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2021-06-30-accounts

Charity Registration No. 1155783

SOFEA

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

SOFEA

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A Camoenie (Appointed 8 October 2020)
R Fielding
B Grenville-Jones
G S John (Appointed 19 November 2020)
E Paris
B Threadgold
Charity number 1155783
Registered office Unit 1E
Trident Business Park
Didcot
Oxfordshire
OX11 7HJ
Auditor Richardsons
30 Upper High Street
Thame
Oxfordshire
OX9 3EZ
Bankers National Westminster Bank Plc.
11 Market Place
Abigdon
Oxfordshire
OX14 3HH

SOFEA

CONTENTS

Page
Trustees' report 1 - 9
Statement of trustees' responsibilities 10
Independent auditor's report 11 - 13
Statement of financial activities 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 25

SOFEA

TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2021

The trustees present their report and financial statements for the year ended 30 June 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The charity's objectives are the relief of poverty and need in particular by the provision of food and the advancement of education and training , the relief of unemployment in particular by providing training and resources for those seeking work and by working with employers to address recruitment and unemployment issues. There has been no change in these during the year.

The main activities undertaken in relation to those purposes during the year.

  1. An education programme , for young people aged between 16 and 25, with three strands:

  2. An employability pathway building from work experience to full time employment, through our purpose projects including our FareShare operation.

  3. A study programme building from entry level to level three qualifications, and including GCSEs in Maths and English.

  4. A wellbeing programme incorporating profound behavioural change, mental health support, physical exercise, healthy relationships, extra curricular activit ies and working with families.

  5. Employability programmes for those most marginalised in the labour market:

Programmes designed to develop the generic employability skills of communication, teamwork and self management, with additional practical and behavioural support, in order to better equip people of all ages who are marginalised in the labour market to get and retain work.

3. Mental health support and social prescribing:

Non clinical programmes of support for people of all ages, with Oxford Health and Didcot Primary Care Network, including Children and Adolescents Mental Health Services for young people aged up to 18, Mental Wealth Academy for young people aged between 16 and 25 and Social Prescribing for all ages.

4. Intervention Programmes

Working with Thames Valley Police to provide intervention programmes which reduce the risk of exclusion and engage young people aged up to 25 in positive activities.

5. Provision of food to partner organisations

Working with our partners at FareShare UK, SOFEA redistributes surplus food to not for profit organisations serving vulnerable people.

6. Community Larders

Using surplus food, SOFEA runs 24 Community Larders, providing food to individuals and families for a subscription fee. Food acts as the hook, bringing people to a community setting once a week, at which they are able to access a range of other services, such as digital literacy, debt advice, social prescribing and cooking skills.

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

SOFEA

Activities to further the purpose for the public benefit

Throughout the year we have made adjustments to our activities as rules relating to the pandemic changed.

In September we began our education programme at offsite locations in order to maintain bubbles while we adapted our own facilities. We brought young people back onto site in November having made the adjustments and then switched to online learning and telephone support through the lockdown period between January and March, with learners finally returning to site in March for the end of the academic year.

We maintained our wellbeing, mental health and social prescribing activities online, returning to face to face provision, or a mixed model as restrictions eased.

Some of our employability provision continued face to face, but with limited numbers.

As the need for emergency food provision subsided following the initial lockdown in early 2020, we adapted our model, providing food to communities on a more sustainable basis. For much of the year we were assisted by access to food purchased through DEFRA, to supplement the surplus food.

We ceased providing emergency food boxes on September 1 st 2020, returning to our model with two main strands. Providing food to other organisations who support vulnerable people, as these services opened back up and our Community Larder model.

The trustees have had regard to the Charity Commission's guidance on public benefit in managing the activities of the charity.

Short term and long term aims and objectives

SOFEA will bring together what we have learnt into a coherent whole, which aims to enable the transformation of people’s lives, and their communities, being more than the sum of our parts and using the convening power of food as a means to bigger ends – the cornerstone in providing physical and emotional nourishment, transformation opportunities and community connections.

Long term strategy and objectives

SOFEA’s long term strategy is to build robust programmes, with demonstrable outcomes, that can be pitched to grant makers, local authorities and others to support the organisation’s theory of change by taking an early intervention approach to:

Empowering people to mitigate the effects of poverty – through:

Influencing the policy environment, so that fewer people are left behind – through:

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Key objectives for the next 12 months Food

Education/ Employability/ Wellbeing

Partnerships

Internal

Strategies to achieve the aims and objectives in the future

The strategies that we deploy ensure that we enable and support people to make a deep connection with themselves and their community so that they can fulfil their potential, these include:

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Activities contributing to the achievement of aims in the year

The development of our programmes in Milton Keynes, which opened in October 2019, has enabled us to achieve much more in 2020/21. The food operation now distributes 100 tonnes of food a month, the local authority is supporting the growth of the Community Larder, programmes for young people continue to develop and expand.

The Didcot site has undergone significant redevelopment. The food operation has moved into a bigger unit, with increased storage and chiller capacity. We are in the process of developing the original unit as a learning and wellbeing hub, to enable us to develop our programmes and work with more people.

Our strategic partnership with Thames Valley Police has developed in the year, with SOFEA as a lead partner in the ‘hub’ created to triage the needs of high risk young people. This is an approach the problem solving team in South Oxfordshire have picked up and we are now developing the same model.

We have begun working with partners on the Getting Oxfordshire Online project, aiming to close the digital divide, by providing those without access refurbished devices, support and training.

Contribution of volunteers

Through the year, 200 volunteers have supported us, many initially on the furlough scheme were supporting our emergency food box scheme. Many of those volunteers have stayed on and become regular volunteers.

We have also provided many volunteering opportunities for job seekers; improving their work experience and confidence before reengaging with the labour market.

Volunteers have given up their time to provide a great deal of support in functions such as delivery driving, administration, marketing, logistics support and social media.

The roles that volunteers have contributed to include:

Trustees, Van drivers, Warehouse operatives, Administrative operatives, Fundraising, Marketing, Classroom support, Volunteer coordination.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Achievements and performance Fundraising activities

Our fundraising team, consisting of a strategic fundraising manager and a small grants fundraising officer have worked hard throughout the year to ensure that funds applied for and received meet the strategic needs of the organisations and its beneficiaries.

Difference made to beneficiaries

The education, training and wellbeing programmes have had a profound effect on the people participating, not withstanding the impact of Covid.

A total of over 350 people have been supported through one or more of our programmes this year. A further 40 staff (20 on the Kickstart programme) who have faced barriers to their employment continue to receive support related to their learning difficulties, mental health or personal circumstances.

54 young people completed our Study Progamme, passing 119 qualifications including English and Maths, with a success rate of over 85%.

42 have progressed to education or employment, we continue to support the rest to do so.

The biggest impact of the training programme however is in the attitudes and mindsets of participants. Our feedback suggests we have a major and lasting impact on the participants. They report a 33% rise in their general wellbeing and anecdotal evidence suggests profound change in individuals.

We have redistributed 2,000 tonnes of food during the year to over 200 organisations, including many as an emergency response to Covid.

Organisations we work with report reduced costs and improved quality of food, enabling them to continue and improve their service to their users.

Our Community Larders have 1,700 members receiving food and other support each week.

Benefit to wider society

-Our work with Thames Valley Police has meant that the risk of exclusion to the young people participating is much lower.

-Our social prescribers have supported 54 people, reducing their reliance on their GP and other health provision.

-Our CAMHS and Mental Wealth Academy work have helped to reduce waiting lists for mental health services and prevented some young people from entering these services.

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

The wider benefit of society is to enable people to transform their lives, by helping secure their basic needs, then enabling them to move forward and ultimately to self actualise through access to work and education.

The cost savings to statutory services, the contributions made through the tax system and the benefits to community cohesion are all evident.

An illustration of this is the work done by our food operations team of 27 young people throughout the pandemic. Our food operations team has an average age of 22, all came to SOFEA facing barriers to their progression and participated in our education, employability and wellbeing programmes. They progressed into employment with SOFEA and have been instrumental in ensuring that 2,000 tonnes of food was distributed to those in need.

Financial review

It is the policy of the charity to move to a position where unrestricted funds which have not been designated for a specific use should be maintained at a level sufficient to ensure that the charity can continue to operate should some or all of its income cease, or to properly discharge its duties in closing the charity.

The sum set aside for this purpose is £225,000.The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised, or operations changed to manage the shortfall.

The charity, SOFEA, recognises the need for a Reserves Policy to ensure the stability of the mission, programmes, employment, and ongoing operations of the organisation. The Reserve is intended to provide an internal source of funds for situations such as one-time unbudgeted expenses, unanticipated loss or delays in funding or uninsured losses. In addition to the sum set aside to ensure continued operations, additional funds have been set aside as a reserve for one-time, non-recurring expenses that will build long term capacity, such as investment in infrastructure or staff development. The Reserve Policy will be implemented in conjunction with the other governance and financial policies of SOFEA and is intended to support the strategies and goals contained in related policies.

Definitions and Goals:

The Reserve Fund is defined as a designated fund set aside by action of the Board of Trustees. The minimum amount to be designated as Reserve, will be established in an amount sufficient to maintain ongoing operations and programmes for a set period. The Reserve serves a dynamic and changing role and will be reviewed and adjusted in response to internal and external changes. The target minimum Reserve Fund includes all recurring, predictable expenses such as salaries, occupancy, administration and running costs of motor vehicles. Depreciation and other non-cash expenses are not included in the calculation. The amount of the Reserve Fund target minimum will be calculated each year after approval of the annual budgets.

Funding of Reserves:

The Reserve Fund will be funded with surplus unrestricted operating funds. The Board of Trustees may from time to time direct that a specific source of revenue may be set aside for Operating Reserves, such as one-time gifts, special grants, or special appeals.

Reporting and Monitoring:

The CEO is responsible for ensuring that the Reserve Fund is maintained and used only as described in the policy. After approval if required on the use of the Reserve Fund, the CEO will maintain records of use and plan for replenishment. The CEO will provide regular reports to the Finance and Risk Committee of progress to restore the Fund to the target minimum amount.

Review of Policy:

This policy will be reviewed every year by the Finance and Risk Committee, or sooner if warranted by internal or external events or changes. Changes to the policy will be recommended by the Finance and Risk Committee to the Board of Trustees.

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Principal sources of funding

Contract Income - 666,176

Donations - 123,349

Grant Income - 890,042 Kickstart subsidy - 27,660 Other Revenue - 11,517

Community Food Members - 201,004

Community Larder - 173,398

Interest Income - 64

Total Income - 2,093,210

The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Factors likely to affect future financial performance

SOFEA’s Board has developed a detailed risk register, which highlights the potential risks to the organisation and the mitigating actions it is taking. We have highlighted the following areas as potential sources of risk:

Safeguarding

SOFEA works with vulnerable young people and at any particular time a number are likely to be involved in child protection/ safeguarding cases. In 2020/21 we had no safeguarding issues arising at SOFEA, but we were involved in the wider cases of several young people.

Going concern/Business Continuity

In the context of a growing organisation and the effects of the pandemic, we will need to have continued regard for business continuity and ensure that our financial controls are strong.

Compliance

We work in two highly regulated areas – with young people and with food. In addition, new data protection rules mean we need to ensure our compliance procedures continue to be robust.

Management Structure

As we grow our staffing requirements will change and we will need to ensure that the management capacity is matched to the size and complexity of the organisation.

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Plans For the Future

The strategy for the next 12 months

We will reconfigure the education and wellbeing programmes as an early intervention model, providing a complete service for people (especially young people).

We will place specific emphasis on wellbeing and employability, while maintaining a strong component of formal education.

We will grow the larders, including the quality of the service and the breadth of the offer.

We will build a network of members – Community Food Members, larder partners and members, to create a powerful movement capable of influencing and shaping local policy towards an inclusive economy.

We will build partnerships with other sectors, local authorities and businesses, to ensure that we can have the maximum reach in providing food and other services to those in need.

We will build new social enterprises– digital refurbishment, bicycle maintenance, catering to integrate our early intervention approach.

We will investigate the development of a further site.

We will focus internally on:

Summary of plans for the future and the trustees' perspective of the future direction of the charity.

SOFEA is entering the third phase of its development, bringing together what we have learnt into a coherent whole, which aims to enable the transformation of people’s lives , and their communities, being more than the sum of our parts and using the convening power of food as a means to bigger ends – the cornerstone in providing physical and emotional nourishment, transformation opportunities and community connections.

Our approach to education, employability and wellbeing is enabling us to work in partnership with schools, colleges, the police, local authorities and health services to benefit more people, win contracts and influence the way things are done.

The approach to the redistribution of surplus food to people in need enables us to work more closely with local authorities on their anti poverty agenda. Seeking to use food as a convening tool, meeting people’s basic needs, then focusing on the causes of their need means that SOFEA can play a leading role in getting services to people, especially through our Community Larders.

From Didcot, developing the Getting Oxfordshire Online project to refurbish and distribute digital devices will begin to tackle digital poverty alongside food poverty. The addition of a catering kitchen will enable us to develop an approach to nutrition and diet to complement our other services.

From Milton Keynes we will continue to grow the capacity and will introduce larger scale education, employability and wellbeing programmes with local partners.

In 2020/21 we focused on consolidating the growth of previous years. 2021/22 will see the organisation embark on a growth plan to enable the transformation of more people’s lives in more ways by growing our income by 25% to £2.7 million.

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

Structure, governance and management

The charity is constituted as a Charitable Incorporated Organisation, registered under the Charity Commission in England & Wales and its governing document is a written constitution. The Governing Document is dated 3 December 2013 and was last amended on 16 January 2020.

The trustees who served during the year and up to the date of signature of the financial statements were:

A Camoenie (Appointed 8 October 2020) R Fielding B Grenville-Jones G S John (Appointed 19 November 2020) E Paris E H Prior (Resigned 28 February 2022) R Starer (Resigned 20 January 2022) B Threadgold A Twomey (Resigned 1 October 2021) D J Hunter FCA (Resigned 4 July 2020)

During the year, the Board of Trustees consisted of ten trustees – seven men and three women. We continue to review the skills we require and whether we need to add further to the Board, we are currently requesting a change in our constitution to allow us to expand the number of trustees further.

The organisation has grown significantly in the last twelve months. There are a significant number of new staff and the organisation structure has adapted to meet the current need.

The Board of Trustees has approved a delegated authority policy, which sets out the delegation of decisions to its committees and to the Chief Executive and his management team.

Policies are in place for the induction of new Trustees and opportunities are made available for Trustees to become involved in aspects of the Charity in which they have an interest.

The Trustees have approved a pay policy, pay and remuneration decisions are made in line with this policy.

The trustees' r eport was approved by the Board of Trustees.

.............................. B Grenville-Jones Trustee Dated: ......................... 21/04/2022

SOFEA

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 30 JUNE 2021

The trustees are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SOFEA

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF SOFEA

Opinion

We have audited the financial statements of SOFEA (the ‘charity’) for the year ended 30 June 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charity 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 trustees' 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 charity’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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

SOFEA

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SOFEA

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees 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 charity’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 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 as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 .

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matter s

Your attention is drawn to the fact that the charity has prepared financial statements 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)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

SOFEA

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF SOFEA

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Richardsons Chartered Accountants Statutory Auditor

......................... 21 April 2022 30 Upper High Street Thame Oxfordshire OX9 3EZ

Richardsons is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

SOFEA

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
329,131
684,261
Charitable activities
4
1,055,445
12,793
Investments
5
64
-
Other income
6
10,516
1,000
Total income
1,395,156
698,054
Expenditure on:
Charitable activities
7
1,376,527
727,446
Net income/(expenditure)
for the year/
Net movement in funds
18,629
(29,392)
Fund balances at 1 July
2020
412,251
282,454
Fund balances at 30
June 2021
430,880
253,062		 TotalUnrestricted
funds
2021
2020
£
£
1,013,392
592,507
1,068,238
779,391
64
198
11,516
5,329
2,093,210
1,377,425
2,103,973
1,079,128
(10,763)
298,297
694,705
113,954
683,942
412,251		 Restricted
funds
2020
£
487,502
-
-
-
487,502
412,563
74,939
207,515
282,454		 Total
2020
£
1,080,009
779,391
198
5,329
1,864,927
1,491,691
373,236
321,469
694,705
Donations and legacies
3
Charitable activities
4
Investments
5
Other income
6
Total income
Expenditure on:
Charitable activities
7
Net income/(expenditure)
for the year/
Net movement in funds
Fund balances at 1 July
2020
Fund balances at 30
June 2021

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

SOFEA

BALANCE SHEET

AS AT 30 JUNE 2021

2021
Notes
£
Fixed assets
Tangible assets
12
Current assets
Debtors
13
243,944
Cash at bank and in hand
392,097
636,041
Creditors: amounts falling due within
one year
14
(152,463)
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
Unrestricted funds		 £
200,364
483,578
683,942
253,062
430,880
683,942		 2020
£
96,929
610,059
706,988
(63,543)		 £
51,260
643,445
694,705
282,454
412,251
694,705

The financial statements were approved by the Trustees on ......................... 21/04/2022

.............................. B Grenville-Jones Trustee

SOFEA

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021

2021
Notes
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
18
(47,464)
Investing activities
Purchase of tangible fixed assets
(170,562)
Investment income received
64
Net cash used in investing activities
(170,498)
Net cash used in financing activities
-
Net (decrease)/increase in cash and cash
equivalents
(217,962)
Cash and cash equivalents at beginning of year
610,059
Cash and cash equivalents at end of year
392,097		 2020
£
(18,504)
198		 £
397,819
(18,306)
-
379,513
230,546
610,059

SOFEA

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

Charity information

SOFEA is a Charitable Incorporated Organisation. The principal address is 1E Trident Park Didcot OX11 7HJ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling , which is the functional currency of the charity . Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

(Continued)

Assets for distribution are recognised only when distributed. Assets given for use by the charity are recognised when receivable. Stocks of undistributed donated goods are not valued for balance sheet purposes.

1.5 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 can not be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements 20% reducing balance Plant and equipment 20% reducing balance Fixtures and fittings 20% reducing balance Motor vehicles 20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) .

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity 's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity ’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
25,372
-
Revenue grants
303,759
684,261
329,131
684,261
Grants receivable for
core activities
Revenue grants from
government and public
bodies
31,990
124,126
Revenue grants &
donations from non
public bodies
271,769
560,135
303,759
684,261		 TotalUnrestricted
funds
2021
2020
£
£
25,372
30,143
988,020
562,364
1,013,392
592,507
156,116
126,500
831,904
435,864
988,020
562,364		 Restricted
funds
2020
£
-
487,502
487,502
109,000
378,502
487,502		 Total
2020
£
30,143
1,049,866
1,080,009
235,500
814,366
1,049,866

4 Charitable activities

Community Food Members
Woodworking Project
Community Larder Members
Contract Income
Kickstart
Analysis by fund
Unrestricted funds
Restricted funds		 2021
£
201,004
-
173,398
666,176
27,660
1,068,238
1,055,445
12,793
1,068,238		 2020
£
123,870
170
22,342
633,009
-
779,391
779,391
-
779,391

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

5 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 64 198
Other income
Unrestricted Restricted
Total		 Unrestricted
funds funds funds
2021 2021
2021		 2020
£ £
£		 £
Other income 10,516 1,000
11,516		 5,329

6 Other income

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

7 Charitable activities

Staff costs
Depreciation and impairment
Cleaning and waste management
Interest and penalties
Insurance
Light heat and power
Motor expenses
Printing postage and stationary
IT Software
Rent and Rates
Premises repairs, renewals and maintenance
Equipment
Staff training and welfare
Subscriptions and licenses
Sundry expenses
Telephone, fax and internet
Travel and subsistence
Other charitable expenditure
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds
For the year ended 30 June 2020
Unrestricted funds
Restricted funds		 2021
£
1,249,593
21,457
8,816
1,094
22,739
24,912
66,879
10,807
15,548
152,549
46,825
65,245
315,296
8,253
15,514
8,534
8,704
32,374
2,075,139
28,834
2,103,973
1,376,527
727,446
2,103,973
1,079,128
412,563
1,491,691		 2020
£
792,389
12,037
9,765
1,791
16,677
19,502
32,914
11,071
6,020
136,672
55,192
56,059
253,085
1,290
19,524
5,351
20,545
8,308
1,458,192
33,499
1,491,691
1,079,128
412,563
1,491,691

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

8 Support costs

Audit fees
Legal and professional
Accountancy fees
Analysed between
Charitable activities		 Support
costs
Governance
costs
£
£
-
6,050
-
18,822
-
3,962
-
28,834
-
28,834		 2021
£
6,050
18,822
3,962
28,834
28,834		 Support
costs
Governance
costs
£
£
-
5,000
-
10,247
-
18,252
-
33,499
-
33,499		 2020
£
5,000
10,247
18,252
33,499
33,499

Governance costs includes payments to the auditors of £ 6,050 (2020- £ 5,000 ) for audit fees.

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

10 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Other pension costs		 2021
Number
61
2021
£
1,229,586
20,007
1,249,593		 2020
Number
40
2020
£
780,863
11,526
792,389

11 The contribution of volunteers

The charity had 20 (2020: 20) regular volunteers who donated one day a week (6 hour days) and 150 (2020: 150) corporate volunteer days (6 hour days). Therefore total volunteer hours were 7,140 (2020: 7,140).

In addition to this, in response to COVID-19, there were a further 200 volunteers committing on average one day per week for three months which equates to 14,400 volunteer hours.

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

12
Tangible fixed assets
Leasehold
improvements
Plant and
equipment
Fixtures and
fittings
Motor vehicles
£
£
£
£
Cost
At 1 July 2020
-
91,849
-
4,750
Additions
66,167
48,865
55,530
-
At 30 June 2021
66,167
140,714
55,530
4,750
Depreciation and impairment
At 1 July 2020
-
42,818
-
2,522
Depreciation charged in the year
2,146
13,065
5,801
445
At 30 June 2021
2,146
55,883
5,801
2,967
Carrying amount
At 30 June 2021
64,021
84,831
49,729
1,783
At 30 June 2020
-
49,031
-
2,229
13
Debtors
2021
Amounts falling due within one year:
£
Trade debtors
57,083
Other debtors
76,709
Prepayments and accrued income
110,152
243,944
14
Creditors: amounts falling due within one year
2021
£
Other taxation and social security
26,042
Trade creditors
120,371
Other creditors
-
Accruals and deferred income
6,050
152,463		 Total
£
96,599
170,562
267,161
45,340
21,457
66,797
200,364
51,260
2020
£
28,024
53,093
15,812
96,929
2020
£
15,350
30,607
2,389
15,197
63,543

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2021

15
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 30
June 2021 are
represented by:
Tangible assets
95,073
105,291
Current assets/
(liabilities)
335,807
147,771
430,880
253,062		 TotalUnrestricted
funds
Restricted
funds
2021
2020
2020
£
£
£
200,364
51,260
-
483,578
360,991
282,454
683,942
412,251
282,454		 Total
2020
£
51,260
643,445
694,705

16 Related party transactions

Bernard Grenville-Jones, a trustee, is an Executive Board member of Activate Learning. Contract income totalling £405,762 (2020: £407,182) was received during the year by SOFEA from Activate Learning.

Richard Fielding, a trustee, is a manager at ASDA. Grant income totalling £126,384 (2020: £263,309) was received during the year by SOFEA from ASDA.

17 Key Management Personnel

During the year, the Chief Executive Officer received remuneration of £63,492 (2020: £57,940).

18
Cash generated from operations
2021
£
(Deficit)/surpus for the year
(10,763)
Adjustments for:
Investment income recognised in statement of financial activities
(64)
Depreciation and impairment of tangible fixed assets
21,457
Movements in working capital:
(Increase)/decrease in debtors
(147,014)
Increase in creditors
88,920
Cash (absorbed by)/generated from operations
(47,464)
19
Analysis of changes in net funds
The charity had no debt during the year.		 2020
£
373,236
(198)
12,036
455
12,290
397,819