IKDI Company no. 08478660
IKDI
(a company limited by guarantee)
Report and Financial Statements
for the year ended 31 December 2022
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 2022
| 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 Rosanne Gray Graham Inglis Juliane Kronen 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.
-
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 2022
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 2022.
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 18,100 voluntary organisations with product donations received from over 1,780 corporate donors, with an estimated retail value of over £753 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
At the beginning of 2022, there were five IKDI network members: In Kind Direct in the United Kingdom, the founder member; Innatura, a German licensee; Dons Solidaires, a French licensee; MateriaBona, a newly established Swiss licensee; and In Kind Direct (Singapore).
During 2022, preparatory work continued to support the establishment of a new network member in Italy.
Following board and staffing changes in Singapore, a decision was taken during 2022, by the board of In Kind Direct (Singapore), to close operations. As a result of this decision, the board of IKDI agreed that the licence granted to In Kind Direct (Singapore) would terminate during 2022. IKDI therefore no longer had a licensee operating in Singapore at the end of 2022. In Kind Direct (Singapore) had been established as a licensee of IKDI in 2018 and was granted charitable status in March 2021. During the period for which it was operating, In
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IKDI Company no. 08478660
Kind Direct (Singapore) distributed donated products valued at S$500,000 (approximately £290,000) to 29 charitable organisations, some of which served up to 10,000 beneficiaries. Recipient organisations have shown appreciation for the services provided by In Kind Direct (Singapore).
Demand for the services of established IKDI network members in the UK, France and Germany, continued during 2022, as network members supported communities in each member country. Core operations of established network members continued to grow. In addition, IKDI network members responded to increased need resulting from the conflict in Ukraine, providing donated goods to displaced communities.
IKDI network members continued to work collaboratively during 2022, sharing know-how, experience, innovation, and donations, when appropriate. Regular working group discussions and conference calls were held throughout the year. A shortened annual conference took place online, in November 2022, with plans to hold a full annual conference in-person, during the first half of 2023.
IKDI network members continued to share donated goods in 2022, if these were surplus to the requirements of the receiving network member or because a particular type of product was better suited to use in another country, for example due to need, size, labelling, or configuration. The estimated retail value of shared donations was £15.875 million at the end of 2022.
Financial review of 2022
£69,000 of licence fee income was received during 2022 (2021: £39,000). This comprised £30,000 start-up licence fee from Swiss licensee, MateriaBona; £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 membership and 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.
£25,000 of unrestricted funding was received by the charity in 2022 (2021: £35,000).
During 2022, IKDI received £75 (2021: £227) 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 in instalments commencing in 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. IKDI board members approved the write-off of the loan to In Kind Direct (Singapore) at the March 2022 IKDI Board Meeting, after they were informed of the intended closure of In Kind Direct (Singapore)’s operations by the end of 2022, and in the absence of ongoing operations and available funds needed in order to repay this loan.
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 £57,350 (2021: £57,224).
At the balance sheet date, the charity had total reserves of £92,498 (2021: £86,927) of which cash held at year end was £103,698 (2021: £75,715).
Key lessons learned
IKDI continues to learn from working with all network members and prospective network members, as well as from the preliminary research and country selection process for new licensees.
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IKDI Company no. 08478660
Working with prospective licensees has enabled IKDI to gain an understanding of the key skills and local support which is required to enable start-up, as well as understanding whether the operating model would be viable in certain countries. Working with newly established licensees, has enabled IKDI to learn about changes which are required to the operating model locally, in order to meet compliance and other requirements. Established network members continue to provide valuable insights into the ongoing requirements of network members and the opportunities and challenges associated with the operating model.
Plans for the future
IKDI continues to work on supporting the start-up of a new network member in Italy. Operations in Italy are expected to commence once further work on the structure of the organisation has been completed, in order to comply with Italian charity law requirements.
IKDI continues to work towards expansion, researching countries with potential for start-up members. Countries for start-up are identified through a series of steps, including an assessment of whether a range of country selection criteria are met, including the key criteria of need and supply, amongst others.
IKDI continues to act as a convening entity for network members, supporting the sharing of best practice between network members, while continuing to support the start-up of new entities.
During 2023, IKDI will continue to focus on supporting existing network members and on growth and expansion of the IKDI network.
Structure, governance and management
The Board of IKDI has six Director/Trustees as set out below and in the year was managed on a daily basis by the Chief Operating Officer. Finance, Marketing, IT, Fundraising, Governance, administrative and Chief Executive services are provided at cost to IKDI by In Kind Direct. During Q4 of 2022, In Kind Direct seconded an interim CEO, who provided Chief Executive services to IKDI.
During the second half of 2022, IKDI began the process of recruiting an IKDI Network Manager to take over the daily management of the IKDI network from the Chief Operating Officer.
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 Rosanne Gray Graham Inglis Juliane Kronen 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: 7 September 2023
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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 2022.
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 11 September 2023 Date:……………………..
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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 2022
| Unrestricted Note Funds £ Income from: Donations 2 25,000 Charitable activities Licence fees 69,000 Other Income 75 Total 94,075 Expenditure on: Raising funds Costs of raising funds 8,665 Charitable activities International network 79,839 Total 3 88,504 Net Income Before Transfers 5,571 Gross transfers between funds - Net Income For The Year 5,571 Reconciliation of funds Funds brought forward at 1 January 2022 70,594 Funds carried forward at 31 December 2022 76,165 |
Restricted Funds £ - - - - - - - - - - 16,333 16,333 |
Total Unrestricted 2022 Funds £ £ 25,000 35,000 69,000 39,000 75 227 94,075 74,227 8,665 3,321 79,839 64,547 88,504 67,868 5,571 6,359 - - 5,571 6,359 86,927 64,235 92,498 70,594 |
Restricted Funds £ - - - - - - - - - - 16,333 16,333 |
Total 2021 £ 35,000 39,000 227 |
|---|---|---|---|---|
| 74,227 | ||||
| 3,321 64,547 |
||||
| 67,868 | ||||
| 6,359 | ||||
| - | ||||
| 6,359 | ||||
| 80,568 | ||||
| 86,927 |
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 2022
| 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 |
2022 £ - 103,698 103,698 (11,200) |
2022 £ - 92,498 92,498 76,165 16,333 92,498 |
2021 £ 15,063 75,715 90,778 (23,851) |
2021 £ 20,000 66,927 |
|---|---|---|---|---|
| 86,927 | ||||
| 70,594 16,333 |
||||
| 86,927 |
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
Date: 7 September 2023
The accompanying notes on pages 11 to 14 form an integral part of these financial statements.
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IKDI Company no. 08478660
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
IKDI
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
1. 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 2022
| 2 Voluntary income Grant from individual 3 Total Expenditure Costs of raising funds Charitable Activities International network 2021 Total 4 Staff Costs Staff costs comprise: Cross charges from In Kind Direct . |
Unrestricted Funds £ 25,000 25,000 Staff Costs £ (note 4) 5,735 51,614 57,349 57,224 |
Restricted Funds £ - - Other Costs £ 2,930 28,225 31,155 10,644 |
Total 2022 £ 25,000 25,000 2022 £ 8,665 79,839 88,504 67,868 2022 £ 57,349 57,349 |
Unrestricted Funds £ 37,500 37,500 |
Restricted Total Funds 2021 £ £ - 37,500 - 37,500 2021 £ 3,321 64,547 67,868 2021 £ 57,224 57,224 |
|---|---|---|---|---|---|
No staff members are directly employed by IKDI. Staff costs are cross charges from In Kind Direct.
| 5 Support & Governance Costs Allocated overheads Independent Examination fees Taxation services |
Unrestricted Funds £ 1,850 - 29,305 31,155 |
Restricted Funds £ - - - - |
Total Unrestricted Funds and 2022 Total 2021 £ £ 1,850 1,450 - - 29,305 9,194 31,155 10,644 |
|---|---|---|---|
6 Trustees
The trustees received no remuneration or reimbursed expenses during the year (2021 : nil).
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IKDI Company no. 08478660
IKDI
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
| 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 2022 i In Kind Direct |
n one year Brought Forward £ 16,333 16,333 |
Incoming Resources £ - - |
Tra Resources Expended £ - - |
2022 £ - - - - 2022 £ - 6,300 4,900 11,200 nsfer (to)/ from Unrestricted Fund £ - - |
2021 £ 15,063 - - 15,063 2021 £ 1,450 360 22,041 23,851 Carried 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 2021 i In Kind Direct |
Brought Forward £ 16,333 - 16,333 |
Incoming Resources £ - - - |
Resources Expended £ - - - |
Transfer from Unrestricted Fund £ - - - |
Carried 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 2022 the charitable company had no financial commitments (2021: £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.
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