Company registration number: CE008504 Charity registration number: 1168689
## MICAH LIVERPOOL
Charitable incorporated organisation Annual Report and Financial Statements for the Year Ended 31 December 2023
GRC Accountants Limited 166 Banks Road West Kirby Merseyside CH48 0RH
## **MICAH LIVERPOOL**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees Annual Report incorporating Strategic Report|2 to 12|
|Independent Examiner's Report|13|
|Statement of Financial Activities|14|
|Balance Sheet|15|
|Notes to the Financial Statements|16 to 18|
## **MICAH LIVERPOOL**
## **Reference and Administrative Details**
## **Trustees**
## **Principal Office**
**Company Registration Number**
Mr Paul Smith Reverend Canon Dr Ellen Loudon Mr Philip Bishop Reverend Canon Dr Crispin Pailing Reverend Canon Anthony O'Brien Canon Dr Jonathan Richardson Canon William Andrew Holroyd Ms Annette James St James’ House Liverpool St James Road Liverpool L1 7BY CE008504
**Charity Registration Number** 1168689
**Independent Examiner**
GRC Accountants Limited 166 Banks Road West Kirby Merseyside CH48 0R
1
## **MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
## **Report of the Trustees for the year ending 31[st] December 2023**
The trustees, who are directors for the purposes of company law, are pleased to present the annual report together with the financial statements of the charitable company for the year ended 31 December 2023.
## **Purpose and Activity**
Micah Liverpool is a social justice charity, devised by Liverpool Anglican Cathedral; Liverpool Metropolitan Cathedral of Christ the King and St Bride’s Church to relieve Liverpool residents of social injustice and poverty. Micah currently has a range of delivery mechanisms to address unemployment; provide affordable food to those on low income; deliver emergency food aid to those in crisis, and provide beds for children and families in bed poverty.
Micah Liverpool’s core work is delivered through three main projects:
## Community Markets
A Community Market is a retail outlet offering food, deemed to be surplus to requirement by supermarkets. Ambient food is sold below market prices. The Community Market is an early intervention supporting people who may be on the brink of using a foodbank. People in an identified local area pay £1.50 and choose up to 15 items from a range of ambient goods. This initiative relieves the strain on local foodbanks and offers residents’ the dignity of opportunity and choice. Micah Liverpool receives surplus items, that are usable but cannot be sold from the supermarket through the food recycling charity ‘FareShare’.
## Foodbanks
Micah Liverpool food bank sessions are open to any individual and/or family in need. Micah provides an emergency 3-day food parcel every week, for four weeks. If after this period gathered evidence shows that further support is needed, the service will continue under continual review until it is no longer needed.
Currently Micah operates two food banks a week with key partners St Vincent de Paul and St Brides Church local to both cathedrals.
## The Parish Church of St Vincent de Paul
Pantry Sessions operate each Tuesday 10.30am – 12.30pm.
The Parish Church of St Vincent de Paul supports Micah by collecting food donations each week and has been hosting a Tuesday pantry session for over 2 years.
## St Bride’s Church
Pantry Sessions operate each Thursday 10.30am – 12.30pm St Bride’s is one of three churches in the Parish of St Luke in The City,
and includes the community of St Michael in The City, who provide growing space and is the most centrally located church in Liverpool.
St Bride’s house Micah’s largest pantry session.
2
**MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
## Recruitability Programme
Micah Liverpool Recruitability Programme offers a 9-week programme for people not in education who are long term unemployed. The programme aims to nurture individuals, build confidence and improve their skill base in readiness for work.
All participants complete vocational qualifications in Health & Safety, Emergency First Aid and Food Hygiene. Participants are offered a variety of work placements at Liverpool Anglican Cathedral through Micah Liverpool activity, and with other partners.
There are 4 key elements to the Recruitability Programme:
- Work placements: Placements include roles in retail, hospitality, catering, administration, foodbank, cleaning. Placements are either on the Anglican Cathedral site or at centres where Micah is actively providing a service.
- Practical training and learning opportunities: Focusing on practical skills that help people search for, and secure, the right employment, Micah provides vocational courses to build confidence, strengthen participants Curriculum Vitae (CV), hone interview skills and improve job applications.
- Guaranteed interviews when ready for work: Through extensive employer engagement, Micah participants are guaranteed interviews with organisations such as Liverpool Philharmonic and the University of Liverpool.
- One to one support: Micah staff support participants to create an outstanding CV and an effective response to job applications leading in due course, to prepare for interview.
Micah recruitability programme welcomes people from all backgrounds and cultures; all faiths and none. Participants must be serious about wanting employment and are required to commit to completing the course.
## Bed poverty
Micah Liverpool identified that not all children in the city have a warm safe bed. Micah recognised the impact lack of restful sleep has on children’s mental health and wellbeing and on their ability of children to learn. In 2023 Micah partnered with National Leeds based charity ‘Zarach’ to access beds and deliver a bed poverty project. The aim is to identify children in need of a bed through participating school referrals and to provide beds and bed bundles as appropriate to the family home.
The aim is to help ensure all children to have somewhere safe and comfortable to sleep and good, consistent access to healthy and nutritious food so they are ready to learn. If children lack regular nutritious meals at home, and don’t have a comfortable bed to sleep on they are missing the basic foundations for healthy growth and the energy to concentrate and learn.
## Zarach provides:
- New bed - frame and mattress
- Age-appropriate pyjamas
3
## **MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
- Single Duvet and cover
- Bed sheet and pillow cases
- Age-appropriate toiletries
## Way Ahead
The way ahead project is delivered in partnership with another local charity Feeding Liverpool
to:
1. Scope out the feasibility and logistics of a more coordinated approach across organisations to warehousing, transportation, the collection and distribution of donations and surplus food.
2. To develop stronger relationships with local suppliers to broker discounts as a collective.
3. To Increase coordination of deliveries into the city to ensure better value for money.
A major outcome of the project will be improved coordination between Feeding Liverpool network members in relation to purchasing food supplies, creating data-informed feasibility to move towards better value through coordinated purchasing.
## **Public Benefit**
In setting our objectives and planning our activities the Trustees have considered the Charity Commission's guidance on public benefit:
- The work of Micah Liverpool, brings public benefit through all aspects of work including: community markets; food bank pantry sessions; partnership working with faith groups.
- Volunteering opportunities.
- Micah works in partnership with churches and other charities to build symbiotic relationships and deepen community cohesion. Micah is available to provide advice and share statistical data with charities that have values in sympathy.
- The Way-ahead project is delivered in partnership with Feeding Liverpool.
- The bed poverty project is delivered in partnership with local schools and national charity ‘Zarach’.
- Micah Liverpool is committed to being an advocate on behalf of the people who are supported by our work to reduce social injustice, food and bed poverty
## **Grant Making**
Micah Liverpool is not a grant making charity and has no grant making policy. Micah Liverpool has made no grants outside of the UK.
Micah Liverpool has made no grants to other charities, organisations or related parties
4
## **MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
## **Our Volunteers**
Through foodbanks and community markets Micah Liverpool has 24 regular weekly attending volunteers who support our community provision, each volunteer offers an average of 3 hours per week.
There are many volunteer roles with in Micah Liverpool as seen in the table below:
**----- Start of picture text -----**
Average
Approximate Approximate
Volunteer Number of hours per
Duties hours per hours per
Role volunteers week per
week total year total
volunteer
Receiving and
sorting
donations
Pre-packing
food parcels
Disposing of
Storeroom
rubbish and 4 5 20 1040
volunteer
recycling
Preparing
storeroom for
parcel packing
Prepacking
parcels
Distribute
prepacked
parcels
Make up
foodbank
parcels
Create bespoke
parcels
Greeting guests
Foodbank
Volunteer Completing 16 4 64 3328
voucher with
participants
Referring to
external
support
services
checking
ID/Evidence
Greeting guests
Community
Registering
Market 4 4 16 832
participants
Volunteer
Handling cash
**----- End of picture text -----**
5
## **MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
**----- Start of picture text -----**
Referring to
external
support
services
checking
ID/Evidence
Registering
participants on
database
Updating
Administration
databases 2 4 8 416
Volunteer
Recording
foodbank and
community
markets use
take collection
and delivery of
all donations of
beds and items.
To provide call
out cover on a
rota basis
during
evenings,
weekends and
bank holidays,
Zarach as required
4 7 14 728
Volunteer To deliver beds
throughout
Liverpool
Ensure that any
issues or faults
arising on
vehicles are
reported
To provide
cover for the
stores as
required
Total 26 17 108 6344
**----- End of picture text -----**
6
**MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
## **Staffing**
Staff salaries total: £121,460
No Member of Micah Liverpool Staff was paid £60,000 or above.
**----- Start of picture text -----**
Job Role Location Weekly Hours Contract
Executive Liverpool City 37 Permanent
Director Region
Community Liverpool City 30 Permanent
Provisions Co- Region
ordinator
Recruitability Liverpool City 26 Fixed Term
Programme Region
Lead
Driver/Stores Liverpool City 30 Fixed Term
person Region
Office Liverpool City 24 Fixed Term
Administrator Region
Way Ahead Liverpool City 16 Fixed term
Project Lead region
**----- End of picture text -----**
## **Policies In Place**
Micah Liverpool had the following policies in place at the end of 2023
- Cash handling policy
- Incident reports’ policy
- Risk Map
- Safeguarding Handbook
- Health & Safety policy
- Lone working policy
- Equality & Diversity policy
- Privacy policy
- Complaints’ procedure & flow chart
- Caller at the Door policy
- Behaviours’ policy
## **Achievement and Performance**
2023 has been a positive year for Micah Liverpool. We have maintained delivery of our core projects:
- 2 substantial weekly foodbanks,
- 2 weekly community markets
- 4 recruitability cohorts.
- We have remained in a healthy financial state and have managed to run with a small surplus for the second year running.
7
## **MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
Alongside these Micah has developed two new projects in 2023, these have widened our impact on social justice throughout Liverpool and the City region.
Micah Liverpool added research and development to our body of work through the “Way Ahead Project” and partnered with National Charity Zarach to combat bed poverty and improve the health and well-being of children in the city.
## **Foodbank**
In the period covered by this report Micah Liverpool foodbank distributed 19,101 food parcels an increase year on year for the 7[th] year running. 1,540 households were supported equating to 3,224 people 1,165 of whom were children.
In 2023 Micah Liverpool implemented a parcel policy which set out clear eligibility for foodbank use. The policy focuses on engagement with those people most in need of “emergency food provision”. However, data gathered highlighted that the level of poverty people live in day to day is so great that our foodbank service has become an essential weekly basic for many. On average participants receive 6 parcels from Micah Liverpool per year. Our data shows that some participants return multiple times throughout the year.
Additional pressures for Micah have come through the rising cost of food, fresh fruit and vegetables are a prime example, costs for these items rose from £280 per week in January 2023 to over £400 per week in December 2023. Prices are much higher for basic items such as pasta, rice and UHT milk - all staples of Micah food parcel.
## **Community Markets**
Micah Liverpool has maintained delivery of two community markets throughout 2023. When C3 Church closed in October 2023 Micah was able to build a relationship with Granby Adult Learning centre and moved the Friday community market to this location.
In 2023 Micah Liverpool registered 772 individuals to use community markets, throughout the year there were 3,403 visits to our markets supporting up to 11,895 people in the process.
## **Recruitability**
Throughout 2023 Micah Liverpool Recruitablity project worked with 37 participants over four cohorts. Recruitability staff were able to support ten participants into employment (27%), with a further four moving on to further education (11%). In 2023 new metrics for measurement of success were created to capture those outcomes above and beyond core registration and job/training.
Of the 37 participants 86% completed the course, 81% achieved qualifications in customer service and hospitality. Wellbeing surveys were completed with all participants, these recorded the following soft outcomes:
- 60% reported improved in practical skills
- 57% reported improved in social skills and confidence
- 71% reported improved in employability skills
Participants continue to receive support once the programme is complete. In addition to the job outcome and education achievements (listed above), 11% of participants continued volunteering in their placements once the programme finished and 38% of participants have reported invitations to job interviews. The Recruitabilty programme continues to evolve whilst achieving impactful outcomes in terms of jobs and education and supporting people who have multiple barriers to employment.
**Zarach**
8
## **MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
In July 2023 Micah Liverpool Trustees agreed to pilot a ‘Bed Poverty’ project to be delivered in partnership with national charity Zarach.
The project is designed to combat bed poverty through:
- building relationships with schools in an identified area to identify children and families in need,
- to receive taking referrals from them, and
- deliver identified items – beds and bed bundles.
The project successfully registered 50 School/Service referral partners, which led to 38 referrals across the Dingle, Toxteth and Wavertree wards in the city. Micah Liverpool successfully delivered 74 beds in 2023 with 106 bed bundles delivered to families.
## **Way Ahead**
In December 2023 Liverpool’s food Alliance “Feeding Liverpool” and Micah Liverpool together successfully recruited the Way Ahead Co-ordinator. The aim of this project is to rationalise spend and build value
- map where money is spent on food by the feeding Liverpool network
- engage wholesalers to broker discounts for feeding Liverpool members.
In the first month of activity the co-ordinator was able to meet with key Feeding Liverpool members and created a survey to collect the data needed to achieve the targets. We will see the outcome of this work in 2024 and beyond.
9
## **MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
## **Achievements against objectives**
**----- Start of picture text -----**
Name of activity Metric Performance
Foodbank Achieved
Provide a parcel for all who need
19,100 Food Parcels provided
Achieved
Receive enough food through donations
or food bought with donated funds Despite the rise in food costs we continued to provide
enough food to meet the need of all our participants.
Achieved
Bring in financial donations to the level Donations this year exceeded those of 2022 Micah
of the previous year Liverpool completed the year with cash in hand to go
forward into 2024.
Recruitability
72 Participants 37 participants recruited.
Programme
27% Job outcome rate achieved.
40% job outcome rate
11% into further education
114 qualifications achieved 33 qualifications completed.
Community Achieved
Maintain delivery of 2 Community
Markets St Dunstan’s church began in March 2022
Markets per year
Granby Learning centre began in September 2023
Register 20 people per community Achieved
market 772 people registered over all
Achieved
Organisations such as ‘Neighbourly’ provide 2 deliveries per
Increase “surplus” food at Community
week.
Markets
Micah is Registered for Fareshare “Surplus Surplus” for an
additional 40kg of food per week.
Micah Overall Achieved
Income over or akin to spend Total operating expenses £209,606
Income £230,607
**----- End of picture text -----**
## **Risk Management**
The biggest risk facing the Micah Liverpool for 2023 and beyond are:
- The current cost of living rises and the accompanying challenges these bring.
- The increased need for emergency food aid
- 3[rd] sector becoming a more competitive market.
- Increased competition for Trusts & Foundations financial support and food donations from donors.
- Due to Brexit, the war on Ukraine and climate change leading to global warming we anticipate food supply issues across the world.
## **Safeguarding**
Micah Liverpool is committed to ensure a safe service and environment.
10
## **MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
Micah Safeguarding Handbook is a live document, which is reviewed annually and updated appropriately as necessary.
Safeguarding is a standing item on all agenda.
Throughout 2023 Micah Liverpool provided services to support children, families and vulnerable adults.
Micah Liverpool achieved the required level of DBS checks for all roles as appropriate. All staff and volunteers completed mandatory Level 1 safeguarding training.
## **Finance and fundraising**
Micah Liverpool is in a strong financial position with sufficient reserves in place and a surplus of funds in 2023.
Micah Liverpool holds and reserves of £76,801, we see this as 3 months running costs and are held in the unlikely event that the charity ceases to be active. This is a combination of unrestricted funds and food stocks.
Micah Liverpool’s principle sources of funds are donations from individuals, corporate donations and grants from institutions.
## **Structure, Governance and Management**
Micah Liverpool was established as a CIO in 2016 and is governed according to the Micah Liverpool constitution document.
No trustees were recruited during the year and no trustees received payment during the year (2023 – nil).
## **Trustees’ responsibilities in relation to the financial statements**
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year.
Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and apply them consistently;
- observe the methods and principles in the Charities SORP;
11
## **MICAH LIVERPOOL**
## **Trustees Annual Report incorporating Strategic Report**
- 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; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for keeping 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 annual report was approved by the trustees of the charity on and signed on its behalf by:
......................................... Reverend Canon Dr Ellen Loudon Trustee
......................................... Canon William Andrew Holroyd Trustee
12
## **MICAH LIVERPOOL**
## **Independent Examiner's Report to the trustees of MICAH LIVERPOOL**
I report to the charity trustees on my examination of the accounts of the charity for the year ended 31 December 2023.
## **Respective responsibilities of trustees and examiner**
As the charity’s trustees of MICAH LIVERPOOL (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).
Having satisfied myself that the accounts of MICAH LIVERPOOL are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## **Independent examiner’s statement**
Since MICAH LIVERPOOL's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ACCA, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
1. accounting records were not kept in respect of MICAH LIVERPOOL as required by section 386 of the 2006 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or
4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
...................................... Gareth Cooper ACCA
166 Banks Road West Kirby Merseyside CH48 0RH
Date: 30/10/2024
13
## **MICAH LIVERPOOL**
## **Statement of Financial Activities for the Year Ended 31 December 2023**
## **(Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)**
|**Note**
**Income and Endowments from:**
Donations and legacies
3
Total income
**Expenditure on:**
Charitable activities
4
Total expenditure
Net income/(expenditure)
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
10
**Note**
**Income and Endowments from:**
Donations and legacies
3
Total income
**Expenditure on:**
Charitable activities
4
Total expenditure
Net expenditure
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
10|**Unrestricted**
**funds**
**£**
279,400
279,400
(279,836)_
(239,836)
(436)
(436)
66,037
65,601
**Unrestricted**
**funds**
**£**
270,435
270,435
(246,247)_
(246,247)
24,189
24,189
41,848
66,037|**Restricted**
**funds**
**£**
182,934
182,934
(182,934)
(182,934)
-
-
11,200
11,200
**Restricted**
**funds**
**£**
211,657
211,657
(208,232)
(208,232)
(208,232)
3,425
7,775
11,200|**Total**
**2023**
**£**
462,334|
|---|---|---|---|
||||462,334|
||||(462,770)|
||||(462,770)|
||||(436)|
||||(436)
77,237|
||||76,801|
||||**Total**
**2022**
**£**
482,092|
||||482,092|
||||(454,479)|
||||(454,479)|
||||27,614|
||||27,614
49,623
77,237|
All of the charity's activities derive from continuing operations during the above two periods.
The funds breakdown for 2022 is shown in note 10.
14
## **MICAH LIVERPOOL**
## **(Registration number: CE008504)**
## **Balance Sheet as at 31 December 2023**
|**Note**
**Current assets**
Stocks
7
Debtors
8
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
9
**Net assets**
**Funds of the charity:**
**Restricted funds**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
10|**2023**
**£**
11,200
-
318,870
330,870
(253,268)
76,802
11,200
65,601
76,801|**2022**
**£**
11,200
-
245,139|
|---|---|---|
|||256,339
(179,102)
77,237
11,200
66,037
77,237|
For the financial year ending 31 December 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the charity to obtain an audit of its accounts for the year in question in accordance with section 476; and
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements on pages 8 to 15 were approved by the trustees, and authorised for issue on 30/10/2024 and signed on their behalf by:
.........................................
Reverend Canon Dr Ellen Loudon Trustee
......................................... Canon William Andrew Holroyd Trustee
15
## **MICAH LIVERPOOL**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## **1 Charity status**
The charity is limited by guarantee, incorporated in, and consequently does not have share capital. Each ofthe trustees is liable to contribute an amount not exceeding INil towards the assets of the charity in the event of liquidation.
The address of its registered office is:
St James’ House 20 St James Road Liverpool L1 7BY
## **2 Accounting policies**
## **Summary of significant accounting policies and key accounting estimates**
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
## **Statement of compliance**
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 the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.
## **Basis of preparation**
MICAH LIVERPOOL 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 notes.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.
## **Exemption from preparing a cash flow statement**
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
## **Income and endowments**
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.
16
## **MICAH LIVERPOOL**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## _**Donations and legacies**_
Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity 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 these conditions will be fulfilled in the reporting period.
## _**Grants receivable**_
Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Stock**
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).
17
## **MICAH LIVERPOOL**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## **Trade debtors**
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Trade creditors**
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charity does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **3 Income from donations and legacies**
|Donations and legacies;
Donations from individuals
Grants, including capital grants;
Grants from other charities|**Unrestricted**
**funds**
**General**
**£**
97,176
182,224
279,400|**Restricted**
**funds**
**£**
182,934
-
182,934|**Total**
**2023**
**£**
280,110
182,224
462,334|**Total**
**2022**
**£**
355,228
126,864
482,092|
|---|---|---|---|---|
18
## **MICAH LIVERPOOL**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
## **4 Expenditure on charitable activities**
|**Note**
Total for 2023
Total for 2022
Food parcels from purchased items
Food parcels from donated goods
Wages and salaries
Staff NIC
Staff pensions
Sundry
In-kind services
Travel and subsistence|**Unrestricted**
**funds**
**General**
**£**
279,836
246,247
**Activity**
**undertaken**
**directly**
**£**
84,480
182,934
-
-
-
-
-
-
267,414|**Restricted**
**funds**
**£**
182,934
208,232
**Activity**
**support costs**
**£**
-
-
107,040
8,237
7,472
29,629
42,978
-
195,356|**Total**
**£**
462,770
454,479
**Total**
**2023**
**£**
84,480
182,934
107,040
8,237
7,472
29,629
42,978
-
462,770|**Total**
**2022**
**£**
53,386
208,232
96,083
8,102
6,622
39,076
42,978
-
454,479|
|---|---|---|---|---|
## **5 Trustees remuneration and expenses**
No trustees, nor any persons connected with them, have received any remuneration from the charity during the year.
No trustees have received any reimbursed expenses or any other benefits from the charity during the year.
## **6 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **7 Stock**
Stocks
**2023 2022 £ £** 11,200 11,200
19
## **MICAH LIVERPOOL**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
|**8 Debtors**
Other debtors
**9 Creditors: amounts falling due within one year**
Trade creditors
**10 Funds**
**Balance at 1**
**January 2023**
**£**
**Unrestricted funds**
General
66,037
**Restricted funds**
11,200
**Total funds**
77,237
**Balance at 1**
**January 2021**
**£**
**Unrestricted funds**
General
41,848
**Restricted funds**
7,775
**Total funds**
49,623
**11 Analysis of net assets between funds**
Current assets
Current liabilities
Total net assets|
|**Incoming**
**resources**
**£**
279,400
279,836
482,092
**Incoming**
**resources**
**£**
270,435
211,657
482,092
**Unrestricted**
**funds**
**General**
**£**
318,870
(253,268)
65,601||
|---|---|---|---|
20
## **MICAH LIVERPOOL**
## **Notes to the Financial Statements for the Year Ended 31 December 2023**
|Current assets
Current liabilities
Total net assets
**12 Analysis of net funds**
Cash at bank and in hand
Net funds
Cash at bank and in hand
Net funds|**Unrestricted**
**funds**
**General**
**£**
245,138
(179,102)
66,037
**At 1 January**
**2023**
**£**
245,139
77,237
**At 1 January**
**2022**
**£**
381,712
49,626|**Restricted**
**funds**
**£**
**Total funds**
**£**
11,200
256,339
-
(179,102)
11,200
77,237
**At 31 December**
**Cash flow**
**£**
**2023**
**£**
73,731
318,870
(436)
76,801
**At 31 December**
**Cash flow**
**£**
**2022**
**£**
(136,573)
245,139
27,613
77,236|**Total funds**
**£**
256,339
(179,102)|
|---|---|---|---|
21