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2023-06-30-accounts

Charity Registration No. 1155783

SOFEA

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

SOFEA LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A Camoenie
B Grenville-Jones
G S John
B Threadgold
B Shuttleworth (Appointed Oct 2022)
R Ni Cho Oo (Appointed Nov 2022)
R Ellis (Appointed Nov 2022)
S Jamshidifard (Appointed Oct 2022)
Charity number 1155783
Registered office Unit 1E
Trident Business Park
Didcot
Oxfordshire
OX11 7HJ
Auditor Critchleys Audit LLP
23-38 Hythe Bridge Street
Oxford
Oxfordshire
OX1 2EP
Bankers Co-Operative Bank
Business Customer Services
PO Box 250
Skelmersdale
WN8 6WT

SOFEA

CONTENTS

Page
Trustees' report 1 - 10

Statement of trustees' responsibilities		 11

Independent auditor's report		 12 - 14

Statement of financial activities		 15

Balance sheet		 16

Statement of cash flows		 17

Notes to the financial statements











 18- 30

SOFEA

TRUSTEES' REPORT

FOR THE YEAR ENDED 30 JUNE 2023

The trustees present their report and financial statements for the year ended 30 June 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019)

Objectives and activities

The charity's objects 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.

SOFEA enables the transformation of people’s lives, through

1.Education programmes for young people aged between 14 and 25, with three strands:

2.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.

Liaising with local employers to support them in recruiting people from our employability programmes.

3.Mental health, wellbeing and social prescribing support:

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 for young people

Working with Thames Valley Police’s Violence Reduction Unit, to provide high impact mentoring which reduce the risk of exclusion and engage young people.

5.Provision of food to partner organisations

Working with our partners at FareShare UK, SOFEA redistributes surplus food to approximately 150 not for profit organisations serving vulnerable people.

6.Community Larders

Using surplus food, SOFEA runs 32 Community Larders with 3,500 members, providing food to individuals and families for a subscription fee. The convening power of food brings 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.

7.Getting Oxfordshire Online

Working with partners, Aspire and Bicester Green, we have refurbished and distributed over 2,200 digital devices to those in need, enabling them to participate in the digital world more effectively.

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Activities to further the purpose for the public benefit

Our education, employability and wellbeing programmes are all focused on working with disadvantaged people. Programmes are open to all and an assessment is made as to whether SOFEA can meet the needs of the individual.

This means that our education programmes are primarily focused on working with young people who have not successfully progressed through mainstream education, giving them an opportunity to develop knowledge, skills and understanding. As a result participants gain agency that enables them to transform their lives, which in turn enables them to make a net contribution to their community.

Similarly our employability and wellbeing programmes are designed to enable people to overcome the barriers they face, enabling them to transform their lives and move forward productively.

The work we have done for the Violence Reduction Unit, working with Thames Valley Police, has reduced the likelihood of young people being excluded from school. School exclusion has significant negative consequences for the individual and their community, reducing the incidence of exclusion leads to large public benefit.

Our food programmes enable people in need to benefit from the provision of high quality surplus food, reducing their food insecurity and providing access to other services. We distribute food through two channels, the first - to other not for profit organisations who use it to cook for their beneficiaries, thereby providing public benefit to a wider group of people. We also supply food through our Community Larders to individuals and families, this is operated as a membership scheme, providing a basket of groceries for a small subscription. We provide free memberships where individuals or families are not able to afford the fee.

In order to undertake our activities we have a strong staff team, with highly qualified individuals and many with lived experience. We intentionally employ people who face barriers to work and who may not be successful in applications to other employers. Half our staff face or have faced significant barriers to employment.

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

The long-term goal to ‘help people to transform their lives, reducing inequality across the regions in which we operate’ is enabled by the two outcomes in our Theory of Change

Outcome 1 – Empower and equip people

People are empowered to mitigate the worst manifestations of poverty and inequality

Outcome 2 – Change the environment

Policy environment evolves so that it is conducive to the graduation of people out of poverty

In 2023/24 we will:

Long term strategy and objectives

We will continue to enable people to transform their lives through education, employability and wellbeing. We will use the convening power of food to take our expertise from our learning spaces out into our communities. The programmes we deliver will be created and tailored for the specific needs in our communities, with an emphasis on early intervention.

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

By 2025 we will be delivering early interventions that are wanted and needed by the communities in which we operate. They will be at a greater scale than now and either paid for by specific contracts for the purpose or by multiple year awards from larger funders. We will not only deliver these outcomes for our beneficiaries but will be an exemplar for how a well run, inclusive and supportive organisation can deliver them for our staff and volunteers.

By building our delivery and internal successes we will become the leading experts in our field. Not only will we deliver great results for our beneficiaries, we will be able to demonstrate their ongoing success, the benefits we deliver internally and we will be able to show how the SOFEA approach is better than the traditional way of operating. We will aim to be thought leaders sought out for our opinions and counsel by government, academics, the media and other charities in the field.

Key objectives for the next 12 months

Leading partnerships

  1. Create partnerships where they provide a new voice for parts of the community

  2. Be members of key local and regional networks and seek opportunities to chair them

  3. Build and maintain our bilateral relations with key partners

Be a Learning organisation

  1. Every member of the SOFEA Community has a learning plan with development targets

  2. The SOFEA Community will be at least as diverse as the communities it serves

  3. The decision making process of SOFEA will be transparent and inclusive

Be embedded in our communities

  1. Our plan to expand the South Midlands site will be rooted in the needs of the community

  2. Our Larder development will be led by the needs of the communities we serve

  3. Nourish and Flourish will focus its activities on nutrition, diet and wellbeing first in Didcot and then in Bletchley. 4. We will work closely with SOHA on a radical approach to their priority of making their homes carbon neutral

Be seen to be innovative and effective

  1. Our Management Information will be fit for purpose

  2. Our IT will be secure, managed effectively and be an enabler

  3. Our Monitoring and Evaluation will generate a sector leading impact report

  4. Marketing, social media and storytelling will effectively drive the funding pipeline

Be financially sustainable

  1. Create an accurate budget

  2. Grant pipeline is effective – Robust, Intelligent, Qualified 3. Build reserves

Be environmentally sustainable

  1. Conduct an environmental audit on our own operations and create an action plan to reduce our impact

  2. Work with FareShare to establish metrics for environmental impact of reducing food waste

  3. Include environmental sustainability in our curriculum

  4. Engage with SOHA on their proposal for a workforce development programme for the retrofitting of properties to make them more efficient.

  5. 3 -

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Be Safe

  1. Continue to ensure that our approach to Safeguarding is robust

  2. Continue to ensure that our health and safety systems are robust

  3. Continue to ensure our food safety systems are robust

  4. Continue to ensure our data security systems and protection systems are robust

  5. And that we apply a culture of continuous improvement to the above.

Be Diverse

  1. Continue to develop the diversity of the Board, staff, volunteers and beneficiaries of the organisation

  2. Celebrate the areas of diversity in which we are strong

  3. Use the diversity of the organisation to improve its services

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:

− Developing both our sites in Milton Keynes and Didcot to provide breadth and depth of services in high quality aspirational environments.

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Activities contributing to the achievement of aims in the year

The operations that we undertook in 2022-23 to achieve our organizational aims included:

Contribution of volunteers

Through the year over 250 volunteers have supported us. Approximately 52 volunteers have been regular and frequent, while the remainder have provided one or two days each of volunteering throughout the year as part of a corporate volunteering day.

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 and table tennis club.

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 2023

Achievements and performance

Fundraising activities

− In 2022/23 we contracted the services of one strategic fundraising manager. In addition members of the senior team undertook a range of fundraising activities. We 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

Benefit to wider society

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Enabling 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 combined with the cost savings to statutory services, the contributions made through the tax system and the benefits to community cohesion provide a significant benefit to wider society.

Financial review

Income in 2023 (£2,732,939) was very similar to 2022 (£2,745,137), and a s a result of slightly lower overall expenditure the surplus in 2023 was higher (£45,702) than in 2022 (£31, 186). At the end of the year SOFEA had significant fund balances on restricted funds mainly as a result of large capital grants, and this can also be seen in the cash at bank and in hand. The unrestricted fund balance is small and we will address this in 2023/24.

SOFEA saw a rise in income from its Community Larder project and through donations, while income from contracts and grants were slightly lower.

The balance sheet shows an increase in funds from £715,000 to £760,000.

In the circumstances that prevailed through 2022/23 the financial performance of the organisation was strong.

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:

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 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 onetime, 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.

The sum set aside for this purpose is currently set at £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.

Free reserves 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 free reserve is maintained and used only as described in the policy. After approval if required on the use of the free reserve, 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 free reserve 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 2023

Principal sources of funding

Contract Income – £740,343 (2022: £784,003)

Donations – £131,457 (2022: £51,795)

Grant Income – £1,164,809 (2022: £1,314,954)

Other Revenue - £1,253 (2022: £10,890)

Community Food Members - £208,003 (2022: £233,320)

Community Larder – £485,187 (2022: £350,027)

Interest Income – £1,887 (2022: £148)

Total Income - £2,732,939 (2022: £2,745,137)

The trustees would like, in particular, the Albert Gubay Charitable Foundation and Magnox Ltd for providing funding.

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 affecting 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 2022/23 we had no safeguarding issues arising at SOFEA, but we were involved in the wider cases of several young people.

Operational resilience

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

Our model requires a significant proportion of our funds to come from grants. Our ability to continue to gain income from this source, and its sustainability, will to some extent determine our success in the future. 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 organization.

Data Protection and Cyber Security

We continue to improve our systems and approaches to both data protection and cyber security, as we recognise the significant risk in this area.

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.

SOFEA

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Plans For the Future

SOFEA will continue to grow. It will do this by:

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

SOFEA enables people to transform their lives. Our aim is to enable more people transform their lives in more ways. To do this we will continue to grow our existing programmes in existing locations, develop existing programmes in new locations and develop new programmes.

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 R Fielding (Resigned December 2022) B Grenville-Jones G S John E Paris (also known as E Ogilvie-Smith) (Resigned April 2023) B Threadgold B Shuttleworth (Appointed October 2022)) R Ellis (Appointed November 2022) R Ni Cho Oo (Appointed November 2022) S Jamshidifard (Appointed October 2022)

During the year, the Board of Trustees consisted of up to ten trustees – seven men and three women. At June 30[th] 2023 the Board consisted of eight Trustees, six men and two women. We continue to review the skills we require and whether we need to add further to the Board.

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

SOFEA

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2023

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' report was approved by the Board of Trustees.

.............................. B Grenville-Jones Trustee Dated: .........................27 July 2023

SOFEA

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 30 JUNE 2023

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

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

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

− select suitable accounting policies and then apply them consistently;

− observe the methods and principles in the Charities SORP;

− make judgements and estimates that are reasonable and prudent;

− state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

− prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

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

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 2023 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).

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 statement of trustees' responsibilities, 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

SOFEA

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF SOFEA

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Other matters

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.

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.

Katherine Wilkes (Senior Statutory Auditor) For and on behalf of Critchleys Audit LLP

20/11/23 .........................

Chartered Accountants

Statutory Auditor

23-38 Hythe Bridge Street Oxford Oxfordshire OX1 2EP

SOFEA

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 30 JUNE 2023

Unrestricted
Restricted
funds
funds
2023
2023
Notes
£
£
Income from
Donations and legacies
3
522,964
773,302
Charitable activities
4
1,433,533
-
Investments
5
1887
-
Other income
6
1,169
84
Total income
1,959,553
773,386
Expenditure on
Charitable activities
7
2,102,305
584,932
Net income/(expenditure)
for the year/
Net movement in funds
(142,752)
188,454
Fund balances at 1 July
2022
181,770
533,358
Fund balances at 30
June 2023
39,018
721,812		 TotalUnrestricted
funds
2023
2022
£
£
1,296,266
420,875
1,433,533
1,363,350
1887
148
1,253
10,890
2,732,939
1,795,263
2,687,237
2,044,373
45,702
(249,110)
715,128
430,880
760,830
181,770		 Restricted
Total
funds
2022
2022
£
£
945,874
1,366,749
4,000
1,367,350
-
148
-
10,890
949,874
2,745,137
669,578
2,713,951
280,296
31,186
253,062
683,942
533,358
715,128

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 2023

2023
Notes
£
Fixed assets
Intangible assets12
Tangible assets
13
Current assets
Debtors
14
259,918
Cash at bank and in hand
712,744
972,662
Creditors: amounts falling due within
one year
15
(656,926)
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
Unrestricted funds		 2022
£
£
48,645
396,449
541,082
152,119
693,201
(410,805)
315,736
760,830
721,812
39,018
760,830		 £
49,470
383,262
282,396
715,128
533,358
181,770
715,128

The financial statements were approved by the Trustees on ......................... 27 July 2023

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

SOFEA

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2023

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
20
Operations
Investing activities
Purchase of intangible & tangible fixed assets
Investment income received
Net cash used in investing activities
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2023
2022
£
£
£
647,201
(88,308)
(301,318)
1,732
148
(86,576)
-
560,625
152,119
712,744		 2023
2022
£
£
£
647,201
(88,308)
(301,318)
1,732
148
(86,576)
-
560,625
152,119
712,744		 2023
2022
£
£
£
647,201
(88,308)
(301,318)
1,732
148
(86,576)
-
560,625
152,119
712,744		 £
61,192
(301,170)
-



560,625 (329,978)
152,119 392,097
712,744 152,119

SOFEA

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

1 Accounting policies

Charity information

SOFEA is a Charitable Incorporated Organisation incorporated in England and Wales. 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 2019). 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 amounts 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 as there are no material uncertainties about the charity’s ability to continue.

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 2023

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 15- 23% reducing balance Plant and equipment 20% reducing balance Fixtures and fittings 20% reducing balance Motor vehicles 20% reducing balance Intangible asset 10% 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 2023

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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derecognition of financial liabilities

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

1.10 Employee benefits

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

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

1.11 Retirement benefits

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

1.12 Donated goods

Donated goods received relate to highly perishable food items with little to no resale value. The goods are not recognised within the accounts as it is difficult to measure the fair value of the items. Only goods purchased are accounted for within the accounts at cost.

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

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.

Fixed asset depreciation

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. Calculation of depreciation requires judgements to be made, which include the useful economic lives of fixed assets held. Depreciation and impairment for the year was calculated to be £75,546 (2022: £68,950).

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

3 Donations and legacies

Donations and gifts
Revenue grants
Grants receivable for
core activities
Revenue grants from
government and public
bodies
Revenue grants &
donations from non
public bodies
4
Charitable activities
Community Food
Membership income
Community Larder
Membership income
Contract Income
Analysis by fund
Unrestricted funds
Restricted funds		 Unrestricted
funds
2023
£
131,457
391,507
522,964
60,646
330,861
391,507		 Restricted
funds
2023
£
-
773,302
773,302
466,364
306,938
773,302		 Total
2023
£
131,457
1,164,809
1,296,266
527,010
637,799
1,164,809		 Unrestricted
funds
2022
£
48,795
372,080
420,875
121,254
250,826
372,080		 Restricted
funds
2022
£
3,000
942,874
945,874
363,053
579,821
942,874
2023
£
208,003
485,187
740,343
1,433,533
1,433,533
-
1,433,533		 Total
2022
£
51,795
1,314,954
1,366,749
484,307
830,647
1,314,954
2022
£
233,320
350,027
784,003
1,367,350
1,363,350
4,000
1,367,350

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

5 Investments

Interest receivable
6
Other income
Unrestricted
Restricted
funds
funds
2023
£
2023
£
Consultancy & service income
1,169
84		 Unrestricted
funds
2023
£
1,887
Total
2023
£
1,253		 Unrestricted
funds
2022
£
148
Unrestricted
funds
2022
£
10,890

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

7 Charitable activities

Staff costs
Volunteer costs
Motor Vehicle costs
Programme costs
Facilities costs
Technology costs
Office costs
Human Resource costs
Finance costs
Advertising & Marketing costs
Depreciation & impairment
Provision for Dilapidation
General costs/ bad debt
Irrecoverable VAT
Share of support & governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds		 2023
£
1,721,456
373
130,963
55,304
248,185
25,296
11,806
39,983
19,300
29,288

75,546
-
2,000
50,063
2,409,563
277,674
2,687,237
2,102,305
584,932
2,687,237		 2022
£
1,804,299
481
126,460
35,679
179,914
24,494
12,264
29,850
10,373
6,173
68,950
25,000
1,427
157,735
2,483,099
230,852
2,713,951
2,044,373
669,578
2,713,951

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

8 Support costs

Support costs
Audit fees
Legal and professional
Professional
fees/salary
Analysed between
Charitable activities		 Support
costs
£
-
-
245,124
245,124
245,124		 Governance
costs
£
8,300
650
23,600
32,550
32,550		 2023
£
8,300
650
268,724
277,674
277,674		 Support
costs
£
-
-
216,820
216,820
216,820		 Governance
costs
£
7,500
2,698
3,834
14,032
14,032		 2022
£
7,500
2,698
220,654
230,852
230,852

Governance costs include payments to the auditors of £8,300 (2022- £7,500) 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.

One trustee received expenses of £165 for the train fare to attend safeguarding training, Strategy meeting, Didcot and MK visit. (2022: £443)

No Trustees received remuneration from the Charity this year (2022: None).

10 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Employer NI
Employer Pension		 2023
Number
70
2023
£
1,508,072
123,551
28,497
1,660,120		 2022
Number
86
2022
£
1,588,030
116,445
26,899
1,731,374

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

One employee (excluding the Trustees) during the year whose gross pay and benefit (excluding employer NI and pension contributions) fell within the following bands was:

2023 2022
Number Number
£60,001 - £70,000 1 1

11 The contribution of volunteers

The charity had 52 (2022:30) regular volunteers who donated at least one day (up to 5 days) a week (6 hour days) and 200 (2022: 200) corporate volunteers, committing at least 1 day (6 hour days).

Total volunteer hours were slightly lower than the previous year at 9,000 hours (2022:10,000), as some regular volunteers reduced their commitment.

12 Intangible fixed assets


Cost
At 1 July 2022
Additions
At 30 June 2023
Amortisation
At 1 July 2022
Amortisation charged in the year
At 30 June 2023
Carrying amount
At 30 June 2023		 Intangible
Software
£
49,470
-
49,470
-
825
825
48,645		 Total
£
49,470
-
49,470
-
825
825
48,645

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

13
Tangible fixed assets

Cost
At 1 July 2022
Additions
Disposal
At 30 June 2023
Depreciation and impairment
At 1 July 2022
Depreciation charged in the year
Eliminated on disposal
At 30 June 2023
Carrying amount
At 30 June 2023
At 30 June 2022		 Leasehold
improvements
£
307,529
307,529
35,621
47,970
-
83,591
223,938
271,908		 Plant and

equipment
£
140,714
64,928
(17,414)
188,228
78,512
14,314
(16,691)
76,135
112,093
62,202		 Fixtures and
fittings
£
63,016
23,380
(921)
85,475
18,140
10,118
(921)
27,337
58,138
44,876		 Motor
Vehicles
£
7,750
(4,750)
3,000
3,474
617
(3,371)
720
2,280
4,276		 Total
£
519,009
88,308
(23,085)
584,232
135,747
73,019
(20,983)
187,783
396,449
383,262

14 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2023
£
61,846
43,806
154,266
259,918		 2022
£
229,974
69,142
241,966
541,082

15 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2023
£
29,832
120,908
110,258
395,928
656,926		 2022
£
29,908
68,446
209,746
102,705
410,805

Within accrual and deferred income, is deferred income of £ 376,357 (2022: £94,453) from grant and contract income received in advance.

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

16
Analysis of net assets between funds
Unrestricted
funds


2023
£
Fund balances at 30
June 2023 are
represented by:
Tangible assets
37,907
Current assets/
(liabilities)
1,111
39,018
17
Restricted funds
Community Food
Community Larders
Education
Employability
Wellbeing
GOO
Nourish & Flourish
Building Works & Software/Hardware
Total		 Restricted
funds
Total
2023 2023
£ £
415,558
453,465
306,254
307,365
721,812
760,830
At 1 July
2022
£
210,988
61,035
226
(1,072)
(23,725)
3,909
146,153
135,844
533,358		 Total
2023
£
453,465
307,365		 Unrestricted
funds


2022
£

40,999

140,771

181,770
Incoming
resources
£
134,636
14,328
34,350
234,286
164,384
94,450
68,998
27,207
772,639		 Restricted
funds

2022
£
366,733
166,625
533,358
Resources
expended
£
(109,584)
(12,842)
-
(154,805)
(152,641)
(67,136)
(31,151)
(56,026)
Total
2022
£
407,732
307,396
715,128
At 30
June
2023
£
236,040
62,521
34,576
78,409
(11,982)
31,223
184,000
107,025
760,830
(584,185) 721,812

Restricted funds Comparative (2022)

Community Food
Community Larders
Education
Employability
Wellbeing
GOO
Nourish & Flourish
Building Works & Software
Total		 At 1 July
2021
£
149,773
2,499
653
2,000
15,000
40,000
-
43,137
253,062		 Incoming
resources
£
343,577
60,853
47,609
60,040
37,068
22,255
147,322
231,150
949,874		 Resources
expended
£
(282,362)
(2,317)
(48,036)
(63,112)
(75,793)
(58,346)
(1,169)
(138,443)
(669,578)		 At 30
June
2022
£
210,988
61,035
226
(1,072)
(23,725)
3,909
146,153
135,844
533,358

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

Community Food- This fund represents monies given to us for use capital and operation expenses in community food.

Community Larders- This fund represents monies given to us for support larders.

Education- This fund represents monies given to us for use Science Lab in Education.

Employability- This fund represents monies given to us for use certain expenses in Employability.

Wellbeing- This fund represents monies given to us for use certain expenses in Wellbeing.

GOO- This fund represents monies given to us for use Getting Oxfordshire Online digital service.

Nourish & Flourish- This fund represents monies given to us for use capital and operation expenses in SOFEA kitchen facilities.

Building works and Software & Hardware- This fund represents monies given to us for use building works and software & hardware cost of SOFEA.

18 Related Party transactions

Bernard Grenville-Jones, a trustee, is an Executive of Activate Learning. Contract income totaling £376,726 (2022: £376,014) was received during the year by SOFEA from Activate Learning.

19 Key Management Personnel

During the year, the Key Management personnel received remuneration of £260,177 (2022: £246,657).

20 Cash generated from operations
Surplus/(Deficit) for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Asset disposal
Movements in working capital:
(Increase) in debtors
Increase in creditors
Cash (absorbed by)/generated from operations		 2023
£
46,270
(1732)
74,823
400
281,319
246,121
647,201		 2022
£
31,186
(148)
68,950
(297,138)
258,342
61,192

21 Analysis of changes in net funds

This charity had no net debt during the year.

SOFEA

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023

22 Operating Leases

Buildings
expiring within one year
expiring between two and five years
Other
expiring within one year
expiring between two and five years		 2023
£
166,510
223,317
389,827
68,693
23,793
92,486		 2022
£
142,852
390,902
533,754
70,520
107,937
178,457