# **24/25** ANNUAL REPORT
Registered Charity Number 1179539
## CONTENTS
|CONTENTS||
|---|---|
|**Reference & Administrative Details**|**3**|
|**Report Of The Trustees**|**5**|
|**Report Of The Independent Auditors**|**43**|
|**Statement Of Financial Activities**|**49**|
|**Balance Sheet**|**50**|
|**Cash Flow Statement**|**51**|
|**Notes To The Cash Flow Statement**|**52**|
|**Notes To The Financial Statements**|**53**|
## REFERENCE & ADMINISTRATIVE DETAILS **For year ending 31st March 2025**
|**Trustees:**|Rebekah Wilson|
|---|---|
||Gavin Green|
||Sarah Beevers|
||Martin Barkley|
||Rob Hall (Appointed 21.01.2025)|
|**Chief Executive:**|Andy Peers|
|**Principal Address:**|8, Whitehouse Street|
||Hunslet|
||Leeds|
||LS10 1AD|
|**Registered Charity Number:**|1179539|
|**Auditors:**|Thomas Coombs Limited|
||Statutory Auditor|
||Chartered Accountants|
||3365 The Pentagon, Century Way|
||Thorpe Park, Leeds|
||West Yorkshire, LS15 8ZB|
|**Bankers:**|Lloyds Bank plc|
||25 Gresham Street|
||London, EC2V 7HN|
||Virgin Money|
||177 Bothwell Street|
||Glasgow, G2 7ER|
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The Trustees of Zarach present their report with the financial statements of the charity for the year ended **31st March 2025.**
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 st January 2019).
When Zarach was first registered with the charity commission, our financial year ran from August to July, but in 2024 we aligned with the standard tax year (April– March). **This annual report covers the shorter, eight month transitional period of August 2024 to March 2025.**
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## **Case Study** ANDREA’S STORY
## Before
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After
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In August 2024, Andrea and her children were referred to Zarach by their school teacher. The previous year, the family **experienced the devastating loss** of their 10-year-old daughter, and sister following a long battle with leukemia.
This bereavement has understandably had a **lasting emotional impact on all family members** . Since the loss, Andrea has faced a number of ongoing medical issues, which have significantly affected her ability to manage daily tasks. As a result, **the children have taken on caring responsibilities at a young age and are recognised as Young Carers.**
The family has very limited support networks around them, both practically and emotionally, and they also face **considerable financial pressures.** These challenges mean that making improvements to the home environment has not been possible. One particularly sensitive issue has been the bedroom that once belonged to the daughter who passed away. **The room has remained largely untouched since her death,** as it has been difficult for the family to make changes.
Now, however, Andrea’s youngest child, Joseph, is using the room as his own bedroom. Andrea has acknowledged that it feels like the right **time to create a more positive and appropriate space for him** , while still respecting the memory of his sister. Redecorating the room and **providing new beds** to replace broken ones will not only give him a comfortable environment but **will also mark an important step forward for the whole family** as they continue to adjust and heal.
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## OBJECTIVES, MISSION, VALUES & PRINCIPLES
The objectives of the charity are 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.
The charity has a social mission statement, which is used internally and externally, as the way to represent the purpose and work of the charity, and which forms the basis upon which decisions and plans are made. **Our social mission is to end child bed poverty in England, giving children the opportunity to engage at school, and a chance to break the cycle of poverty.**
To support greater understanding of how we go about the pursuit of our social mission, the following position statements are used:
**Supporting:** we believe in the well evidenced importance of sleep on a child’s overall wellbeing and development. And we believe a child’s ability to fully engage in their education is a key factor in breaking the cycle of poverty. From our school referral network, we provide beds to children: a practical form of support that has both an immediate and a long-term, positive impact on a child and their family.
**Engaging:** providing a bed alone won’t end child bed poverty. We want to support children and families to rise up from surviving to thriving, so when they need beds again, they don’t need us. Our family engagement builds upon the provision of beds, providing direct support, engaging local partners and helping families move forward.
**Influencing:** we’re working for a world in which Zarach’s mission is not needed anymore because child bed poverty has been ended. Alongside our on the ground provision of beds and family engagement, we need to play our part in influencing national and local policies and practices with partners also working for an end of any form of child poverty. In the pursuit of our mission, our values exist to guide the way that we strive to be in all our interactions with each other (our staff and volunteers), children and families, our school referrers, all supporters and the broad range of partners and stakeholders we engage with.
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## OUR VALUES
Our values set out the way that we aspire to be in the pursuit of our mission and delivery of our work and to all internal and external stakeholders. Our values are embedded into the way we recruit to our team, the way we strive to engage with each other and in how we work with children & families, schools, agencies and all our supporters.
You can find our Values over the page.
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## **Aspirational**
- Believing in and wanting better for all.
- Having a positive energy that uplifts and enables others.
- Being solution focused to the challenges faced. Having high standards through a commitment to continual improvement and professionalism. Celebrating and being thankful for individual and collective achievements to learn as much from these as we do from our challenges.
## **Collaborative**
- Knowing that collaboration and partnerships can help the sum be greater than the parts. Working in partnership with those where we have shared missions, goals or aims.
- Recognising the importance of negotiation and acceptable compromise so we advance and progress together with others. Working with purpose towards positive and mutually beneficial outcomes.
## **Respectful**
- Demonstrating compassion, care and understanding towards others because respect is mutual. Being empathetic.
- Listening actively and without judgement to hear the views and opinions and others. Treating people fairly and considerately.
Upholding our agreed ways of working that keeps everyone safe, fulfils our responsibilities, maintains standards, and protects our reputation.
## **Open**
- Being proud of and championing our mission, values, and the services we provide so we are open with everyone about what we do and how we do it. Being accountable for the promises and commitments we make.
- Taking care with our candour and need to challenge so we can always be honest at the right time, in the right place and in the right way.
- We are honoured to be a charity and embrace the transparency that must come with this.
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Our **Guiding Principles** complete the framework that we use to develop our work and aid decision-making, and these are:
- Being mission-drive and values-led in all that we do.
- Being safe for all.
- Delivering services and activities that are impactful in their contribution to our social mission.
- Providing high-quality products and services so children and families know we value and respect them.
- Providing a consistent offer of service and support, no matter where it is delivered.
- Being a fit-for-purpose charity, and a good place to work and volunteer. Using the resources entrusted to us as diligently as possible.
## PUBLIC BENEFIT
Our charitable object states ‘the relief of financial hardship…by providing such persons directly…with goods/services which they could not otherwise afford through lack of means.’
The latest End Child Poverty Coalition figures show that child poverty in the UK rose in the past year, up to **4.5 million children,** which means that 31% of children are living with this daily challenge.
The 2023 report by Barnardo’s, No Crib for a Bed, defined bed poverty as, ‘where families, children or young people do not have the sleeping arrangements they need because they have insufficient financial resources’. Our provision of bed bundles to address child bed poverty, emergency and subsidised food provisions, and supporting families access free support in their communities, are the main ways that we deliver our public benefit.
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## ACTIVITIES, ACHIEVEMENTS & PERFORMANCE
The main activities undertaken in relation to the pursuit of our charitable objects, social mission, and vision, are:
The provision of beds to children in bed poverty.
Family engagement to the families of the children we provide beds to where they have unmet support needs, which includes emergency food provisions and signposting to local statutory and community services.
Leeds-based projects including subsidised food provision to families in immediate area in which we are located and Health Holiday activities.
Engagement with national and local influencing and awareness raising opportunities.
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## PROVISION OF BEDS TO CHILDREN IN CHILD BED POVERTY
In the 8 month period that makes up our 24/25 financial year, we delivered 3,310 bed bundles to 1,599 families, across 11 geographical areas as outlined in Table 1 below.
When we combine this eight-month reporting period with the first four months of our current financial year, we can look at the 12-month year-on-year comparison (August 2023-July 2024 and August 2024-July 2025) of our bed delivery activity, as follows:
August 2023 - July 2024 = 4,085 beds delivered. August 2024 - July 2025 = 4,814 beds delivered.
This represents a year-on-year increase of 18%, reflecting our continued ability to rise to the challenge of addressing child bed poverty and across a broader geographical footprint.
## **TABLE 1:**
In October 2024, we commenced operations in Wakefield with the support of initial funding of £44,000 from Prosper Wakefield and their partners, which enabled the delivery of 270 bed bundles between October 2024 and February 2025. We remain committed to supporting children in Wakefield, and continue to accept referrals and deliver beds in the city, outside of this initial funding agreement.
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Table 2 shows year on year deliveries since we were founded in 2018. Due to our shorter financial year, a drop shows on the chart for 24/25.
## **TABLE 2:**
**----- Start of picture text -----**
4112
3310
2633
1162
680
251 257
**----- End of picture text -----**
Since our incorporation as a charity, in August 2018, the total number of bed bundles we have delivered to the end of the year this report relates to is 12,405.
Alongside the number of beds delivered, we are also able to estimate the number of children this means we have supported to be lifted out of bed poverty. For example, if there are three children in a home, all sharing the same bed, we may only need to provide two new bed frames and mattresses to ensure that all children have their own bed. This means that the third child has also been lifted out of bed poverty and, as part of our charitable nature, we also provide the third child with the bundle items of new pillow, duvet, bed clothing and pyjamas. At the end of the year, we estimate that the total number of children lifted out of bed poverty is 16,746 in respect of the 12,405 beds delivered.
We are immensely proud of the hard work undertaken by ourselves, our partners, and supporters to reach children and families in need; but we remain deeply concerned that since 2017 the estimated number of children living in bed poverty in the UK has risen from 400,000 to around 900,000.
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We’re committed to bringing an end to child bed poverty, and indeed all forms of child poverty. This is why our vision is to reach more children, and be a voice and champion for those children, and their families, to positively influence policies and practices that can reduce and eradicate child bed poverty.
Table 1, above, reflects our continued work to reach more children in bed poverty in more areas, and as efficiently as possible, through both our newly defined Regional Warehouse model and local hub partnerships. During the year, we concluded our partnerships with Project Colt (Calderdale) in August 2024 and Chelwood Food Bank Plus (Stockport) in January 2025, bringing all deliveries to those areas in-house.
Our 2024 Christmas Appeal set a goal of delivering 1000 beds in time for Christmas, doubling our previous year’s target after such a warm response from the public in 2023. The appeal gave us further opportunity to increase awareness in our newest areas of operation, Stockton-on-Tees and Hartlepool in the Tees Valley, where we were excited to scale up our operations following the appointment of a Family Engagement Manager.
Throughout the year, we saw a continued shift from the previous 12 months, with 70% of beds being delivered outside of our founding city of Leeds, (60% in the 23/24 year) as shown in Table 3, below.
## **TABLE 3:**
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We continue to develop our network in the Tees Valley region, and at the time of writing this report, have added Middlesbrough to our areas of operation, in line with reaching areas of greatest need.
To support the Christmas Appeal, and help our supporter-base gain a deeper understanding of the families that we support, we published a short film, which shared the stories of Scott and his mum SJ, and Dorcas, a mum of three working hard to gain qualifications . The film can be seen here.
During the 4 weeks of December, we delivered 1077 beds bundles, generating close to £400,000 in one-off gifts, and gaining an additional 69 regular givers.
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The following is some of the key information we know about the children and families we support. The main activities undertaken in relation to the pursuit of our charitable objects, social mission, and vision, are:
Schools are asked to provide information to help us understand if there are any specific reasons that have led to making a referral at this time. The 5 main reasons for the referral being made at this time of crisis have remained the same as the previous year. From the responses received, the following are the main reasons:
- The mental health and emotional wellbeing of one, or more of the adults in the home.
- Debt concerns.
- Domestic abuse.
- Issues with benefits.
- No access to public funds.
## **TABLE 4:**
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Just over 50% of the families we support have three or more children, compared to the national average of 15% of families. This information helps us understand that we may encounter families in financial difficulties (for example, if they are impacted by the two-child limit on child benefits) and overcrowded homes. The information also helps us consider how many referrals we might be able to receive from schools to then deliver the number of beds we have the budget to provide.
It is from information, such as that above, that can help us focus on building relationships with statutory and community service providers that families might need the most.
## **TABLE 5:**
We know that around 40% of the first children in the families we support have an ethnicity other than White British. We also know that, after English, the top four most preferred languages are Romanian, Urdu, Arabic and Punjabi. Therefore, we have continued to engage with a translation company throughout the year to support both us and families with any language and communication barriers.
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## **TABLE 6:**
**----- Start of picture text -----**
White - English, Welsh,
Scottish or Northern Irish
Asian, or Asian
British - Pakistani
**----- End of picture text -----**
## **PRODUCT & SERVICE DELIVERY**
On 1st August 2024, we signed the lease for our current warehouse and office space on Whitehouse Street, Leeds. Throughout the year, in-house enhancements have transformed the site into a fit-for-purpose workspace with excellent meeting areas and a fit-for-purpose facility.
Our new premises, affectionately named ‘The Zed Shed’, provide us with security of location for the years ahead, as well as a vastly improved working environment for staff and volunteers.
As a charity, we don’t seek to be commercial in our work with the children and families we support. For example, we only deliver beds during the hours of 10am2pm, to support parents and carers being able to get their children to and from school and to avoid causing disruption by delivering beds at bedtime.
Our efforts to be as efficient as possible, are reflected in our behind-the-scenes decisions and development. We upgraded our fleet of vans from Medium Wheel Base to Long Wheel Base vans, to improve capacity. Combined with the increased availability of rolled and boxed mattresses and using framed beds rather than divans, we can now transport up to 28 beds per van load (up from 12). This improvement means we no longer need to rent warehouse space in the Tees Valley and can deliver directly to families further afield, from our West Yorkshire warehouse.
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In February 2025 we received our first container load of beds from the Far East, facilitated by our supplier, who assumed all risks, with payment being made upon receipt at our warehouse. Additionally, the supplier generously donates an extra 10% of stock above the amount we pay for. Purchasing this way enables us to secure significantly lower costs and maintain consistent supply, and compliments the range of other arrangements we have with UK manufacturers and suppliers, who have always been, and continue to be supportive of our mission in how they approach their dealings with us.
We have continued to keep the direct cost of supporting a family close to £150. It is through the receiving containers of stock from overseas and the strength of partnerships with UK manufacturers and suppliers, that we are proud of being able to maintain the average cost of each bed bundle at around the £150 mark that we aim to meet.
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## FAMILY ENGAGEMENT AWAY DAY
This year, a real highlight for the Family Engagement team was our Team Away Day, bringing together our dedicated staff and volunteers in one room. The time together provided a wonderful opportunity to connect in person, share insights, and celebrate the collective passion that drives our work. The day was focused on collaboration, creating a strong sense of team and ensuring everyone felt valued and heard, allowing for a productive and inspiring day.
As we work towards a volunteer-led model of service delivery, a key focus of the day was to actively engage our volunteers in shaping our volunteer process. We held feedback sessions specifically to discuss the recruitment and onboarding processes, seeking valuable input that will help us make improvements and streamline these systems for future volunteers.
Additionally, the team received important updates and took part in training sessions designed to enhance our skills and keep us aligned with our goals for the coming year. The insights gained from this day are already proving invaluable as we work to create a more efficient and welcoming experience for everyone who joins our team.
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## **FAMILY ENGAGEMENT**
Our Family Engagement support is the first contact many schools will have with us, via the process of registration and making referrals. Our team will contact families that have been referred to us and, in West Yorkshire and Tees Valley, we will conduct a visit to the family home. During the visit, we want to understand how we can best support the family in getting the most suitable sleeping arrangements for their children – this is our First Promise to families.
During the home visit, we ask families about other aspects of their lives that they may be struggling with. Where there is no existing support plan in place for the family (e.g. with social services or school), we agree to a small series of follow-on actions that can help the family take positive, and practical, steps forward. At all times, we encourage the family to progress and complete the actions themselves, with us supporting this where required.
During the home visit, we’re able to establish the number of children living in the home to compare with the school referral, as often there might be older or younger siblings not in attendance at the same school - this gives us a more accurate picture of the number of children experiencing bed poverty.
In the 24/25 financial year, the Family Engagement team conducted **731 home** visits, with **193 hours** of volunteer time given from 10 Family Engagement Volunteers. We're pleased with the refined recruitment and onboarding process implemented for Family Engagement volunteers, and how this has enabled such positive volunteering activity. We'll be continuing to build on this in the year ahead as we seek to increase the number of volunteers we have for this area of our activity.
## **NATIONAL DEVELOPMENT**
As we continue to partner with regional organisations to fulfill referrals in Liverpool, Stoke and Romford, and as they have become more established in those areas, bed delivery numbers continue to increase year on year.
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**595** beds were delivered by our Delivery Partners which equates to 18% of the total beds delivered this financial year.
- Liverpool = 236 beds
- Romford = 164
- Stoke = 195
## **TABLE 7:**
Number of beds delivered by delivery partners
Our work within the Tees Valley has shown that the systems, logistics, and resources we already have in place are flexible and robust enough to reach families well beyond our original base in West Yorkshire. This experience has demonstrated that, with careful planning, we are able to extend our delivery capacity without compromising on quality or overstretching our existing infrastructure. This opens up the potential for quite rapid, significant impact, enabling us to support many more children and families in need while remaining cost-efficient and sustainable in how we use our resources.
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## **OUR STAFF & VOLUNTEERS**
We don’t get to do our work without the dedication, experience and skills of our staff and volunteers.
Through the year we had 19 staff, with a total FTE of 15.84 following the separation of the Funding and Communications roles of full time and 0.8 FTE respectively, along with the Finance and Operations role being split in to two full-time roles, whilst combining the Family Engagement Manager role with the National Development Manager in to one full time role.
Behind the delivery of each bed is not just a team of dedicated staff but also a wonderful group of volunteers who support by fundraising vital funds, raising our profile in schools and the community, visiting family homes to assess their bed requirements, and finally - delivering the beds.
During the year, a total of **215 volunteers** supported our operation, giving **2,468 hours** of their time to further our mission. With **60 regular volunteers** and **155 corporate volunteers** fulfilling 8 different opportunities, **637 sessions** of volunteering were completed.
Whilst economic value is a very simplistic way of gauging volunteer impact, it gives an instant snapshot of what a crucial asset they are to Zarach. By multiplying the total hours for August '24 to March'25 with minimum wage and median wage, we can see that our volunteering activity could represent a cost saving as shown below.
- Minimum wage (£11.44 for 2024)- £28,239.52 Median wage (£18.64 for 2024)- £46,012.65
However, what this number doesn't reflect is the way volunteers uphold and champion Zarach's mission and values in their day-to-day lives. Several of our volunteers raise Zarach's profile every chance they get through connections developed as part of their employment and personal lives, and utilise their set of skills to find a way to support Zarach outside of their regular volunteer roles. As an example, one of our regular volunteers introduced Zarach to a mattress manufacturer who now regularly donate mattresses to support our mission of ending child bed poverty.
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Our corporate volunteers not only bring in vital funds to be able to continue delivering on our mission, but also donate their time by supporting us with a range of volunteering opportunities. Some employees who come as part of their organisation choosing Zarach as their charity partner, end up staying on and becoming regular volunteers. Our corporate volunteers contributed a total of **686 hours** between August ‘24- March ‘25.
Our Christmas Appeal of 2024 was a monumental success with regards to volunteering and could not have been possible if it wasn’t for the support of our dedicated volunteers who stepped up to the challenge and helped with making home visits, preparing bed bundles, and delivering the beds. Ultimately, the greatest measure of the difference volunteers make is the smiles, laughter and pure joy on the children and Zarach families' faces upon receipt of their bed and bed bundle.
**CASE STUDY** KATE SAUL Family Engagement Volunteer
Kate joined Zarach as a volunteer in 2024. A former school teacher, she was compelled to support the charity after seeing Founder, Bex, on BBC Breakfast News. Following her interview with the Family Engagement team, along with onboarding and training, Kate began meeting with families in their home, to assess their sleep needs and offer support through referrals and signposting, along with her ‘buddy’ X, a Family Engagement Officer from the Zarach team.
Kate generously volunteers approximately 4 hours each week to support the team, and the families referred to us, using her experience working in schools to build positive, trusting relationships with families who are vulnerable.
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I visit families referred by their children’s school, to assess their bed needs - usually between 2 and 4 homes in one morning each week.
After my visit, I send my notes back to the team; they arrange for brand new beds and bundle items to be delivered to the family, usually within a couple of weeks. I’m also able to support with signposting to other organisations who can help struggling families, from uniform exchange to help with debt concerns.
It’s difficult seeing families in such tough situations and often in inadequate housing, but I’ve met lovely people doing their absolute best in difficult circumstances. It’s a joy to tell them Zarach will provide new beds and bed bundles, knowing the children finally have the chance of a decent, comfortable night’s sleep. I really enjoy what I do.”
-Kate Saul - Family Engagement Volunteer
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## **VOLUNTEERING & GOVERNANCE**
Due to the pace of development at Zarach, the trustees meet every other month. Our voluntary team of trustees brings a wealth of knowledge, skills and experiences from across the third, public and private sectors. Within this, we are privileged that the team is also able to contribute from operational, leadership and executive level perspectives, supporting the fulfilment of their legal, strategic and guidance responsibilities.
Beyond the core duties of preparing for, attending and following up from board meetings, our trustees remain actively engaged with the services and development of Zarach. During this reporting period trustees have given their time, freely, to volunteering on bed deliveries; at Food Club; participating in team recruitment; attending development and safeguarding meetings; and in external-facing, ambassadorial, media and fundraising work.
The trustee team also fulfils their duty to meet with the Chief Executive, for accountability and two-way support and advisory purposes and conducting the Chief Executive’s annual review.
Refreshment of the trustee team has continued to take place during the reporting period. As a rapidly developing, maturing and expanding charity, the commitment to this refreshment is essential.
During this year, Rob Hall has been appointed as a trustee (21st January 2025) bringing a wealth of private sector financial experience to our board. Alongside this appointment, efforts continue to develop the diversity, skills and experience mix of the board team. The trustees continually consider the skills and experience mix on the board to support good governance of the charity and the pursuit of the agreed strategic direction. To this end, at the time of writing this report, an additional trustee has been appointed who brings considerable HR experience, particularly from within the education sector.
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## **SUPPORTER ENGAGEMENT: FUNDRAISING & COMMUNICATIONS**
In January 2025, the decision was made to separate the Funding and Communications role to allow both areas the time and dedication required to maximise each and every opportunity provided to us, whilst improving the capacity to work more strategically, seeking out opportunities that align with our mission.
We are fortunate to have continued to gain positive media coverage across television, radio, print, and social platforms at local, regional, and national levels, including an appearance on BBC Look North news programme to highlight our milestone 10,000th bed delivery.
One of our most significant press opportunities was a five minute feature on ITV Calendar News in January 2025. Having developed a working relationship with an ITV journalist who had previously covered our expansion in to Bradford the previous reporting year, we were asked to share the experiences our referred families faced. One mum, Destiny, was happy to share her experience (but didn’t want to show her face), needing bunk beds for her children but lacking the funds to buy them, even second-hand. After the feature aired, we attributed close to £5,000 in donations in the 24 hours that followed.
We also invest significant effort in social media activity and event attendance to raise awareness, build support, and engage diverse audiences.
One way to look at the engagement we’re building with an online audience is the follower count for the platforms we’re actively promoting and sharing with the public.
At the time of writing this report, we have:
- 6,400 followers on Instagram.
- 26,400 on Facebook.
- 2,300 on LinkedIn.
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Following a soft launch of our rebranded website in December 2024, in February 2025, we launched our completed website, sharing our story, the way we work, the opportunities to get involved, the geographic locations we operate within and numerous downloadable resources. Rebranding has been met with much positivity, across many stakeholders, but was never planned as a vanity project. Rather the purpose of having a new website was to deliver on our values of being aspirational, collaborative and open, providing an enhanced way for people to find out more about us.
Alongside the improved user experience, we have endeavoured to improve supporter connectivity, through thoughtful communication, building strong, long lasting relationships. We must never take for granted the humbling support that people give to us, and we are already seeing that increased engagement is welcomed and leads to repeated support.
In addition to the support we receive from the bed industry, we are privileged to receive support from a notable number of businesses that support us financially, with volunteering and in the provision of pro-bono services. This support is sometimes shown through us being a business’ nominated Charity of the Year. During the year we concluded some of these, usually, multi-year arrangements and welcomed being chosen by several new businesses from a range of industries too, including Bevan Britten, Gately’s, Yorkshire Housing, ENGIE and Alconex.
## Corporate Partner Case Study
This year we’ve had a fantastic corporate partnership with Yorkshire Housing. **Their understanding of the housing sector and the needs that our families face was a real driver towards their ambition to fundraise.** During this period, they raised funds hiking the 21-mile coastal walk from Scarborough to Whitby, running a ‘meet Santa’ Christmas event, one colleague even running a marathon, and another colleague selling collectible bears, as well as a quiz and raffle, **raising in excess of £32,000** and giving **23 hours of their time to volunteer** .
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As mentioned earlier in the report, our Christmas Appeal in 2024, to deliver 1000 beds to children referred to us in December was hugely successful, in part due to a matchfunding opportunity by Aviva which matched all individual donations up to £250, to a maximum of £50,000. It was a fantastic opportunity to encourage our audience to donate within a certain time-frame, knowing that their impact could be doubled.
## **OPERATIONS**
During the year our Finance and Operations functions were separated, again allowing for increased capacity in both areas. Following this separation, our Operations Manager was able to embed a comprehensive and documented process for managing all aspects of volunteering, from development to implementation. This included clear procedures for volunteer recruitment and onboarding, the development of policies and guidelines to ensure consistency and where possible, best practice. One achievement was the creation of standardised templates to support administration, and improved communication channels to enhance engagement and support for volunteers.
We continue to recognise the huge importance of our volunteers, developing and disseminating volunteer literature, such as opportunity sheets, encouraging those who might volunteer in multiple opportunities, defining the volunteer journey, from initial interest to advocate, and celebrating volunteer milestones.
A particular challenge in this area is the recruitment of volunteers in areas we’re operating in, but have little staff presence, such as Stockport and the Tees Valley.
At the time of writing this report, we have successfully recruited a Volunteer Support Officer to support the Head of People and Operations, with the aim to increase volunteer opportunities and build on the work already done to move to a volunteer-led model of service delivery.
In November 2024 we completed our first Staff Survey, in line with one of our guiding principles ‘Being a fit-for-purpose charity, and a good place to work and volunteer’. We were very pleased with the results which provided valuable insights into the experiences and perspectives of our team. The feedback highlighted a strong sense of commitment, collaboration, and pride in the work we do, while also identifying areas where we can continue to improve and grow.
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The positive outcomes, some shown below, were encouraging and affirmed that our efforts to build an open, supportive, and engaging workplace culture are making a meaningful impact. Following these results, we launched our ‘Staff Recognition Award’ in January 2025, giving all team members the opportunity to nominate a member of the team they feel deserves recognition for their contributions, each quarter.
**----- Start of picture text -----**
“Zarach is a wonderful
“I really feel valued”
place to work with the
mission at the core of all
“Staff are incredibly
supportive of one “Zarach is like an that we do”
another”
extended family”
“ I really value my job at
“I enjoy coming to work and
Zarach and how I am
feel supported in my role both
contributing to the mission as within my team and by NLT”
part of a wonderful team”
**----- End of picture text -----**
## **FINANCE**
Public trust in charities has remained stable for the last few years and Zarach will never be complacent about how important this is to maintain, both for us and across the wider charitable sector.
We know there is a careful balance to be struck between the amount of money spent on frontline service delivery and on other costs.
During the year, for every pound received, 83% was spent on direct service delivery costs and 17% on the range of supporting costs that support the frontline work, help raise funds and ensure we are fit-for-purpose. Due to the relatively young age of Zarach, the development requirements, and the desire to provide beds and support to more children in bed poverty, we are very happy with this split in cost allocations (when compared with suggested guidelines by the Charity Commission and independent evaluation parameters at 65%-85%).
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## STRUCTURE, GOVERNANCE & MANAGEMENT
## **GOVERNING DOCUMENT**
This charity is governed by a constitution, as last amended on 17th May 2022.
## **LEGAL STATEMENT**
The charity is a Charitable Incorporated Organisation (CIO), formed on 14th August 2018.
## **RECRUITMENT & APPOINTMENT OF NEW TRUSTEES**
The trustees of the charity are appointed through a recruitment process agreed by the incumbent trustees and subsequent vote of the trustees, who are also the members of the charity.
The current recruitment process takes place through identifying skill sets required on the board from across the volunteer group and professional networks. Initial meetings will take place with potential trustees, held by either/or the Chair or the Chief Executive.
Prospective trustees are then invited to attend and observe two board meetings. Observers will be asked to contribute at these meetings so trustees can understand the nature of contributions that can be offered and an alignment with the values of the charity. It is following the attendance at the second meeting that a vote of existing trustees is held to decide whether, or not, to appoint.
## **KEY MANAGEMENT REMUNERATION**
The trustees consider the Chief Executive as the key management personnel of the charity, responsible for leading, directing and controlling the charity, and running and operating the charity on a day-to-day basis.
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Key delegated duties include (not exhaustive):
- Ensuring all support provided to children and families is in line with agreed safeguarding policies and procedures and that clear escalation practices are in place to keep children, families, staff and volunteers safe.
- Implementation of agreed plans that make progress towards the agreed social mission and vision. Such plans cover service delivery, HR, operations, communications, fundraising and finance.
- Leadership and management of the team so the culture of the charity is in line with agreed values.
- Setting and managing the charity’s resources in line with agreed financial budgets and Financial Standing Orders.
All trustees give their time on a voluntary basis and no trustee remuneration was paid in the year.
## RELATED PARTY TRANSACTION
Details of trustee’s expenses and related party transactions are disclosed in notes 7 and 17 to the accounts.
## ETHICAL FUNDRAISING
Zarach aims to ensure that our supporters and the wider public are treated fairly and in line with our values.
We continually monitor and review our practices to ensure we are adhering to the latest in fundraising regulations and practices. We voluntarily subscribe to the Fundraising Regulator and its Code of Fundraising Practice, and we are also a member of the Chartered Institute of Fundraising (CIOF). All staff and volunteers engaging in fundraising activities are aware of and adhere to Charity Commission guidelines in the Code of Fundraising Practice, which sets out statutory obligations and best practice standards.
During the year we received no complaints in relation to our fundraising practices.
During the year we did not use any third-party agencies for our fundraising activities.
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## RISK
Zarach has a Risk Register that is reviewed at each trustee meeting, currently held on a bi-monthly basis. Each risk area is considered on ‘likelihood’ and ‘impact’ and given a score and a Red, Amber, Green (RAG) rating. Changes in scores or ratings are brought to trustees attention in a covering paper that accompanies the updated register. Mitigating actions are identified, with a lead role to oversee those actions.
The following table represents the key risk areas that the trustees consider, with a summary of the mitigating actions.
Trustees to receive
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zzzarach
The Children•s Bed Charity
Securing the financial and in-kind
resources required to deliver our plans.
Invest into the fundraising team skills
and capacity to support the
achievement of agreed
spend-to-income ratios.
Deliver fundraising plans, ocross
each area of fundraising and
resources, to maximise opportunities.
Invest in the development and
ongoing implementotion of systems
that efficiently and effectively help
manage the supporter journey.
Continue to develop relationships
with the bed industry to increase the
amount of donated products
received and establishing best-value
arrangements for paid products.
Review financial information at
monthly leadership team meetings
and board meetings, implementing
re
uired octions.
Deliver the agreed schedule of board
meetings, maintaining good18V8ls ol
attendance.
Review, on o bi-onnual bosis, and
Implement the boord development
plan, which is centred on the
Governance Code.
Follow the agreed procedure for the
recruitment. appointment and
induction of new trustees.
Good governance.
33
zzzarach
The Children•s Bed Charity
Equality, Diversity and Inclusion.
Conduct recruitment and selection
activities based on our values and
good EDI practices.
Implement findings from the annuol
staff ond volunteer engagement
surveys.
Provide an annual EDI progress
reporL as related to beneficiaries and
our team, including ony
recommendations where
improvements are required.
Run recruitment ond selection
activities to assess competency and
volues alignment and commitment
to our mission.
Ensure each staff member has o
comprehensive induction plan.
Conduct annual staff and volunteer
engagement surveys,
communicating outcomes to board
and team, and implementing the
resulting action plan.
Review staff terms and conditions,
and our range of staff and volunteer
Dolicies and Drocedures. to SUDDOrt
Development ond retention ot a highly
capable, mission-driven and values-led
staff and volunteer team.
us in being a place of choice at which
to work and volunteer for.
Support the professional
development of the staff team that
help them succeed in their roles and
be ready to consider progression
opportunities.
34
zzzarach
The Children•s Bed Charity
Supporting our continual learning and
improvement and the impact our work
hos.
Regularly review our model of service
delivery to ensure it remains wholly
focused on the pursuit of our mission.
Implement a programme of
stokeholder engagement that
enables us to understand the
diff8r8nce our work makes and the
continual improvements we can
make.
Continually implement practices that
maintoin the accuracy and integrity
of the information in our core
databas8, from which w8 can
monitor ond evoluote our work.
Produce an annual learning and
impact report, olong with
recommendations for continual
improvement.
Agree a budget that provides
appropriate contingencies for
operational flexibility within the
context of organisational
development and growth.
Leodership team to review income
and expenditure on a monthly basis.
Trustees to review income and
expenditure and adherence to the
Reserves Policy at each board
meeting.
Reforecast the budget on a
four-monthly basis.
Ensure agreed Financial Stonding
Orders are im
lemented.
Manoging finances in line with agreed
budgets.
35
zzzarach
The Children•s Bed Charity
Use the board decision-making
process for the approval of
outside-of-budget costs that support
the achievement of our
lans.
Implement the agreed package of IT
systems and processes support.
Cyber-attack monitoring software
updated on a scheduled basis, with
notifications of any'failing. oreas
received and actioned.
Ongoing IT and cyber-attack training
to be completed by all required stall
and volunteers.
Implement our Doto Protection policy
and procedures across all areas of
service delivery, communications
ando
erations.
Implement our volunteer recruitment,
selection and onboarding plans and
procedures.
Implement octions from the
volunteer engagement survey that
su
ort volunteer retention.
Cyber-attacks ond breach of dota
integrity.
Recruiting and retaining the levels of
volunteers required across our various
services and core functions.
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## FINANCIAL REVIEW
## DURING THE YEAR AUGUST 24' - MARCH 25'
Total income for the 8 month period was £1,165,729 (2023-24: £1,408,914). Total expenditure for the 8 month period was £1,251,858 (2023-24: £1,679,403).
The deficit position for the year reflects the decision of the trustees to draw down from the high level of unrestricted funds that were being held, in excess of our Reserves Policy, to support an increase in our bed delivery activity and development of our infrastructure.
As with our bed delivery activity, we have also been able to combine our income from this eight-month reporting period with the management accounts from the first four months of our current financial year to provide a 12-month year-on-year comparison (August 2023-July 2024 and August 2024July 2025), as follows:
**August 2023 - July 2024 = £1,408,914 August 2024 - July 2025 = £1,772,527**
This represents **a 26% year-on-year increase in our income.**
We are a fundraising charity (rather than being a commissioned or trading charity) and the core strategic principle that underpins our sustainability as we pursue our social mission, is that of building a diverse range of income and resources. Our income mix is now being generated through the commitment to and investment in the diligent, day-to-day fundraising and supporter engagement practices that charities need to demonstrate, if their fundraised income is to have the best chance of being sustainable. The pie chart overleaf illustrates that diversity during the year.
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## **TABLE 8:**
## Income Sources 2024-25
Whilst utilising a portion of our reserves during the year, we are mindful of the mix in our spending between direct service delivery costs and the supporting costs. During the year, we achieved a mix of 83% of expenditure being on direct service delivery costs and 17% on supporting costs, a better ratio than the previous year. The following pie chart illustrates the breakdown of this.
## **TABLE 9:**
Expenditure 2024-25
**----- Start of picture text -----**
Warehousing, Logistics,
Bed Bundles & Service Delivery
**----- End of picture text -----**
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## **RESERVES POLICY**
In the trustees’ view, the reserves should provide the charity with adequate financial resources and 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 equivalent to between four and six6 months operational expenditure, excluding gifts-in-kind, and have done so having regard to its manner of operation of likely funding streams. Based on 2024-25 costs, this would equate to a reserves level between £640,000 and £960,000. The trustees review the level of reserves on a bi-monthly basis to ensure that they are adequate to fulfil the charity’s continuing obligations.
The charity’s free reserves, excluding fixed assets, at the year-end were £864,699.
The trustees have approved a budget for the 2025-2026, with total spend, excluding gifts-in-kind, of £1.78m. This will mean our level of free reserves, to meet our current policy, will need to be between £594,000 and £891,000.
The reserves policy will continue to be reviewed on an annual basis.
## PLANS FOR THE YEAR AHEAD
In the year ahead, our main priorities are:
- Increasing the capacity, skills and experiences, and associated systems and tools, in our fundraising team to secure the levels of income and resources required to help us pursue our mission and vision.
- The continued growth of our operational areas to include Middlesbrough and South Yorkshire.
- Continue to develop and improve the engagement we have with our existing and new supporters, so they join us in our mission for the longer term. The development and implementation of a bespoke CRM system to manage end to end data handling and analysis.
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- Further develop our relationship with the bed industry to increase levels of donated products received, better costs on purchased items and improved quality assurance.
- Intentionally increase our work to influence positive policy and practice change that will help reduce and eradicate child (bed) poverty.
## STATEMENT OF THE TRUSTEES’ RESPONSIBILITY
The trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with the 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 which give a true and fair view of the situation 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:
- Select suitable accounting policies and then apply them consistently. Observe the methods and principles in the Charity SORP.
- Make judgements and estimates that are reasonable and prudent. State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
- Prepare the financial statements on the going concern basis unless it is appropriate to presume that the charity will continue in business.
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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 6th November 2025 and signed on its behalf by:**
**Signature:**
**Name: Rebekah Wilson**
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## FINANCIAL STATEMENTS FOR THE YEAR ENDED 30TH MARCH 2025
Thomas Coombs Limited Statutory Auditors Chartered Accountants 3365 The Pentagon Century Way Thorpe Park Leeds LS15 8ZB
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## REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF ZARACH
## **OPINION**
We have audited the financial statements of Zarach (the 'charity') for the period ended 31st March 2025 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).
In our opinion the financial statements:
- give a true and fair view of the state of the charity's affairs as at 31st March 2025 and of its incoming resources and application
of resources, for the period then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **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.
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## **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.
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## **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:
- the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **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.
## **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.
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The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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.
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 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.
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-Discussions with management of known or suspected instances of noncompliance 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.
## **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.
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Thomas Coombs Limited Statutory Auditor Chartered Accountants 3365 The Pentagon Century Way Thorpe Park Leeds West Yorkshire LS15 8ZB
8th October 2025
48
## **STATEMENT OF FINANCIAL ACTIVITIES**
FOR THE PERIOD ENDED 31ST MARCH 2025
The notes form part of these financial statements
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## **BALANCE SHEET**
31ST MARCH 2025
The financial statements were approved by the Board of Trustees and authorised for issue on 8th October 2025 and were signed on its behalf by:
....................................... R Wilson
The notes form part of these financial statements
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## **CASH FLOW STATEMENT**
FOR THE PERIOD ENDED 31ST MARCH 2025
The notes form part of these financial statements
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## **NOTES TO THE CASH FLOW STATEMENT**
FOR THE PERIOD ENDED 31ST MARCH 2025
The notes form part of these financial statements
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## **NOTES TO THE FINANCIAL STATEMENT**
FOR THE PERIOD ENDED 31ST MARCH 2025
## **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.
The notes form part of these financial statements
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## **NOTES TO THE FINANCIAL STATEMENT** (CONTINUED)
FOR THE PERIOD ENDED 31ST MARCH 2025
**1.** 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 charitable activities includes the nominal fee received from beneficiaries for the weekly Food Club.
Other income relates to the sale of small ad hoc materials, such as the Zed Ted Book, hub set up fees and interest received on gift aid claimed from previous periods.
Gifts in kind are included in the SOFA at an amount which estimates their monetary value to the charity.
## **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.
Direct expenditure has been allocated directly to the activity that they relate to where possible. Support and governance costs have been apportioned to the activity based on the full time equivalent staff and consultants per department. This is split 31% service delivery and 41% Family Engagement, which make up Charitable Activities, and 28% on raising funds.
The notes form part of these financial statements
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## **NOTES TO THE FINANCIAL STATEMENT** (CONTINUED)
FOR THE PERIOD ENDED 31ST MARCH 2025
## **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
## **Investments**
Investments are initially measured at cost and subsequently at market value. Investment gains and losses, whether realised or unrealised, are recognised in the statement of financial activities in the period in which they arise.
## **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.
## **Operating Leases**
Rentals payable under operating leases are charged on a straight-line basis over the term of the lease.
## **Taxation**
The charity is exempt from tax on its charitable activities.
The notes form part of these financial statements
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## **NOTES TO THE FINANCIAL STATEMENT** (CONTINUED)
FOR THE PERIOD ENDED 31ST MARCH 2025
## **Fund Accounting**
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
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 Period**
Debtors and creditors with no stated interest rate and receivable or payable within one period are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
The notes form part of these financial statements
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**NOTES TO THE FINANCIAL STATEMENT** (CONTINUED) FOR THE PERIOD ENDED 31ST MARCH 2025
The notes form part of these financial statements
57
**NOTES TO THE FINANCIAL STATEMENT** (CONTINUED) FOR THE PERIOD ENDED 31ST MARCH 2025
The notes form part of these financial statements
58
## **NOTES TO THE FINANCIAL STATEMENT** (CONTINUED)
FOR THE PERIOD ENDED 31ST MARCH 2025
## **7. TRUSTEES' REMUNERATION AND BENEFITS**
There were no trustees' remuneration or other benefits for the period ended 31st March 2025 nor for the period ended 31st July 2024.
## **Trustees' Expenses**
There were no trustees' expenses paid for the period ended 31st March 2025 nor for the period ended 31st July 2024.
Personal trustee donations for the period amounted to £463 (2024: £640). The trustees provide their time to the charity at no cost.
The notes form part of these financial statements
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**NOTES TO THE FINANCIAL STATEMENT** (CONTINUED) FOR THE PERIOD ENDED 31ST MARCH 2025
The charity considers its key management personnel (in addition to the Board of Trustees) to be the Chief Executive. The pro-rated total remuneration (including employer NI contributions) of the key management personnel was £53,408 (2024:£78,405) .
The average monthly number of employees during the period was as follows:
One employee received emoluments within the range of £70,000 to £79,999 pro-rated. (2024: £70,000 - £79,999)
The full time equivalent is 15.9 (2024: 11.7).
The notes form part of these financial statements
60
## **NOTES TO THE FINANCIAL STATEMENT** (CONTINUED)
FOR THE PERIOD ENDED 31ST MARCH 2025
The notes form part of these financial statements
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**NOTES TO THE FINANCIAL STATEMENT** (CONTINUED) FOR THE PERIOD ENDED 31ST MARCH 2025
All fixed assets are used for charitable activities.
The notes form part of these financial statements
62
**NOTES TO THE FINANCIAL STATEMENT** (CONTINUED) FOR THE PERIOD ENDED 31ST MARCH 2025
The notes form part of these financial statements
63
**NOTES TO THE FINANCIAL STATEMENT** (CONTINUED) FOR THE PERIOD ENDED 31ST MARCH 2025
The notes form part of these financial statements
64
## **NOTES TO THE FINANCIAL STATEMENT** (CONTINUED)
FOR THE PERIOD ENDED 31ST MARCH 2025
Some donors have restricted the use of their funding and they have been categorised as follows:
**Family Engagement:** towards Food Club, Emergency Food, Holiday Club, flooring or Family Engagement staff members.
**Beds and bundles:** towards bed and bundle stock in Leeds.
**Tees Valley:** Set up and ongoing running costs of the Tees Valley regional Warehouse, including bed stock for this area.
**Hubs:** towards beds or other items in an area serviced by our partnership hubs.
**Other:** Rent for the warehouse and office at Hunslet.
The notes form part of these financial statements
65
**NOTES TO THE FINANCIAL STATEMENT** (CONTINUED) FOR THE PERIOD ENDED 31ST MARCH 2025
The notes form part of these financial statements
66
## **NOTES TO THE FINANCIAL STATEMENT** (CONTINUED)
FOR THE PERIOD ENDED 31ST MARCH 2025
Some donors have restricted the use of their funding and they have been categorised as follows:
**Family Engagement:** towards Food Club, Emergency Food, Holiday Club, flooring or Family Engagement staff members.
**Beds and bundles:** towards bed and bundle stock in Leeds.
**Tees Valley:** Set up and ongoing running costs of the Tees Valley regional Warehouse, including bed stock for this area.
**Hubs:** towards beds or other items in an area serviced by our partnership hubs.
**Other:** Rent for the warehouse and office at Hunslet.
## **RELATED PARTY DISCLOSURES**
Income and expenditure related to trustees or their close relatives is required to be disclosed as a related party transaction. Mark Cohen was paid remuneration of £29,175 during the 8 month period (2024: £35,537 during the 12 month period) as an employee of the charity.
The notes form part of these financial statements
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