
20,790
93,262
53,119
17,983
71,102
22,160
19,353		 Land and
buildings
£
473,374
-
473,374
17,850
3,855
21,705
451,669
455,524		 £
582,786
20,790
603,576
98,157
26,715
124,872
478,704
484,629
Total

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

15 Investments

ost at the end of the year
hare in Fairfield Environmental
ervices Limited
hare in Bridge 5 Mill Limited
indling Farm Limited		 2021
£
-
-
45,000
45,000
T
h
e
g
 2020
£
-
-
-
-
r
o
u
p		 2021
£
1
1
40,000
40,002
T
h
e
c
 2020
£
1
1
-
2

a
r
i
t
y

All investments are stated at cost.

The shares in Fairfield Environment Services Limited and Bridge 5 Mill Limited confer 100% ownership on the parent charity.

Kindling Farm Limited is a programme related investment. The shares are society shares and are not transferable but may be repaid. They give the charity only an insiginficant voting power at the AGM of Kindling Farm Limited.

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

16 Subsidiary undertakings

The Charitable company owns the whole of the issued ordinary share capital of Fairfield Environmental Services Limited and Bridge 5 Mill Limited. It is also the sole guarantee member of The Kindling Trust Limited. All three subsidiary companies are registered in England.

Available profits are gift aided to the charitable company. A summary of the results of the subsidiaries is shown below:

----- Start of picture text -----
Company number 7865231 Company number 6136029 Company number 10111644
Fairfield Environmental Services
Limited The Kindling Trust Limited Bridge 5 Mill Limited
2021 2020 2021 2020 2021 2020
£ £ £ £ £ £
Profit and loss account
Turnover 1,098,506 1,103,549 297,649 173,599 86,806 173,860
Expenditure (1,111,188) (1,069,134) (211,959) (168,212) (77,037) (150,405)
Donation to parent charity - - - - (27,895) (8,427)
Net profit £ (12,682) £ 34,415 £ 85,690 £ 5,387 £ (18,126) £ 15,028
Balance sheet
Fixed assets 24,398 58,450 49,891 11,172 1,489 2,496
Current assets 117,491 157,853 214,858 114,281 72,595 45,315
Creditors due in less than one year (153,878) (156,053) (66,207) (12,601) (12,645) (9,798)
Owed to parent (due in less than one
year) (6,182) (45,996) - - (15,000) (15,000)
Creditors due in more than one year (25,370) (45,113) - - (41,552) -
(£43,541) (£30,859) £198,542 £112,852 £4,887 £23,013
Called up share capital 1 1 - - 1 1
Profit and loss account (43,542) (30,860) 198,542 112,582 4,886 23,012
(£43,541) (£30,859) £198,542 £112,582 £4,887 £23,013
----- End of picture text -----

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

17 Parent charity

The parent charity's gross income and the results for the year are as follows:

----- Start of picture text -----
2021 2020
£ £
Gross income 163,893 45,977
(Deficit)/Surplus for the year (10,785) (22,245)
18 Stock
The group The charity
2021 2020 2021 2020
£ £ £ £
Stock of goods held for resale 570 570 - -
Stock of trees to be donated or sold 2,096 - - -
2,666 570 - -
19 Debtors
The group The charity
2021 2020 2021 2020
£ £ £ £
Trade debtors 27,189 20,102 1,000 -
Loans to subsidiaries - - 21,182 60,996
Other debtors 2,632 605 2,331 416
Prepayments and accrued income 13,348 10,533 - 1,481
43,169 31,240 24,513 62,893
----- End of picture text -----

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

20 Creditors: amounts falling due within one year

----- Start of picture text -----
The group The charity
2021 2020 2021 2020
£ £ £ £
Trade creditors 84,572 44,812 3,156 60
Accruals 74,559 74,062 5,000 5,000
Other creditors 5,286 5,099 - -
Taxation and social security costs 39,068 34,664 - -
Hire purchase creditor 19,743 18,161 - -
Pension contributions 8,594 5,180 - -
231,822 181,978 8,156 5,060
21 Creditors: amounts falling after more than one year
The group The charity
2021 2020 2021 2020
£ £ £ £
Hire purchase creditors 25,370 45,113 - -
Bounce back loan 41,552
66,922 45,113 - -
The bank loan is unsecured. The amount repayable in instalments after more than five years is £8,008.
22 Analysis of movements in group restricted funds
Balance at
1 June Balance at 31
2020 Income Expenditure Transfers May 2021
£ £ £ £ £
Sustainable food production
The Green Recovery
Challenge Fund 107,850 (74,306) 33,544
Joseph Rowntree
Charitable Trust - 40,000 (35,999) 4,001
Postocde Local Trust - 19,962 19,962
The Big Lottery -
Reaching
Communities 62,335 85,155 (76,573) - 70,917
Founding Supporters 16,465 2,868 - 19,333
Landworkers'
Alliance 1,625 - - 1,625
Unicorn Grocery 4,000 4,000 - - 8,000
Total 84,425 259,835 (186,878) - 157,382
----- End of picture text -----

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

Analysis of movements in restricted funds - comparative period

Balance at
1 June
2019
£
t
a
i
n
a
b
l
e
f
o
o
d
p
r
o
d
u
c
t
i
o
n
124
894
2,236
(353)
3,357
999
54,741
14,095
-
-
-
al
76,093
nding Supporters
dworkers'
corn Grocery
field Weston
ndation
eph Rowntree
ritable Trust
ckport MBC social
scribing
ards for All
tcode Local Trust
Big Lottery -
ching
mmunities
ding Stockport
wing Livelihoods		 Balance at
1 June
2019
£
t
a
i
n
a
b
l
e
f
o
o
d
p
r
o
d
u
c
t
i
o
n
124
894
2,236
(353)
3,357
999
54,741
14,095
-
-
-
al
76,093
nding Supporters
dworkers'
corn Grocery
field Weston
ndation
eph Rowntree
ritable Trust
ckport MBC social
scribing
ards for All
tcode Local Trust
Big Lottery -
ching
mmunities
ding Stockport
wing Livelihoods		 Balance at
1 June
2019
£
t
a
i
n
a
b
l
e
f
o
o
d
p
r
o
d
u
c
t
i
o
n
124
894
2,236
(353)
3,357
999
54,741
14,095
-
-
-
al
76,093
nding Supporters
dworkers'
corn Grocery
field Weston
ndation
eph Rowntree
ritable Trust
ckport MBC social
scribing
ards for All
tcode Local Trust
Big Lottery -
ching
mmunities
ding Stockport
wing Livelihoods		 Balance at
1 June
2019
£
t
a
i
n
a
b
l
e
f
o
o
d
p
r
o
d
u
c
t
i
o
n
124
894
2,236
(353)
3,357
999
54,741
14,095
-
-
-
al
76,093
nding Supporters
dworkers'
corn Grocery
field Weston
ndation
eph Rowntree
ritable Trust
ckport MBC social
scribing
ards for All
tcode Local Trust
Big Lottery -
ching
mmunities
ding Stockport
wing Livelihoods		 Income
£
-
-
25,142
-
-
-
90,306
2,383
1,625
4,000
25,000
148,456		 Expenditure
£
-
-
(28,699)
-
(3,667)
(3,158)
(82,712)
(13)
-
-
(25,009)
(143,258)		 Transfers
£
(124)
(894)
1,321
353
310
2,159
-
-
-
-
9
3,134		 Balance at 1
June 2020
£
-
-
-
-
-
-
62,335
16,465
1,625
4,000
-
84,425
t
a
i
n
a
b
l
 e
f
o
o
d
 p
r
o
d		 u
c
al
nding Supporters
dworkers'
corn Grocery
field Weston
ndation
eph Rowntree
ritable Trust
ckport MBC social
scribing
ards for All
tcode Local Trust
Big Lottery -
ching
mmunities
ding Stockport
wing Livelihoods

Name of

restricted fund Description, nature and purposes of the fund Feeding Stockport A grant from the Soil Association as part of the national Sustainable Food Cities programme to run a series of educational and community engagement events. Growing Livelihoods The end part of a grant from the Carnegie Trust UK for Kindling to engage people in their FarmStart programme

The Green Recovery to engage communities in sustainable food and farming and work with them to Challenge Fund graft and plant 12,000 heritage fruit trees; to establish a pioneering fruit tree nursery of heritage varieties for the Northwest; and to enhance wildlife habitats on the site.

Joseph Rowntree Joseph Rowntree Charitable Trust funded the Kindling Trust from their Charitable trust Sustainable Futures strand, for a contribution to core costs. Land Army Remaining funding granted to us by Unicorn Grocery Co-operative's 1% fund to run our volunteering days to support our new organic growers on our FarmStart training programme

Postocde Local Trust To engage the community in their work to establish Kindling Farm

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Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

Awards for All Social prescribing programme Postcode Local Trust Establishing sustainable and fair food system The Big Lottery - Establishing sustainable and fair food system Reaching Communities Stockport MBC social The last part of a grant for Kindling to pilot a social prescribing programme prescribing (centred around growing veg, cooking and sharing a meal as group) with referrals from local GPs in Stockport

Founding Supporters Founding Supporters are individuals that make donations to Kindling Trust to support the development of the future Kindling Farm. Landworkers' towards farm incubator network project Alliance Unicorn Grocery for establishing a packing area at FarmStart project Garfield Weston for core costs Woodbank Community Food Hub Foundation

23 Analysis of movement in group unrestricted funds

eneral fund
esignated property
ssets fund
eneral fund
esignated property
ssets fund		 Balance at
1 June
2020
£
131,268
492,900
624,168
Balance
at 1 June
2019
£
1,805
598,110
599,915		 Income
£
1,149,594
-
1,149,594
Income
£
1,191,483
-
1,191,483		 Expenditure
£
(1,178,451)
-
(1,178,451)
Expenditure
£
(1,164,096)
-
(1,164,096)		 Transfers
£
(11,469)
11,469
-
Transfers
£
102,076
(105,210)
(3,134)		 As at 31 May
2021
£
90,942
504,369
595,311
As at 1 June
2020
£
131,268
492,900
624,168

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Doc ID: 814966853aef95afda392bdb84edad04038db123

Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

Name of Description, nature and purposes of the fund

General fund The free reserves after allowing for all designated funds Designated property The fixed assets, net of related hire purchase liabilities, are essential for the assets fund future operation of the charity and so are excluded from free reserves.

24 Analysis of group net assets between funds

----- Start of picture text -----
Current reporting period
General Designated Restricted
fund funds funds Total
£ £ £ £
Tangible fixed assets 45,113 504,369 - 549,482
Net current assets/(liabilities) 67,751 - 157,382 225,133
Creditors of more than one year (66,922) - - (66,922)
Total 90,942 504,369 157,382 752,693
Previous reporting period
General Designated Restricted
fund funds funds Total
£ £ £ £
Tangible fixed assets 556,748 - - 556,748
Net current assets/(liabilities) 217,743 (105,210) 84,425 196,958
Creditors of more than one year (45,113) - - (45,113)
Total 729,378 (105,210) 84,425 708,593
----- End of picture text -----

25 Operating lease commitments

The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

ss than one year
e to five years		 2021
2020
£
£
-
76,364
-
-
-
76,364
Property		 2021
2020
£
£
27,212
27,212
40,818
68,030
68,030
95,242
Equipment

Agreement was reached in December 2021 to novate all equipment held under the existing operating lease agreement to the new Manchester Markets contractor - see note 28.

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Doc ID: 814966853aef95afda392bdb84edad04038db123

Fairfield Environment Trust

Notes to the accounts for the year ended 31 May 2021 (continued)

The charity had no commitments under non-cancellable operating leases.

26 Contingent liability

Bridge 5 Mill is currently subject to a compensation claim following an incident at the building. The subsidiary has agreed to the claim, and is currently waiting for a final determination of the compensation amount, currently estimated at £30,000. The Bridge 5 Mill board expect the cost of the compensation to be covered by the subsidiary's insurance policy.

----- Start of picture text -----
2021 2020
£ £
Net income/(expenditure) for the year 44,100 32,585
Adjustments for:
Depreciation charge 47,877 47,188
Loss/(profit) on sale of fixed assets
Dividends, interest and rents from investments (8) -
Decrease/(increase) in stock (2,096) 267
Decrease/(increase) in debtors (11,929) 26,489
Increase/(decrease) in creditors 49,844 1,121
Net cash provided by/(used in) operating
activities 127,788 107,650
----- End of picture text -----

28 Post Balance Sheet Events

After the end of the period the subsidiary company Fairfield Environmental Services Limited was informed that it had not won the tender for the waste management services at Manchester Markets. The current contract finished in January 2022.

The company has little other business activity and it is possible that the company will cease trading.

The staff were transferred to the successful bidder ander a TUPE arranagement. The company and parent charity has been able to dispose of assets used for this business, and has novated the contract for leased equipment. There is therefore little immediate financial impact on the charity or the group. The cessation of this subsidiary will not affect the ability of the charity or the group to continue as a going concern.

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Doc ID: 814966853aef95afda392bdb84edad04038db123