The Charity Registration Number is :- 1175022
Refugease
Report and Accounts
31 December 2021
REFUGEASE CHARITY REGISTERED NO. 1175022 TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021
REFERENCE AND ADMINISTRATIVE INFORMATION
The Charity is registered with the Charities Commission, its registration number is 1175022.
The principal office of the Charity is Refugease HQ, PO Box 698, Tunbridge Wells, Kent, TN9 9TS.
TRUSTEES
The Trustees of the charity are:
Gregory Holder (appointed 26 January 2022) Chair Jonathon Traquair (appointed 22 January 2022) Simon Browne Raisa Desypri Mark Lukas
INDEPENDENT EXAMINER
The Charity’s accountant is Mr James Wheelan FCCA of James Wheelan Accountancy, Minshull House, 67 Wellington Road North, Stockport, SK4 2LP.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The Charity is constituted as a body corporate under Part 11 of the Charities Act 2011 and is governed by its constitution which was adopted on 6 October 2017. RefugEase is run by its board of trustees and is governed by its constitution.
Recruitment and Appointment of Directors and Trustees
The trustees of the Charity are appointed in accordance with Charity’s constitution.
OBJECTIVES AND ACTIVITIES
Refugease has refined its unique modus operandi, insofar as the organisation’s humanitarian aid deliveries to Europe and the Middle East are now facilitated exclusively via an online aid shop embedded within the organisation’s website, which enables the public to purchase the most needed survival items for refugees directly. This model not only allows the team to respond immediately in emergencies, but gives both control and confidence back to the donor as to where their money is spent.
Faced with Brexit and Covid, haulage and customs fees for traditional international physical aid deliveries significantly increased, additional restrictions slowed the process down, and expensive storage fees incurred internationally to store aid that isn’t always useful due to changing survival needs of refugees, all led the charity to the new aid model.
Most importantly, the online aid shop model allows Refugease to purchase the aid from small independent businesses where possible (though larger orders in emergencies may have to be facilitated via local supermarkets), thereby boosting the economies of the host nations, and the nations where the conflicts lie (when serving refugees who are internally displaced).
In 2021, Refugease set out to ring-fence all donated funds (including purchases via the online aid shop, and all monetary donations including corporate sponsorship, online and group fundraising, and donations from individuals) to be spent on helping refugees directly.
1
REFUGEASE CHARITY REGISTERED NO. 1175022 TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021
This was successfully achieved with a total of £90,663 spent on assisting refugees (with £42,650 coming from the entirety of our pool of donated funds, and the remaining from the profit of our charity shops).
Another key focus of 2021 has been to grow the retail operation in order to create a steady income stream for the charity, which has been achieved through occupying office, retail and storage units as temporary guardians. This way, the organisation avoids high rents and associated fees, keeping administrative costs low, ensuring as much time, money and resource as possible is spent on helping refugees.
2021 was a period of hyper-growth for the charity’s retail operation, consequently the set-up and running costs incurred were higher than a typical year (£207k gross, £106k expenditure). With profit margins at 48% for the “Vintage Emporiums” charity shop chain in 2021, this is still a huge achievement given that this is 31% higher than the UK charity shop average
Profit margins from the organisation’s charity shops are set to increase significantly (estimated 65%) for 2022, both due to reduced set-up costs, and increased number of outlets set to open across the South East.
Over and above ensuring stability across all areas of operation for the charity, Refugease’s shops also serve as a public face for the organisation on British high streets, raising awareness of a once small, now growing, NGO - all the while increasing public profile, credibility and networks.
1. Humanitarian aid.
Serving refugee camps and people in transit fleeing conflict by providing life-saving aid purchased locally, with a focus on Jordan, Turkey, Greek Islands, and France.
This year, the team at Refugease has remained focused on the sustainability of the charity’s humanitarian aid efforts. In 2021, the decision was made that Refugease would cease physical international deliveries of humanitarian aid, and focus on encouraging our supporters to purchase survival items for refugees via the online aid shop embedded within the charity’s website: refugease.org/aid-shop
Brexit and Covid restrictions have made physical aid deliveries an expensive and lengthy process, and with limited storage overseas, we found a solution in 2020. The online aid shop enables members of the public to first select, then purchase the most needed (mainly survival) items directly from our website, for refugees in the area they choose (Greece, France and the Middle East). Each purchased item is automatically added to a virtual shopping list that is accessed by a local distributor (normally and wherever possible, a refugee or asylum seeker). We fund the hours they spend working on our distributions, ensuring the money is spent locally, reassuring each donor that the money has been spent on the item specified.
The Aid Shop website enables us to change the items seasonally, respond to emergencies quickly, and helps local economies thrive. By paying local distributors, we are taking strides towards empowering those we are serving.
Total income for the online aid shop in 2021 (launched December 2020) , was £14,626.
Refugease spent a total of £24,975 on purchasing aid (with additional £7,676 spent on logistics of international aid deliveries, before transition was made to online aid shop sales). 2021 therefore saw huge success with regards to exposure and growth of the online shop model.
2
REFUGEASE CHARITY REGISTERED NO. 1175022 TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021
2. Awareness.
Teaching UK children about the world’s bursting refugee crisis: why it's happened, what is happening, and how they can help.
The organisation has continued to strengthen its relationships with schools, universities and partner organisations.
Production of palatable posts on social media aiming primarily to debunk negative myths surrounding refugees, and to offer simple and unbiased news reporting regarding refugees.
3. Education & Empowerment.
Offering child refugees in Jordan an education they can build a future on, and upskilling adult refugees (in the UK and abroad) into employment to empower them long-term.
Education Centre, Zaa’tari
Refugease has increased the monthly funding provided for the running of Zaa’tari Education Centre in Jordan, near the Syria border, to enable classes to run five days per week (previously three). The centre provides lessons to approximately 80 Syrian refugee and low-income Jordanian children, between the ages of four and fifteen years of age.
Refugease’s aim is to help displaced children catch up on missed time due to the conflicts they were forced to flee, giving them the best chance at succeeding later in life, in a safe and therapeutic environment. We are ensuring this by providing the children with regular English lessons, along with state-required Arabic and Maths.
After Refugease purchased each and every child their own tablet (with internet access) during lockdowns, they have been able to continue their homework, leisure, and exploratory research on their devices over and above attending in-person lessons at the centre.
Refugee Employment - UK & Abroad
Throughout 2021, Refugease has continued to fund the wages of the refugee teachers at the Education Centre in Jordan, but also the refugee distributors of aid purchased via the online shop, and have onboarded refugees as part of our UK retail workforce.
The organisation’s overarching aim remains: to prevent or relieve poverty and distress for those who are internally displaced, or who are fleeing from their countries because of war, persecution or economic distress. Refugease continues to provide the aforementioned persons with aid (food, shelter, basic medical supplies, transport and emergency assistance).
ACHIEVEMENTS AND PERFORMANCE
Refugease’s operations grew exponentially in 2021, seeing a total income of £249k (increasing from £60k in 2020).
Main achievements can be summarised as follows:
3
REFUGEASE CHARITY REGISTERED NO. 1175022 TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021
*Successful expansion of the Aid Shop - a website that allows the public to purchase survival items for refugees around the globe, a system that bypasses Covid-19 and Brexit complications, all the while boosting local economies in the countries the team operate in, and respond quickly when emergencies arise.
*Total income for aid shop in 2021 (launched December 2022) - £14,626
*Total spent on purchasing aid - £24,975 (with additional £7,676 spent on logistics of international aid deliveries, before transition was made to online aid shop sales only).
*Provided regular paid work for 10+ refugees in the UK, and internationally.
Continued funding of all running costs of an education centre for 80 refugee children in Jordan (including teacher wages, who are also refugees, school equipment and teaching supplies) Additional renovations for the education centre were also funded by Refugease - including fixing of toilet, cement in playground, external and internal painting, fence and playground.
*Successful opening of four additional pop-up charity shop sites under the brand “Vintage Emporiums”, the profits of which pay for the organisation’s administrative and mission expenditure. This retail model provides the organisation with a sustainable stream of income that covers all administrative costs (which is a particularly welcome success considering the unstable financial climate within which it’s becoming increasingly difficult to obtain monetary donations).
*Refugease has formed additional partnerships with grassroots charities internationally to improve the efficiency of the online aid shop deliveries.
*To support the above achievements, the organisation has continued to improve and update processes, policies, security, and technological infrastructures.
FINANCIAL REVIEW
The attached financial statements show the current state of the finances, which the Trustees considers to be acceptable. Total incoming resources were £249,997 and total outgoing payments amounted to £247,384, the net income for the year was £2,613. Unrestricted funds carried forward amounted to £11,917.
Reserves Policy
In light of the main risks to the Charity the Trustees have made a decision that the Charity should keep funds at a suitable level in order to meet its ongoing liabilities.
PUBLIC BENEFIT
The trustees confirm that they have referred to the Charity Commission's general guidance on public benefit when reviewing the Charity’s aims and objectives and in planning the future activities of the Charity, These are shown above in the section 'Objectives and activities'.
4
REFUGEASE CHARITY REGISTERED NO. 1175022 TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31ST DECEMBER 2021
STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The charity's trustees are responsible for the preparation of the accounts in accordance with the terms of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008. Notwithstanding the explicit requirement in the extant statutory regulations, the Charities (Accounts and Reports) Regulations 2008, to prepare the financial statements in accordance with the SORP 2005, in view of the fact that the SORP 2005 has been withdrawn, the Trustees determined to interpret this responsibility as requiring them to follow current best practice and prepare the accounts according to the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), .
In particular, charity law requires the Trustees, if they prepare accounts on an accruals basis, to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In preparing those financial statements the Trustees are required to :-
-
to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
-
select suitable accounting policies and apply them consistently;
-
make judgements and estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business;
-
state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements;
The law requires that the trustees must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity for the year.
The Trustees are also responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which are sufficient to show and explain the charity's transactions and enable them to ensure that the financial statements comply with regulations made under the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees are also responsible for the contents of the Trustees' report, and the statutory responsibility of the Independent Examiner in relation to the Trustees' report is limited to examining the report and ensuring that , on the face of the report, there are no material inconsistencies with the figures disclosed in the financial statements.
This report was approved by the board of trustees:-.
Greg Holder Chair of Trustees, Refugease
Date: 10 October 2022
5
Refugease
Report of the Independent Examiner to the Trustees of the charity on the accounts for the year ended 31 December 2021
I report to the Trustees on my examination of the financial statements of the charity on pages 8 to 19 for the year ended 31 December 2021 which have been prepared in accordance with the Charities Act 2011 (the Act) and with the Financial Reporting Standard 102, (effective 1st January 2016) as modified by FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), published by the Charity Commission in England & Wales (CCEW) , and under the historical cost convention and the accounting policies set out on page 8.
Respective responsibilities of the Trustees and the Independent Examiner and the basis of the report
As described on page 5, you, the charity's Trustees, are responsible for the preparation of the financial statements in accordance with the Charities Act 2011 and all other applicable law and with United Kingdom Generally Accepted Accounting Practice, applicable to smaller entities, and for being satisfied that the financial statements give a true and fair view.
The Trustees consider that the audit requirement of Section 144(1) of the Charities Act 2011 (the Act) does not apply, and that there is no requirement in the Governing Document for the conducting of an audit. As a consequence, the Trustees have elected that the financial statements be subject to independent examination.
Having satisfied myself that the financial statements are not required to be audited under any legal provision, or otherwise, and are eligible for independent examination, it is my responsibility to:-
a) examine the financial statements of the charity under Section 145 of the Act;
b) follow the applicable procedures in the Directions given by the Charity Commission under section 145(5)(b) of the Act.
Basis of Independent Examiner's Statement and scope of work undertaken
I report in respect of my examination of the charity's financial statements carried out under s145 of the Act. In carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act setting out the duties of an independent examiner in relation to the conducting of an independent examination. An independent examination includes a review of the accounting records kept by the charity and of the accounting systems employed by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeking explanations from you, as Trustees, concerning such matters. The purpose of the examination is to establish as far as possible that there have been no breaches of charity legislation and that, on a test basis of evidence relevant to the amounts and disclosures made, the financial statements comply with the SORP.
The procedures undertaken do not provide all the evidence that would be required in an audit, and information supplied by the Trustees in the course of the examination is not subjected to audit tests or enquiries and does not cover all the matters that an auditor would consider in arriving at an opinion. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide
6
Refugease
Consequently, I do not express an audit opinion on the view given by the financial statements, and in particular, I express no opinion as to whether the financial statements give a true and fair view of the affairs of the charity, and my report is limited to the matters set out in the statement below.
I planned and performed my examination so as to satisfy myself that the objectives of the independent examination are achieved and before finalising the report I obtained written assurances from the Trustees of all material matters.
Independent Examiner's Statement, Report and Opinion
Subject to the limitations upon the scope of my work as detailed above, I have completed my examination: and can confirm that:-
This is a report in respect of an examination carried out under 145 of the Act and in accordance with Directions given by the Charity Commission under section 145(5)(b) of the Act which may be applicable;
and that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:-
accounting records were not kept in respect of the charity as required by with Section 130 of The Charities Act 2011;
the financial statements do not accord with those records; or
the financial statements do 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;
have not been prepared in accordance with the methods and principles set out in the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP).
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 financial statements to be reached.
Signed:-
James Wheelan - Independent Examiner
Chartered Certified Accountant
Minshull House 67 Wellington Road North Stockport Cheshire SK4 2LP
Date: 10 October 2022
7
Refugease - Statement of Financial Activities for the year ended 31 December 2021
Statement of Financial Activities for the year ended 31 December 2021
| Income & Endowments from: Donations & Legacies Other trading activities Investments Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income for the year Net income after transfers Reconciliation of funds:- Total funds brought forward Total funds carried forward Net movement in funds |
Current year Unrestricted Funds 2021 £ 75,129 174,605 263 249,997 155,895 91,489 247,384 2,613 2,613 2,613 9,304 11,917 |
Current year Restricted Funds 2021 £ - - - - - - - - - - - - |
Current year Total Funds 2021 £ 75,129 174,605 263 249,997 155,895 91,489 247,384 2,613 2,613 2,613 9,304 11,917 |
Prior Year Total Funds 2020 £ 19,744 39,710 - |
|---|---|---|---|---|
| 59,454 | ||||
| 30,177 23,071 |
||||
| 53,248 | ||||
| 6,206 | ||||
| 6,206 | ||||
| 6,206 3,098 |
||||
| 9,304 |
A separate Statement of Total Recognised Gains and Losses is not required as this statement includes all recognised gains and losses.
All the prior year transactions were unrestricted items, and no further analysis is required
All activities derive from continuing operations
The notes attached on pages 8 to 19 form an integral part of these accounts.
8
Refugease - Statement of Financial Activities for the year ended 31 December 2021
Refugease - Resources applied in the year ended 31 December 2021 towards fixed assets for Charity use:-
| Funds generated in the year as detailed in the SOFA Net resources available to fund charitable activities |
2021 £ 2,613 2,613 |
2020 £ 6,206 |
|---|---|---|
| 6,206 |
The notes attached on pages 8 to 19 form an integral part of these accounts.
Movements in revenue and capital funds for the year ended 31 December 2021
Revenue accumulated funds
| Accumulated funds brought forward Closing revenue funds Summary of funds Revenue accumulated funds Recognised gains and losses before transfers |
Unrestricted Funds 2021 £ 9,304 2,613 11,917 11,917 Unrestricted and Designated funds 2021 £ 11,917 |
Restricted Funds 2021 £ - - - - Restricted Funds 2021 £ - |
Total Funds 2021 £ 9,304 2,613 11,917 11,917 Total Funds 2021 £ 11,917 |
Last year Total Funds 2020 £ 3,098 6,206 |
|---|---|---|---|---|
| 9,304 | ||||
| 9,304 | ||||
| Last Year Total Funds 2020 £ 9,304 |
The notes attached on pages 8 to 19 form an integral part of these accounts.
9
Refugease - Statement of Financial Activities for the year ended 31 December 2021
Refugease
Income and Expenditure Account for the year ended 31 December 2021 as required by the Companies Act 2006
| Income Income from operations Refunds from HMRC on gift aided donations Interest receivable Gross income in the year before exceptional items Gross income in the year including exceptional items Expenditure Charitable expenditure, excluding depreciation and amortisation Fundraising costs Realised losses on disposals of social investments which are programme related Total expenditure in the year Tax on surplus on ordinary activities Retained surplus for the financial year All activities derive from continuing operations Net income after tax in the financial year Net income before tax in the financial year Investment income |
2021 £ 249,214 520 263 249,997 249,997 91,489 155,895 - 247,384 2,613 - 2,613 2,613 |
2020 £ 59,454 - - |
|---|---|---|
| 59,454 | ||
| 59,454 | ||
| 23,071 30,177 - |
||
| 53,248 | ||
| 6,206 - |
||
| 6,206 | ||
| 6,206 | ||
In accordance with the provisions of the Companies Act 2006, the headings and subheadings used in the Income and Expenditure account have been adapted to reflect the special nature of the charity's activities.
The notes attached on pages 8 to 19 form an integral part of these accounts.
10
Refugease - Balance Sheet as at 31 December 2021
| Notes Current assets Debtors 8 Cash at bank and in hand Total current assets Creditors: amounts falling due within one year 9 Net current assets The total net assets of the charity |
2021 £ 7,500 13,055 20,555 (8,638) 11,917 11,917 |
2020 £ 1,022 10,888 11,910 (2,606) 9,304 9,304 |
2020 £ 1,022 10,888 11,910 (2,606) 9,304 9,304 |
|---|---|---|---|
| 9,304 |
The total net assets of the charity are funded by the funds of the charity, as follows:-
Restricted funds
| Unrestricted Funds Unrestricted Revenue Funds 12 11,917 Designated Funds Total charity funds |
- 9,304 11,917 11,917 |
- 9,304 |
|---|---|---|
| 9,304 |
The Trustees acknowledge their responsibilities for complying with the requirements of charity legislation with respect to accounting records and the preparation of accounts.
The charity is subject to Independent Examination under charity legislation, and the report of the Independent Examiner is on page 7.
The Trustees are satisfied that, although the charity is not registered under the Companies Acts, if it were so registered, it would be eligible to prepare accounts in accordance with the provisions in Part 15 of the Companies Act 2006. applicable to companies subject to the small companies regime.
GREG HOLDER
Chair of Trustees
Approved by the board of trustees on: 10 October 2022
The notes attached on pages 8 to 19 form an integral part of these accounts.
11
Refugease
Notes to the Accounts for the year ended 31 December 2021
1 Accounting policies
Policies relating to the production of the accounts.
Basis of preparation and accounting convention
The accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the Financial Reporting Standard 102, (effective 1st January 2016) and 'FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), published by the Charity Commission in England & Wales (CCEW) , effective January 2016, , and in accordance with all applicable law in the charity's jurisdiction of registration, except that the charity has prepared the financial statements in accordance with the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2015, (as amended by the Bulletin issued in October 2018 and applicable to all accounting periods beginning on or after 1st January 2019), (The SORP), in preference to the previous SORP, the SORP 2005, which has been withdrawn, notwithstanding the fact that the extant statutory regulations, the Charities (Accounts and Reports) Regulations 2008 refer explicitly to the SORP 2005. This has been done to accord with current best practice.
Going Concern
The charitable activities are entirely dependent on continuing grant aid and voluntary donations as well as trading revenues. As a consequence, the going concern basis is dependent on the future flow of these uncertain funding streams. Accordingly, the Trustees have obtained forecasts and, after reviewing the financial forecasts for future periods the Trustees are satisfied that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements. Other than these matters, the Trustees are not aware of any material uncertainites about the charity's ability to continue as a going concern.
Risks and future assumptions
The charity is a public benefit entity.
Policies relating to categories of income and income recognition.
Nature of income
Gross income represents the value of donations and grants provided to the charity.
Categories of Income
Income is categorised as income from exchange transactions (contract income) and income from non-exchange transactions (gifts), investment income and other income.
Income from exchange transactions is received by the charity for goods or services supplied under contract or where entitlement is subject to fulfilling performance related conditions. The income the charity receives is approximately equal in value to the goods or services supplied by the charity to the purchaser.
Income from a non-exchange transaction is where the charity receives value from the donor without providing equal value in exchange, and includes donations of money, goods and services freely given without giving equal value in exchange.
12
Refugease
Notes to the Accounts for the year ended 31 December 2021
Income recognition
Income, whether from exchange or non exchange transactions, is recognised in the statement of financial activities (SOFA) on a receivable basis, when a transaction or other event results in an increase in the charity’s assets or a reduction in its liabilities and only when the charity has legal entitlement, the income is probable and can be measured reliably.
Income subject to terms and conditions which must be met before the charity is entitled to the resources is not recognised until the conditions have been met.
All income is accounted for gross, before deducting any related fees or costs.
Accounting for deferred income and income received in advance
Where terms and conditions relating to income have not been met or uncertainty exists as to whether the charity can meet any terms or conditions otherwise within its control, income is not recognised but is deferred as a liability until it is probable that the terms or conditions imposed can be met.
Any grant that is subject to performance-related conditions received in advance of delivering the goods and services required by that condition, or is subject to unmet conditions wholly outside the control of the recipient charity, is accounted for as a liability and shown on the balance sheet as deferred income. Deferred income is released to income in the reporting period in which the performance-related or other conditions that limit recognition are met.
When income from a grant or donation has not been recognised due to the conditions applying to the gift not being wholly within the control of the recipient charity, it is disclosed as a contingent asset if receipt of the grant or donation is probable once those conditions are met.
Where time related conditions are imposed or implied by a funder, then the income is apportioned to the time periods concerned,and, where applicable, is accounted for as a liability and shown on the balance sheet as deferred income. When grants are received in advance of the expenditure on the activity funded by them, but there are no specific time related conditions, then the income is not deferred.
Any condition that allows for the recovery by the donor of any unexpended part of a grant does not prevent recognition of the income concerned, but a liability to any repayment is recognised when repayment becomes probable.
Income from legacies
Income from legacies is recognised when the charity has sufficient evidence that a gift has been left to them, that where required, probate has been granted, the executor is satisfied that the property in question will not be required to satisfy claims in the estate, that it is probable that the amount will be received by the charity, and the amount to be received can be estimated with sufficient accuracy, and that any conditions attached to the legacy are either within the control of the charity or have been met.
Where a payment is received from an estate or is notified as receivable by the executors after the reporting date and before the accounts are authorised for issue but it is clear that the payment had been agreed by the executors prior to the end of the reporting period, then the amount concerned is treated as an adjusting event and accrued as income in the accounting period if receipt is probable.
Where the charity has established entitlement to a legacy but there is uncertainty as to the amount of the payment, details of the legacy aredisclosed as a contingent asset until the criteria for income recognition are met. Where a legacy is subject to the interest of a life tenant, the legacy is not recognised as income until the death of the life tenant.
If it is doubtful that full settlement of a legacy debtor will be received, then an adjustment is made to reduce the amount of the legacy debtor and legacy income rather than charging the adjustment as expenditure in the Statement of Financial Activities
13
Refugease
Notes to the Accounts for the year ended 31 December 2021
Donated goods, facilities and services
Donated fixed assets are recognised at the current fair value. All such donations are recognised as donation income, and debited to fixed assets.
Donated goods that are not fixed assets are accounted for at a fair value, unless it is impractical to reliably measure the value of the donated items.
In the absence of any direct evidence of fair value of donated goods, then a value is derived from the cost of the item to the donor or, in the case of goods that are expected to be sold, the estimated resale value after deducting any anticipated costs of sales.
If it is impracticable to measure the fair value of goods donated for resale, or the costs of valuation outweigh the benefits, the donated goods are recognised as income when sold, with an equivalent amount being recognised as an expense.
The costs of goods donated for distribution to beneficiaries is deemed to be the fair value of those goods upon receipt. When the goods are distributed freely or for a nominal consideration, then the carrying amount is adjusted at the time of sale, to the value at the point of distribution and the adjustment is shown as a cost of donations made.
The carrying amount of any stock held for distribution is assessed for impairment at the reporting date. All donated goods are recognised as donation income, and debited to trading stock.When trading stock is subsequently sold, or appropriated to meet an expense, then the carrying value of the stock is recognised as an expense. In accordance with the SORP, goods donated for distribution to beneficiaries, or for consumption by the charity are included in 'legacies and donations '. Goods donated for resale are included in 'Income from other trading activities'
The cost of any stock of goods donated for distribution to beneficiaries is deemed to be the fair value of those gifts at the time of their receipt. If the goods held are to be distributed freely or for a nominal consideration, then the carrying amount is subsequently adjusted to reflect the lower of deemed cost adjusted for any loss of service potential and replacement cost. Replacement cost is the economic cost incurred if the charity was to replace the service potential of the donated goods at its own expense in the most economic manner.
Donated services and facilities (including seconded staff and use of property) are included in the accounts on the basis of the value of the gift to the charity.
All donated services and facilities are recognised as donation income when received,(provided the value of the gift can be measured reliably) and recognised as an expense with an equivalent value.
14
Refugease
Notes to the Accounts for the year ended 31 December 2021
Policies relating to expenditure on goods and services provided to the charity.
Recognition of liabilities and expenditure
A liability, and the related expenditure, is recognised when a legal or constructive obligation exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in settlement, and when the amount of the obligation can be measured or reliably estimated..
Liabilities arising from future funding commitments and constructive obligations, including performance related grants, where the timing or the amount of the future expenditure required to settle the obligation are uncertain, give rise to a provision in the accounts, which is reviewed at the accounting year end. The provision is increased to reflect any increases in liabilities, and is decreased by the utilisation of any provision within the period, and reversed if any provision is no longer required. These movements are charged or credited to the respective funds and activities to which the provision relates.
Policies relating to assets, liabilities and provisions and other matters.
Debtors
Debtors are measured at their recoverable amounts at the balance sheet date.
Financial instruments including cash and bank balances
Cash held by the charity is included at the amount actually held and counted at the year end. Bank balances, whether in credit or overdrawn, are shown at the amounts properly reconciled to the bank statements.
Pensions - defined contribution schemes
The charity operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
Fund Accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal or as implied by law.
There are no endowment funds.
2 Liability to taxation
The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 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 on the specific charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity, and is therefore included in the relevant costs in the Statement of Financial Activities.
3 Winding up or dissolution of the charity
If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar objects to the charity.
4 Significance of financial instruments to the charity's position
15
Refugease
Notes to the Accounts for the year ended 31 December 2021
There are no significant implications on the charity of financial instruments.
16
Refugease
Notes to the Accounts for the year ended 31 December 2021
5 Staff costs and emoluments
| Salary costs Gross Salaries Employer's National Insurance for all staff Employer's contribution to defined benefit pension schemes Total salaries, wages and related costs Numbers of full time employees or full time equivalents The average number of total staff employed in the year was |
2021 £ 78,657 7,993 1,913 |
2020 £ 7,833 879 102 |
|---|---|---|
| 88,563 | 8,814 | |
| 2021 2 |
2020 1 |
Neither the trustees nor any persons connected with them have received any remuneration from the charity or any related entity, either in the current or prior year.
No employees received emoluments (excluding employer pension costs) of more than £60,000.
6 Defined contribution pension schemes
The charity operates a defined contribution pension scheme, the costs of which are shown above.
Any liabilites and assets associated with the scheme are shown under debtors and creditors.
7 Remuneration and payments to Trustees and persons connected with them
No trustees or persons connected with them received any remuneration from the charity, or any related entity.
17
Refugease
Notes to the Accounts for the year ended 31 December 2021
| 8 Debtors Other debtors 9 Creditors: amounts falling due within one year Accruals PAYE, NIC VAT and other taxes Other creditors |
2021 £ 7,500 2021 £ 1,350 6,671 617 |
2020 £ 1,022 2020 £ 900 1,468 238 |
|---|---|---|
| 8,638 | 2,606 |
10 Related party transactions
In the prior year Ms V Osbourn resigned as chair and trustee on 28 September 2020, from 1 November 2020 Ms V Osbourn took up the paid post of Managing Director. Due to administrative errors relating to tax codes on the December 20 payroll run Valentina was overpaid by £1,022.
The administrative errors continued in the current year and on discovery the overpayments were immediate repaid to the charity. The balance of £6,223 was repaid to the charity on 19 July 2021.
11 Particulars of how particular funds are represented by assets and liabilities
| At 31 December 2021 Current Assets Current Liabilities At 1 January 2021 Current Assets Current Liabilities |
Unrestricted funds £ 20,555 (8,638) |
Designated funds £ - |
Restricted funds £ - - |
Total Funds £ 20,555 (8,638) |
|---|---|---|---|---|
| 11,917 | - | - | 11,917 | |
| Unrestricted funds £ 11,910 (2,606) |
Designated funds £ - - |
Restricted funds £ - - |
Total Funds £ 11,910 (2,606) |
|
| 9,304 | - | - | 9,304 |
18
Refugease
Notes to the Accounts for the year ended 31 December 2021
12 Change in total funds over the year as shown in Note 11 , analysed by individual funds
| Funds brought forward from 2020 Movement in funds in 2021 See Note 13 £ £ Unrestricted and designated funds:- Unrestricted Revenue Funds 9,304 2,613 Total unrestricted and designated funds 9,304 2,613 Total charity funds 9,304 2,613 Analysis of movements in funds over the year as shown in Note 12 Income Expenditure 2021 2021 £ £ Unrestricted and designated funds:- Unrestricted Revenue Funds 249,997 (247,384) 249,997 (247,384) |
Funds brought forward from 2020 £ 9,304 |
Movement in funds in 2021 See Note 13 £ 2,613 |
See Note 0 £ - Transfers between funds in 2021 |
Funds carried forward to 2022 £ 11,917 |
|---|---|---|---|---|
| 9,304 | 2,613 | - | 11,917 | |
| 9,304 | 2,613 | - | 11,917 | |
| Other Gains & Losses 2021 £ - |
Movement in funds 2021 £ 2,613 |
|||
| 249,997 | (247,384) | - | 2,613 |
13 Analysis of movements in funds over the year as shown in Note 12
14 The purposes for which the funds as
Unrestricted and designated funds:-
Unrestricted Revenue Funds
These funds are held for the meeting the objectives of the charity, and to provide reserves for future activities, and , subject to charity legislation, are free from all restrictions on their use.
15 Ultimate controlling party
The charity is under the control of its legal members.
If the CIO is wound up, the members of the CIO have no liability to contribute to its assets and no personal responsibility for settling its debts and liabilities.
19
Refugease
Detailed analysis of income and expenditure for the year ended 31 December 2021 as required by the SORP 2015
This analysis is classsified by conventional nominal descriptions and not by activity.
16 Donations, Grants and Legacies
| Donations and gifts from individuals Refunds from HMRC on gift aided donations Total donations and gifts from individuals Donations including aid shop |
Current year Unrestricted Funds 2021 £ 520 42,131 |
Current year Restricted Funds 2021 £ - - |
Current year Total Funds 2021 £ 520 42,131 |
Prior Year Total Funds 2020 £ - 19,744 |
|---|---|---|---|---|
| 42,651 | - | 42,651 | 19,744 |
| Total Donations, Grants and Legacies Total Donations, Grants and Legacies A1 Total public sector revenue grants Grants Revenue grants from government and public bodies |
Current year Unrestricted Funds 2021 £ 32,478 |
Current year Restricted Funds 2021 £ - |
Current year Total Funds 2021 £ 32,478 |
Prior Year Total Funds 2020 £ - |
|---|---|---|---|---|
| 32,478 | - | 32,478 | - | |
| 75,129 | - | 75,129 | 19,744 |
17 Income from other, non charitable, trading activities
| Total from other activities A3 Trading activities to raise funds for the charity |
Current year Unrestricted Funds 2021 £ 174,605 |
Current year Restricted Funds 2021 £ - |
Current year Total Funds 2021 £ 174,605 |
Prior Year Total Funds 2020 £ 39,710 |
|---|---|---|---|---|
| 174,605 | - | 174,605 | 39,710 |
18 Investment income
| Bank Interest Receivable Total investment income A4 |
Current year Unrestricted Funds 2021 £ 263 |
Current year Restricted Funds 2021 £ - |
Current year Total Funds 2021 £ 263 |
Prior Year Total Funds 2020 £ - |
|---|---|---|---|---|
| 263 | - | 263 | - |
20
Refugease
Detailed analysis of income and expenditure for the year ended 31 December 2021 as required by the SORP 2015
19 Expenditure on charitable activities - Direct spending
| Current Year Total direct spending B2a 20 Total Charitable expenditure Current Year Total direct spending B2a Total charitable expenditure B2 All the expenditure in the prior year was unrestricted. Prior Year Total direct spending B2a Total charitable expenditure B2 Other Aid logistics Gross wages and salaries - charitable activities Aid expenditure Refugee employment Jordan running costs Marketing and advertising of charitable services Professional fees |
Current year Unrestricted Funds 2021 £ 5,324 518 7,676 24,975 21,451 5,378 25,919 248 |
Current year Restricted Funds 2021 £ - - - - - - - - |
Current year Total Funds 2021 £ 5,324 518 7,676 24,975 21,451 5,378 25,919 248 |
Prior Year Total Funds 2020 £ 4,700 154 729 - 8,764 8,724 - - |
|---|---|---|---|---|
| 91,489 | - | 91,489 | 23,071 | |
| Current year Unrestricted Funds 2021 £ 91,489 |
Current year Restricted Funds 2021 £ - |
Current year Total Funds 2021 £ 91,489 |
Prior Year Total Funds 2020 £ 23,071 |
|
| 91,489 | - | 91,489 | 23,071 | |
| Prior Year Unrestricted Funds 2020 £ 23,071 |
Prior Year Restricted Funds 2020 £ - |
Prior Year Total Funds 2020 £ 23,071 |
||
| 23,071 | - | 23,071 | ||
| 21 Expenditure on raising funds and costs of investment management Current year Current year Current Year Unrestricted Funds Restricted Funds 2021 2021 £ £ Costs of charity shop selling goods 155,895 - Total fundraising costs B1 155,895 - All the expenditure in the prior year was unrestricted. |
Current year Prior Year Total Funds Total Funds 2021 2020 £ £ 155,895 30,177 |
|||
| 155,895 | - | 155,895 30,177 |
||
| **21 ** | Expenditure on raising funds and | costs of investment management | costs of investment management | costs of investment management | ||
|---|---|---|---|---|---|---|
| Current year | Current year | Current year | Prior Year | |||
| Unrestricted | Restricted | Total Funds | Total Funds | |||
| Current Year | Funds | Funds | ||||
| 2021 | 2021 | 2021 | 2020 | |||
| £ | £ | £ | £ | |||
| Costs of charity shop selling goods | 155,895 | - | 155,895 | 30,177 | ||
| Total fundraising costs | B1 | 155,895 | - | 155,895 | 30,177 | |
| All the expenditure in the prior year was | unrestricted. |
21
Refugease
Detailed analysis of income and expenditure for the year ended 31 December 2021 as required by the SORP 2015
22