IKDI Company no. 08478660
IKDI
(a company limited by guarantee)
Report and Financial Statements
for the year ended 31 December 2021
Registered Company no: 08478660
Registered Charity no: 1157417
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IKDI Company no. 08478660
Trustee Report and Financial Statements for the year ended 31 December 2021
| Page | |
|---|---|
| Reference and Administrative details | 3 |
| Trustees’ Report | 4 – 7 |
| Independent Examiner’s report | 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Notes to the Financial Statements | 11 – 14 |
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IKDI Company no. 08478660
REFERENCE AND ADMINISTRATIVE DETAILS
Directors and Trustees
Principal and registered office
Teresa Tideman (Chair)
Bastien Charpentier (Appointed 23 March 2021) Rosanne Gray Graham Inglis Juliane Kronen (Appointed 23 March 2021) Richard Wolff
11–15 St Mary at Hill London EC3R 8EE
Tel: 0300 30 20 200 Fax: 0203 637 1347 www.ikdinternational.org
Independent Examiner
Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG
Bankers
Lloyds Banking Group 109 Finsbury Pavement Finsbury Park London EC2A 1LB
Solicitors
Bates Wells 10 Queen Street Place London EC4R 1BE
Status
IKDI is:
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a company limited by guarantee in England & Wales, number 08478660.
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a charity registered in England & Wales, number 1157417.
IKDI is governed by Articles of Association dated 8 April 2013 and amended 6 February 2014 by Special Resolution.
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IKDI Company no. 08478660
IKDI
Trustees’ Report
For the year ended 31 December 2021
The Trustees of IKDI, who are also the directors of the charitable company for the purposes of company law, present their report for the year ended 31 December 2021.
Public benefit, objectives and activities
The Trustees confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission on determining the activities undertaken by a charity. The trustees are satisfied that the aims and objectives of the charity and the activities reported, achieve the aims and principles of public benefit.
The company’s main charitable objects are to advance education internationally in respect of sustainable waste management and redistribution processes; the matching of surplus goods and materials to the needs of charities and individuals; and research into the benefits to the community of the matching of surplus to need and sustainable waste management and redistribution processes; the relief of poverty; and the advancement of citizenship or community development.
IKDI network members work together in order to increase the volumes of surplus goods collected and distributed by members at low cost , creating greater economic, environmental and social impact for all stakeholders.
IKDI was founded in 2013 and manages a network of charities located in four countries. Each network member co-ordinates the distribution of surplus products, to other not for profit organisations and their beneficiaries. Products received from IKDI network members enable recipient organisations to use products to provide services to beneficiaries attending charity centres, as well as donate products directly to beneficiaries and maintain charity working environments. Charities are able to save money as a result of receiving goods from network members and these savings can be used to improve and extend their services. Beneficiaries benefit from products which improve their daily lives and reduce hardship.
To date, collectively IKDI network members have supported more than 15,800 voluntary organisations and received product donations from over 1,660 companies, with an estimated retail value of over £630 million.
IKDI works for the public benefit by ensuring that the expenditure of recipient charities on essential goods is reduced, thereby stretching their limited resources and enabling them to help millions of people in need at home and abroad, while reducing environmental damage, because goods are saved from waste or landfill.
Achievements and performance
In the year, there were four IKDI network members: In Kind Direct, the founder member; Innatura, a German licensee; Dons Solidaires, a French licensee; and In Kind Direct (Singapore). During 2021, work took place to support the establishment of new network members in Switzerland and Italy:
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A new licensee, MateriaBona, joined the IKDI network in December 2021 and is operating in Switzerland.
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• In Kind Direct (Italia) was incorporated in early 2021 and is expected to become operational once further work on the structure of the organisation has been completed to comply with Italian charity law requirements.
IKDI continues to review opportunities for potential expansion of the IKDI network.
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IKDI Company no. 08478660
In Kind Direct (Singapore) was granted charitable status in March 2021. Operations in Singapore continued to grow in the year, with the receipt of regular donations from two multinational donors. 29 charities received goods from In Kind Direct (Singapore) during the year. A review of the operating model was carried out to assess the future strategic direction and resulted in a decision to discontinue operating in Singapore by the end of 2022.
Demand for the services of established IKDI network members in the UK, France and Germany, continued during 2021, as network members supported communities affected by the Covid-19 pandemic. IKDI network members continued to work collaboratively during 2021, sharing know-how, experience, innovation, and donations, when appropriate. Regular conference calls were held throughout the year and the 2-day annual conference in November 2021 took place once again as a virtual event, due to the pandemic.
Since the IKDI network was formed in 2013, IKDI network members have shared donated goods between network members with an estimated retail value of £15.5 million. Goods are shared between network members if they are surplus to the requirements of the receiving network member or because a particular type of product is better suited to use in another country, for example due to need, size, labelling or configuration.
Financial review of 2021
£39,000 of licence fee income was received during 2021 (2020: £39,000). This comprised £15,000 from the French licensee, Dons Solidaires; £15,000 from the German licensee Innatura; as well as £9,000 from In Kind Direct. This £9,000 fee represents 60% of the annual licence fee paid by other network members, with the 40% reduction given in recognition of the fact that In Kind Direct should not pay for its own licence elements.
£35,000 of unrestricted funding was received by the charity in 2021 (2020: nil).
During 2021, IKDI received £227 (2020: £246) of interest paid on a loan of £20,000, which was made to In Kind Direct (Singapore) on 29 November 2018, following the execution of a Loan Agreement dated 10 May 2018, between IKDI and In Kind Direct (Singapore). This Loan Agreement was executed simultaneously with the Licence Agreement between IKDI and In Kind Direct (Singapore). Funding for this loan was made available from a restricted grant of £36,333, given by In Kind Direct to IKDI, and which was intended to serve as loan funding for new licensees setting up in other countries. The loan was repayable by instalment over seven years and had been due to commence from May 2022. In addition, interest was accrued at a rate of 1% above the Bank of England base rate and payable on a quarterly basis. The IKDI Board approved at their March 2022 meeting to write-off the loan after they were informed of the plan to close In Kind Direct (Singapore)’s operations by the end of 2022.
The charity’s main overhead costs relate to cross charges which cover: the Chief Operating Officer for IKDI, who is employed by In Kind Direct, but whose salary and on-costs are cross charged to IKDI; and time allocated by IKD staff, to provide support services to IKDI and support for start-up licensees. Total staff costs cross charged for the year were £57,224 (2020: £57,370).
At the balance sheet date, the charity had total reserves of £86,927 (2020 : £80,568) of which cash held at year end was £75,715 (2020 : £67,924).
Key lessons learned
IKDI continues to learn from its work with established network members; new licensees; and prospective licensees, as well as from reviewing selection criteria for start-up organisations.
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IKDI Company no. 08478660
Established network members provide valuable insights into the requirements of network members. Working with new licensees, has enabled IKDI to learn about local changes to the operating model, which may be required to meet compliance and local operational needs. Working with prospective licensees has enabled IKDI to gain an understanding of the key skills and local support which would be required, to enable start-up.
Plans for the future
IKDI continues to work towards expansion, with ongoing research into countries with potential for start-up members. Countries for start-up are identified through assessing whether a range of country selection criteria are met. These selection criteria include factors such as need and supply, which are key for the start-up of new licensees.
During 2021, IKDI continued to review its strategic direction. The need for IKDI as a convening entity, sharing best practice between network partners, and supporting the start up of new entities was confirmed. In early 2022, it has become apparent that In Kind Direct (Singapore) will be terminating operations and therefore the board of IKDI has agreed that the licence granted to In Kind Direct (Singapore) will terminate during 2022 and that outstanding repayment of the loan funds will be waived, in the absence of ongoing operations and available funds needed in order to repay this loan.
Generally, in 2022, IKDI will focus on growth and expansion in Europe.
The impact of the COVID-19 pandemic continues to be felt across Europe and the UK. The escalation of conflict in the Ukraine necessitated a direct response across the IKDI network, as partners ideally placed to channel donated goods from companies to those displaced and settling across Europe. This has seen the core operations of established network members continued to grow.
Structure, governance and management
The Board of IKDI has six Director/Trustees as set out below and is managed on a daily basis by the Chief Operating Officer. Bastien Charpentier and Juliane Kronen were appointed as Directors/Trustees on 23 March 2021. Finance, Marketing, IT, Fundraising, Governance, administrative and Chief Executive services are provided at cost to IKDI by In Kind Direct. Linda Kelly resigned as Secretary on 20 January 2021.
The Board meets quarterly. Board members hold office under the terms set out in the Articles of Association.
The Company is limited by guarantee without having a share capital. The Member of the Company agrees to contribute a sum of up to £10 on a winding-up of the Company.
In Kind Direct is the sole member of IKDI.
Financial policies
The board of IKDI has agreed that IKDI should aim to achieve reserves equivalent to three months’ operational cash flow.
Risk policy and management
The Trustees review the assessment of major risks to which the charity is exposed. IKDI has compiled a risk register, which will be regularly monitored and amended as necessary. Management of risks, with strategies to minimise and mitigate them, is an on-going task. The full risk register will be reviewed by Trustees annually.
Related Parties
Three of the trustees of IKDI, Teresa Tideman, Graham Inglis, and Richard Wolff, are also trustees of In Kind Direct. Rosanne Gray is the Chief Executive Officer of In Kind Direct. Juliane Kronen is Chief Executive Office of innatura, and Bastien Charpentier is President of Dons Solidaires.
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IKDI Company no. 08478660
Qualifying indemnity insurance
The charitable company has granted an indemnity to its directors and officers against liability in respect of actions brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third-party indemnity insurance remains in force as at the date of approving the Directors’ Report.
Directors and trustees
Teresa Tideman (Chair) Bastien Charpentier Appointed 23 March 2021 Rosanne Gray Graham Inglis Juliane Kronen Appointed 23 March 2021 Richard Wolff
Statement of trustees’ responsibilities
The trustees, who are also directors of IKDI for the purposes of company law, 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).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
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Select suitable accounting policies and then apply them consistently;
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Observe the methods and principles in the Charities SORP;
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Make judgements and estimates that are reasonable and prudent;
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State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
These financial statements were approved and authorised for issue by the directors and were signed on its behalf by:
T M Tideman
Teresa Tideman
Director and Trustee
Date: 28th August 2022
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IKDI Company no. 08478660
Independent examiner’s report to the trustees of IKDI (‘the Company’)
I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 December 2021.
Responsibilities and basis of report
As the charity’s trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.
Independent examiner’s statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Richard Weaver
For and on behalf of Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG Date:…………………….. 30 August 2022
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IKDI Company no. 08478660
IKDI
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2021
| Unrestricted Note Funds £ Income from: Donations 2 35,000 Charitable activities Licence fees 39,000 Other Income 227 Total 74,227 Expenditure on: Raising funds Costs of raising funds 3,321 Charitable activities International network 64,547 Total 3 67,868 Net Income Before Transfers 6,359 Gross transfers between funds - Net Income For The Year 6,359 Reconciliation of funds Funds brought forward at 1 January 2021 64,235 Funds carried forward at 31 December 2021 70,594 |
Restricted Funds £ - - - - - - - - - - 16,333 16,333 |
Total Unrestricted 2021 Funds £ £ 35,000 - 39,000 39,000 227 246 74,227 39,246 3,321 3,162 64,547 61,536 67,868 64,698 6,359 (25,452) - - 6,359 (25,452) 80,568 89,687 86,927 64,235 |
Restricted Funds £ - - - - - - - - - - 16,333 16,333 |
Total 2020 £ - 39,000 246 |
|---|---|---|---|---|
| 39,246 | ||||
| 3,162 61,536 |
||||
| 64,698 | ||||
| (25,452) | ||||
| - | ||||
| (25,452) | ||||
| 106,020 | ||||
| 80,568 |
All gains and losses arising in the year are included in the Statement of Financial Activities and arise from continuing operations.
The accompanying notes on pages 11 to 14 form an integral part of these financial statements.
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IKDI Company no. 08478660
IKDI
BALANCE SHEET AS AT 31 DECEMBER 2021
| Note Fixed Assets Loan to IKDI Singapore Current Assets Debtors 7 Cash at bank and in hand Creditors: Amounts falling due within one year 8 Net Current Assets Total Assets less Current Liabilities Funds Balances Unrestricted Funds Restricted Funds 9 Total Funds |
2021 £ 15,063 75,715 90,778 (23,851) |
2021 £ 20,000 66,927 86,927 70,594 16,333 86,927 |
2020 £ 15,214 67,924 83,138 (22,570) |
2020 £ 20,000 60,568 |
|---|---|---|---|---|
| 80,568 | ||||
| 64,235 16,333 |
||||
| 80,568 |
The charitable company is exempt from the requirements relating to preparing audited accounts in accordance with section 477 of the Companies Act 2006 relating to small companies.
No member has deposited a notice requiring the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The financial statements were approved and authorised for issue by the Board of Trustees on and signed on its behalf by:
T M Tideman
………………………………………………………………
Teresa Tideman
Director & Trustee
28th August 2022 Date ………………………….
The accompanying notes on pages 11 to 14 form an integral part of these financial statements.
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IKDI Company no. 08478660
IKDI
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
General Information
IKDI is a charitable private company limited by guarantee (co. number 08478660) and registered with the Charity Commission (charity registration no. 1157417). It is incorporated in the United Kingdom and domiciled in England and Wales. The registered office and principal place of business is:
11 – 15 St Mary at Hill London EC3R 8EE
Accounting Policies
a) Basis of preparation
The financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102), the Companies Act 2006 and the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with FRS 102 (SORP, effective 1 January 2019). The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company’s accounting policies. IKDI meets the definition of a public benefit entity under FRS 102.
b) Cash flow statement
No cash flow statement has been prepared for the current year as the charity qualifies as a small charity for the purposes of the Charity SORP.
c) Going concern
The trustees are confident that IKDI will remain a going concern and that there are no material uncertainties about the charity’s ability to continue. IKDI currently has 4 network members with the services of the established network members in great demand. In addition, work is underway for a new network member organisation to start to expand within Europe. Annual licence fees that were expected to date have either all been paid or are expected to be paid, and the organisation currently has sufficient reserves to operate into 2022 and for a period of at least 12 months following the date of approval of these financial statements.
d) Income
Voluntary income and donations are accounted for on an accrual’s basis. All income in the Statement of Financial Activities is shown gross of the associated costs. Income from charitable activities is recognised as it is earned. Where amounts are billed in advance of the activity being carried out, the income is deferred. Legacy income is recognised when its amount and receipt is reasonably certain.
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IKDI Company no. 08478660
e) Expenditure
All expenses are accounted for on an accrual’s basis. Wherever possible costs are allocated directly to the appropriate activity, other costs common to all activities are appointed between those activities on the basis of the proportion of staff time spent in each activity.
Expenditure on raising funds compromises costs incurred in inducing people and organisations to contribute financially to the Charity’s work. This includes the costs of advertising for donations and the staging of special fundraising events.
Expenditure incurred in connection with the specific objects of the charity is included under the heading Charitable activities.
Support costs include governance costs being those that relate to regulation, compliance and the strategic direction of the charity.
The irrecoverable element of VAT is included with the item of expense to which it relates.
f) Funds
General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objects of the charity and have not been designated for other purposes.
Designated funds compromise funds which have been set aside by the trustees for particular purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund.
g) Taxation
The Charity is an exempt approved charity in accordance with the Income and Corporation Taxes Act 1988.
h) Debtors
Short term debtors are measured at transaction price, less any impairment.
i) Creditors
Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
j) Public benefit concessionary loans
IKDI provides a loan to further its charitable purposes at rates below prevailing market rates. In accordance with section 34 of FRS102 this loan has been classified and accounted for as a concessionary loan. Such loans are initially recognised and measured at the amount provided and subsequently adjusted to reflect any repayments, accrued interest and any subsequent impairments.
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IKDI Company no. 08478660
IKDI
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
| 2 Voluntary income Grant from individual 3 Total Expenditure Costs of raising funds Charitable Activities International network 2020 Total 4 Staff Costs Staff costs comprise: Cross charges from In Kind Direct . |
Unrestricted Funds £ 35,000 35,000 Staff Costs £ (note 4) 2,861 54,363 57,224 57,370 |
Restricted Funds £ - - - Other Costs £ 460 10,184 10,644 7,328 |
Total 2021 £ 35,000 35,000 2021 £ 3,321 64,547 67,868 64,698 2021 £ 57,224 57,224 |
Unrestricted Restricted Total Funds Funds 2020 £ £ £ - - - - - - 2020 £ 3,162 61,536 64,698 2020 £ 57,370 57,370 |
|---|---|---|---|---|
No staff members are directly employed by IKDI. Staff costs are cross charges from In Kind Direct.
| Support & Governance Costs Allocated overheads Taxation services Independent Examination fees |
Unrestricted Funds £ 1,450 - 9,194 10,644 |
Restricted Funds £ - - - - |
Total Unrestricted Funds and 2021 Total 2020 £ £ 1,450 1,450 - - 9,194 5,878 10,644 7,328 |
|---|---|---|---|
- 5 Support & Governance Costs
6 Trustees
The trustees received no remuneration or reimbursed expenses during the year (2020 : nil).
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IKDI Company no. 08478660
IKDI
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021
| 7 Debtors Trade Debtors Prepayments and Accrued Income Taxation & social security 8 Creditors: amounts falling due withi Trade Creditors Accruals Amounts due to parent undertaking 9 Restricted Funds 2021 i In Kind Direct |
n one year Brought Forward £ 16,333 16,333 |
Incoming Resources £ - - |
Tra Resources Expended £ - - |
2021 2020 £ £ 15,063 15,000 - 55 - 159 15,063 15,214 2021 2020 £ £ 1,450 950 360 1,450 22,041 20,170 23,851 22,570 nsfer (to)/ from Unrestricted Carried Fund Forward £ £ - 16,333 - 16,333 |
|---|---|---|---|---|
i) In Kind Direct. These funds were to provide loan capital to new operations starting in other countries.
| 9 Restricted Funds 2020 i In Kind Direct |
Brought Forward £ 16,333 16,333 |
Incoming Resources £ - - |
Resources Expended £ - - |
Transfer from Unrestricted Carried Fund Forward £ £ - 16,333 - 16,333 |
|---|---|---|---|---|
i) In Kind Direct. These funds were to provide loan capital to new operations starting in other countries.
10 Financial Commitments
At 31 December 2021 the charitable company had no financial commitments (2020: £0).
11 Legal Status
The charity is a company limited by guarantee. In the event of the company being wound up the guarantee is limited to £10 per member.
12 Parent and Ultimate Controlling Party
The charitable company is deemed to be wholly owned and controlled by In Kind Direct, a charitable company limited by guarantee (03155226) and registered charity (1052679), by virtue of being the sole member of IKDI. Consolidated accounts for the parent undertaking are publicly available. Copies of those group accounts are available from Companies House and the Charity Commission.
13 Post Balance Sheet Events
A loan of £20,000 was granted to IKDI Singapore to assist with its development. The loan was unsecured and repayable annually in four equal instalments commencing on the fourth anniversary of the date of the loan agreement (10 May 2018). Interest accrues daily on the loan, chargeable at one percentage point above the Bank of England base rate, with interest levied payable quarterly in arrears. The IKDI Board approved at their March 2022 meeting to write-off the loan after they were informed of the plan to close In Kind Direct (Singapore)’s operations at the end of 2022.
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