ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS
COMPANY LIMITED BY GUARANTEE YEAR ENDED 31 MARCH 2023
COMPANY REGISTRATION NUMBER 08986929 CHARITY REGISTRATION NUMBER 1163055
TABLE OF CONTENTS
| Pages | ||
|---|---|---|
| 1 | City Harvest values & impact | 2-3 |
| 2 | A letter from our CEO | 4-5 |
| 2 | Trustees’ Annual Report | 6-21 |
| 3 | Independent Auditor’s Report | 22-25 |
| 4 | Statement of Financial Activities | 26 |
| 5 | Balance Sheet | 27 |
| 6 | Statement of Cash Flows | 28 |
| 7 | Notes to the Financial Statements | 29-41 |
City Harvest Company Limited by Guarantee Year ended 31 March 2023
CITY HARVEST VALUES & IMPACT
MISSION
To reduce food insecurity and protect the planet by diverting quality, nutritious edible surplus food from waste & redistributing it to those facing food poverty.
VISION
Cities where all people have access to fresh, nourishing food and no good food is wasted from within the food supply chain.
Rescuing Food City Harvest ensures no good food is wasted. Our team redistributes free food for 1.2 million meals a month to people most in need.
Rescuing People City Harvest believes in the human right to food & that children should thrive, not just survive. We ensure the right food gets to the right people at the right time.
Rescuing Planet
City Harvest helps food partners reach UN 9 Sustainable Development Goals (SDGs) & deliver their Environmental, Social and Governance (ESG) strategies, reducing waste & making huge social impact.
Our Values
Our values sit at the heart of what we do and guide how we do things; they inform our ways of working, the decisions we make, the behaviours we champion and how the organisation should feel. We are proud that they have been shaped collectively by our community – our staff, our volunteers, our trustees and our community partners. To bring our values to life, we move beyond words and into action:
Community focused
Compassionate Community focused Aspiring Collaborative Trustworthy
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IMPACT IN NUMBERS
13.5M £0.26 5,690 TONNES 29 MEALS COST TO REDISTRIBUTED LONDON DELIVERED DELIVER 1 MEAL FOOD BOROUGHS 84,150 27,000 14,642 TONNES £11.90 RECIPIENTS HOURS GREENHOUSE GASES SOCIAL RETURN PER WEEK VOLUNTEERED PREVENTED ON INVESTMENT
EQUALS
With City Harvest, donations that are made EQUALS food for hungry Londoners. Donation impact makes a big difference to fighting hunger & waste.
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“
We believe that a hot, nutritious meal shared in the company of others, and with dignity, improves mental and physical health and can be the first step to transforming a life. ”
City Harvest
Company Limited by Guarantee Year ended 31 March 2023
A LETTER FROM OUR CEO
City Harvest, when founded in 2014, was established to meet the needs of both the most vulnerable in London and to address the volumes of waste food being consigned to landfill, damaging the environment. Every year since, our exponential growth has followed the increasing economic challenges faced in the UK. Today 23% of households with children struggle to afford the food they need, the Child Poverty Action group report that one-third of school-age children in England (900,000), living in poverty, need free school meals, but may not be receiving them.
As I write, we now have a team of 64, in the last year we benefitted from 27,000 hours of volunteer time, our two depots benefit from new systems and procedures and our 19 vehicles are now on new, geographically efficient routes. Our operations team have been focused on service improvement; how we can deliver more, to more people, with less environmental impact. We have reduced our fleet carbon emissions by five tons in the last year; each van travels, on average, ten fewer miles per day whilst we now feed upwards of 84,000 people each week, across 29 London boroughs. We partner with over five hundred food distributors, producers, events, caterers, restaurants, manufacturers, and farmers taking their edible waste lines, delivering to those that help others.
In our first year we delivered 80,000 meals worth of food, in the 22/23 year, we delivered 13.5 million meals, a growth of 15% on the previous year. Our volume of rescued food increased to 5,690 tonnes which delivered an environmental saving of 14,642t of greenhouse gases. By the end of August 2023, we have delivered fifty million meals in total, a staggering achievement, but sadly still not enough.
We are incredibly grateful to our financial and pro-bono supporters, the generosity of compassionate individuals, foundations, trusts, and corporations helps us change lives every day. We are indebted to these essential relationships, some of which date back to our foundation, core support which enables our team to move forward with confidence, determined to help more people and elevate our social impact. We have a solid foundation, created by data driven decision making and a deep understanding of the social impact of what we strive to achieve.
Collaboration with other charities, both close to home, and nationally, has increased in the last year. As part of our commitment that no edible food should go to waste, we have increased our activity sharing large donations with others in our sector. Collaborative working is part of our future, founded in a common goal to feed the hungry and save edible food from going to waste. We are no longer an emergency food service; we are now part of a long-term recovery service. Food insecurity continues to rise, fueled by wider geopolitical forces that are driving inflationary increases and destabilizing supply chains. People are starving in modern day Britain, Victorian conditions such as rickets and scurvy are a reality. People are flooding into soup kitchens, food banks, social
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Company Limited by Guarantee Year ended 31 March 2023
A LETTER FROM OUR CEO
supermarkets and the newly created discount food cooperatives, holiday hunger projects are more important than ever.
We continue to strengthen our operation, investing in our people and facilities, there is a scoping exercise underway looking at our expansion opportunities, focused on the areas of greatest need and how we can rescue more food to feed the hungry.
We are indebted to all that work, volunteer, and support City Harvest - working together we are capable of remarkable things.
“
Collaborative working is part of our future, founded in a common goal to feed the hungry and save edible food ” from going to waste.
Sarah Calcutt
CEO
11 September 2023
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City Harvest Company Limited by Guarantee Year ended 31 March 2023
TRUSTEES’ ANNUAL REPORT
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 2023.
Objectives and activities
This year city harvest delivered 13.5m nutritious meals.
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 edible surplus food otherwise destined for landfill or anaerobic digestion from retailers, wholesalers, restaurants, manufacturers and others, and distributes it to community programs that serve meals to vulnerable people.
Achievements and performance
City Harvest delivered to over 84,000 recipients each week via over 300 community partners in greater London.
The impact of City Harvest’s work
During the past year, City Harvest redistributed 5,690 tonnes of donated nutritious food that would otherwise have gone to waste. This equated to 13.5 million highly nutritious meals.
We increased the number of recipients to which we deliver nutritious surplus food in the past 12 months, and now deliver to over 84,000 recipients each week via over 300 community partners in Greater London.
The recipients of this safe, in-date food delivered weekly included community foodbanks, soup kitchens, school foodbanks and children’s clubs, refuges for women fleeing domestic violence, day centres for the elderly and those facing mental illness.
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 with a global warming potential more than 80 times greater than that of CO2.
The quantity of food City Harvest delivered this year would have resulted in 14,642 tonnes of greenhouse gases being released if it instead went to landfill. Additionally, all the resources that were utilised to produce the 5,690 tonnes of food City Harvest rescued - energy, land, water - would have been wasted as well.
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Our investment programme
The quantity of food redistributed by City Harvest in the past year increased by 15% from the prior year. To support this growth, we have continued to invest in infrastructure and human resources and ensure operational excellence in our efforts to nourishh the community. This included investment in our workforce, purchase of vans, upgrading our food storage and handling areas; and purchase of computers and office furniture.
The large and growing need for our services
The last round of the Food Insecurity Survey performed by the Food Foundation 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 food insecurity has increased and 9 million adults (17% of households) currently experience food insecurity, among which 3 million adults reported not eating for the whole day because they couldn’t afford it.
In the past year we continued to increase the 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.
Collaboration with a wide breadth of community 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.
Serving London’s most vulnerable
Our work supports many vulnerable sections of London’s population with significant impact on nourishing the homeless, children and families, those on low income, and young people.
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Community Impact
The cost-of-living crisis has had a major impact on City Harvest’s services over the last 12 months. As more and more people have begun to struggle, the demand for food aid has increased exponentially. A large volume of new projects have arisen, driven mostly by local people seeking solutions to the crisis. These are not traditional “referral based” foodbanks. They are community driven and come in a number of shapes and sizes:
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Social supermarkets or community pantries as they are sometimes called, where customers are expected to pay a small weekly membership fee, approx. £4 to £5, and for that go home with a couple of bags of shopping worth about £45.
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Food co-ops, where a group of people club together to buy their essentials in bulk, and supplement this with surplus food.
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School foodbanks, where schools run a free foodbank for parents, usually at the end of the week to supplement the food families have over the weekend.
| Organisations that we serve Community Foodbank |
44% | |
|---|---|---|
| Supported Housing/Hostel | 15% | |
| Community Meal | 12% | |
| Soup Kitchen Children’s project/Youth club |
7% 6% |
|
| Social Supermarket | 4% | |
| School Foodbank | 3% | |
| Food Hub | 3% | |
| Outreach/Delivery Drop-in |
3% 2% |
|
| Community Café | 1% | |
| 100% |
Against this backdrop of an exponential increase in demand, City Harvest has tailored its service to make the most efficient use of its much need supplies of surplus food. Most importantly, it has rationalised its community partner base. 65 new community partners have been brought onboard whilst services have curtailed to 47 community partners. These net 18 community partners have increased our customer base by over 10,000 unique clients. Examples of newly onboarded charities include The Roehampton Community Box and Co-operation Town.
The Roehampton Community Box A fantastic example of a very professional social supermarket located in a disused civic building in between three of London’s most challenging schools in Southwest London. The social supermarket used to run one day per week, but with ever rising demand, City Harvest now supports Rackets Cubed to run on a second day. Every week, over 200 people benefit from the four rooms of freshly stocked produce.
Another important step towards improved efficiencies has been the roll out of 14 new routes, designed around postal code areas. Many of our community partners have been helpful in changing their delivery schedules so that we can get round the capital as effectively as possible, getting our stock to as many people as possible.
This year has also seen the introduction of “mini hub and spoke models” whereby typically 4 to 5 charities work together to allow us to deliver a large amount of stock into the “hub community” who then take on full responsibility for storage and onward delivery of stock to the “spoke community partners”. The best example of this is in Lambeth where we deliver two van loads of stock to the Lambeth Hub who combine our stock with
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other supplies they have in their warehouse, which enables them to provide a balanced onward delivery to 4 other local community partners.
Finally, whilst 2022/23 has been largely about how we have adapted to increases in demand; it has not stopped us from trying to maximise the impact of our service on peoples’ quality of lives. Following a successful pilot with 5 LEYF nurseries, we are now supporting 10 LEYF nursery kitchens across London. At each of these, the chefs use our surplus stock to make new and interesting fresh menus for disadvantaged little ones. Importantly, the money saved by not purchasing stock commercially is being used to fund 5 full time nursery places for 12 months for 5 toddlers who otherwise would not have access to full time provision. Food that would have gone to landfill is making a huge difference to life opportunities.
Co-operation Town
Co-operation Town in Gospel Oak provides support to a number of local resident food co-ops who have decided that “together is better”. Every week, residents of each coop come together and decide what they need, and how much they can afford. Cooperation Town then sources the food more cheaply and supplements it with surplus food from City Harvest. The co-op model means that customers don’t just “receive” food, they are active in purchasing it.
Our coverage
We are active in most 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.
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City Harvest’s social return on investment (SROI) during the year was £11.90 for every £1 of expenditure.
City Harvest Company Limited by Guarantee Year ended 31 March 2023
TRUSTEES’ ANNUAL REPORT
Social return on investment
City Harvest’s Social Return on Investment (SROI) during the year was £11.90 for every £1 of expenditure. Management consultants Bain & Company continued to provide pro-bono support to monitor the impact on society of our food redistribution activities.
FOOD EXPENDITURE ENVIRONMENT EMPLOYMENT £6.4 £1.8 £0.9 • Reduced food • Reduced landfill costs • Provision of expenditure • Reduced compost employment • Reduced agency costs support to resources for food • Reduced landfill recipients purchases greenhouse gases • Direct employment emissions by City Harvest
£11.90 benefit for every £1 spent
HEALTH CRIME EDUCATION £0.9 £0.9 £1.0 • Improved mental • Reduced crime • Improved health rates of recipients educational • Reduced outcomes malnutrition • Improved child health from early intervention
Our community partners received City Harvest food donations with a retail value of £20.4 million during the year to 31st March 2023 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.
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.
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Food donors
In 2022-23, food donations to City Harvest grew by 15% on the previous year. This was mainly driven by a significant increase in fresh produce which as a category has grown to represent over 40% of our total annual food donations.
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Our Community Impact Team spoke with each of our charities and found out how much food they require…we now have a greater understanding of the volumes and types of food we need to be sourcing.
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We focused on increasing our fresh produce supply last year by running our second Harvest for Hunger campaign from March to October, outreaching and engaging farms and growers across the UK. The ripple effect of these relationships and partnerships as a result, has been huge.
| City Harvest’s food | distribution | |
|---|---|---|
| Fresh Produce | 41% | |
| Drinks Bread/Snacks |
12% 11% |
|
| Ready meals | 10% | |
| Dairy | 8% | |
| Meat, fish & eggs Pantry |
7% 7% |
|
| Other | 4% | |
| 100% |
We also saw a significant increase in the food received at our New Spitalfields Market hub, primarily due to the investment in a new chiller and freezer unit.
Last year our Community Meat, fish & eggs 7% Impact Team spoke with Pantry 7% each of our community partners and found out how Other 4% much food they require from City Harvest to be able to support their projects. This means we now have a greater understanding of the volumes and types of food we need to be sourcing to meet the demand.
As a result, we significantly grew our donor database in 2022-23, and we hope to do the same during 2023 by adding a significant increase in new donors across the supply chain. We’re conscious that being able to provide a well-balanced and nutritious range of food plays a huge part in the mental health and well-being of the people receiving our food.
We now have ambitious plans. With the investment we’ve made in our Acton warehouse, our fleet of vehicles and the relationships we have with our donors, present and future, we hope to be delivering significantly more meals by the end of this financial year.
We’re so grateful to the donors who have continued to support City Harvest by donating their surplus food for many years now, such as Amazon, New Spitalfields Market, The Ethical Food Company, Wholegood and Brakes.
We’re thankful too for the lasting support of some iconic London events: Wimbledon Tennis Association, Queens Park Rangers Football Club, London Lions Basketball Team and Royal Ascot.
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Other partners
“
One of our goals at Ethical Food Company is to reduce food waste and help people in need. City Harvest plays a big role in helping us achieve those things. Ben is always a phone call away and ready to help sort the logistics for us. ”
Andrejs Gorbunovs, Senior Product Manager
We are also grateful to organisations that have contributed pro-bono services, including significant time commitments by Allen & Overy LLP, Bain & Company, Social Business Trust and Acrobat Vehicle Rental Ltd.
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Our workforce
Our workforce comprises a mix of full and part-time employees, contract staff and volunteers. Our paid workforce at year-end is made of 63 full-time equivalent employees. All employees are paid at least the London Living Wage, and almost all are enrolled in the contributory pension scheme.
Our volunteers
City Harvest volunteers are central to our fast paced food distribution, and we massively appreciate our regular community and corporate volunteers giving their time.
In total during the year, we benefitted from more than 27,000 hours of volunteer time, which is equivalent to almost 15 full-time staff.
In total during the year, we benefitted from more than 27,000 hours of volunteer time, which is equivalent to almost 15 full-time staff.
603 regular community volunteers gave up 20,530 hours of their time to assist us, either as drivers’ mates, warehouse staff, or in administrative and advisory capacities. Our community volunteers included people who needed to gain work experience or help rebuilding their lives. For example, people with disabilities, those who have been homeless and ex-offenders transitioning back into productive lives.
In addition, a total of 924 corporate volunteers from 98 businesses gave up 6,515 hours of their time, mostly as small teams as part of their companies volunteering programmes. At City Harvest, corporate volunteers make a valuable contribution on a weekly basis.
For every one hour of volunteer time given, City Harvest can provide 530 meals to Londoners in need. Thank you!
Fundraising
Last year City Harvest raised £3.7 million to continue our vital mission in rescuing food and redistributing it to people in need. Our work has been made possible by the generous support from Trust & Foundations, Companies including Corporate Partnerships, and Individuals.
Trust & Foundations 48% Corporate 36% Individuals 11% Online giving 3% Gift Aid 1%
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City Harvest raised £3.7m by rescuing food and redistributing it to people in need.
We thank all our dedicated supporters who make a difference and help us keep our vans rolling across London feeding people.
TRUSTEES’ ANNUAL REPORT
We received support in the year from many dedicated donors and would like to give special thanks to the donors below who made significant financial contributions to fund our vital work.
Rabobank Sainsbury's Social Bite The Kepler Cheuvreux Foundation The Jongen Charitable Trust The Livery Food Initiative The Livery Kitchen Initiative The Permira Foundation The Vintners' Company The Wimbledon Foundation Trust Uber Eats
Artemis Group Bregal Investments City Bridge Trust Clayton Dubilier & Rice Foundation G3 ICG IGY Foundation Julia and Hans Rausing Kusuma Trust Marguerite Foundation MarketAxess
We are also grateful for everyone who donated and raised funds for City Harvest this year by donating through our website, regularly giving each month, participating in challenge events, and hosting fundraising activities like bake sales and quizzes.
We are registered with the Fundraising Regulator and follow their code of practice. This means we are transparent about how we raise funds and treat donors and supporters respectfully and fairly. We adhere to data protection laws and appropriately use, store, and secure personal details, taking reasonable steps to protect vulnerable people from requests to donate.
We rely entirely on charitable donations to rescue food, people, and the planet, and have policies and processes to ensure we raise money in a considerate and responsible way. City Harvest do not work with third-party fundraising suppliers. City Harvest’s fundraising team conducts all fundraising activities and does not do door-to-door fundraising, telephone fundraising, or face-to-face donor acquisition.
Our fundraising complaints procedure includes safeguarding and follow-up action from our Head of Fundraising and HR Team. We respond quickly and efficiently to resolve complaints. In 2023 we received no fundraising complaints (2022 – nil).
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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.
Financial growth
----- Start of picture text -----
Income & Expenditure 2019-2023
£5.3m
£3.7m
£3.5m
£2.9m £2.9m
£2.0m
£1.5m
£1.1m
£0.9m £0.8m
2018/19 2019/20 2020/21 2021/22 2022/23
Income Expense
----- End of picture text -----
Our income increased in the year by 30% to £3.7m (2022 - £2.9m), and we increased the tonnage of food distributed by 15% over the prior year to 5,690 tonnes (2022 – 4,964 tonnes).
Restricted income was £1.2m in the year (2022 - £0.7m) which represented 33% of our total income (2022 – 23%).
Our expenses increased by 21% to £3.5m (2022 - £2.9m) reflecting increased operating expenditure to service the increased output and impact. We also made capital investments of £346,000 (2022 - £202,000) reflecting continued investment in our vehicle fleet and food storage.
The expenditure on raising funds was £249,000 (2021 - £148,000) which as a percentage of income amounted to 6.7% (2022- 5.2%).
Overall, we achieved a small surplus for the year of £241,000 (2022 – deficit £14,000) with net assets increasing to £4.7m at the end of the year (2022 - £4.5m). Restricted funds amounted to £1.0m (2022 – £0.6m) representing 22% of total net assets (2022 – 13%).
The trustees monitor the ratio of available funds to future expenditures and donation income, in order to avoid over-committing the charity’s resources.
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Cost per meal
Cost to deliver one meal 2019-2023
----- Start of picture text -----
£0.25 £0.26 £0.26
£0.24
£0.20
2018/19 2019/20 2020/21 2021/22 2022/23
----- End of picture text -----
City Harvest carefully monitors all expenditures, with a focus on the cost to redistribute one meal. For the year ended 31 March 2023 our cost to deliver one meal increased incrementally to £0.26p, remaining below the target level set by the trustees.
Reserves policy
To ensure sufficient funds are available, the trustees have determined that 6 months of budgeted expenditure should be held at any given time.
The charity also designates funds for investment in key elements of its work. For this purpose, the trustees introduced an ‘Impact and Investment Fund’. This fund is used to invest in projects which strengthen its operations and infrastructure, expand food supplies, volumes and beneficiaries, and in general invest in ways of increasing the charity’s overall impact.
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.
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Reference and administrative details
Registered Charity Name City Harvest Charity Registration Number 1163055 Company Registration Number 08986929 Registered Office Unit 8, Acton Park Estate The Vale, London W3 7QE Website www.cityharvest.org.uk
Trustees
The trustees who served during the year and up to the date of the signature of the financial statements were:
Stephen Winningham (Chair) Alice Avis MBE (resigned Oct 2022) Ben Clarke (resigned Oct 2022) Victoria Heffer Todd Benjamin Ben Malbon (resigned Dec 2022) Kathy Street Frank Bandura Patrick Street David Hirschmann Emma Gerald (appointed May 2023) Shaun Browne (appointed Jul 2023) Michelle Butler (appointed July 2023) Rajesh Makwana (appointed Aug 2023)
Key management personnel
Sarah Calcutt Chief Executive Indy Agnihotri Head of Finance and Performance Dean Bernard Head of Operations Donna Beetham Head of Fundraising Mary Parsons Head of Food Fiona Hollis Head of Communications Marco Torquati Head of Community Impact
During the year, Steve Winningham acted as interim-CEO before being replaced by our new CEO, Sarah Calcutt in October 2022. In addition, Abi Jesson, Dan McAlpine and Lindsey Cape departed City Harvest.
At the end of 2022, Laura Winningham stood down from active involvement in the day to day operations of City Harvest. We continue to build on her vision, delivering change using the model that she began to build 9 years ago.
We thank them all for their contributions.
Auditors Bankers Solicitors Price Bailey CAF Bank Ltd Allen & Overy 24 Old Bond Street 25 Kings Hill Avenue Bishops Square London West Malling London E1 6AD W1S 4AP Kent ME19 4JQ
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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 at least quarterly with the CEO and Head of Finance.
Trustee oversight
The board of trustees administers the charity, and normally meets every 2 months. In addition, steering groups and committees comprising selected trustees and members of the management team meet to focus on the charity’s operation. These steering groups translate agreed strategies into actionable plans, oversee programme delivery and mentor executive team members.
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.
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Pay policy for senior staff
The trustees review the pay of the senior management team on an annual basis, taking into account 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.
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 typically of between 3 and 12 months, to generate a return on funds while benefitting from the FSCS deposit protection scheme of £85,000 per bank. The selection of banks and the management of the deposits is overseen by the Finance and Audit Committee.
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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 situation 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:
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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 Statement of Recommended Practice (SORP 2019);
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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; and
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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.
Statement as to disclosure to our auditor
In so far as the trustees are aware at the time of approving our trustees’ annual report:
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there is no relevant information, being information needed by the auditor in connection with preparing their report, of which the auditor is unaware; and
-
the trustees having made enquiries of fellow directors and the charity’s 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 auditor is aware of that information.
City Harvest Annual Report
20
City Harvest Company Limited by Guarantee Year ended 31 March 2023
TRUSTEES’ ANNUAL REPORT
Auditors
Price Bailey were appointed as new auditors during the year. A resolution to re-appoint Price Bailey for the ensuing year will be proposed to the board of trustees.
Small Company Exemptions
This report has been prepared taking advantage of the small companies' exemption of section 41SA of the Companies Act 2006.
By order of the board of trustees
Stephen Winningham
Chair
11 September 2023
City Harvest Annual Report
21
City Harvest Company Limited by Guarantee Year ended 31 March 2023
INDEPENDENT AUDITOR’S REPORT
Independent Auditor’s Report to the Members of City Harvest
Opinion
We have audited the financial statements of City Harvest (the ‘charitable company’) for the year ended 31 March 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 31 March 2023, and of the charity’s 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 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.
City Harvest Annual Report
22
City Harvest Company Limited by Guarantee Year ended 31 March 2023
INDEPENDENT AUDITOR’S REPORT
Other information
The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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 the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the directors’ 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 directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 require us to report to you if, in our opinion:
-
adequate and proper accounting records have not been kept by the charitable company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the charitable company’s 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 directors’ report and from the requirement to prepare a strategic report.
City Harvest Annual Report
23
City Harvest Company Limited by Guarantee Year ended 31 March 2023
INDEPENDENT AUDITOR’S REPORT
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, 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 responsibilities for the audit of the financial statements
We have been appointed as auditor under the Companies Act 2006 and report in accordance with regulations made under those Acts.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the Charitable company and the sector in which it operates and considered the risk of the Charitable company not complying with the applicable laws and regulations including fraud in particular those that could have a material impact on the financial statements. This included those regulations directly related to the financial statements, including financial reporting and tax legislation. In relation to the operations of the Charitable company this included compliance with the Companies Act 2006, Charities Act 2011, and SORP 2019.
The risks were discussed with the audit team, and we remained alert to any indications of noncompliance through the audit. We carried out specific procedures to address the risks identified. These included the following:
-
Reviewing minutes of Board meetings, reviewing any correspondence with the Charity Commission, agreeing the financial statement disclosures to underlying supporting documentation, and enquiries of management and officers of the Charitable company. We have also reviewed the procedures in place for the reporting of any incidents to the Trustee Board including serious incident reporting of these matters as necessary with the Charity Commission.
-
Management override: To address the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness. We reviewed systems and procedures to identify potential areas of management override risk.
City Harvest Annual Report
24
City Harvest Company Limited by Guarantee Year ended 31 March 2023
INDEPENDENT AUDITOR’S REPORT
We also assessed management bias in relation to the accounting policies adopted and in determining significant accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the FRC's website
at: https://www.frc.org.uk/auditors/audit-assurance/auditor-s-responsibilities-for-the-auditof-the-fi/description-of-the-auditor%E2%80%99s-responsibilities-for. This description forms part of our auditor’s report.
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, and to the charitable company’s trustees, as a body. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees 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, the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
Michael Cooper-Davis FCCA ACA (Senior Statutory Auditor)
For and on behalf of:
Price Bailey LLP
Chartered Accountants Statutory Auditors 8[th] Floor, Dashwood House 69 Old Broad Street London EC2M 1QS
Date:
City Harvest Annual Report
25
City Harvest Company Limited by Guarantee Year ended 31 March 2023
STATEMENT OF FINANCIAL ACTIVITIES
| Notes Income: Donations and legacies 3 Charitable activities 4 Investment income 5 Other trading activities Food waste disposal service income Total income Expenditure: Raising funds: Fees and other fundraising expenses Charitable activities Food rescue delivery 6 Total expenditure Net income and movement in funds for the year Reconciliation of funds: Total funds brought forward Total funds carried forward |
Unrestricted funds Restricted funds Total funds 2023 Total funds 2022 £ £ £ £ 1,755,593 288,818 2,044,411 1,460,277 679,354 951,656 1,631,010 1,389,323 32,345 - 32,345 10,453 12,172 - 12,172 9,906 |
|---|---|
| 2,479,464 1,240,474 3,719,938 2,869,959 (248,528) - (248,528) (148,048) (2,442,386) (787,577) (3,229,963) (2,736,065) |
|
| (2,690,914) (787,577) (3,478,491) (2,884,113) |
|
| (211,450) 452,897 241,447 (14,154) 3,906,525 587,927 4,494,452 4,508,606 |
|
| 3,695,075 1,040,824 4,735,899 4,494,452 |
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 41 form part of these financial statements.
City Harvest Annual Report
26
City Harvest Company Limited by Guarantee Year ended 31 March 2023
| Year ended 31 March 2023 City Harvest Company Limited by Guarantee BALANCE SHEET Notes Total fixed assets Tangible assets Fixed assets: Total current assets Cash at bank and in hand Investment in short term deposits Debtors Current assets Net current assets Creditors falling due within one year Liabilities: 10 12 11 13 Total assets less current liabilities Net assets Total charity funds Restricted income funds Designated fund General funds Unrestricted income funds The funds of the charity 15 14 14 |
£ 2023 £ 2022 779,606 673,787 779,606 673,787 1,072,369 2,806,087 214,950 129,588 2,844,221 911,926 4,093,406 3,885,735 (137,113) (65,070) 3,956,293 3,820,665 4,735,899 4,494,452 4,735,899 4,494,452 1,040,824 3,250,000 445,075 656,525 3,250,000 587,927 4,735,899 4,494,452 |
|---|---|
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 41 form part of these financial statements.
These financial statements were approved by the trustees on 11 September and are signed on their behalf by:
Stephen Winningham Chair 11 September 2023
City Harvest Annual Report
27
City Harvest Company Limited by Guarantee Year ended 31 March 2023
STATEMENT OF CASH FLOWS
| Analysis of cash and cash equivalents Cash and cash equivalents at start of year Change in cash and cash equivalents Cash and cash equivalents at end of year Analysis of changes in net debt Cash and cash equivalents at start of year Change in cash and cash equivalents Cash and cash equivalents at end of year Notes Cash provided by operating activities 19 Cash flows from investing activities Withdrawals from 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 |
Analysis of cash and cash equivalents Cash and cash equivalents at start of year Change in cash and cash equivalents Cash and cash equivalents at end of year Analysis of changes in net debt Cash and cash equivalents at start of year Change in cash and cash equivalents Cash and cash equivalents at end of year Notes Cash provided by operating activities 19 Cash flows from investing activities Withdrawals from 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 |
2023 2022 £ £ 446,138 143,242 38,134 84,293 (346,329) (202,046) 22,500 22,500 |
|---|---|---|
| (285,695) (95,253) 160,443 47,989 |
||
| 911,926 863,937 |
||
| 1,072,369 911,926 |
||
| 2023 £ 2022 £ 911,926 863,937 160,443 47,989 |
||
| 1,072,369 911,926 |
||
| 2023 2022 £ £ 911,926 863,937 160,443 47,989 |
||
| 1,072,369 911,926 |
The notes on pages 29 to 41 form part of these financial statements.
City Harvest Annual Report
28
City Harvest Company Limited by Guarantee Year ended 31 March 2023
NOTES TO THE FINANCIAL STATEMENTS
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 October 2019) – (Charities SORP 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 or note. All amounts are shown in pounds sterling.
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
Income is recognised where there is entitlement, sufficient probability 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.
City Harvest Annual Report
29
City Harvest Company Limited by Guarantee Year ended 31 March 2023
NOTES TO THE FINANCIAL STATEMENTS
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.
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.
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 basis 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) 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.
City Harvest Annual Report
30
City Harvest Company Limited by Guarantee Year ended 31 March 2023
NOTES TO THE FINANCIAL STATEMENTS
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
k) 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.
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 line
l) 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.
m) 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.
n) Investments in short term deposits
Investments in short term deposits are interest-bearing bank deposits with notice terms of between 1 and 12 months.
o) 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.
p) 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.
City Harvest Annual Report
31
City Harvest Company Limited by Guarantee Year ended 31 March 2023
NOTES TO THE FINANCIAL STATEMENTS
q) Pensions
All employees of the charity are automatically enrolled into a defined contribution pension scheme unless they exercise their right to opt out of scheme membership.
r) Key judgements and estimates policy
No significant judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies.
The Trustees make estimates and assumptions concerning the future based on their knowledge of the company and the environment in which it operates. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results.
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.
City Harvest Annual Report
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3. Donations and grants
| . Donations and grants | |
|---|---|
| Donations and gifts Donations of goods & services |
Unrestricted funds Restricted funds Total funds 2023 Total funds 2022 £ £ £ £ 1,755,593 288,818 2,044,411 1,460,277 - - - - |
| 1,755,593 288,818 2,044,411 1,460,277 |
In the year ended 31 March 2022, restricted income funds from donations and grants amounted to £247,989.
4. Income from charitable activities
| Grants Other |
Unrestricted funds Restricted funds Total funds 2023 Total funds 2022 646,800 951,656 1,598,456 1,384,076 32,554 - 32,554 5,247 |
|---|---|
| 679,354 951,656 1,631,010 1,389,323 |
In the year ended 31 March 2022, restricted income funds from charitable activities amounted to £405,758.
5. Investment income
| Interest received from bank accounts Interest received on investment income Other interest received |
2023 2022 £ £ 4,920 589 27,324 9,864 101 - |
|---|---|
| 32,345 10,453 |
Most of the charity’s investment income arises from deposits held on an investment platform managed by Flagstone Investments Ltd, which provides online access to fixed term deposits offered by a wide range of banks. Platform management fees were incurred totaling £5,444 (2022: £5,678).
City Harvest Annual Report
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6. Analysis of expenditure on charitable activities
| . Analysis of support costs Current year Charitable activities Drivers and logistics personnel Operational expenditures Total charitable activities Support costs (Note 7) Prior year Charitable activities Drivers and logistics personnel Operational expenditures Total charitable activities Support costs (Note 7) Current year Support staff costs Legal and other professional fees Administrative overheads Accountancy services Audit fee |
Unrestricted funds Restricted funds Total funds 2023 £ £ £ 1,162,704 412,891 1,575,595 695,510 336,981 1,032,491 |
|
|---|---|---|
| 1,858,214 749,872 2,608,086 584,172 37,705 621,877 |
||
| 2,442,386 787,577 3,229,963 |
||
| Unrestricted funds Restricted funds Total funds 2022 £ £ £ 1,223,060 246,480 1,469,540 568,964 205,759 774,723 |
||
| 1,792,024 452,239 2,244,263 492,952 (1,150) 491,802 |
||
| 2,284,976 451,089 2,736,065 |
||
| Support costs Governance Total 2023 £ £ £ 173,217 - 173,217 47,541 - 47,541 372,752 - 372,752 - 10,667 10,667 - 17,700 17,700 |
||
| 593,510 28,367 621,877 |
7. Analysis of support costs
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.
City Harvest Annual Report
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| Prior year Support staff costs Legal and other professional fees Administrative overheads Accountancy services Audit fee |
Support costs Governance Total 2022 £ £ £ 208,011 - 208,011 71,991 - 71,991 197,930 - 197,930 - 7,270 7,270 - 6,600 6,600 |
|---|---|
| 477,932 13,870 491,802 |
8. Net income and expenditure for the year
| 2023 | 2022 | |
|---|---|---|
| This is stated after charging: | £ | £ |
| Operating leases | 143,058 | 138,152 |
| Depreciation | 218,963 | 189,063 |
| Audit fee | 17,700 | 6,600 |
| Accountancy | 10,667 | 7,270 |
City Harvest Annual Report
35
9. Staff costs and emoluments
| Wages Social security costs Contractors Pension costs |
2023 2022 £ £ 1,910,545 1,671,025 195,839 160,996 24,717 50,204 35,467 28,099 |
|---|---|
| 2,166,568 1,910,324 |
The average number of employees during the year was 63 (2022: 52).
None of the employees or contractors is a trustee. No trustee expenses were incurred during the year (2022: £Nil). All employees are paid at least the London Living Wage, and the majority are enrolled in the Government-backed auto-enrolment pension scheme.
Redundancy and termination costs during the year totaled £5,804 (2022 - £44,163).
The number of employees who received total emoluments of more than £60,000 (excluding pension contributions) during the year was as follows:
| Salary band | 2023 | 2022 |
|---|---|---|
| £70,001-£80,000 | 1 | 2 |
| £60,001-£70,000 | 1 | - |
Pension contributions of £550 (2022: £881) were paid to a defined contribution scheme in respect of the highest paid employee.
The total emoluments of the Key Management Personnel were £578,938 (2022: £362,695).
There have been 603 regular volunteers during the year (2022: 532) helping to sort food in the warehouse and assisting our drivers. In addition, 924 (2022 - 454) unique corporate volunteers from 98 employers (2022 – 50) were released to spend a day volunteering at City Harvest.
City Harvest Annual Report
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10. Fixed assets
| 1. Debtors COST As at 1 April 2022 Additions Disposals As at 31 March 2023 DEPRECIATION As at 1 April 2022 Charge for the year Disposals As at 31 March 2023 NET BOOK VALUE As at 31 March 2023 As at 31 March 2022 Trade debtors Payroll funding Other debtors Prepayments Accrued income Interest receivable |
Plant, machinery & vehicles £ 954,064 338,212 (111,161) |
Office furniture & IT equipment Total £ £ 56,136 1,010,200 8,117 346,329 (9,564) (120,725) |
|---|---|---|
| 1,181,115 320,316 208,065 (92,767) |
54,689 1,235,804 16,097 336,413 10,899 218,964 (6,412) (99,179) |
|
| 435,614 | 20,584 456,198 |
|
| 745,501 | 34,105 779,606 |
|
| 633,748 | 40,039 673,787 |
|
| 2023 2022 £ £ 15,551 2,274 28,780 27,989 5,836 8,590 128,432 83,965 19,373 - 16,978 6,770 |
||
| 214,950 129,588 |
11. Debtors
Prepayments are principally in respect of rent and insurance.
Payroll funding represents cash held by the outsourced payroll service provider in respect of employee wages.
City Harvest Annual Report
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12. Investments in short term deposits
Investments in short term deposits totaling £2,806,087 (2022: £2,844,221) are interest-bearing bank deposits with notice terms of between one and twelve months.
13. Creditors: Amounts falling due within one year
| Trade creditors Taxation and pensions Accruals |
2023 2022 £ £ 95,765 23,314 8,284 7,623 33,064 34,133 |
|---|---|
| 137,113 65,070 |
14. Analysis of unrestricted charitable funds
| Current year General funds Designated reserve fund |
1 April 2022 Incoming resources Transfers between funds Outgoing resources 31 March 2023 £ £ £ £ £ 656,525 2,479,464 - (2,690,914) 445,075 3,250,000 - - - 3,250,000 |
|---|---|
| 3,906,525 2,479,464 - (2,690,914) 3,695,075 |
The general funds are the ‘free reserves’ after allowing for all designated funds.
| Prior year General funds Designated reserve fund |
1 April 2021 Incoming resources Transfers between funds Outgoing resources 31 March 2022 £ £ £ £ £ 373,337 2,216,212 500,000 (2,433,024) 656,525 3,750,000 - (500,000) - 3,250,000 |
|---|---|
| 4,123,337 2,216,212 - (2,433,024) 3,906,525 |
City Harvest Annual Report
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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 Fixed assets (see note 16) Impact & Investment fund |
2023 2022 £ £ 2,000,000 1,800,000 523,326 273,730 726,674 1,176,270 |
|---|---|
| 3,250,000 3,250,000 |
To ensure sufficient funds are available, the trustees have determined that 6 months of budgeted expenditure should be held at any given time.
A fund is maintained that represents the net book value of unrestricted fixed assets.
The charity also designates funds for investment in key elements of its work. For this purpose, the trustees have introduced an ‘Impact and Investment Fund’. This fund will be used to invest in projects which will strengthen its operations and infrastructure, expand food supplies, volumes and beneficiaries, and in general invest in ways of increasing the charity’s overall impact.
15. Analysis of restricted charitable funds
| Current year Fleet operations fund Main depot fund Satellite depot fund Vehicle purchase fund |
1 April 2022 Incoming resources Outgoing resources 31 March 2023 £ £ £ £ 187,870 1,232,474 (643,800) 776,544 82,205 8,000 (21,119) 69,086 29,968 - (24,672) 5,296 287,884 - (97,986) 189,898 |
|---|---|
| 587,927 1,240,474 (787,577) 1,040,824 |
Purposes of restricted funds :
Fleet operations fund: funding provided to support the operating costs of delivering food, including costs incurred in relation to warehouse, vehicles, food sourcing and community impact.
Main depot fund: funding provided to support the capital investment costs at the main Acton depot.
Satellite depot fund: funding provided to support the capital investment costs at New Spitalfields Market.
Vehicle purchase funds: funding provided to purchase vehicles that deliver food.
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| 6. Analysis of net assets between funds Prior year 1 April 2021 Incoming resources Outgoing resources 31 March 2022 £ £ £ £ Fleet operations fund 34,200 478,172 (324,502) 187,870 Main depot fund 92,980 10,344 (21,119) 82,205 Satellite depot fund 19,494 30,591 (20,117) 29,968 Vehicle purchase fund 238,595 134,640 (85,351) 287,884 385,269 653,747 (451,089) 587,927 Current year General funds Designated funds Restricted funds Total £ £ £ £ Tangible fixed assets - 523,326 256,280 779,606 Net current assets 445,075 2,726,674 784,544 3,956,293 At 31 March 2023 445,075 3,250,000 1,040,824 4,735,899 Prior year General funds Designated funds Restricted funds Total £ £ £ £ Tangible fixed assets - 273,730 400,057 673,787 Net current assets 656,525 2,976,270 187,870 3,820,665 At 31 March 2022 656,525 3,250,000 587,927 4,494,452 |
6. Analysis of net assets between funds Prior year 1 April 2021 Incoming resources Outgoing resources 31 March 2022 £ £ £ £ Fleet operations fund 34,200 478,172 (324,502) 187,870 Main depot fund 92,980 10,344 (21,119) 82,205 Satellite depot fund 19,494 30,591 (20,117) 29,968 Vehicle purchase fund 238,595 134,640 (85,351) 287,884 385,269 653,747 (451,089) 587,927 Current year General funds Designated funds Restricted funds Total £ £ £ £ Tangible fixed assets - 523,326 256,280 779,606 Net current assets 445,075 2,726,674 784,544 3,956,293 At 31 March 2023 445,075 3,250,000 1,040,824 4,735,899 Prior year General funds Designated funds Restricted funds Total £ £ £ £ Tangible fixed assets - 273,730 400,057 673,787 Net current assets 656,525 2,976,270 187,870 3,820,665 At 31 March 2022 656,525 3,250,000 587,927 4,494,452 |
6. Analysis of net assets between funds Prior year 1 April 2021 Incoming resources Outgoing resources 31 March 2022 £ £ £ £ Fleet operations fund 34,200 478,172 (324,502) 187,870 Main depot fund 92,980 10,344 (21,119) 82,205 Satellite depot fund 19,494 30,591 (20,117) 29,968 Vehicle purchase fund 238,595 134,640 (85,351) 287,884 385,269 653,747 (451,089) 587,927 Current year General funds Designated funds Restricted funds Total £ £ £ £ Tangible fixed assets - 523,326 256,280 779,606 Net current assets 445,075 2,726,674 784,544 3,956,293 At 31 March 2023 445,075 3,250,000 1,040,824 4,735,899 Prior year General funds Designated funds Restricted funds Total £ £ £ £ Tangible fixed assets - 273,730 400,057 673,787 Net current assets 656,525 2,976,270 187,870 3,820,665 At 31 March 2022 656,525 3,250,000 587,927 4,494,452 |
1 April 2021 Incoming resources Outgoing resources 31 March 2022 £ £ £ £ 34,200 478,172 (324,502) 187,870 92,980 10,344 (21,119) 82,205 19,494 30,591 (20,117) 29,968 238,595 134,640 (85,351) 287,884 |
|---|---|---|---|
| 385,269 653,747 (451,089) 587,927 |
|||
| 445,075 3,250,000 1,040,824 4,735,899 |
|||
| General funds Designated funds Restricted funds Total £ £ £ £ - 273,730 400,057 673,787 656,525 2,976,270 187,870 3,820,665 |
|||
| 656,525 3,250,000 587,927 4,494,452 |
16. Analysis of net assets between funds
17. Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows :
| Within 1 year Between 1 and 5 years At 31 March |
2023 2022 107,953 107,953 184,260 292,213 |
|---|---|
| 292,213 400,166 |
The charity has a five-year lease agreement for its distribution center in Acton which expires in December 2025.
The trustees have confirmed that there were no capital commitments at 31 March 2023.
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18. Related party transactions
There were no related party transactions during the year (2022 – nil).
19. Reconciliation of net movement in funds to net cash flow from operating activities
| Notes Net movement in funds Add back depreciation charge 10 Add/subtract loss/profit on disposal of fixed assets Increase in debtors 11 Increase/(decrease) in creditors 13 Cash provided by operating activities |
2023 2022 £ £ 241,447 (14,154) 218,963 189,063 (953) 44 (85,362) (24,855) 72,043 (6,856) |
|---|---|
| 446,138 143,242 |
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