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2022-07-31-accounts

REGISTERED CHARITY NUMBER: 1179539

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST JULY 2022

FOR

ZARACH

Thomas Coombs Limited Statutory Auditor Chartered Accountants 3365 The Pentagon Century Way Thorpe Park Leeds West Yorkshire LS15 8ZB

ZARACH

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2022

Page
Reference and Administrative Details 1
Report of the Trustees 2 to 5
Report of the Independent Auditors 6 to 8
Statement of Financial Activities 9
Balance Sheet 10
Cash Flow Statement 11
Notes to the Cash Flow Statement 12
Notes to the Financial Statements 13 to 22
Detailed Statement of Financial Activities 23 to 24

ZARACH

REFERENCE AND ADMINISTRATIVE DETAILS FOR THE YEAR ENDED 31ST JULY 2022

TRUSTEES D Stubbs R Brookes R Wilson G Green S Hartley (resigned 26/1/23) PRINCIPAL ADDRESS 1 Leicester Square Crossgates Leeds LS15 8FW REGISTERED CHARITY NUMBER 1179539 AUDITORS Thomas Coombs Limited Statutory Auditor Chartered Accountants 3365 The Pentagon Century Way Thorpe Park Leeds West Yorkshire LS15 8ZB

Page 1

ZARACH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2022

The trustees present their report with the financial statements of the charity for the year ended 31st July 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

Objectives and aims

The relief of financial hardship among people living or working in England 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.

Significant 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.

Public benefit

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.

Volunteers

This year we celebrate 63 Active Volunteers that have completed 215 Volunteer Opportunities including driving vans, delivering beds, preparing food boxes and packing bed bundles.

ACHIEVEMENTS AND PERFORMANCE

Every Head a Bed

Zarach believes that well-rested and well-fed children are increasingly ready to learn. Engaging in education gives children the tools they need to break the cycle of poverty, help their families out of crisis and improve the breadth of opportunities available to their future selves.

Professional Referral

We receive referrals through our unique network of schools and partner organisations.

A short referral form is sent via email that includes permission from the parent/guardian.

Home Delivery

Within 7 days, we contact the family and prepare a Bed Bundle; which is delivered by our experienced team.

A Zarach Bed Bundle includes a brand-new Bed, Mattress, Duvet, Pillow, Bed Sheets, Pyjamas and Hygiene Kit. We also work with local partners to include Food Parcels and, if needed, a School Uniform.

Personal Support

Once contact is made with a family in crisis, our support team assesses the best ways to support them further. As a friendly-face, we can mediate between families and other support services, as well as making referrals.

In May 2022, just 12 months after the milestone of our 1,000th Bed Bundle, we delivered Bed Bundle 2,000! In the end, we delivered more beds this year then in the previous 4-years combined. 619 Referrals led to 574 Deliveries of providing 1,162 Bed Bundles to children that would otherwise go without. That’s an average of 97 Bed Bundles each month.

Page 2

ZARACH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2022

‘He is very much enjoying having his own bed.

‘ I want to just say thank you for the bed, the bedding and everything we got. We appreciate it so much and it has helped us out in a big way.’

‘Mum was very grateful for your generosity. It has taken a big weight off her mind - both financially and knowing that the children have a safe, comfortable place to sleep.’

Hub Development

Our 2 pilot hubs in Dewsbury and Romford grew well throughout the year resulting in an additional 130 Bed Bundles delivered outside of Leeds. We were able to capture our experiences and learning in the development of a new model for geographical growth led by our Hubs and Projects Coordinator.

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. This additional support is focussed on 4 specific outcomes:

Every House a Home

By providing changes to their living environment, and showing them that someone cares, Zarach Families are in a better place to change their own lives.

‘By providing carpets for this house, all professionals involved could see a huge transformation with the family dynamics in that it created such a positive home environment. It not only enabled the children to take more pride of their belongings but also their bedroom was more of a safe sanctuary for them and it allowed them a warm and welcoming space to complete homework and sleep at night.’

Page 3

ZARACH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2022

Families Eat Together

Emergency Food Parcels

Initially set up in response to the Covid-19 pandemic, our Emergency Food provision has continued to serve families across Leeds in moments of acute crisis.

● 478 Emergency Food Parcels delivered to 234 Households

Zarach Food Club

We launched our food pantry project alongside other organisations in a city-wide initiative to increase access to affordable food for those families who had previously found themselves dependent on emergency food parcels and food bank provision. A Food Box costs a family £3.50 but provides at least £20 worth of food.

● 1,440 Food Boxes provided for 182 Households (Members)

Case Study:

J attends Zarach FOOD Club on a regular basis and has established a great relationship with the volunteer team. She mentioned her youngest is due to start school in September and is very shy. The team invited her to Healthy Holidays and J attended all 3 sessions over summer with her daughter who had a great time socialising with some peers ahead of starting school.

Healthy Holidays

During the school holidays, pupils who receive free school meals are at risk of holiday hunger. Our Healthy Holidays initiative was created to ensure Zarach Families can have fun, stay active & get fed.

● 582 Meals Served to 142 Individual Children

Every Child a Chance

Zarach relies on professionals in schools to spot the signs of bed poverty and refer these children to us for support. At the end of the year, 53% of schools in Leeds were registered with us as referrers. However, we want our special partnerships with local schools to extend beyond referrals alone. We have already offered assemblies, fundraising opportunities, bed bundle item collections, raising awareness and campaigning.

National Sleep Strategy

In December 2021, our Chair and Founder launched a government petition to Create a ‘National Sleep Strategy’ to end child bed poverty. With national media attention, it soon reached 10,000 signatures and received a response from the government in March 2022. This led to the acknowledgement of the charity’s work by the Prime Minister and the usage of the term ‘bed poverty’ in an official capacity. We continue to pursue advocacy and policy change on a national scale.

‘The government recognises how vital sleep is to ensuring children and young people have the energy they need to perform at their best. We also recognise that the causes of poverty, including bed poverty, are various.’

FINANCIAL REVIEW

Financial position

Income for the year has increased by £964,984 to £1,438,224. This increase is due to the media attention generated during the year as noted above. The net income for the year was £871,524, including net income of £871,339 on unrestricted funds and net income of £185 on restricted funds.

Reserves policy

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. Based on the 2022 costs this would equate to £188,954.

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.

Page 4

ZARACH

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST JULY 2022

The charity's free reserves, excluding fixed assets, at the year end were £973,498. This exceeds the target level of reserves. Surplus reserves accrued due to national media exposure and the subsequent increases in donation income. We were granted lease of a warehouse free of charge by a development company.

Any further reserves will be used to support the charity's national expansion and geographical growth in line with current projections (including stock, salaries and storage space), as well as safeguarding the charity's activities against the impact of rising living costs.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is governed by a constitution as amended 4 August 2020.

Charity constitution

The charity is a Charitable Incorporated Organisation (CIO) formed on 14 August 2018.

Recruitment and appointment of new trustees

The trustees of the charity are appointed by the members at the AGM.

Key management remuneration

The trustees consider the Charity Manager as the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give of their time freely and no trustee remuneration was paid in the year.

Related party transactions

Details of trustee expenses and related party transactions are disclosed in note 8 and 16 to the accounts.

Ethical fundraising policy

At Zarach we aim to ensure that our supporters and the wider public are treated fairly and with respect. We continually monitor and review our practices to ensure we are adhering to the latest in fundraising regulations and practices.

Zarach voluntarily subscribes to the Fundraising Regulator and its Code of Fundraising Practice. All staff are aware of and adhere to Charity Commission guidelines and The Code of Fundraising Practice which sets out statutory obligations and best practice standards.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales, the Charities Act 2011, Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period. In preparing those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

Approved by order of the board of trustees on 20th April 2023 and signed on its behalf by:

R Wilson - Trustee

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF ZARACH

Opinion

We have audited the financial statements of Zarach (the 'charity') for the year ended 31st July 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF ZARACH

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charity and industries in which it operates, we identified the principal risks of non-compliance with laws and regulations related to health and safety, employment law and data protection. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, tax legislation and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

We assessed the susceptibility of the charity's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls, and ensuring these controls operated as intended. We determined the principal risks were related to posting journal entries to manipulate profits, and management bias in accounting estimates, especially accruals.

To address the risk of fraud through management bias and override of controls, we:

-Performed analytical procedures to identify any unusual or unexpected relationships.

-Identified and tested journal entries and identified any significant transactions that were unusual or outside the normal course of business.

-Investigated the rationale behind significant or unusual transactions.

-Challenged assumptions and judgements made by management in determining significant accounting estimates, in particular in relation to accruals, prepayments, accrued interest and depreciation.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed audit procedures which included, but were not limited to:

-Agreeing financial statements disclosures to underlying supporting documentation.

-Discussions with management of known or suspected instances of non-compliance with laws and regulations.

-Reading the minutes of meetings of those charged with governance.

-Reviewing correspondence with HMRC and the Charities Commission.

At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance of laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement relating to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Other matters which we are required to address

The corresponding figures for the year ending 31st July 2021 are unaudited.

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF ZARACH

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Thomas Coombs Limited Statutory Auditor Chartered Accountants 3365 The Pentagon Century Way Thorpe Park Leeds West Yorkshire LS15 8ZB

20th April 2023

Page 8

ZARACH

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Investment income
3
Total
EXPENDITURE ON
Raising funds
4
Charitable activities
5
Cost to provide charitable activities
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
1,242,934
161
1,243,095
20,504
351,252
371,756
871,339
224,548
1,095,887		 Restricted
funds
£
195,290
-
195,290
1,578
193,527
195,105
185
47,797
47,982		 2022
Total
funds
£
1,438,224
161
1,438,385
22,082
544,779
566,861
871,524
272,345
1,143,869		 2021
Total
funds
£
473,240
11
473,251
20,533
260,212
280,745
192,506
79,839
272,345

The notes form part of these financial statements

Page 9

ZARACH

BALANCE SHEET 31ST JULY 2022

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Stocks
12
Debtors
13
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
15
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
122,389
25,009
135,748
847,962
1,008,719
(35,221)
973,498
1,095,887
1,095,887		 Restricted
funds
£
-
-
(1,950)
49,932
47,982
-
47,982
47,982
47,982		 2022
Total
funds
£
122,389
25,009
133,798
897,894
1,056,701
(35,221)
1,021,480
1,143,869
1,143,869
1,095,887
47,982
1,143,869		 2021
Total
funds
£
23,408
-
-
251,127
251,127
(2,190)
248,937
272,345
272,345
224,548
47,797
272,345

The financial statements were approved by the Board of Trustees and authorised for issue on 20th April 2023 and were signed on its behalf by:

R Wilson - Trustee

The notes form part of these financial statements

Page 10

ZARACH

CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST JULY 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Interest received
Net cash used in investing activities
Change in cash and cash equivalents in the
reporting period
Cash and cash equivalents at the beginning of
the reporting period
Cash and cash equivalents at the end of the
reporting period		 2022
£
725,802
725,802
(79,196)
161
(79,035)
646,767
251,127
897,894		 2021
£
202,513
202,513
(31,076)
11
(31,065)
171,448
79,679
251,127

The notes form part of these financial statements

Page 11

ZARACH

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST JULY 2022

1.
RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES
Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
Interest received
Increase in stocks
(Increase)/decrease in debtors
Increase in creditors
Net cash provided by operations
2.
ANALYSIS OF CHANGES IN NET FUNDS
At 1/8/21
£
Net cash
Cash at bank and in hand
251,127
251,127
Total
251,127		 2022
£
871,524
10,540
(161)
(25,009)
(133,798)
2,706
725,802
Cash flow
£
646,767
646,767
646,767		 2021
£
192,506
7,668
(11)
-
760
1,590
202,513
At 31/7/22
£
897,894
897,894
897,894

The notes form part of these financial statements

Page 12

ZARACH

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST JULY 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charity, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Charities Act 2011. The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis as the trustees believe no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Income

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the charity and it is probable that they will be fulfilled.

Grants 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.

No amount is included in the financial statements for volunteer time in line with the SORP. Further detail is given in the Trustees' Annual Report.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that 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.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Plant and machinery 20% on cost value Fixtures and fittings 20% on cost value Motor vehicles 25% on cost value

Stocks

Stocks are stated at the lower of cost (or deemed cost of donated items) and estimated selling price less costs to complete and sell.

Taxation

The charity is exempt from tax on its charitable activities.

continued...

Page 13

ZARACH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2022

1. ACCOUNTING POLICIES - continued

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. 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 charity operates a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

2. DONATIONS AND LEGACIES

Donations
Gift aid
Grants
Sales
Event income
Donations in kind (items provided to beneficiaries and facilities used by
Charity)		 2022
£
1,023,238
134,557
177,255
1,680
7,263
94,231
1,438,224		 2021
£
327,028
-
145,896
316
-
-
473,240

continued...

Page 14

ZARACH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2022

2. DONATIONS AND LEGACIES - continued

Grants received, included in the above, are as follows:

C & E Sykes Food Club
Cash for Kids
Garfield Weston Foundation
Leeds City Council
Community Foundation for Leeds, Hesco Bastion Fund
Community Foundation for Leeds, Local Care Direct
National Lottery Community Fund
Mayor's Safer Communities Fund
Penny Appeal
WYNN Foundation
Voluntary Action - Widening Partners
The Repper Charitable Foundation
Miscallaneous
The Henhurst Charitable Trust
Co-operative
The Openwork Found
C F in Wales
Longleigh Foundation
Charities Aid Foundation (CAF) Resiience Fund
Sir George Martin Trust
The DWF Charitable Foundation
The Liz & Terry Bramall Foundation
Yorkshire Young Achievers Foundation
West Yorkshire Police Safer Communities
The Yorkshire Charity
Charities Trust
Direct Line Group - Community Fund (Pudsey)
The Rasche Family Charity Fund
3.
INVESTMENT INCOME
Interest received		 2022
£
5,000
2,100
30,000
54,900
19,535
9,946
10,000
5,896
10,000
6,660
9,500
500
10,000
600
368
250
2,000
-
-
-
-
-
-
-
-
-
-
-
177,255
2022
£
161		 2021
£
-
-
-
-
-
-
38,670
-
10,000
-
-
-
-
-
-
-
-
43,205
28,716
2,000
2,500
5,000
1,950
6,000
1,500
3,355
2,000
1,000
145,896
2021
£
11

continued...

Page 15

ZARACH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2022

4. RAISING FUNDS

Raising donations and legacies
Marketing
Development and funding admin
5.
CHARITABLE ACTIVITIES COSTS
Cost to provide charitable activities
6.
DIRECT COSTS OF CHARITABLE ACTIVITIES
Staff costs
Insurance
Beds
Bedding, hygiene and pyjamas
Food and home supplies
Closing stock
Freelance delivery driver
Fuel, travel and van hire
School uniforms
Events and activities
Rent
Administration fees
Subscriptions
Storage
Processing fees
Depreciation
7.
SUPPORT COSTS
Cost to provide charitable activities		 Direct
Costs (see
note 6)
£
539,544		 2022
2021
£
£
10,212
3,155
11,870
17,378
22,082
20,533
Support
costs (see
note 7)
Totals
£
£
5,235
544,779
2022
2021
£
£
115,415
62,892
3,050
1,635
181,046
101,302
51,854
921
96,268
47,269
(25,009)
-
19,200
20,371
13,042
5,473
7,696
2,046
251
1,436
47,700
-
5,225
762
879
933
6,510
4,272
5,877
754
10,540
7,668
539,544
257,734
Governance
costs
£
5,235

continued...

Page 16

ZARACH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2022

7. SUPPORT COSTS - continued

Support costs, included in the above, are as follows:

Support costs, included in the above, are as follows:
2022 2021
Cost to
provide
charitable Total
activities activities
£ £
Auditors' remuneration 4,000 -
Auditors' remuneration for non audit work 900 -
Professional fees 335 1,278
Previous independent examiners fee - 1,200
5,235 2,478

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st July 2022 nor for the year ended 31st July 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st July 2022 nor for the year ended 31st July 2021.

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2022
£
104,570
8,499
2,346
115,415		 2021
£
59,080
2,947
865
62,892

The charity considers its key management personnel (in addition to the Board of Trustees) to be the Charity Manager.The total remuneration (including employer pension contributions) of the key management personnel was £35,706.

The average monthly number of employees during the year was as follows:

2022 2021
Employees 6 4

No employees received emoluments in excess of £60,000.

The full time equivalent is 4 (2021: 2).

continued...

Page 17

ZARACH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2022

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
INCOME AND ENDOWMENTS FROM
Donations and legacies
Investment income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Cost to provide charitable activities
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
11.
TANGIBLE FIXED ASSETS
Plant and
machinery
£
COST
At 1st August 2021
-
Additions
5,859
At 31st July 2022
5,859
DEPRECIATION
At 1st August 2021
-
Charge for year
123
At 31st July 2022
123
NET BOOK VALUE
At 31st July 2022
5,736
At 31st July 2021
-		 Unrestricted
funds
£
300,715
11
300,726
10,401
120,883
131,284
169,442
55,106
224,548
Fixtures
and
fittings
£
2,007
3,624
5,631
401
605
1,006
4,625
1,606		 Restricted
funds
£
172,525
-
172,525
10,132
139,329
149,461
23,064
24,733
47,797
Motor
vehicles
£
29,069
100,038
129,107
7,267
9,812
17,079
112,028
21,802		 Total
funds
£
473,240
11
473,251
20,533
260,212
280,745
192,506
79,839
272,345
Totals
£
31,076
109,521
140,597
7,668
10,540
18,208
122,389
23,408		 Total
funds
£
473,240
11
473,251
20,533
260,212
280,745
192,506
79,839
272,345

All fixed assets are used for charitable activities.

continued...

Page 18

ZARACH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2022

12.
STOCKS
Stocks
13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Gift aid recoverable
Other debtors
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Capital creditor
Other creditors
Accruals and deferred income
15.
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Romford (DUR)
Restricted funds
C & E Sykes Food Club
Garfield Weston Foundation
HSF (DWP)
Jimbo's Fund
Leeds Community Foundation
National Lottery Community Fund
Safer Communities
School Uniforms
Food Club
LCCT Food Club
LCCT Food Pantry
Voluntary Action HSF
Longleigh Foundation
Carpets
TOTAL FUNDS		 2022
2021
£
£
25,009
-
2022
2021
£
£
133,548
-
250
-
133,798
-
2022
2021
£
£
30,321
-
-
900
4,900
1,290
35,221
2,190
Net
movement
At
At 1/8/21
in funds
31/7/22
£
£
£
222,741
870,135
1,092,876
1,807
1,204
3,011
224,548
871,339
1,095,887
-
789
789
-
4,054
4,054
-
10,735
10,735
-
13,023
13,023
-
3,315
3,315
-
4,155
4,155
-
5,896
5,896
8,904
(7,696)
1,208
-
786
786
-
310
310
-
3,000
3,000
-
(1,950)
(1,950)
20,633
(20,633)
-
18,260
(15,599)
2,661
47,797
185
47,982
272,345
871,524
1,143,869

continued...

Page 19

ZARACH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2022

15. MOVEMENT IN FUNDS - continued

Net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Romford (DUR)
Restricted funds
Backpack Project
C & E Sykes Food Club
Cash for Kids
Garfield Weston Foundation
HSF (DWP)
Jimbo's Fund
Leeds Community Foundation
National Lottery Community Fund
Safer Communities
School Uniforms
Voluntary Action - Widening Partners
Wynn Foundation
Bereaved Family
FABB
Laptop Fund
Food Club
LCCT Food Club
LCCT Food Pantry
Voluntary Action HSF
Longleigh Foundation
Carpets
TOTAL FUNDS		 Incoming
resources
£
1,237,198
5,897
1,243,095
25,000
5,000
2,100
30,000
29,900
19,535
9,945
10,000
5,896
10,000
9,499
3,660
500
9,432
1,140
786
1,001
3,000
-
-
18,896
195,290
1,438,385		 Resources
expended
£
(367,063)
(4,693)
(371,756)
(25,000)
(4,211)
(2,100)
(25,946)
(19,165)
(6,512)
(6,630)
(5,845)
-
(17,696)
(9,499)
(3,660)
(500)
(9,432)
(1,140)
-
(691)
-
(1,950)
(20,633)
(34,495)
(195,105)
(566,861)		 Movement
in funds
£
870,135
1,204
871,339
-
789
-
4,054
10,735
13,023
3,315
4,155
5,896
(7,696)
-
-
-
-
-
786
310
3,000
(1,950)
(20,633)
(15,599)
185
871,524

continued...

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ZARACH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2022

15. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Romford (DUR)
Restricted funds
School Uniforms
Longleigh Foundation
Stonebridge Homes
Carpets
TOTAL FUNDS
Comparative net movement in funds, included in the above are as follows:		 Net
movement
At 1/8/20
in funds
£
£
55,106
167,635
-
1,807
55,106
169,442
-
8,904
23,718
(3,085)
1,015
(1,015)
-
18,260
24,733
23,064
79,839
192,506
 At
31/7/21
£
222,741
1,807
224,548
8,904
20,633
-
18,260
47,797
272,345
Unrestricted funds
General fund
Romford (DUR)
Restricted funds
National Lottery Community Fund
School Uniforms
Laptop Fund
Longleigh Foundation
Stonebridge Homes
CAF
Carpets
Epilepsy Pillow Fund
Sir George Martin Trust
Project Vantry
TOTAL FUNDS		 Incoming
resources
£
298,226
2,500
300,726
38,670
20,150
400
43,205
9,100
28,716
22,744
40
2,000
7,500
172,525
473,251		 Resources
Movement
expended
in funds
£
£
(130,591)
167,635
(693)
1,807
(131,284)
169,442
(38,670)
-
(11,246)
8,904
(400)
-
(46,290)
(3,085)
(10,115)
(1,015)
(28,716)
-
(4,484)
18,260
(40)
-
(2,000)
-
(7,500)
-
(149,461)
23,064
(280,745)
192,506

continued...

Page 21

ZARACH

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST JULY 2022

15. MOVEMENT IN FUNDS - continued

-Healthy Holidays Plus pilot to distribute Backpacks of items to Backpack Project children C&E Sykes Food Club -Towards running a Food Pantry Cash For Kids -Towards purchasing Food for families Garfield Weston Foundation -Towards salary costs HSF (DWP) -DWP Household Support Funding towards essential items (beds) Jimbo's Fund -Towards Support Worker salaries Leeds Community Foundation -Local Care Direct Health & Wellbeing Fund towards salaries National Lottery Community Fund -Toward Volunteer Coordinator salaries and training Safer Communities -Towards Support Worker salaries School Uniforms -Towards purchasing School Uniform & Beds Voluntary Action - Widening Partners -Towards purchasing Food for families Wynn Foundation -Towards cost of purchasing beds. Bereaved Family -Towards cost of purchasing beds. FABB -Towards rent of Storage Containers and Beds Laptop Fund -For the cost of a laptop. Food Club -Towards running a Food Pantry LCCT Food Club -Towards running a Food Pantry LCCT Food Pantry -DWP Household Support Funding towards running a Food Pantry Voluntary Action HSF -DWP Household Support Funding towards essential items -Towards costs of the Project Co-ordinator, freelance delivery Longleigh Foundation driver, development support and storage. Carpets -Towards costs of purchasing carpets.

16. RELATED PARTY DISCLOSURES

Income and expenditure related to trustees or their close relatives is required to be disclosed as a related party transaction. Within the year, costs of £19,200 (2021: £20,371) were paid to Mark Cohen, father of trustee Rebakah Wilson, for work done as a freelance delivery driver delivering goods to beneficiaries.

Page 22

ZARACH

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Gift aid
Grants
Sales
Event income
Donations in kind (items provided to beneficiaries and
facilities used by Charity)
Investment income
Interest received
Total incoming resources
EXPENDITURE
Raising donations and legacies
Marketing
Development and funding admin
Charitable activities
Wages
Social security
Pensions
Insurance
Beds
Bedding, hygiene and pyjamas
Food and home supplies
Closing stock
Freelance delivery driver
Fuel, travel and van hire
School uniforms
Events and activities
Rent
Administration fees
Subscriptions
Storage
Processing fees
Depreciation
Support costs
Governance costs
Auditors' remuneration
Carried forward		 2022
£
1,023,238
134,557
177,255
1,680
7,263
94,231
1,438,224
161
1,438,385
10,212
11,870
22,082
104,570
8,499
2,346
3,050
181,046
51,854
96,268
(25,009)
19,200
13,042
7,696
251
47,700
5,225
879
6,510
5,877
10,540
539,544
4,000
4,000		 2021
£
327,028
-
145,896
316
-
-
473,240
11
473,251
3,155
17,378
20,533
59,080
2,947
865
1,635
101,302
921
47,269
-
20,371
5,473
2,046
1,436
-
762
933
4,272
754
7,668
257,734
-
-

This page does not form part of the statutory financial statements

Page 23

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DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST JULY 2022

Governance costs
Brought forward
Auditors' remuneration for non audit work
Professional fees
Previous independent examiners fee
Total resources expended
Net income		 2022
£
4,000
900
335
-
5,235
566,861
871,524		 2021
£
-
-
1,278
1,200
2,478
280,745
192,506

This page does not form part of the statutory financial statements

Page 24