## Zarach
Charity number 1179539
## Annual Report and Financial Statements
for the year ended 31 July 2021
Zarach
Annual Report and Financial Statements for the year ended 31 July 2021
|**Contents**|**Page**|
|---|---|
|Trustees' report|2 to 5|
|Examiner's report|6|
|Statement of financial activities|7|
|Balance sheet|8|
|Notes to the accounts|9 to 13|
## **Prepared by West Yorkshire Community Accountancy Service CIO**
1
## Zarach
## Trustees' report for the year ended 31 July 2021
## **Reference and administrative details of the charity, its trustees and advisors**
The trustees during the financial year and up to and including the date the report was approved were: **Name Position** Rebekah Wilson Chair Gavin Green Sandra Hartley Rachel Brookes Darren Stubbs **Charity number** 1179539 Registered in England and Wales **Registered and principal address Bankers** 1 Leicester Square Virgin Money Bank Leeds 10 Austhorpe Road LS15 8FW Leeds LS15 8DL
## **Independent examiner**
E J Beverley FCCA **West Yorkshire Community Accountancy Service CIO**
Stringer House 34 Lupton Street Leeds LS10 2QW
## **Structure, governance and management**
The charity is a Charitable Incorporated Organisation (CIO) formed on 14 August 2018. The charity is governed by a constitution as amended 4 August 2020.
## **Method of recruitment and appointment of trustees**
The trustees of the charity are appointed by the members at the AGM.
## **Objectives and activities**
## **The charity's objects**
The relief of financial hardship among people living or working in Leeds and surrounding areas by providing such persons directly (or via charities, or other organisations with similar objectives) with goods / services which they could not otherwise afford through lack of means.
2
## Zarach
## Trustees' report (continued) for the year ended 31 July 2021
## **Objectives and activities (continued)**
## **The charity's main activities**
We deliver beds and basics to children in poverty, to help families in crisis rise up from surviving to thriving, so children can Eat, Sleep and Learn.
Partnering with schools to give Every Head a Bed. Supporting families to make Every House a Home.
## Bed Deliveries
We receive referrals through our network of schools. We deliver a bed bundle for every child in the household that requires it; this includes a brand-new bed, mattress, duvet, pillow, bed sheets, pyjamas and hygiene kit. We work with local partners to include food parcels and, if needed, a school uniform. We can also mediate between families and their support services, as well as making referrals.
## Thrive
We know that a bed alone cannot break the cycle of poverty that our families face. So, our delivery is the first step of a new journey for every child and their family.
For some Zarach Families, we are uniquely placed to make a huge difference to their current circumstances. Where this has been identified, we invite them to join our Thrive pathway.
After receiving a Zarach delivery (bed bundle, food parcel or shopping service) and a text with the Thrive video link, we start the following process:
A. Ask the question, “What do you need next to thrive not just survive?”
B. Build a three-point Thrive Plan based on the highest leverage short-term and long-term benefits.
C. Connect with our local partners and other community organisations to get things moving.
## COVID response
In response to the Covid-19 pandemic we quickly set up Project Vantry – a pantry in a van! Through referrals from schools and Leeds City Council, we delivered food and essentials throughout lockdown to some of the neediest families in the city. In the first 100 days of lockdown, we fed over 1,000 people. As we anticipate the pandemic will have a negative impact on child poverty for a while yet, we’ve developed the following offer to make sure our Zarach families are not going hungry:
• Food for 7 Days – a delivery of seven breakfasts, lunches and evening meals for the whole family. These are for families with no recourse to public funds. Referrals are made by schools on a week by week basis.
• Ease the Strain Box – Food parcels for families in temporary crisis (e.g. waiting for universal credit payments to begin, or having been rehomed due to domestic violence).
Once contact is made with a family in crisis, our team assesses the best ways to support them further. As a friendly-face, we can mediate between families and other support services, whilst making further referrals.
## Hub Development
Zarach is growing. Since our inception we have focused on deprived communities in Leeds. However, we know the need is on a national scale. In the last 6 months, we have opened 2 new hubs in Dewsbury and Romford. Our model is to work in partnership with a local community organisation who provide volunteers and storage of bed bundles.
## **Public benefit statement**
In setting our objectives and planning our activities our trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and in particular the prevention or relief of poverty.
3
## Zarach
## Trustees' report (continued) for the year ended 31 July 2021
## **Achievements and performance**
## Every Head a Bed
In May 2021, we delivered our 1,000th Bed Bundle. In the 2020-21 Academic Year,
* We delivered 680 brand new Bed Bundles to children previously living without.
* We received 375 referrals from over 100 schools
## Project Vantry (COVID response)
Over 4,000 Masks delivered. Over 70,000 equivalent meals delivered via Project Vantry. Over 1,000 Home Learning items delivered for local schools. 300 Food Shops for the elderly.
Part of the feedback we request from schools is around improvement in the child’s punctuality, attendance and engagement. 23% of children had improved punctuality, 24% had improved attendance and an amazing 67% had improved engagement.
“ _Both boys have better punctuality at School. There is a marked improvement in their attitude to learning and their behaviour during the day. Both have engaged with external services to support their emotional wellbeing, and both tell me how much better it is not to share a bed_ .” – referrer
“ _A had her own bedroom and space and slept there which made it easier for her to go to sleep when she wanted. All the children were free of headlice. Mum started to stagger bedtime for the siblings which meant that the son who was keeping A and his brother awake no longer did so as he was able to have some oneon-one time with his mum before going to bed. This made his behaviour easier to manage. There was less fighting between the siblings and the mum reported that she felt more able to manage the challenges as she was able to sleep better and felt less stressed with the situation._ ” - referrer
66.7% of parents/carers said they now felt either optimistic or very optimistic about the future following involvement with Zarach.
“ _Mum appears more in control and happier with her life as she feels real differences are being made. What were issues before are slowly being resolved_ .” - referrer
83.3% parents said they felt confident or very confident in their ability to source the wider support their family needs following Zarach involvement.
‘ _One of the mums had tears on the doorstep as she saw the furniture we were bringing in. The perpetrator of the violence she is fleeing is in court very soon. He’s charged with lots of things including extreme acts of violence and wielding a knife in front of his young children. She said getting all the furniture had made her feel strong for the court hearing. She said for the first time in ages she felt hopeful._ ’ - Zarach Support Worker
‘I _had to flee domestic violence as my ex-husband found out where I was living. I had to leave with only things I could get into suitcases and bags, so all my furniture was left behind. I ended up in a refuge which was horrible. We temporarily moved into my Nan’s house which was not ideal. My girls were sleeping in a very small room like a cupboard and only sleeping on mattress toppers and I was sharing a room with my Nan. I felt depressed. Social services helped me find a house and Zarach brought us beds and sofas. I now feel happier and feel safe making a family home and the girls are settling in and thriving. I feel safe and I’m going to look for a job to fit around the girls_ .’ – Zarach mum
4
## Zarach
## Trustees' report (continued) for the year ended 31 July 2021
## **Achievements and performance (continued)**
“ _Zarach has provided us as a school with a way of breaking down these barriers to learning. Not only do a number of children in our school now sleep on brand new beds with beautiful new bedding, but they also have a space in their homes which they can call their own. This has not only a positive impact on their physical health but their emotional wellbeing too. Parents who are under enormous pressure financially have a burden eased, which in turn contributes to happier family relationships…Speaking to children who come running across the playground in the morning to tell us excitedly about their brand-new beds, bedding and pyjamas, demonstrates the positive impact Zarach is having on so many families in our community. They provide immediate solutions to the issues which are preventing children making progress and reaching their full potential. Without Zarach, schools like ours would struggle to help families find solutions for these issues. The school and our families are extremely grateful for the support they continue to provide._ ” – Local Teacher
## **Financial review**
The net income for the year was £192,506, including net income of £169,442 on unrestricted funds and net income of £23,064 on restricted funds.
## **Reserves policy**
The charity's free reserves, excluding fixed assets, at the year end were £201,140.
In the trustees’ view, the reserves should provide the charity with adequate financial stability and the means for it to meet its charitable objectives for the foreseeable future. The trustees propose to maintain the charity’s reserves at a level which is at least equivalent to 4 months operational expenditure and have done so having regards to its manner of operation of likely funding streams. The trustees review the amount of reserves that are required to ensure that they are adequate to fulfil the charity’s continuing obligations on a quarterly basis.
Surplus reserves accrued due to a lack of anticipated storage costs. We were granted temporary use of a warehouse free of charge by a local business that was forced to downsize its operations. Any further reserves will be used to support the charity's growth in line with current projections; including stock, salaries, assets and storage space.
Signed on behalf of the board of trustees on 03/05/2022
Darren Stubbs (Trustee)
5
## Zarach
## Independent examiner's report to the trustees of Zarach
I report to the charity trustees on my examination of the accounts of the CIO for the year ended 31 July 2021, which are set out on pages 7 to 13.
## **Responsibilities and basis of report**
As the charity trustees of the CIO you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 ('the Act').
I report in respect of my examination of the CIO's accounts as carried out under section 145 of the 2011 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.
## **Independent examiner's statement**
Since the CIO'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 material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
- 1 accounting records were not kept in respect of the charity as required by section 130 of the Charities Act; or
- 2 the accounts do not accord with those records; or
- 3 the accounts 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.
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.
E J Beverley FCCA
09/05/2022
## **West Yorkshire Community Accountancy Service CIO**
Stringer House 34 Lupton Street Leeds LS10 2QW
6
## Zarach
## Statement of Financial Activities
## (including summary income and expenditure account) for the year ended 31 July 2021
|Notes
2021
Unrestricted
funds
£
**Income from:**
Grants
(2)
6,355
Donations
294,044
Fundraising
-
Sales
316
Miscellaneous income
11
**Total income**
300,726
**Expenditure on:**
Salaries and NIC
(3)
20,188
Pensions
(3)
326
Freelance delivery driver
6,008
Fuel, travel and van hire
4,923
Administration fees
762
Beds
64,987
Bedding, hygiene and pyjamas
881
Food and home supplies
7,179
Vouchers and other project costs
30
Storage
1,298
Subscriptions
933
Development and funding administration
5,280
Marketing
3,038
Support service
-
Events and activities
1,075
Insurance
1,635
Independent examination
1,200
Other professional fees
142
JG processing fees
754
Other payments
67
Minor equipment
653
Fundraising costs
2,083
School uniforms
-
Training
159
Volunteer expenses
15
Depreciation
7,668
**Total expenditure**
131,284
**Net income / (expenditure)**
169,442
**Fund balances brought forward**
55,106
**Fund balances carried forward**
(4)
224,548|2021
Restricted
funds
£
139,541
32,984
-
-
-
172,525
40,345
539
15,857
550
-
36,315
40
40,060
-
2,974
-
10,015
117
-
361
-
-
12
-
-
230
-
2,046
-
-
-
149,461
23,064
24,733
47,797|2021
Total
funds
£
145,896
327,028
-
316
11
473,251
60,533
865
21,865
5,473
762
101,302
921
47,239
30
4,272
933
15,295
3,155
-
1,436
1,635
1,200
154
754
67
883
2,083
2,046
159
15
7,668
280,745
192,506
79,839
272,345|2020
Total
funds
Restated
£
65,738
88,830
200
-
-
154,768
30,025
562
10,875
170
1,508
28,219
8,063
12,948
2,617
1,341
241
7,161
4,974
1,414
166
-
600
-
1,004
21
-
-
-
-
-
-
111,909
42,859
36,980
79,839|
|---|---|---|---|
All incoming resources and resources expended derive from continuing activities.
7
## Zarach
## Balance sheet
|as at 31 July 2021
2021
Unrestricted
£
**Fixed assets**
Tangible assets
(5)
23,408
**Total fixed assets**
23,408
**Current assets**
Debtors
-
Cash at bank and in hand
(6)
203,330
**Total current assets**
203,330
**Current liabilities:**
**amounts falling due within one year**
Creditors and accruals
(7)
2,190
**Total current liabilities**
2,190
**Net current assets / (liabilities)**
201,140
**Total assets less current liabilities**
224,548
**Net assets**
224,548
**Funds**
Unrestricted funds
Unrestricted funds
222,741
Designated funds
(4b)
1,807
Total unrestricted funds
224,548
Restricted funds
(4a)
-
**Total funds**
224,548|2021
Restricted
£
-
-
-
47,797
47,797
-
-
47,797
47,797
47,797
-
-
-
47,797
47,797|2021
Total
£
23,408
23,408
-
251,127
251,127
2,190
2,190
248,937
272,345
272,345
222,741
1,807
224,548
47,797
272,345|2020
Total
Restated
£
-
-
760
79,679
80,439
600
600
79,839
79,839
79,839
55,106
-
55,106
24,733
79,839|
|---|---|---|---|
The financial statements were approved by the board of trustees on 03/05/2022
Darren Stubbs (Trustee)
8
## Zarach
## Notes to the accounts
## for the year ended 31 July 2021
## **1 Accounting policies**
## **Basis of accounting**
These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The 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) (effective 1 January 2019) and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
As turnover is over £250,000 the accounts can no longer be prepared on a receipts and payments basis but must now be prepared on an accruals basis. The comparative figures for the previous year have been restated on an accruals basis, this amends the funds carried forward at 31 July 2020 from £79,679 to £79,839 and recognises debtors of £760 and accruals of £600 at 31 July 2020.
## **Going concern**
The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.
## **Incoming resources**
All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.
## **Grants and donations**
Grants and donations are only included in the SOFA when the charity has unconditional entitlement to the resources.
Where grants are related to performance and specific deliverables, they are accounted for as the charity earns the right to consideration by its performance.
## **Expenditure and liabilities**
Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.
## **Taxation**
As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.
## **Tangible fixed assets**
Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt. Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows: Office equipment: over 5 years Motor vehicles: over 4 years
## **Pensions**
The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable.
9
## Zarach
## Notes to the accounts continued for the year ended 31 July 2021
## **1 Accounting policies (continued)**
## **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.
Further explanation of the nature and purpose of each fund is included in the notes to the accounts.
|**2 Grants**
Longleigh Foundation
The National Lottery Community Fund (NLCF)
Charities Aid Foundation (CAF) Resilience Fund
Penny Appeal
Stonebridge Homes
Charities Trust
The DWF Charitable Foundation
Sir George Martin Trust
Direct Line Group - Community Fund (Pudsey)
West Yorkshire Police Safer Communities
The Yorkshire Charity
The Rasche Family Charity Fund
The Liz & Terry Bramall Foundation
Yorkshire Young Achievers Foundation
Jimbo's Fund
Scurrah Wainwright
West Riding Masons
Mazars
Pudsey Computers
Leeds Building Society
Other small grants
**3 Staff costs and numbers**
Gross salaries
Social security costs
Employment allowance
Pensions|2021
Unrestricted
funds
£
-
-
-
-
-
3,355
-
-
2,000
-
-
1,000
-
-
-
-
-
-
-
-
-
6,355|2021
Restricted
funds
£
43,205
38,670
28,716
10,000
-
-
2,500
2,000
-
6,000
1,500
-
5,000
1,950
-
-
-
-
-
-
-
139,541|2021
Total
funds
£
43,205
38,670
28,716
10,000
-
3,355
2,500
2,000
2,000
6,000
1,500
1,000
5,000
1,950
-
-
-
-
-
-
-
145,896
2021
£
60,487
3,680
(3,680)
911
61,398|2020
Total
funds
£
42,358
-
-
-
2,400
-
-
-
-
-
-
-
-
5,000
3,000
3,000
2,880
1,000
1,700
900
3,500
65,738
2020
£
29,463
1,748
(1,748)
562
30,025|
|---|---|---|---|---|
The average number of employees during the year was 3.8, being an average of 2.4 full time equivalent (2020: 2, 1.5 FTE). There were no employees with emoluments above £60,000.
|**Defined contribution pension scheme**|2021|2020|
|---|---|---|
||£|£|
|Costs of the scheme to the charity for the year|911|562|
10
## Zarach
## Notes to the accounts continued for the year ended 31 July 2021
|**Restricted funds**
Longleigh Foundation
Stonebridge Homes
Every Head a Bed
NLCF Covid response
CAF
Carpets
Epilepsy pillow fund
Laptop fund
Sir George Martin Trust
Project Vantry|Balance b/f
£
23,718
1,015
-
-
-
-
-
-
-
-
24,733|Incoming
£
43,205
9,100
20,150
38,670
28,716
22,744
40
400
2,000
7,500
172,525|Outgoing
£
46,290
10,115
11,246
38,670
28,716
4,484
40
400
2,000
7,500
149,461|Transfers
£
-
-
-
-
-
-
-
-
-
-
-|Balance c/f
£
20,633
-
8,904
-
-
18,260
-
-
-
-
47,797|
|---|---|---|---|---|---|
## **4a Restricted funds**
## **Purpose of restriction**
## **Fund name**
Longleigh Foundation
Stonebridge Homes Every Head a Bed
Towards costs of the Project Co-ordinator, freelance delivery driver, development support and storage.
For "Every Head a Bed" provision. Towards costs of purchasing beds.
Funded by the Penny Appeal, WYP Safer Communities, the Yorkshire Young Achievers Foundation and the Yorkshire Charity, plus donations.
NLCF Covid response CAF Carpets Epilepsy pillow fund Laptop fund Sir George Martin Trust Project Vantry
For Emergency Covid response provision. For The GrEAT Outdoors project.
Towards costs of purchasing carpets. For the cost of an epilepsy pillow. For the cost of a laptop.
For the Dewsbury hub.
For provision of food and home supplies
Funded by The DWF Charitable Foundation and The Liz & Terry Bramall Foundation
## **4b Designated funds**
Romford
|Balance b/f
£
-
-|Incoming
£
2,500
2,500|Outgoing
£
693
693|Transfers
£
-
-|Balance c/f
£
1,807
1,807|
|---|---|---|---|---|
**Fund name** Romford
## **Purpose of restriction**
Romford Hub is a pilot project designed to inform Hub Development and sustainable national growth of _Every Head a Bed_ through strategic local partnerships.
11
## Zarach
## Notes to the accounts continued
## for the year ended 31 July 2021
|**5 **
**6 **
**7 **|**Tangible assets**
**Cost**
At 1 August 2020
Additions
At 31 July 2021
**Depreciation**
At 1 August 2020
Charge for year
At 31 July 2021
**Net book value**
At 31 July 2021
At 31 July 2020
**Cash at bank and in hand**
Cash at bank
Cash in hand
**Creditors and accruals**
Creditors
Accruals|£
-
2,007
2,007
-
401
401
1,606
-
Office
equipment|£
-
29,069
29,069
-
7,267
7,267
21,802
-
2021
£
251,123
4
251,127
2021
£
990
1,200
2,190
Motor
vehicles|Total
£
-
31,076
31,076
-
7,668
7,668
23,408
-
2020
£
79,540
139
79,679
2020
£
-
600
600|
|---|---|---|---|---|
## **8 Related party transactions**
## **Trustee expenses**
No trustee received any expenses during this year or the previous year.
## **Trustee remuneration and benefits**
No trustee received any remuneration or benefit during this or the previous year.
## **Other related party transactions**
**Other transactions with trustees or related parties**
|**Other transactions with trustees or related parties**
Mark Cohen
Father of Rebekah
Wilson (Chair)
Freelance delivery driver
**Name of trustee**
**or related party**
**Relationship to**
**charity**
**Description of transaction**|2021
£
20,371
20,371|2020
£
10,875
10,875|
|---|---|---|
12
## Zarach
## Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 July 2021
|2021
2020
Unrestricted Unrestricted
funds
funds
£
£
**Income**
Grants
6,355
3,500
Donations
294,044
88,830
Fundraising
-
200
Sales
316
-
Miscellaneous income
11
-
**Total income**
300,726
92,530
**Expenditure**
Salaries and NIC
20,188
-
Pensions
326
-
Freelance delivery driver
6,008
-
Fuel, travel and van hire
4,923
170
Administration fees
762
1,308
Beds
64,987
10,156
Bedding, hygiene and pyjamas
881
7,044
Food and home supplies
7,179
11,973
Vouchers and other project costs
30
2,592
Storage
1,298
1,341
Subscriptions
933
241
Development /funding administration
5,280
-
Marketing
3,038
4,974
Support service
-
1,414
Events and activities
1,075
166
Insurance
1,635
-
Independent examination
1,200
600
Other professional fees
142
-
JG processing fees
754
1,004
Other payments
67
21
Minor equipment
653
-
Fundraising costs
2,083
-
School uniforms
-
-
Training
159
-
Volunteer expenses
15
-
Depreciation
7,668
-
**Total expenditure**
131,284
43,004
**Net income / (expenditure)**
169,442
49,526
**Fund balances brought forward**
55,106
5,580
**Fund balances carried forward**
224,548
55,106|2021
Restricted
funds
£
139,541
32,984
-
-
-
172,525
40,345
539
15,857
550
-
36,315
40
40,060
-
2,974
-
10,015
117
-
361
-
-
12
-
-
230
-
2,046
-
-
-
149,461
23,064
24,733
47,797|2020
Restricted
funds
£
62,238
-
-
-
-
62,238
30,025
562
10,875
-
200
18,063
1,019
975
25
-
-
7,161
-
-
-
-
-
-
-
-
-
-
-
-
-
-
68,905
(6,667)
31,400
24,733|2021
Total
funds
£
145,896
327,028
-
316
11
473,251
60,533
865
21,865
5,473
762
101,302
921
47,239
30
4,272
933
15,295
3,155
-
1,436
1,635
1,200
154
754
67
883
2,083
2,046
159
15
7,668
280,745
192,506
79,839
272,345|2020
Total
funds
£
65,738
88,830
200
-
-
154,768
30,025
562
10,875
170
1,508
28,219
8,063
12,948
2,617
1,341
241
7,161
4,974
1,414
166
-
600
-
1,004
21
-
-
-
-
-
-
111,909
42,859
36,980
79,839|
|---|---|---|---|---|
13