COMPANY REGISTRATION NUMBER 08986929
**CITY HARVEST COMPANY LIMITED BY GUARANTEE ANNUAL REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31[st] MARCH 2021**
Charity Number 1163055
**CITY HARVEST YEAR ENDED 31st MARCH 2021**
|**CONTENTS**|**PAGES**|
|---|---|
|Achievements|1|
|A letter from our Co-founder|2-4|
|City Harvest - The Human Factor|5-7|
|Case Studies by City Harvest’s Community Impact Team|8-11|
|Trustees'Annual Report|12-21|
|Independent Auditor's Report|22-25|
|Statement of Financial Activities|26|
|(incorporating the income and expenditure account)||
|Balance Sheet|27|
|Statement of Cash Flows|28|
|Notes to the Financial Statements|29-39|
**CITY HARVEST YEAR ENDED 31st MARCH 2021**
## **Ac** hievements
**----- Start of picture text -----**
CITY HARVEST
FOOD REDISTRIBUTION GROWTH
(TONNAGE)
4500 4,190
4000
3500
3000
2500
2000 1,744
1500 1,295
1000
498
500
0
2017/ 18 2018/ 19 2019/ 20 2020/ 21
**----- End of picture text -----**
The year to 31[st] March 2021 witnessed a 140% expansion in the quantity of surplus food distributed to other charities working to prevent food poverty, benefitting the individuals and communities served by those charities, as well as reducing the food waste damaging the environment.
This was achieved through the expansion of our team of employees and volunteers, the growth of our van fleet, investment in our new depot in Acton and East London, and working in partnership with governmental and charitable initiatives set up to alleviate food poverty caused by the COVID19 pandemic.
These achievements were once again funded through the continuing generosity of our hundreds of financial supporters, large and small, largely from the private sector.
1
**CITY HARVEST YEAR ENDED 31st MARCH 2021**
## **A letter from our Co-founder**
Dear Friends and Supporters,
City Harvest was launched in 2014 with one borrowed van and the belief that all people should have access to fresh, nourishing food. We wanted to build a bridge between the abundance of quality food going to waste and the thousands of families and individuals in need across London.
In the seven years since launching, City Harvest has become a leader in food rescue, supporting hundreds of other charities in this urgent mission. We’ve sourced and delivered nutritious food for over 20 million meals and built a foundation for an even greater contribution in the future.
We’ve expanded our passionate team, built efficiency through systems and technology, opened depots in both West and East London and aligned with companies, foundations, and individuals to accelerate our important work. And yet, we have far more to do.
The Coronavirus pandemic and heightening evidence of Climate Change has now deepened our commitment to help the many who have so little with food that would otherwise go to waste. People already vulnerable have been thrust deeper into food poverty by the crisis and a new cohort of people, previously employed, are seeking emergency food provisions. In the already deprived populations which City Harvest serves, thousands rapidly lost employment. Others faced increased exposure to the Covid virus in frontline roles. These issues, combined with some of the highest levels of overcrowding in the country and pre-existing health disparities, proved catastrophic..
But for City Harvest it was a call to action, causing us to adapt, expand and perfect our mission of providing emergency food aid in London. 10 million meals, or half of all meals City Harvest has rescued since we launched, were delivered since Covid began.
City Harvest has always presented itself as London’s emergency rescue service for food. On a daily basis there is always great complexity, uncertainty and volatility in the food rescue space. Covid simply proved our thesis: that we can rapidly respond and immediately adapt to any situation---even a humanitarian aid crisis suddenly taking hold in our own city. The pandemic tested us but finding solutions is what we at City Harvest do best.
- We were able to contend with a sudden disruption in the food supply chain as businesses shuttered during lockdown, trebling our weekly tonnage from pre-Covid levels.
- We benefited from strong relationships with a wide array of stakeholders: in 24 hours we secured a second warehouse from Segro, our landlord, to help meet the exponential growth in demand.
- Within the first few weeks of lockdown a large proportion of our financial supporters proactively reached out with emergency funding and new corporate partners stepped in to support our work.
2
**CITY HARVEST**
## **YEAR ENDED 31st MARCH 2021**
## **A letter from our Co-founder (Continued)**
- We began working with the Mayor’s Office and within weeks formed the London Food Alliance with other charities ensuring new emergency food hubs in every borough received the supplies they needed. From individuals isolated in their homes, to frontline NHS workers, refugees and children struggling without free school meals, City Harvest stepped up to feed more then 30,000 Londoners each day.
- We quickly pivoted the types of food we sourced to create emergency food parcels for delivery to the homes of vulnerable individuals.
- We worked on creative initiatives with businesses that re-opened their kitchens to make prepared meals for City Harvest to deliver across London (AELTC Wimbledon, Livery Kitchen Initiative, Crystal Palace Football Club, The Savoy).
- We harnessed the community spirit, welcoming thousands of volunteers to join our efforts including furloughed people who wanted to give back and have a purpose.
- We’ve built out and upskilled operational capability, growing our team from 25 to 44 people including a new Food Sourcing Team.
- We have a new chairman, CEO and several impressive new trustees whom we believe will help us get to the next level.
- Our success was also made possible by our unique team: many of our employees have backgrounds of homelessness and hunger. They’re passionate about their work and rose to the challenges presented by the emergency. It’s a culture of going the extra yard.
- Even during this pandemic, we never took our eye off our operational efficiency and, in fact, reduced our cost to source and deliver one meal from £0.25 to £0.20, thanks to an exceptionally high level of direct food deliveries to our depots, and careful control of our expenditures.
There is greater urgency than ever for our work supporting the vulnerable in society. There are more than 2.5 million Londoners living below the poverty line and 33% of adults have skipped meals to save money so their children can eat. Covid-19 and exacerbated poverty has severely damaged mental health in the already vulnerable communities we serve. Children, dealing with fear, uncertainty, overcrowding and hunger are now experiencing depression, suicidal thoughts, selfharm, eating disorders and anxiety in record numbers.
City Harvest food is now more critical than ever to our 300 partner charities which work to ensure men, women and children have enough to eat and provide healthy, nutrient-rich, food to families who would otherwise struggle to afford it. Our charity partners use food to build relationships with vulnerable people and then provide wider support to tackle other vital needs such as mental health counselling, education, housing and employment advice. A recent City Harvest survey reported how highly valued City Harvest is by its charity partners. They appreciate our high-quality fresh food and the responsiveness of our drivers who make tailored deliveries of culturally appropriate food used to make people feel cared for, and not forgotten.
With 300 charities now on our waitlist, and a large number of our current charity partners requesting additional food, the demand for City Harvest’s surplus food is accelerating. According to the Trussell Trust, 50% of people who used food banks at the beginning of the pandemic had never needed to rely upon one before. Many more will join the ranks of those facing food poverty when furlough provisions end. The inequalities in London have been magnified by this crisis and City Harvest will be working tirelessly to ensure that no child goes to bed hungry, and families are relieved of the worry of where their next meal will come from.
As a result, we’ve now completely re-evaluated the speed of our scale up. Our ambitions for the years ahead have grown. We want to rescue thousands of additional tons of food from waste and deliver millions of additional meals to people in need. We now rescue and deliver over 1 million meals monthly up from 300,000 last March. But we’re still only addressing less than 10% of the need in London. Our ambition is to materially impact food poverty across London.
3
## **CITY HARVEST**
## **YEAR ENDED 31st MARCH 2021**
## **A letter from our Co-founder (Continued)**
In March 2021 we transitioned to our new 13,000 square foot West London depot, quadrupling in size. We also opened our new East London Depot. These spaces will allow us to have a vastly more efficient daily operation—meaning with our existing fleet we can do so much more. We didn’t miss one day of delivering food during this transition and are already seeing increased efficiency in loads and deliveries. Now that these new units have gone live, flawlessly, we believe we can continue to repeat this process both in London, with plans for a third depot next year, and perhaps other cities throughout the UK in the years to come.
While the Covid Crisis has dominated the news, climate change is placing our planet at greater risk than ever and City Harvest’s ambitions for growth reflect this. Food waste is a major contributor to greenhouse gas emissions and City Harvest offers a simple solution for businesses throughout the food industry. Through our efforts to rescue nutritious food which would otherwise go to waste, we have prevented 33,000 tonnes of greenhouse gases since inception. We will continue to raise awareness amongst retailers, wholesalers, manufacturers and farms about the importance of food redistribution and City Harvest’s role in materially contributing to 9 of the United Nations sustainable development goals, helping people and planet.
I have been honoured to lead City Harvest during the last 7 years and want to thank each and every stakeholder who has supported our mission. I have deep admiration for our extremely committed and enthusiastic employees who worked on the frontline every day since this pandemic began, despite the inevitable fear of this deadly virus. We could not have delivered millions of meals without the support of our food donors, financial contributors, volunteers and companies which have contributed vital professional services.
I am now extremely proud to welcome David Carter into the role of CEO. With David’s leadership background as an Officer in the British Army combined with experience as a strategic consultant, City Harvest is poised to scale up, deliver millions of additional meals in the years ahead and ensure London is a city where all people have access to nourishing food and no healthy food goes to waste.
Thank you for your continued support, generosity, and shared ideas for improving the lives of so many.
With gratitude,
Laura Winningham OBE
Co-founder
4
**CITY HARVEST YEAR ENDED 31st MARCH 2021**
## **City Harvest - The Human Factor**
## **We Know Our Community**
At City Harvest our charities are at the heart of everything we do. We are research and data driven to ensure we have the greatest impact on the individuals we serve.
When the pandemic struck and we were faced with unprecedented complexity, the knowledge we had about the communities in which we operate enabled us to get the right food to the right people at the right time.
We select charities for the City Harvest network where respect and dignity play a vital role. At each of our 300 charity partners, the human factor is always present and anyone who is in serious need or comes unprepared will not be turned away. They are treated as human beings, treated with respect.
Our partner organisations provide services ranging from housing and legal advice to mental health counselling, as well as programmes focused on children, the elderly, refugees, and victims of domestic abuse. Each of our charity partners received food valued, on average, at £69,000 in the last fiscal year, and they were able to direct funds saved on food purchases into these other vital services.
Now, with the population rapidly getting vaccinated, we are optimistic that the world will return to a new normal. Following on from the rapid growth we had over the past year, we conducted field research to make sure we were serving the needs of our partners. We learned what people appreciate about our food donations and what more we can do to make lives better in the city we serve.
One of the most important things we learned is that the USP of City Harvest is the genuine connection we have with our charity partners. We have heard repeated praise about our dedicated drivers who engage warmly when delivering food to partner charities: remembering names of staff, knowing what food they need and accommodating any new requests. We heard stories of appreciation about times when our City Harvest community impact manager visited charity partners for a short meeting and ended up staying for a shift because our partner was short of hands serving a meal.
Our Community Impact Manager, Andrew McLeay notes:
_“City Harvest has a lot to be proud of. Pretty much everywhere I go they praise the drivers, saying the relationships they form with drivers are super important and even how their smiley faces and the banter they develop with them sometimes gets them through tough weeks._
_“Sometimes I go and am called upon as an extra pair of hands at the project I am visiting for a few hours. Sometimes I get a rough reception. Sometimes it's a bit strange. After all, there is a crack in everything. But, as Leonard Cohen once so succinctly put it - that's how the light gets in._
5
**CITY HARVEST YEAR ENDED 31st MARCH 2021**
## **City Harvest - The Human Factor (continued)**
_“Often, City Harvest is that light to the hundreds of projects we deliver to. We are the light that helps them to guarantee real change, freeing them up to have one less thing to worry about, giving their guests a choice of good, nutritious food. We are the reliable source of this basic human need of a decent supply of food in a sea of poverty engulfing this capital.”_
## **Genuine Human Interaction**
One woman in a queue for City Harvest food shared a sentiment sadly not uncommon anymore: _"I've walked for over an hour to get here because I couldn't afford a train"._ People are coming from distances far and wide - not just for food, but for genuine human interaction and an experience of comfort and safety. It makes people walk for hours and wait in large queues and go far beyond what you would normally expect – not only for the food, but because the charities in the City Harvest network make them feel listened to, loved, and, perhaps most importantly - understood.
What our charity partners regularly share is how the bright green glow of the City Harvest vans brings warmth and relief to the overworked, overtired and stressed managers and leaders in the charity sector, who are working tremendously hard for their struggling guests. Our vans deliver food but also hope, a tangible hope which can be felt through the warmth of our drivers and our staff and the reality of what our food does for the communities they serve.
City Harvest delivers food that many of us are fortunate to be able to take for granted, but is received with deep gratitude by those who struggle to afford nourishing food. One manager at a partner charity recently said “ _We often get excited at what sorts of fresh stuff we’ll get from you. The week we got a load of lemons from you, the guests were asking for lemons for weeks –it’s a rare thing for them and they don’t see it._ ” Some individuals who had received freshly prepared salmon meals from City Harvest welcomed the chance to try it for the first time. They had never tasted salmon before as they could not afford it but had only seen it on TV cooking shows.
At City Harvest we always remember the diversity of cultures, religions and diets that prevail in London, and make every effort to deliver culturally appropriate food.
Our charity partners use food to empower people, effectively helping them to get back on the road; providing services to improve health and well-being and employment skills to get back into productive roles. We learned about the huge number of people who lost their jobs during the Covid Crisis, hitting rock bottom and living in dire need. Our food was used in programs where people were given back dignity and hope after so much disappointment, and that helps motivate us to keep growing our services.
## **Families When There are None**
Our food is delivered to charity partners where the staff have a genuine relationship with their guests. During this pandemic when groups were restricted from gathering, our charity partners often call their guests to make sure they were okay and have pivoted to home deliveries of food. They have stepped in to provide counselling, medical and legal services for those in crisis. This is especially true of the care given to the elderly and disabled, who have faced the perils of social isolation far greater than other groups and risk being overlooked. Deliveries of City Harvest food give people hope and remove the fear and worry about having enough to eat during the week. We learned that our food brings joy and connection and the reminder that the elderly amongst us are not forgotten.
There is nothing more integral to a family unit than food. A recurring theme we hear from our partners is that they use City Harvest food to supply emergency aid and nutritious meals to guests and help them feel safe and supported. Those who work at our charity partners step into the role of family members when none exist - in one case the manager took one of the regular guests to the dentist as he was too scared to go alone.
6
**CITY HARVEST**
## **YEAR ENDED 31st MARCH 2021**
## **City Harvest - The Human Factor (continued)**
_“We are not like a regular food bank, we don’t like people to queue, we want them to approach us and ask us for help as if we were their family. We find that once we break down any stigmatised barriers of fear or pride, people are much more likely to seek help in other areas. We create a safe space for them, which enables us to help.” – Nahid, one of The Space’s founders._
## **Changing the Lives of Children and Young People**
Our surveys with charity partners show how food is used to improve the lives of disadvantaged children and young people across London. There are nutrition and cookery classes for children, where they can make recipes out of City Harvest ingredients and so much more. Once the children are nourished, our partners can then provide wide ranging activities such as skateboarding, poetry, cooking, art, gardening and more. Our food is delivered to places where children can learn to canoe and kayak, play basketball and rock climb, and be creative on a graffiti wall. These are venues where continuous, stimulating, creative and engaging content for young people keeps them out of jail and teaches them how to adapt and not just survive but thrive in any environment.
7
**CITY HARVEST YEAR ENDED 31st MARCH 2021**
## **Case Studies by City Harvest’s Community Impact Team**
## **Sant Egidio**
Sant Egidio is a religious order that gives away food to anyone in need, but primarily the homeless out of the front of a church near South Kensington.
“ _We get City Harvest’s food and put it all together so it’s in an order our guests understand and then they can come and get whatever they want. City Harvest is always so reliable and the food selection is so great and it’s probably why we are still so busy_ ”, one of the volunteers setting up the tables said to me.
Meet Esther (right). She said she loves it at Sant Egidio because they make her feel special and they flatter her - they all couldn't believe she was 94. “ _Age is just a number_ ”, she says and she believes she's closer to 60, bless her. “ _The food is amazing, the people are great, and they don’t try and make me feel old here_ ” she says smiling.
Emanuela, one of the nuns who works inside the church, talks about the levels of poverty in the area. She said they organise trips for the guests. A trip, booked before Covid, was one that many of the elderly pensioners had saved all year for. The travel agent cancelled it and hadn't yet given any of the people back the money so Emanuela was even more determined that if she can't get the money back, she will do anything else she can for them. “ _So whilst everyone else seems to be disappointing them, at least they know they’re going to get good quality food here and they’re going to be listened to.”_ says Emanuela
## **The Woodlands Centre (South London Refugee Association “SLRA”)**
SLRA is a charity that primarily helps refugees and other immigrants settle into the UK. City Harvest provides food for the foodbank they run for guests who cannot access food elsewhere because of
their status. " _Without City Harvest food these people would not ea_ t” says Celestine, the foodbank co-ordinator who is a really smiley happy guy, very open and keen to show us around and give a tour of what they do.
They serve 28 families a week - sometimes 7 to 12 in one family – and many of the families are living in squalid conditions like basements or unlockable garages. Sometimes they do have access to houses but other times SLRA have to get microwaves and get power supplies running through houses and source fridges to store food for them.
He keeps a watchful eye over everything to make sure everyone gets the best quality of food they can, which is why he is so eager to see us. “ _City Harvest’s food is the best. The guests say so too_ . _We deal with people who don’t know another living soul – we are their only point of contact and the only people they will speak to, not just in the week but potentially for years whilst their case gets sorted.”_
8
**CITY HARVEST**
## **YEAR ENDED 31st MARCH 2021**
## **Case Studies by City Harvest’s Community Impact Team (Continued)**
I can see how passionate Celestine is. It’s infectious. The world in which he and his charity SLRA live is full of so many murky complexities, and uncertain outcomes. But the one constant the families he serves have is knowing they can get great nutritious food.
Aristotle once wrote that “ _poverty is the parent of revolution and crime_ ”. When we first arrived at SLRA, I wondered why Celestine was so chipper and smiley when he tells me the stories of utterly despondent people living in squalid, mouldy basements. These are truly desperate families – who are utterly, inescapably and irrevocably desperate for some semblance of a better life. And I realise that the first step is that foundation of food. That step that says ‘ _Maybe I can’t tackle everything right now, but I can make sure you are fed and that food is an expression of my purest love for you_ ’.
In my mind, that is what SLRA means to many of these people. A simple expression of love and solidarity, through the food they provide. It may not solve their housing. But it keeps them alive and fighting for another day – and that’s pretty revolutionary to me.
## **London Sports Trust**
London Sports Trust is a programme that runs for children during school holidays and after school that offers a range of educational and fun activities, including cooking classes where they learn how to make food with City Harvest ingredients.
“ _The children love it so much they often end up staying_ ” says Sam Dale, London Sports Trust manager. He explains that one of the team leaders playing basketball with the children is a 21 year-old who went through the London Sports Trust since he was 8 years old and this was a way of giving back to the great things they were doing.
Sam was warm and engaging, and really open to chatting to us and giving us a lot of time. Sam says they serve up to 50 children a day during the summer and do all sorts of things to keep the
children active. He gave us a tour of the site, which includes a basin in which children can learn to canoe and kayak, a basketball court, a rock climbing wall, a graffiti wall where children can learn art & crafts and, inside the building, there is learning and development for children.
“ _City Harvest food becomes an essential tool for the children_ ” Sam says, as he shows us the kitchen where children are currently receiving a cooking lesson, and making recipes out of City Harvest ingredients. At the centre, children can also learn basic English and school subjects. They also provide help for adults too –parents of the children can learn English as a second language helping them develop alongside the children they bring to the site.
Sam recalls the benefits of our 4 year association with his organisation and was extremely happy we were able to supply them with food for the children programs which are relaunching.
9
**CITY HARVEST YEAR ENDED 31st MARCH 2021**
**Case Studies by City Harvest’s Community Impact Team (Continued)**
## **Gibbs Green Community Champions**
Gibbs Green is a user-led charity operating in a community centre which supplies groceries for people within an area unable to access or afford food.
Sara Benjamin, manager, says “ _I love City Harvest! In fact, when I first started here, I also started volunteering at City Harvest so I could see more of what you guys do and invest in it like you invest_
_in us._ ” She has been volunteering with City Harvest for 3 years.
Sara has a team of six. Most have been helping since it started a few years ago and have seen demand rise. One woman brought in her high school aged daughter to volunteer and said how much they both enjoyed it. There was a relaxed fun atmosphere, with another of the volunteers dancing about and singing.
Sarah said she personally knows a lot of these people and loves to interact. They take turns each Monday taking a sign-in form outside so they can gauge
numbers but also so that the guests feel supported and listened to. Cristina and I took out the form so we could chat to the guests.
Boris, one of the guests, praises Gibbs Green for the choice and variety. “ _I don’t always need it but when I do it is a lifesaver. They allow you to go inside the hall to choose the food rather than giving a bag – no one else does this and it means I can choose what I really want, and I know I won’t waste it.”_
Emma, another guest, adds, “ _This place really has helped me, especially as I have Cerebral Palsy. They sometimes help me carry my groceries._ ” Sara knows from working with City Harvest how to go the extra mile – I think this is why her guests keep smiling.
10
**CITY HARVEST**
## **YEAR ENDED 31st MARCH 2021**
## **Case Studies by City Harvest’s Community Impact Team (Continued)**
## **The Abbey Centre**
City Harvest delivers food to The Abbey Centre, a pantry-modelled café where vulnerable guests can take up to 10 items in a relaxed casual setting in London.
We ( _Cristina and Andrew, on the City Harvest team_ ), offer to do a shift with them when we arrive as they are short of volunteers that day.
Gen, the co-ordinator is so appreciative and the volunteers say " _thank you_ " more times than needed, and explain to us a little bit along the way as to who they are serving and what they need.
I am partnered with Maria, who sits on the registration desk and checks in all the names of the 75 people they have on their books who want to get food that day. She ticks off number 12 for that day, a bubbly gent called Kenneth who doesn't seem to mind he's 12th in the queue as he sits down at one of the 12 tables in the little cafe on an unassuming street in Westminster. She smiles and jokes with him, teasing him a little as he jovially bellows with laughter. You can sense a real joy and love in the room. I am suddenly transported into someone's home, with someone's family, watching in on the couch all the intricacies and
complexities of their affections and quirks and interactions.
There is laughing, people touching and hugging each other, people coming by to pick up food for their ill neighbours. Maria tells me how one of the women on the table in front of me knocked on her door a few days ago for a bit of sugar and milk and how it was such an honour to be able to be in a position to help. She'd been volunteering initially Monday and Wednesday making teas and coffee, but after doing it nearly 4 months she knows everyone and is 'part of the furniture'. She knows all the guests’ names. She laughs with her whole body, her smile so big it appears to burst out from the seams of her mask.
_"It gives me purpose_ " she says, smiling, as she sits, watching and making sure guests are comfortable and observing when people go, so she can direct the ushers to let more people in.
" _Working here and getting food at the end if there's any left means I can save up to £50 a week"_ she says " _which is a lifesaver for me. I was an alcoholic for years and used to smoke as well - I've now completely stopped drinking and changed my whole life_ ." she says with pride. She attributes this change to being able to get out and have the opportunity to volunteer for such a great charity which gives her a reason to get up in the morning and gives her a completely new perspective.
As she speaks to me, Cristina is helping one of the other volunteers in the food section where the guests can choose the 10 items they want to take away. The staff give us a bit of history of the building - it was built to be public baths for the working class in Roman times, and they love that it is still community oriented even now. They explain that Mondays and Tuesdays, pre pandemic, it used to be a rough sleeper service in the evenings for 50 to 60 homeless, where the food was cooked with City Harvest ingredients but it couldn't run during pandemic. They hope to restart the homeless food service in the evenings when it is safe to do so.
As we leave, I remember Maria's voice ringing in my ears. Her story touched me. She says " _It was a lonely life, drinking. I had an abusive dad, an abusive mum, I didn't know any better. It was a way to escape. I didn't realise I was addicted to it - and now I realise what I was really looking for was genuine connection and love. And I found it here_ ."
11
**CITY HARVEST COMPANY LIMITED BY GUARANTEE TRUSTEES’ ANNUAL REPORT**
**YEAR ENDED 31st MARCH 2021**
The trustees, who are also directors for the purposes of company law, have pleasure in presenting their report and the audited financial statements of the charitable company for the year ended 31st March 2021.
## **REFERENCE AND ADMINISTRATIVE DETAILS**
## **Registered Charity Name**
City Harvest
**Charity Registration Number**
**Company Registration Number**
1163055 08986929
**Charity Correspondent**
Laura Winningham OBE
**Registered Office**
## **Website**
Unit 8, Acton Park Estate The Vale, London W3 7QE www.cityharvest.org.uk
## **Trustees**
The trustees who served the charitable company during the period were as follows:
Ben Clarke (Chair) Stephen Winningham (Vice Chair) Todd Benjamin Kathy Street Patrick Street Alice Avis MBE Victoria Heffer Paul Campbell Ben Malbon Frank Bandura David Hirschmann
Appointed 2 November 2020
Appointed 3 June 2020 Resigned 16 August 2020 Appointed 6 July 2020 Appointed 6 July 2020 Appointed 21 February 2021
## **Key Management Personnel**
Laura Winningham OBE David Carter Nikki Tadema Martin Parker
Co-founder and Chief Executive Officer Chief Executive Officer from 4 May 2021 Chief Operating Officer Head of Finance
## **Auditors**
Rotherham Taylor Limited 21 Navigation Business Village Navigation Way Ashton-on-Ribble Preston PR2 2YP
## **Bankers**
CAF Bank Ltd 25 Kings Hill Avenue West Malling Kent ME19 4JQ
Metro Bank The Townhouse The Broadway Ealing London W5 5JN
## **Solicitors**
Allen & Overy Bishops Square London E1 6AD
12
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
**TRUSTEES’ ANNUAL REPORT (Continued)**
**YEAR ENDED 31st MARCH 2021**
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
City Harvest is limited by guarantee and its governing document is its Memorandum and Articles of Association dated 4th August 2015.
The members of the trustee board hold no shares in the charitable company, but each member is a guarantor to an amount not exceeding £1, in the event of the winding up of the charitable company.
## **TRUSTEE RECRUITMENT AND APPOINTMENT**
Under the Articles of Association of the company, all trustees/directors hold their appointment until the third Annual Retirement Meeting following the commencement of his or her term of office. The Annual Retirement Meeting is the meeting of the Trustees at which the accounts of the Charity are adopted. If the retirement of a trustee causes the number of trustees to fall below 3, then the retiring trustee shall remain in office until a new appointment is made
Recruitment of a new trustee/director can be made on the instructions of current members of the board, and trustees are elected by existing members of the board.
## **TRUSTEE INDUCTION AND TRAINING**
The trustees are familiar with the practical work and objectives of the charitable company, and bring their own relevant and unique skills. Trustees are actively encouraged to attend board meetings to ensure that they are always up to date with the latest activities of the charitable company.
## **FINANCIAL GOVERNANCE**
The Finance and Audit Committee supports the City Harvest Trustee Board in discharging its responsibility for the financial oversight of the Charity. It comprises three trustees, who meet quarterly with the Head of Finance to oversee the following areas:
- Financial planning and reporting
- Financial policies and procedures
- Financial control environment
- Risk management
- Audit and assurance
- Fraud, whistleblowing and regulatory reports
## **TRUSTEE OVERSIGHT**
The board of trustees administers the charity, and normally meets every six weeks. In addition, steering groups and committees comprising selected trustees and members of the management team meet quarterly to focus on the following aspects of the charity’s operation:
- Community impact
- Food sourcing
- Fundraising
- Strategy and brand
- Operational capability
These steering groups were set up in December 2020 to translate agreed strategies into actionable plans, to oversee programme delivery and to mentor executive team members.
13
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
**TRUSTEES’ ANNUAL REPORT (Continued)**
**YEAR ENDED 31st MARCH 2021**
## **DELEGATION OF AUTHORITY**
A Chief Executive is appointed by the trustees to manage the day-to-day operations of the charity. and has delegated authority from the Board of Trustees for operational matters including finance, employment and operational activity.
## **PAY POLICY FOR SENIOR STAFF**
The Remuneration Committee reviews the pay of the senior management team. which is normally increased annually in accordance with average earnings in comparable charities.
## **RISK REVIEW**
The board of trustees has examined the major strategic, business and operational risks which the charitable company faces and confirms that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.
## **OBJECTIVES AND ACTIVITES**
The objectives of City Harvest include the prevention and relief of poverty, the advancement of environmental protection and supporting the effective use of resources for charitable purposes by other charities by facilitating the distribution of surplus food.
In furtherance of these objectives, City Harvest collects surplus food otherwise destined for landfill from retailers, wholesalers, restaurants, manufacturers and others, and distributes it to community programs that serve meals to vulnerable people.
## **PUBLIC BENEFIT STATEMENT**
The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when setting the charity’s aims and objectives, and in planning future activities.
## **ACHIEVEMENTS AND PERFORMANCE**
## **The impact of City Harvest’s work**
During the past year, City Harvest redistributed 4,190 tonnes of donated nutritious food that would otherwise have gone to waste. City Harvest experienced tremendous demand for our surplus food during the year from partner organisations serving a growing number of vulnerable people and many operating on budgets that have been sharply reduced. We increased the number of partners to which we deliver nutritious surplus food in the past 12 months, and now regularly deliver to over 300 community organisations in Greater London, and to a further 100 on an occasional or seasonal basis. The recipients of this safe, in-date food delivered weekly included soup kitchens, homeless shelters, children’s clubs, refuges for women fleeing domestic violence, day centres for the elderly and those facing mental illness and they were able to prepare almost 10 million highly nutritious meals during the year with City Harvest donations.
14
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
**TRUSTEES’ ANNUAL REPORT (Continued)**
**YEAR ENDED 31st MARCH 2021**
## **Social return on investment**
Management consultants Bain & Company continued to provide pro-bono support to monitor the impact on society of our food redistribution activities. Despite the increased overhead costs incurred to strengthen and professionalise the management team, City Harvest’s Social Return on Investment (SROI) during the year was £9.90 for every £1 of expenditure.
The largest component of our social return is essentially the value we created out of unused but perfectly edible fresh, frozen and ambient food donated by businesses. This food is unused by businesses for any number of reasons. Our community partners received City Harvest food donations with a retail value of £20 million during the year to 31[st] March 2021 and were able to redirect their food budget savings towards other vital services provided to vulnerable people in the community. These services include counselling, education, nutrition and cookery programmes, employment guidance, sports and fitness as well as health and wellness services.
## **Environmental benefits**
City Harvest’s impact to society includes the provision of a solution for one of the leading global environmental issues of our time: food waste. When healthy edible food is sent to landfill, it decomposes and releases methane which is 20 times more toxic than other greenhouse gases. The quantity of food City Harvest delivered this year would have resulted in 15,922 tonnes of greenhouse gases being released if it instead went to landfill. Additionally, all the resources that were utilised to produce the 4,190 tonnes of food City Harvest rescued - energy, land, water - would have been wasted as well.
15
**CITY HARVEST COMPANY LIMITED BY GUARANTEE TRUSTEES’ ANNUAL REPORT (Continued)**
**YEAR ENDED 31st MARCH 2021**
## **The large and growing need for our services**
A Food Foundation Survey has confirmed what our dedicated and passionate team witnesses each day: there is a massive need for healthy food amongst a growing number of people facing adversity.
In the past year we have been able to almost double the average quantity delivered to each community partner to nourish the large numbers of people that are visiting for community meals.
Many partners have indicated that their meal programmes would be greatly diminished or eliminated without continued food donations from City Harvest.
## **A year of growth in food rescued**
The quantity of food redistributed by City Harvest in the past year increased by 140% from the prior year. We have continued to invest in infrastructure and human resources to expand our services and ensure operational excellence in our efforts to nourish the community.
This includes:
- Moving to a large distribution centre in Acton, equipped with a refrigerated food sorting area as well as large open plan office areas for the logistics and food sourcing teams.
- Opening a satellite food rescue facility in New Spitalfields Market
- Purchase of six nearly-new Mercedes Benz Sprinter vans, increasing our fleet to 15 vans.
- Purchase of a third forklift truck to handle pallets at the new distribution centre.
- Recruitment of dedicated teams for food sourcing and community outreach.
- Continuing research on community food needs, assisted by pro bono consultants.
## **Our investment programme**
We spent £294,236 on six vans using funds donated by Morrisons, Artemis, Uber Eats, Permira, Troy Asset Management and the UK Government’s Waste Food Reduction Programme (WRAP). Additional funding from WRAP enabled us to equip our new Acton distribution centre with a coolroom, food handling equipment, kitchen and office for a total cost of £210,868.
We also spent £17,694 on computer equipment.
## **Collaboration with a wide breadth of charity partners**
City Harvest deeply understands the needs of both the communities in which we operate and the charities and businesses we serve which enhances our responsiveness and heightens our impact. Every effort is made to deliver the quantities and types of food needed by each community programme at the most convenient times. Often our team helps build networks amongst community programmes and connects local businesses with charities.
## **Recognition of City Harvest’s work**
City Harvest received numerous awards during the year, including the Tibco Lighthouse Social Impact Award for meaningful contributions to seemingly daunting societal challenges.
In October 2020, Laura Winningham was awarded an OBE in the Queen's Birthday Honours List 2020 for services to the community in London during the Covid-19. The work of City Harvest London was recognised as an outstanding emergency response to food waste and poverty before, during, and beyond, COVID-19.
16
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
**TRUSTEES’ ANNUAL REPORT (Continued)**
## **YEAR ENDED 31st MARCH 2021**
## **Serving London’s most vulnerable**
**----- Start of picture text -----**
Homeless
Children
7%
3%
11% 5% Families
5% Young People
5% Teens
12%
4% Low Income
3% Domestic Violence
3% Socially Isolated
1%3% Elderly
Disabled
38% Mental Illness
Drug/Alcohol
Ex-Offenders
**----- End of picture text -----**
Our work supports many vulnerable sections of London’s population with significant impact on nourishing the homeless, children and families, young people and those fleeing domestic violence.
## **Coverage**
We are active in 29 of the 32 London boroughs, of which Ealing, Hammersmith and Fulham, Newham, Kensington and Chelsea, Lambeth, Camden, Brent and Westminster are the most significant for us.
## **Our workforce**
Our workforce comprises a mix of full and part-time employees, contract staff and volunteers. Our paid workforce at year-end increased from 25 to 44 full-time equivalent employees and contractors during the year. All employees are paid at least the London Living Wage, and almost all are enrolled in the contributory pension scheme.
## **Our volunteers**
During the year, 634 regular volunteers gave up many hours of their time to assist us, either as drivers’ mates, warehouse staff, or in administrative and advisory capacities. During the year we benefitted from 17,648 hours of volunteer time, which is equivalent to more than six full-time staff.
Our volunteers included many vulnerable individuals gaining work experience and rebuilding lives, including the homeless, those with mental and physical disabilities and ex-offenders transitioning back into productive lives.
In addition, a total of 28 corporate employees were released by 9 London businesses to work for City Harvest. We have strong relationships with responsible businesses wishing to make an authentic impact in their communities. City Harvest enables them to effectively contribute to solving local and persistent community challenges.
17
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
**TRUSTEES’ ANNUAL REPORT (Continued)**
**YEAR ENDED 31st MARCH 2021**
## **Fundraising**
Our redistribution work is funded by charitable grants and donations from trusts, businesses, and individuals. We were fortunate to receive £5.3 million, which is 3.5 times the sum raised last year. We are hugely grateful to all those who support us financially. Their donations have enabled us to meet our ambitious goals towards ending hunger and nourishing communities throughout London as well as grow to connect more waste with want. We particularly appreciate multi-year support programs, to give us confidence to invest in expansion.
Our work has also been made possible by support from a number of very committed trusts and foundations and corporate partners including Artemis, Benecare Foundation, City Bridge Trust, DEFRA-WRAP, the EQ Foundation, The Drapers Company, The Fishmongers’ Company, The Worshipful Company of Grocers, Hammersmith United Charities, Intermediate Capital Group, Kepler Cheuvreux Foundation, Kusuma Trust, The Macallan, Marguerite Foundation, Montanaro Asset Management, Morrisons Foundation, The Permira Foundation, Rockstar Games, The Westminster Foundation and William Blair International.
The continued support from businesses that provide generous donations of food include Morrisons, Amazon, Fareshare, Whole Foods, Charlie Bigham’s, Marks & Spencer, Innocent Drinks, New Covent Garden Market and New Spitalfields Market were much appreciated.
What drives the continued enthusiasm of the City Harvest team is the engagement from businesses and the community to help feed those experiencing adversity. We are supported by iconic London partners like The Savoy, Wimbledon, Crystal Palace Football Club, Fulham Football Club and Queens Park Rangers Football Club. We would not have been able to accept unusually large volumes of donated food during the COVID-19 crisis without the rapid response of our landlord Segro who have provided us with the temporary space for emergency food redistribution services. Support from The Mercedes Benz Group enabled members of our team to safely commute during the crisis.
We have greatly valued the vehicles made available by Vauxhall, as well as the many enthusiastic volunteers from our corporate partners including PWC, People against Dirty and DEFRA.
We are also grateful to organisations that have contributed pro-bono services, including significant time commitments by Allen & Overy LLP, Tibco and Bain & Company, which have enabled us greatly to improve our business model.
18
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
**TRUSTEES’ ANNUAL REPORT (Continued)**
**YEAR ENDED 31st MARCH 2021**
## **FINANCIAL REVIEW**
The charity funds are controlled by the board of trustees, which acts to carefully and strategically allocate resources to properly grow the organisation. The attached financial statements show the current state of finances, which the trustees consider to be sound. The financial statements conform to statutory requirements and comply with the charity's governing documents.
## **Key management personnel**
The key management personnel are the Chief Executive, the Chief Operating Officer and the Head of Finance.
## **Financial growth**
Total income for the year increased from £1.5 million to £5.3 million. This has enabled us to substantially increase the tonnage of food distributed.
**----- Start of picture text -----**
Income and Expenditure
-
2018 2021 (£m)
£5.3
£6.0
£4.0
£2.0
£1.5
£2.0 £0.9 £0.8 £1.1
£-
2018/ 19 2019/ 20 2020/ 21
Income Expense
**----- End of picture text -----**
**----- Start of picture text -----**
Cost to deliver one meal
£0.4
£0.36
£0.3
£0.2 £0.25 £0.26
£0.20
£0.1
£-
2017/ 18 2018/ 19 2019/ 20 2020/ 21
**----- End of picture text -----**
This involved increasing our underlying cost base from an average of £88,684 per month in 2019-20 to £165,793 in 2020-21, as well as making capital investments of £522,798 during the year.
As a consequence of this continuing investment we have increased the quantity of food rescued from 68 tonnes per week in the first quarter of the year to 107 tonnes in the fourth quarter (255,000 meals per week).
City Harvest carefully monitors all expenditures, with a focus on the cost to redistribute one meal. In the year ended March 31, 2021, thanks to an exceptionally high level of direct food deliveries to our depots, our cost to deliver one meal was £0.20p.
The trustees constantly monitor the ratio of available funds to future expenditures and donation income, in order to avoid over-committing the charity’s resources.
## **Investment powers and policy**
The trustees, having regard for the present and future liquidity requirements of operating the charity, have diversified a portion of available funds in a range of interest-bearing bank deposit accounts with a term of between 3 and 12 months, in order generate a return on funds while benefitting from the FSCS deposit protection scheme of £85,000 per bank. The invested funds achieved a return of 0.27%. The selection of banks and the management of the deposits is overseen by the Finance and Audit Committee.
19
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
**TRUSTEES’ ANNUAL REPORT (Continued)**
**YEAR ENDED 31st MARCH 2021**
## **Reserves policy**
Reserves are needed to bridge the gap between the spending and receiving of income and to cover planned future expenditure. In 2020-21 the charity benefitted from an exceptional level of financial donations as our supporters responded to the food poverty crisis created by the COVID19 lockdown. These funds have substantially contributed to the expansion of our food redistribution efforts, enabling us to deliver to additional partners and source and distribute new supplies of surplus food, but it is by no means certain that the charity will continue to receive this level of donations in the future.
The trustees have therefore designated reserve funds totalling £3.75 million, including a liquidity fund to cover six months’ operating expenses. The forecast operating and capital expenditure for 2021-22 is approximately £250,000 per month, so the liquidity reserve was increased from £750,000 to £1.5 million at 31st March 2021. The remaining designated reserve funds are to ensure that the charity is able to open a further large distribution centre in 2022 in order to reach more charities and food donors while continuing to meet its existing lease obligations at the Acton depot.
## **Going concern**
The trustees have prepared an income and expenditure budget and cash flow forecast and have concluded that the charity continues to be a going concern for the foreseeable future. On that basis they have continued to adopt the going concern basis when preparing the financial statements.
## **TRUSTEES' RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS**
The charity’s trustees (who are also the directors for the purposes of company law) are responsible for preparing a trustees' annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and incoming resources and application of those resources, including the income and expenditure of the charitable company for that period. In preparing the financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities Statement of Recommended Practice (SORP);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- 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 adequate accounting records that are sufficient to show and explain the charitable company's transactions and 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.
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
20
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
**TRUSTEES’ ANNUAL REPORT (Continued)**
**YEAR ENDED 31st MARCH 2021**
## **STATEMENT AS TO DISCLOSURE TO OUR INDEPENDENT AUDITOR**
In so far as the trustees are aware at the time of approving our trustees’ annual report:
- there is no relevant information, being information needed by the independent auditor in connection with preparing their report, of which the independent auditor is unaware, and
- the trustees having made enquiries of fellow directors and the charity’s independent auditor that they ought to have individually made, have each taken all steps that he/she is obliged to take as a director to make themselves aware of any relevant information and to establish that the independent auditor is aware of that information.
## **AUDITORS**
A resolution to re-appoint Rotherham Taylor Limited as auditors for the ensuing year will be proposed to the board of trustees.
## **SMALL COMPANY PROVISIONS**
This report has been prepared in accordance with the provisions applicable for companies entitled to the small companies exemption.
## **By order of the board of trustees**
## **Ben Clarke**
## **Chair**
## **16 August 2021**
21
**CITY HARVEST COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CITY HARVEST YEAR ENDED 31st MARCH 2021**
## **Opinion**
We have audited the financial statements of City Harvest (the ‘charitable company’) for the year ended 31st March 2021 which comprise the statement of financial activities, the balance sheet and statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31st March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the 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 charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
22
**CITY HARVEST COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CITY HARVEST YEAR ENDED 31st MARCH 2021**
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees’ report, which includes the directors’ report prepared for company law purposes, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors’ report included within the trustees’ report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
-
-
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
23
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
**INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CITY HARVEST YEAR ENDED 31st MARCH 2021**
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 19, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
## **Explanation as to what extent the audit was considered capable of detecting**
## **irregularities, including fraud**
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
24
**CITY HARVEST COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF CITY HARVEST YEAR ENDED 31st MARCH 2021**
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)**
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Nicholas Smith (Senior Statutory Auditor)
For and on behalf of Rotherham Taylor Limited, Statutory Auditor Chartered Accountants 21 Navigation Business Village Navigation Way Ashton-on-Ribble Preston PR2 2YP 16 August 2021
.
25
**CITY HARVEST COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES**
## **(INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31st MARCH 2021**
|**Notes**|**Unrestricted**
**Funds**|**Restricted**
**Funds**|**Total**
**Funds**
**2021**|**Total**
**Funds**
**2020**
£
1,504,711
19,841
863
7,755
**1,533,170**
( 46,919 )
(1,019,454)
**( 1,066,373 )**
**466,797**
713,752
**1,180,549**|
|---|---|---|---|---|
|**Income:**
Donations and grants
3
_Income from charitable_
_activities_
Contributions from food
recipients
Investment income
4
_Income from other trading_
_activities_
Food waste disposal
service income
**Total income**
**Expenditure:**
_Costs of raising funds:_
Fees and other
fundraising expenses
_Expenditure on charitable_
_activities_
Food rescue and delivery
5
**Total expenditure**
**Net income and**
**movement**
**in funds for the year**
**Reconciliation of funds:**
Total funds brought
forward
**Total funds carried**
**forward**|£
4,596,812
27,915
4,914
6,000
**4,635,641**
( 109,833 )
(1,401,033)
**( 1,510,866 )**
**3,124,775**
998,563
**4,123,338**|£
684,111
-
-
-
**684,111**
-
(480,829)
**( 480,829 )**
**203,282**
181,986
**385,268**|£
5,280,923
27,915
4,914
6,000
**5,319,752**
( 109,833 )
(1,881,862)
**( 1,991,695 )**
**3,328,057**
1,180,549
**4,508,606**||
The Statement of Financial Activities includes all gains and losses in the year. All income and expenditures derive from continuing activities.
The notes on pages 29 to 39 form part of these financial statements.
26
**CITY HARVEST COMPANY LIMITED BY GUARANTEE BALANCE SHEET AS AT 31st MARCH 2021**
|**Notes**|**2021**|**2020**|
|---|---|---|
|**Fixed assets:**
Tangible assets
10
**Total fixed assets**
**Current assets**
Debtors
11
Investments in short term deposits
12
Cash at bank and in hand
**Total current assets**
**Liabilities:**
Creditors falling due within one year
13
**Net current assets**
**Total assets less current liabilities**
**Net assets**
**The funds of the charity:**
Unrestricted income funds
General funds
14
Designated funds
14
Restricted income funds
15
**Total charity funds**|£
683,348
**683,348**
104,733
2,928,514
863,937
**3,897,184**
( 71,926 )
**3,825,258**
4,508,606
**4,508,606**
373,338
3,750,000
385,268
**4,508,606**|£
283,372
**283,372**
92,238
-
835,117
**927,355**
( 30,178 )
**897,177**
1,180,549
**1,180,549**
248,563
750,000
181,986
**1,180,549**|
The trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies’ regime within Part 15 of the Companies Act 2006.
The notes on pages 29 to 39 form part of these financial statements.
These financial statements were approved by the trustees on 16 August 2021 and are signed on their behalf by:
**Ben Clarke**
**Chair**
27
**CITY HARVEST COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS**
## **YEAR ENDED 31st MARCH 2021**
|**Notes**|**2021**|**2020**|
|---|---|---|
|**Cash provided by operating activities**
20
**Cash flows from investing activities**
Investment in short term deposits
Purchase of tangible fixed assets
10
Proceeds from disposal of fixed assets
**Cash used in investing activities**
**Increase in cash and cash equivalents in**
**the year**
Cash and cash equivalents at the beginning of
the year
**Total cash and cash equivalents at the end**
**of the year**|£
**3,472,133**
( 2,928,514 )
( 522,798 )
8,000
( 3,443,312)
28,820
835,117
**863,937**|£
**490,530**
-
( 144,124 )
-
(144,124)
346,406
488,711
**835,117**|
The notes on pages 29 to 39 form part of these financial statements.
28
**CITY HARVEST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS**
**YEAR ENDED 31st MARCH 2021**
## **1. ACCOUNTING POLICIES**
## **a) Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
City Harvest meets the definition of a public benefit entity under FRS 102.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## **b) Preparation of the accounts on a going concern basis**
The trustees have prepared budgets and a forecast which gives them adequate comfort that the charitable company is a going concern. Therefore, the trustees are of the view that the charitable company has sufficient resources for at least the next 12 months (from the date of approving the financial statements) and that there are no material uncertainties regarding going concern. As a result, the charitable company's financial statements have been prepared on a going concern basis.
## **c) Income**
Cash donations are recognised as income where there is entitlement, sufficient certainty of receipt and the amount can be measured with sufficient reliability.
If a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.
## **d) Investment income**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity. This is normally upon notification of the interest paid and payable by the bank.
## **e) Donated goods and services**
Donated goods and services, including vehicles, are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity is probable and the economic benefit of can be measured reliably.
The value of food collected and distributed is excluded from the statement of financial activities, reflecting the Charity’s function as a distribution agent rather than a principal.
In accordance with the Charities SORP (FRS 102), the time of volunteers is not recognised in the accounts, but the trustees’ annual report provides information about their contribution.
On receipt, donated professional services and donated assets are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or assets of equivalent economic benefit in the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
29
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
**NOTES TO THE FINANCIAL STATEMENTS**
**YEAR ENDED 31st MARCH 2021**
## **1. ACCOUNTING POLICIES (continued)**
## **f) Fund accounting**
Restricted funds are maintained in accordance with the restrictions placed by the donor upon funds donated.
Unrestricted funds are the free funds of the charity to use at the discretion of the trustees in the furtherance of the charity's objectives. Unrestricted funds may include designated funds where the trustees, at their discretion, have created a fund for a specific purpose.
## **g) Expenditure and irrecoverable VAT**
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 settlement will be required and the amount of the obligation can be measured reliably.
All expenditure is accounted for on an accruals basis. All expenses, including support costs and governance costs, are allocated or apportioned to the applicable expenditure headings in the statement of financial activities. Refer to Note 5 - Analysis of Support Costs for further details.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
## **h) Allocation of support and governance costs**
Support costs are incurred by functions that assist the work of the charity but do not directly undertake charitable activities.
General support costs include office administration, finance, IT and payroll activities. Governance costs comprise expenses involving the public accountability of the charity and its compliance with regulation and good practice and comprise the cost of the independent audit.
The bases on which support costs have been allocated are set out in Note 6 - Analysis of Support Costs.
## **i) Operating Leases**
The charity classifies its warehouse rental agreement as an operating lease, and rent is accrued on a straight line over the term of the lease. With regard to the delivery vans made available to the charity free of charge, the cost of renting equivalent vehicles is used as the basis for assigning the donation income and rental expense.
## **j) Fixed assets**
The threshold for capitalisation of fixed assets is £500. Purchased fixed assets are capitalised at cost. Donated fixed assets are capitalised on the basis of the value of the gift to the charity, which is the amount the charity would have been willing to pay to obtain services or assets of equivalent economic benefit in the open market.
The carrying values of tangible fixed assets are reviewed for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.
30
**CITY HARVEST**
**COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS**
**YEAR ENDED 31st MARCH 2021**
## **1. ACCOUNTING POLICIES (continued)**
## **j) Fixed assets (continued)**
Depreciation is calculated to write off the cost of an asset over the useful economic life of that asset as follows:
Plant, machinery & vehicles 20% straight line
Office furniture & IT equipment 20% straight lin
## **k) Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade or charity discounts due.
## **l) Cash at bank and in hand**
Cash at bank and in hand represents funds which are readily available on demand at less than 24 hours notice.
## **m) Investments in short term deposits**
Investments in short term deposits are interest-bearing bank deposits with notice terms of between 3 and 12 months.
## **n) Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any discounts allowed.
## **o) Financial instruments**
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments, Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.
## **p) Pensions**
All employees of the charity are automatically enrolled into a defined contribution pension scheme operated by the Creative Pension Trust, unless they exercise their right to opt out of scheme membership.
## **2. LEGAL STATUS OF COMPANY**
The company is limited by guarantee and its governing document is its Memorandum and Articles of Association.
Each member is a guarantor of the company, to an amount not exceeding £1, in the event of the winding up of the company.
31
**CITY HARVEST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31st MARCH 2021**
## **3. DONATIONS AND GRANTS**
|Donations and gifts
Grants
Donations of goods and services
**Total**|**Unrestricted**
**Funds**
£
3,269,921
504,875
1,600
3,776,396|**Restricted**
**Funds**
£
431,911
252,200
-
684,111|**Total**
**Funds 2021**
£
3,701,832
1,577,491
1,600
5,280,923|**Total**
**Funds 2020**
£
738,036
757,075
9,600|
|---|---|---|---|---|
|||||1,504,711|
## **4. INVESTMENT INCOME**
All of the charity’s investment income of £4,914 (2020: £863) arises from money held on interest bearing deposit accounts.
## **5. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES**
||**Unrestricted**
**Funds**
£
671,295
405,229
1,076,524
330,335
1,401,698|**Restricted**
**Funds**
£
355,245
119,758
480,829
-
480,829|**Total Funds**
**2021**
£
1,026,540
524,987
1,551,527
330,335
1,881,862|**Total Funds**
**2020**
£
612,264
276,058|
|---|---|---|---|---|
|**Charitable activities**
Drivers and logistics
personnel
Operational expenditures
**Total Charitable activities**
**Support costs (Note 6)**
**Total**|||||
|||||888,322
131,132|
|||||1,019,454|
32
**CITY HARVEST**
## **COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS**
## **YEAR ENDED 31st MARCH 2021**
## **6. ANALYSIS OF SUPPORT COSTS**
||**General**
**support**
**costs**
£
190,915
45,143
84,165
-
-
320,223|**Governance**
£
-
-
-
3,512
6,600
10,112|**Total 2021**
£
190,915
45,143
84,165
3,512
6,600
330,335|**Total 2020**
£
79,366
14,157
30,922
2,187
4,500|
|---|---|---|---|---|
|Support staff costs
Legal and other
professional fees
Administrative overheads
Accountancy services
Audit fee
**Total**|||||
|||||131,132|
The charity allocates costs directly to charitable activities as far as possible, and then apportions the remaining costs between general support and the governance function based on the nature of the expense.
## **7. NET INCOME AND EXPENDITURE FOR THE YEAR**
This is stated after charging:
||**2021**|**2020**|
|---|---|---|
||£|£|
|Operating leases - warehouses|104,274|60,990|
|Depreciation (Note 10)|103,320|62,347|
|Audit fee|6,600|4,500|
|Accountancy services|3,512|2,187|
33
**CITY HARVEST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31st MARCH 2021**
## **8. STAFF COSTS AND EMOLUMENTS**
||**2021**|**2020**|
|---|---|---|
||£|£|
|Wages|989,651|580,648|
|Social security costs|97,492|50,029|
|Contractors|170,710|71,178|
|Pension costs|12,998|9,560|
||1,270,851|711,415|
The average number of employees during the year was 34 (2020: 23).
None of the employees or contractors is a trustee. No trustee expenses were incurred during the year (2020: £Nil).
All employees are paid at least the London Living Wage, and most are enrolled in the Governmentbacked auto-enrolment pension scheme.
The number of employees who received total emoluments of more than £60,000 during the year was as follows:
|Salary Band|2020-21|2019-20|
|---|---|---|
|£70,001-£80,000|1|None|
|£60,001-£70,000|1|None|
Pension contributions of £1,312 (2020: £987) were paid to a defined contribution scheme in respect of the highest paid employee.
The Key Management Personnel are the Chief Executive, the Chief Operating Officer and the Head of Finance. The total emoluments of the Key Management Personnel were £179,074 (2020: £129,332)..
There have been 634 regular volunteers during the year (2020: 57) assisting our drivers and helping to sort food in the warehouse. In addition, 43 employers released teams of employees to spend a day volunteering at City Harvest.
## **9. TAXATION**
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
The charity is registered for VAT on its trading activities, which consist of fees charged to certain donors for sorting and disposing of out-of-date food on their behalf.
34
**CITY HARVEST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31st MARCH 2021**
## **10. FIXED ASSETS**
||**Plant, machinery**
**& vehicles**
£
384,445
505,104
( 45,419 )
844,130
110,362
98,726
( 26,125 )
182,963
661,168
274,083|**Office furniture &**
**IT equipment**
£
13,871
17,694
( 625 )
30,940
4,582
4,594
( 417 )
8,759
22,181
9,289|**Total**
£
398,316
522,798
( 46,044 )|
|---|---|---|---|
|**COST**
As at 1st April 2020
Additions
Disposals
As at 31st March 2021
**DEPRECIATION**
As at 1st April 2020
Charge for the year
Disposals
As at 31st March 2021
**NET BOOK VALUE**
At 31st March 2021
At 31st March 2020||||
||||875,070|
||||114,944
103,320
( 26,542 )|
||||191,722|
|||||
||||683,348|
||||283,372|
## **11. DEBTORS**
||**2021**
£
36,413
4,950
701
62,669
104,733|**2020**
£
54,456
3,500
342
33,940|
|---|---|---|
|Debtors
Employee cash advances
VAT
Prepayments|||
|||92,238|
Debtors as at 31[st] March 2021 include £25,000 in respect of a fleet funding agreement with a Corporate donor. At 31[st] March 2020 debtors included £51,656 in respect of the reimbursement by WRAP of expenditure incurred during the year for creation of the satellite distribution centre. Prepayments relate to fleet insurance premiums and warehouse rent.
35
**CITY HARVEST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31st MARCH 2021**
## **12. INVESTMENTS IN SHORT TERM DEPOSITS**
Investments in short term deposits totalling £2,928,514 (2020: Nil) are interest-bearing bank deposits with notice terms of between three and twelve months.
## **13. CREDITORS: Amounts falling due within one year**
||**2021**
£
53,204
4,573
14,149
71,926|**2020**
£
4,508
14,799
10,871|
|---|---|---|
|Accruals
PAYE and pensions
Third party creditors|||
|||30,178|
## **14. ANALYSIS OF UNRESTRICTED CHARITABLE FUNDS**
**a) Current year**
||**Balance at**
**1st April**
**2020**
£
248,563
750,000
998,563|**Incoming**
**resources**
£
4,635,641
-
4,635,641|**Transfers**
**between**
**funds**
£
( 3,000,000 )
3,000,000
-|**Outgoing**
**resources**
£
( 1,510,866 )
-
(1,510,866 )|**Balance at**
**31st March**
**2021**
£
373,338
3,750,000|
|---|---|---|---|---|---|
|General
funds
Designated
reserve fund||||||
||||||4,123,338|
The general funds are the ‘free reserves’ after allowing for all designated funds.
## **b) Prior year**
||**Balance at**
**1st April**
**2019**
£
393,367
225,000
618,367|**Incoming**
**resources**
£
1,235,214
-
1,235,214|**Transfers**
**between**
**funds**
£
( 525,000 )
525,000
-|**Outgoing**
**resources**
£
( 855,018 )
-
( 855,018 )|**Balance at**
**31st March**
**2020**
£
248,563
750,000
998,563|
|---|---|---|---|---|---|
|General funds
Designated
reserve fund||||||
36
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31st MARCH 2021**
## **14. ANALYSIS OF UNRESTRICTED CHARITABLE FUNDS (continued)**
## **c) Analysis of designated funds**
The trustees have designated the following reserve funds to ensure the charity's continued expansion:
|Liquidity reserve - six months' committed operating costs
Five years occupancy costs on a further distribution centre, plus
fixtures and equipment
Rental payments for the Acton distribution centre 2022-25
Zero-emission vehicles - pilot test|**Balance at**
**31st March**
**2021**
£
1,500,000
1,450,000
650,000
150,000
3,750,000|**Balance at**
**31st March**
**2020**
£
750,000
-
-
-|
|---|---|---|
|||750,000|
## **15. ANALYSIS OF RESTRICTED CHARITABLE FUNDS**
## **a) Current year**
|**Title of Fund**
Fleet operations fund
Main depot Fund
Satellite depot fund
Vehicle purchase fund
Coolroom and freezer fund
**Total restricted funds**|**Balance at**
**1st April**
**2020**
£
4,976
-
44,383
123,370
9,257
181,986|**Incoming**
**resources**
£
345,058
86,001
95,252
157,800
-
684,111|**Outgoing**
**resources**
£
( 315,834 )
( 2,272 )
( 110,891 )
( 42,575 )
( 9,257 )
(480,829 )|**Balance at**
**31st March**
**2021**
£
34,200
83,729
28,745
238,595
-|
|---|---|---|---|---|
|||||385,269|
## **b) Prior year**
|**Title of Fund**
Fleet operations fund
Satellite depot fund
Vehicle purchase fund
Coolroom and freezer fund
**Total restricted funds**|**Balance at**
**1st April**
**2019**
£
-
-
81,833
13,552
95,385|**Incoming**
**resources**
£
181,300
51,656
65,000
-
297,956|**Outgoing**
**resources**
£
( 176,324 )
( 7,273 )
( 23,463 )
( 4,295 )
(211,355 )|**Balance at**
**31st March**
**2020**
£
4,976
44,383
123,370
9,257|
|---|---|---|---|---|
|||||181,986|
37
**CITY HARVEST COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31st MARCH 2021**
## **16. ANALYSIS OF NET ASSETS BETWEEN FUNDS**
## **a) Current year**
||**General**
**Funds**
£
215,133
34,716
249,849|**Designated**
**funds**
£
-
3,750,000
3,750,000|**Restricted**
**funds**
£
468,215
40,542
508,757|**Total**
£
683,348
3,825,258|
|---|---|---|---|---|
|Tangible fixed assets
Net current assets
**Total Funds at 31st March**
**2021**|||||
|||||4,508,606|
The net book value of net assets purchased with restricted funds of £508,757 exceeds the value of restricted income funds received to date of £385,269 (note 15a) by £123,488. (2020: £Nil). This is attributable to expenditures made in 2020-21 in the expectation of reimbursement under donation contracts with WRAP. Since these reimbursements are contingent upon the meeting of future growth targets, the income receivable will not be recognised until the funds are released.
## **b) Prior year**
||**General**
**Funds**
£
115,256
658,357
773,613|**Designated**
**funds**
£
-
225,000
225,000|**Restricted**
**funds**
£
168,116
13,820
181,936|**Total**
£
283,372
897,177|
|---|---|---|---|---|
|Tangible fixed assets
Net current assets
**Total Funds at 31st March**
**2020**|||||
|||||1,180,549|
## **17. CONTINGENCIES**
The trustees have confirmed that there were no contingent liabilities which should be disclosed at 31[st] March 2021.
## **18. COMMITMENTS**
The charity entered into a five-year lease agreement on 14[th] December 2020 for the new distribution centre in Acton. As at 31[st] March 2021 the outstanding commitment was £508,000 (2020: £114,000).
The trustees have confirmed that there were no capital commitments at 31[st] March 2021.
## **19. POST BALANCE SHEET EVENTS**
David Carter was appointed Chief Executive, on 4[th] May 2021. He takes over from theCo-founder Laura Winningham, who has assumed the role of Head of Strategic Relationships.
38
**CITY HARVEST COMPANY LIMITED BY GUARANTEE**
## **NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31st MARCH 2021**
## **20. RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES**
|Net movement in funds
Add back depreciation charge (Note 10)
Add back loss on disposal of fixed assets
Increase in debtors
Increase in creditors
**Cash provided by operating activities**|**2021**
£
3,328,057
103,320
11,502
( 12,495 )
41,749
3,472,133|**2020**
£
466,797
62,348
-
( 62,402 )
23,787|
|---|---|---|
|||490,530|
39