## **Charity No. 1172967** ## **End of Year Financial Statements** ## **30 June 2023** _Page 1_ ## **NEW BEGINNINGS READING** |Registered Charity:|Charity Number 1172967| |---|---| |Registered Office:|Queens Arms| ||Great Knollys Street| ||Reading| ||RG1 7HL| |Website:|www.newbeginningsreading.org| |Bankers:|Metro Bank plc| |Trustees:|Gordon Ross (Treasurer)| ||Sarah Beisly (Joint Chair)| ||Sarah Thake (Joint Chair)| |CEO:|Richard Silcock (Interim CEO)| _Page 2_ ## **CHAIRMAN’S STATEMENT** During the 2022/23 financial year the charity saw the demand for its services continue to increase as the impact of inflation and fuel costs has led to more people needing help. The charity does not receive any council grant or regular funding and relies on donations from members of the public and funds raised by ad hoc grant applications. During this financial year donations increased by £13K. However, grants received reduced by £17K resulting in a year on year decrease of £4K overall. The main fixed costs of the charity are the rent and the related costs of repairs and utilities. The leases for both floors ended during the year and the landlord initially looked to increase the combined rental from £36K to £45K plus costs. The trustees are involved in lengthy discussions to reduce the overall cost to enable the charity to continue with a level of financial stability. The staff costs increased year on year by just under £10K due to the recruitment of a part time volunteers co-ordinator and the employment of a centre manager for a proportion of the year. Following discussion relating to the reduction of grant income the trustees agreed to employ a professional fund raiser to identify possible funding sources and write researched bids. Due to the timings related to funding applications and decisions the impact of this role will be seen in the next financial year. Despite the challenges faced by many small charities New Beginnings Reading continues to offer a unique service to those in need in the Reading area. Unlike many other providers we offer support without referral and have no links to prescriptive networks or faith organisations. The work of the charity is only possible due to the generosity of the trustees and volunteers who offer their time for free and the numerous doners and food outlets/supermarkets who provide the food which we redistribute to those in need. This report was approved by the Board of Trustees and signed on its behalf by: ## **Gordon Ross, Treasurer** _21/11/2023_ ………………………………………………….. ## **Date** _Page 3_ ## **IDEPENDENT EXAMINER’S REPORT TO THE ACCOUNTS** ## **Report to the Trustees of New Beginnings Reading (Charity Number 1172967) on the Accounts for the year ended 30 June 2023** ## **Respective responsibilities of trustees and examiner:** The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this year under Section 144 of the Charities Act 2011 (the Charities Act) and that an independent examination is needed. It is my responsibility to: - examine the accounts under Section 145 of the Charities Act - follow the procedures laid down in the general directions given by the Charity Commission (under Section 145(5)(b) of the Charities Act) - state whether particular matters have come to my attention ## **Basis of independent examiner’s statement** My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a ‘true and fair’ view, and the report is limited to those matters set out in the statement below. ## **Independent examiner’s statement** I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect: - the accounting records were not kept in accordance with section 130 of the Charities Act; or - the accounts did not accord with the accounting records; or - the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 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. …………………………… ## **Kelly Willcox (Msc, CGMA, ACMA), Claritas Accountancy Ltd** ## **31/10/2023** …………………………… ## **Date** _Page 4_ ## **Statement of Financial Activities** |**Statement of Financial Activities**|| |---|---| ||**Unrestricted**
**Restricted**
**Endowment**
**Total**
**Prior year**
**funds**
**funds**
**funds**
**funds**
**total funds**| |**Income and endowments from:**
Donations and legacies
Grants
Other trading activities
Other income
Admin
Transfers
**Total income and endowments from:**
**Expenditure on:**
Maintenance / Utilities
Rent & Rates
General Services
Management and Administration
Staff
Marketing and Advertising
Transfer
Other
**Total expenditure:**
Gains / losses on investment assets
**Net income / (expenditure) resources before**
**transfer**
**Other recognised gains / losses**
Gains on revaluation, fixed assets, charity's own use
**Net movement in funds**
**Total funds brought forward**
**Total funds carried forward**
**Represented by**
**Unrestricted**
General fund
**Restricted**
Restricted fund|61,687
10,500
6,455
1,200
—
—
68,142
11,700
54,513
29,599
13
—
—
13
—
—
502
1,888
—
—
—
—
—
—
—
502
1,888
—
2,308
—| ||**74,590**
**7,655**
**—**
**82,245**
**86,420**
31,766
36,529
—
—
—
—
31,766
36,529
25,476
36,198
4,079
—
—
4,079
7,718
4,174
43,195
4,906
—
—
—
—
—
1,888
—
—
—
—
—
—
4,174
43,195
4,906
1,888
—
3,633
33,411
1,482
—
—| ||**124,649**
**1,888**
**—**
**126,537**
**107,918**
—
—
—
—
—| ||**(50,059)**
**5,767**
**—**
**(44,292)**
**(21,498)**
—
—
—
—
—| ||**(50,059)**
**5,767**
**—**
**(44,292)**
**(21,498)**| ||**97,164**
**1,888**
**—**
**99,052**
**120,550**| ||**47,105**
**7,655**
**—**
**54,760**
**99,052**
47,105
—
—
47,105
97,164
—
7,655
—
7,655
1,888| _Page 5_ ## **Balance sheet** ||**Total funds**
**Prioryear funds**
—
—
—
—
—
—
51,231
4,511
—
90,078
9,000
906
**55,742**
**99,984**
—
982
3,422
7
925
—
**51,338**
**99,052**
**51,338**
**99,052**
**51,338**
**99,052**
47,105
(3,422)
97,164
—
7,655
1,888
**51,338**
**99,052**| |---|---| |**Fixed assets**
Tangible assets
**Current assets**
Debtors
Cash at bank and in hand
Prepayments
Credit Card
**Current liabilities**
Creditors
Payroll Payable
Accruals
**Net current assets less current liabilities**
**Total assets less current liabilities**
**Total net assets less liabilities**
**Represented by**
**Unrestricted**
General fund
Prior Year Adjustment
**Restricted**
Restricted fund
**Funds**|| _Page 6_ ## **Statement of assets and liabilities** ||**General Designated**
**Restricted Endowment**
**Thisyear**
**Lastyear**| |---|---| |**Fixed assets - Tangible assets**
**Totals**
**Current assets - Cash at bank and in hand**
Bank Account - Current
**Totals**
**Current assets - Debtors**
Prepayments
Other
**Totals**
**Current Liabilities**
Creditors
Payroll Payable
Accruals
**Grand total**|—
—
—
—
—
—| ||—
**—**
**—**
**—**
—
—
51,231
—
—
—
51,231
90,078| ||**51,231**
**—**
—
**—**
**51,231**
**90,078**
4,511
—
—
—
—
—
—
—
4,511
—
9,000
906| ||**4,511**
**—**
**—**
**—**
**4,511**
**9,906**
—
982
3,422
—
—
—
—
—
—
—
—
—
—
982
3,422
7
925
—| ||**51,338**
**—**
**—**
**—**
**51,338**
**99,052**| ## **Fund movement by type** ||**Opening**
**Incoming**
**Outgoing**
**Transfers Gains/losses**
**Closing**| |---|---| |**Restricted - Restricted fund**
Restricted
**Sub-total for Restricted**
**General - General fund**
Unrestricted
**Sub-total for General**
**Grand total**|1,888
7,655
—
1,888
—
7,655| ||**1,888**
**7,655**
—
**1,888**
**—**
**7,655**
97,164
74,590
126,537
1,888
—
47,105| ||**97,164**
**72,702**
**126,537**
**1,888**
**—**
**47,105**| ||**99,052**
**82,245**
**126,537**
**—**
**—**
**54,760**| _Page 7_ ## **Notes to the Financial Statements** ## **1. Accounting Policies** ## **Basis of preparation** The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at fair value. The accounts (financial statements) have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued in October 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2019. The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £. The accounts have been prepared on the historical cost convention, modified to include revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below. ## **Going concern** At the time of approving the financial statements, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus, the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. ## **Incoming resources** Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that the income will be received. Donations and grants are recognised once the charitable company has been notified of the donation or grant, unless performance conditions require deferral of the amount. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charitable company to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources. Costs of generating funds are those costs associated with attracting voluntary income. Charitable activities expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Governance costs include those costs associated with the governance of the charity and are primarily associated with constitutional and statutory requirements. Support costs include central functions and have been allocated to activity costs categories consistent with the use of the resource. ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. _Page 8_ Restricted funds can only be used for particular restricted purposes within the objects of the conditions as set by the donors. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **Pension costs and other post-retirement benefits** The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **Cash and cash equivalents** Cash and cash equivalents include cash in hand. ## **Basic financial assets** Basic financial assets, which includes debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## **Basic financial liabilities** Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of its operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using effective interest rate. ## **2. Other Trading Activities** |Bank Interest|**This year**
**Last year**
13
—| |---|---| ||**13**
—| ## **3. Trustees’ Remuneration and Benefits** There were no trustees' remuneration or other benefits for the year ended 30 June 2023 nor for the period ended 30 June 2022. ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 30 June 2023 nor for the period ended 30 June 2022. ## **4. Staff Costs** The average monthly number of employees during the year was as follows: |**This year**|**Last year**| |---|---| |2|2| |**2**|**2**| _Page 9_ ## No employees received emoluments in excess of £60,000. ## **5. Comparatives for the Statement of Financial Activities** ||**Unrestricted**
**Restricted**
**Endowment**
**Total**
**Prior year**
**funds**
**funds**
**funds**
**funds**
**total funds**| |---|---| |**Income and endowments from:**
Donations and legacies
Grants
Other trading activities
Other income
Admin
Transfers
**Total income and endowments from:**
**Expenditure on:**
Maintenance / Utilities
Rent & Rates
General Services
Management and Administration
Staff
Marketing and Advertising
Transfer
Other
**Total expenditure:**
Gains / losses on investment assets
**Net income / (expenditure) resources before**
**transfer**
**Other recognised gains / losses**
Gains on revaluation, fixed assets, charity's own use
**Net movement in funds**
**Total funds brought forward**
**Total funds carried forward**
**Represented by**
**Unrestricted**
General fund
**Restricted**
Restricted fund|61,687
10,500
6,455
1,200
—
—
68,142
11,700
54,513
29,599
13
—
—
13
—
—
502
1,888
—
—
—
—
—
—
—
502
1,888
—
2,308
—| ||**74,590**
**7,655**
**—**
**82,245**
**86,420**
31,766
36,529
—
—
—
—
35,715
36,529
25,476
36,198
4,079
—
—
4,079
7,718
4,174
43,195
4,906
—
—
—
—
—
1,888
—
—
—
—
—
—
4,174
43,195
4,906
1,888
—
3,633
33,411
1,482
—
—| ||**124,649**
**1,888**
**—**
**126,537**
**107,918**
—
—
—
—
—| ||**(50,059)**
**(5,767)**
**—**
**(44,292)**
**(21,498)**
—
—
—
—
—| ||**(50,059)**
**(5,767)**
**—**
**(44,292)**
**(21,498)**| ||**97,164**
**1,888**
**—**
**99,052**
**120,550**| ||**47,105**
**7,655**
**—**
**54,760**
**99,052**
**47,105**
**—**
**—**
**47,105**
**97,164**
**—**
**7,655**
**—**
**7,655**
**1,888**| _Page 10_ ## **6. Debtors: Amounts falling due within one year** |**This year**|**Last year**| |---|---| |—|—| |—|—| ## **7. Creditors: Amounts falling due within one year** |Payables
HMRC
Accruals|**This year**
**Last year**
—
982
3,422
7
925
—| |---|---| ||**4,404**
**932**| ## **8. Leasing Agreements** There were no leasing agreements in the period. ## **9. Related Party Disclosures** There were no related party transactions for the year ended 30 June 2023. ## **10. Prior Year Adjustments** The accounts have been adjusted to incorporate the impact of a council tax review which resulted in a liability of £3,422. ## **11. Analysis of restricted fund movements** |**Balance 1 July 2022**
**Resources**
**Expended**
**Transfers**
**Balance June**
**2023**|**Balance 1 July 2022**
**Resources**
**Expended**
**Transfers**
**Balance June**
**2023**| |---|---| |After school café / activities
Community fridge
All day cafe
**Total**|1,888
—
—
1,888
—
0
0
3,955
3,700
—
—
—
—
3,955
3,700| ||**1,888**
**7,655**
—
**1,888**
**7,655**| All restricted funds are to assist the charitable company in respect of the provision of services. _Page 11_ ## **Detailed Statement of Financial Activities for the Year Ended 30 June 2023** ## **Analysis of income** ## **Donations and legacies** |**onations and legacies**|| |---|---| |Reading Borough Council
Community Groups
Corporate Donations
Donations & Events
PAYPAL
Smile
**Total**|**Total**
**Unrestricted**
**Designated**
**Restricted Endowment**
**This year**
**Last year**
—
1,013
7,292
53,383
—
—
—
—
—
—
—
—
—
—
—
6,455
—
—
—
—
—
—
—
—
—
1,013
7,292
59,838
—
—
—
1,695
9,478
21,138
22,202
—| ||**61,688**
—
**6,455**
**—**
**68,143**
**54,513**| ## **Grants** |Reading Borough Council
Trusts / Foundation Grants
Misc for general activities
**Total**|**Total**
**Unrestricted**
**Designated**
**Restricted Endowment**
**This year**
**Last year**
10,500
—
—
—
—
—
—
1,200
—
—
—
—
10,500
1,200
—
25,000
—
4,599| |---|---| ||**10,500**
—
1,200
**—**
**11,700**
**29,599**| ## **Admin** |HMRC
**Total**||**Unrestricted**
**Designated**
**Restricted**
**Endowment**
**This year**
**Last year**
502
—
—
—
502
2,308| |---|---|---| |||**502**
**—**
**—**
**—**
**502**
**2,308**| _Page 12_ ## **Analysis of expenditure** ## **Expenditure on Maintenance / Utilities** |Utilities
Repairs and Maintenance
Rent & Rates
Materials & Equipment
Insurance
H&S
Cleaning & Waste
**Total**|**Total**
**Unrestricted**
**Designated**
**Restricted**
**Endowment**
**This year**
**Last year**
18,547
—
—
—
18,547
8,066
1,701
—
—
—
1,701
6,029
36,529
—
—
—
36,529
36,198
—
608
1,864
9,046
—
—
—
—
—
—
—
—
—
—
—
—
—
608
1,864
9,046
9,927
607
847
—| |---|---| ||**68,295**
**—**
—
**—**
**68,295**
**61,674**| ## **Expenditure on General Services** |After school cafe
Food & Beverage
Other
Computer Expenses
**Total**|**Total**
**Unrestricted**
**Designated**
**Restricted**
**Endowment**
**This year**
**Last year**
—
—
—
—
—
1,367
2,650
—
—
—
2,650
1,740
—
1,429
—
—
—
—
—
—
—
1,429
3,633
978| |---|---| ||**4,079**
**—**
—
**—**
**4,079**
**7,718**| ## **Expenditure on Management & Administration** |Professional Fees
Bank Fees
Other
**Total**|**Total**
**Unrestricted**
**Designated**
**Restricted**
**Endowment**
**This year**
**Last year**
2,369
345
—
—
—
—
—
—
2,369
345
2,268
—
1,460
**—**
**—**
**—**
1,460
1,365| |---|---| ||**4,174**
**—**
**—**
**—**
**4,174**
**3,633**| _Page 13_ ## **Other expenditure** |**ther expenditure**|| |---|---| |Staff Costs UK
Marketing & Advertising
Other
**Total**|**Total**
**Unrestricted**
**Designated**
**Restricted**
**Endowment**
**This year**
**Last year**
43,195
—
—
—
43,195
33,411
4,906
—
—
—
—
—
—
—
4,906
—
1,482
—| ||48,101
—
—
—
48,101
34,893| _Page 14_