Charity number: 1181449
## **Paper Cup Project**
**INDEPENDENTLY EXAMINED ACCOUNTS FOR THE YEAR ENDED 31/03/2023**
**Prepared By:** Harvey Guinan LLP Chartered Certified Accountants Unit 17 Mersey House Matchworks Estate, 140 Speke Road Liverpool Merseyside L19 2PH
## **Paper Cup Project**
**FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/03/2023**
## **TRUSTEES**
Patrick Smith Adam Boaks (resigned) Paul Polhill Patrick Hurley Michael Rick (appointed 23 November 2022) Adam Settle (appointed 16 September 2022) Jane Logan (resigned)
## **REGISTERED OFFICE**
Paper Cup Coffee Queen Square Liverpool Merseyside L1 1RH
## **CHARITY NUMBER**
1181449
## **BANKERS**
Santander
## **INDEPENDENT EXAMINER - Julie Guinan FCCA**
Harvey Guinan LLP Chartered Certified Accountants Unit 17 Mersey House Matchworks Estate, 140 Speke Road Liverpool Merseyside L19 2PH
page 1
## **Paper Cup Project**
## **ACCOUNTS FOR THE YEAR ENDED 31/03/2023**
## **CONTENTS**
||Page|
|---|---|
|Report of the Trustees|3|
|Independent Examiner's Statement|7|
|Statement of Financial Activities|9|
|Balance Sheet|10|
|Notes to the Accounts|11 to 17|
|Detailed Statement of Financial Activities|18|
page 2
**Paper Cup Project**
## **TRUSTEES' REPORT**
## **FOR THE YEAR ENDED 31/03/2023**
The trustees present their report and accounts for the period ended 31/03/2023 .
## **PRINCIPAL ACTIVITIES**
The principal activity of the charity in the year under review was the relief of poverty amongst those who are homeless, facing homelessness or rough sleepers.
## **STRUCTURE GOVERNANCE AND MANAGEMENT**
Paper Cup Project is a Charitable Incorporated Organisation (CIO) which was registered as a charity (1181449) on 7 January 2019.
The financial statements have been prepared in accordance with the charity's Constitution, the Charities Act 2011, and 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 (FRS 102).
The charity was established under a Constitution which governs the charity and sets out the objects and powers of the charity.
The Trustees set and approve the policy for the charity which is then implemented by the Chief Executive. The Trustees meet regularly throughout the year with scheduled meetings and in between as required.
No remuneration is paid to any Trustee for their services as a Trustee.
Appointment of Trustees:
The board members are Adam Boaks (resigned), Paul Polhill, Patrick Hurley, Patrick Smith, Michael Rick (appointed 23.11.2022), Adam Settle (appointed 16.9.22) and Jane Logan (resigned). All trustees are eligible for reelection at the end of their initial term of appointment.
The Charity seeks to have a wide range of skills and experience on its Board, contained within a small number of individuals. The board are seeking to add more diversity to its trustees, particularly welcoming those with lived experience of homelessness.
Skills audits of trustees are conducted and any identified training needs provided. All new Trustees are given a detailed introduction to the Charity and provided with key important documents including the Constitution and latest Financial Statements.
## **OBJECTIVES OF THE CHARITY**
The objectives of the CIO are :
For the public benefit, the relief of poverty amongst those who are homeless, facing homelessness or rough sleepers who are in need, hardship and distress on account of their social and economic circumstances, in particular, but not exclusively, by the provision of outreach services including the provision of clothing, bedding, food and drinks, information, advice, guidance and signposting to statutory and other voluntary agencies so that each person can find a route out of homelessness.
page 3
## **Paper Cup Project**
## **TRUSTEES' REPORT**
## **FOR THE YEAR ENDED 31/03/2023**
## **ACHIEVEMENTS AND PERFORMANCE**
This has been an incredible period of growth for the charity, with the opening and trading of our coffee shop Paper Cup Coffee across this year. As well as offering locally sourced and produced products, we are the only place in Liverpool where people experiencing homelessness can come and enjoy a hot drink and food, in a safe and welcome environment. Customers support this via a pay it forward scheme, which can then be redeemed by our homeless customers. Through this, we have been able to assist 20-30 people per day. We also have a basket in the shop, where our homeless customers can find items such as clean socks and underwear and sanitary products, which they can help themselves to.
Across this period we had some great support, which was invaluable for us to stay afloat in our first year of trading. We were delighted to be chosen as one of the charities of the year for Merseyrail. Not only did it raise the profile of our charity, but staff also raised funds for us. We were also the chosen charity of Formby Hall golf club's captain, Simon Chung. Simon organised several charity events for us, and raised several thousands of pounds for the charity, which was greatly appreciated.
Along with our partner, The Learning Foundry, we held three courses in hospitality in the shop. The courses are open to people who have experienced homeless, or young people who have found it difficult to find employment. As well as accredited hospitality qualifications, the participants were also given barista training, and lunch was provided each day by us.
We were joined by a new patron, Frank Cottrell Boyce, and gained support from Susan Hill, the writer of The Woman in Black, and Tim Burgess, singer with the band The Charlatans. Tim promoted our coffee shop via his social media and in December, he joined us in the shop for a stint as a celebrity barista, which gained a lot of publicity and increased the amount of customers who visited the shop that day. The shop was featured across both local and National media channels.
The shop has been successful in the mission of supporting people with homelessness, and we really feel that having a physical space has been beneficial to the charity to raise awareness of the work we do. However, it hadn't been without challenges. The cost of living crisis has impacted on us, and the utility bills for the shop increased threefold from January 2023. Thankfully, our landlords Promenade, support us with a peppercorn rent, so rental is not affected. The cost of our supplies has also increased across the period. Due to these unforeseen increases, it has been a difficult time financially, but we managed, thanks to customers and supporters. We also suffered three break ins across this period, which took a toll on us financially and emotionally. However, we made it through our first year, and we continue to build on the work we are doing to support people experiencing homelessness, and to challenge the stigmas around homelessness. This is only possible with the support of our staff, board, and supporters. We are absolutely needed in Liverpool, we see that every day, and we hope to continue the good work that is being done.
## **PUBLIC BENEFIT**
How our activities deliver public benefit:
page 4
## **Paper Cup Project**
## **TRUSTEES' REPORT**
## **FOR THE YEAR ENDED 31/03/2023**
Our work is accessible to all in the area we serve who are in need of our assistance. We believe that the services we provide are crucial to homeless people's lives, supporting them by providing food and drink and access to support to find their way out of homelessness, thereby making a contribution to society and benefiting all.
## **FINANCIAL REVIEW**
The results for the period and the charity's position at 31 March 2023 are shown in the attached financial statements. Total incoming resources were £126,191 (2022 £86,693) and total resources expended were £158,892 (2022 £81,757) resulting in net outgoing resources for the period of £32,701 (2022 net incoming resources £4,936) - net outgoing resources on the unrestricted funds of £23,837 (2022 net incoming resources £2,753) and net outgoing resources on the restricted funds of £8,864 (2022 net incoming resources of £2,183). At 31 March 2023 the balance on the unrestricted funds was £20,468 (2022 £44,305) and the balance on the restricted fund £nil (2022 £8,864) giving total funds of £20,468 (2022 £53,169).
## **RISK MANAGEMENT**
The Trustees confirm that the day-to-day controls are designed to mitigate the identified risks faced by the charity.
## **RESERVES POLICY**
The reserves policy of the charity reflects the organisation's wish to strike a balance between two financial objectives. Firstly, the need for financial stability and secondly to expand the volume and range of services offered to the homeless people that we work with.
At 31 March 2023 our reserves stood at £20,468 of which £20,468 represented free reserves not invested in fixed assets or restricted in their use. The trustees feel that this level of reserves is adequate to meet both financial objectives for the foreseeable future.
## **FUTURE PLANS**
The Charity is committed to developing services to help homeless people or people facing homelessness.
## **VOLUNTEERS**
Volunteers are a valuable resource for the charity. Our volunteers come from a wide range of backgrounds, and we encourage diversity.
## **STATEMENT OF TRUSTEES RESPONSIBILITIES**
The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Charity Law requires the trustees to prepare financial statements for each financial year. Under that law the trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and Applicable Law).
page 5
## **Paper Cup Project**
## **TRUSTEES' REPORT**
## **FOR THE YEAR ENDED 31/03/2023**
Under Charity Law the trustees must not approve the financial statements until they are satisfied that they give a true and fair view of the state of affairs of the charity and of the net incoming or outgoing resources of the charity for that period.
In preparing the financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the charities SORP;
- make judgments and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The names of the Trustees who held office during the year are noted on page 1.
## **APPROVAL**
The report was prepared in accordance with the Charities Act 2011 and Statement of Recommended Practice FRS102 Accounting and Reporting by Charities.
This report was approved by the Board of Trustees on 30/01/2024 .
Adam Settle (appointed 16 September 2022) Trustee
page 6
**Paper Cup Project**
## **INDEPENDENT EXAMINER'S STATEMENT**
## **FOR THE YEAR ENDED 31/03/2023**
## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PAPER CUP PROJECT**
I report on the accounts of the charity for the period ended 31/03/2023 .
## **RESPONSIBILITIES AND BASIS OF REPORT**
As the charity's trustees, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act).
I report in respect of my examination of the Charity's accounts carried out under section 145 of the 2011 Act and in carrying out my examination, I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
## **INDEPENDENT EXAMINER'S STATEMENT**
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination which gives me cause to believe that in, any material respect:
- the accounting records were not kept in accordance with section 130 of the Charities Act; or
- the accounts did not accord with the accounting records; or
- the accounts did not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
................................................... Julie Guinan FCCA Independent Examiner
Date: 30/01/2024
Harvey Guinan LLP Chartered Certified Accountants Unit 17 Mersey House Matchworks Estate, 140 Speke Road
page 7
**Paper Cup Project**
**INDEPENDENT EXAMINER'S STATEMENT FOR THE YEAR ENDED 31/03/2023**
Liverpool Merseyside L19 2PH 0151 709 7797
page 8
## **Paper Cup Project**
## **Statement of Financial Activities for the year ended 31/03/2023**
|**Income**
Income from generated funds
Income from charitable activities
**Total Income**
**Expenses**
Costs of generating funds
Expenditure on Charitable activities
**Total Expenses**
**Net Income**
**Net movement in funds:**
**Net income for the year**
Total funds brought forward
**Net funds carried forward**|**Unrestricted**
**funds**
**£**
119,891
**119,891**
143,728
**143,728**
**(23,837)**
**(23,837)**
44,305
**20,468**|**Restricted**
**funds**
**£**
6,300
**6,300**
15,164
**15,164**
**(8,864)**
**(8,864)**
8,864
**-**|**2023**
**Total**
**£**
126,191
**126,191**
158,892
**158,892**
**(32,701)**
**(32,701)**
53,169
**20,468**|_2022_
_Total_
_£_
_86,693_|
|---|---|---|---|---|
|||||_86,693_|
|||||_81,757_|
|||||_81,757_|
|||||_4,936_|
|||||_4,936_
_48,233_|
|||||_53,169_|
This statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities
page 9
|**Paper Cup Project**||||_2022_
_£_
_433_
_52,736_|
|---|---|---|---|---|
|**BALANCE SHEET AT 31/03/2023**
**Notes**
**FIXED ASSETS**
Tangible assets
3
**CURRENT ASSETS**
Debtors (amounts falling due within one year)
4
Cash at bank and in hand
**CREDITORS: Amounts falling due within one year**
5
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**RESERVES**
**Unrestricted funds**
**6**
General fund
**Restricted funds**
**7**|3,926
24,141
28,067
7,599|**2023**
**£**
-
20,468
20,468
20,468
**-**
20,468|_1,556_
_57,888_
_59,444_
_6,708_||
|||||_53,169_|
|||||_44,305_
_8,864_|
|||||_53,169_|
**Approved by the board of trustees on 30/01/2024 and signed on their behalf by**
.............................
Adam Settle (appointed 16 September 2022) Trustee
page 10
## **Paper Cup Project**
## **NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31/03/2023**
## **1. ACCOUNTING POLICIES**
## **1o. Basis Of Accounting**
The accounts have been prepared under the historical cost convention.
The accounts have been prepared in accordance with FRS102 - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006 and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.
## **1b. Incoming Resources**
All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
## **1c. Resources Expended**
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.
## **1d. Allocation And Apportionment Of Costs**
All costs relate to the single activity of the charitable company and are recognised accordingly.
## **1e. 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.
Designated funds are funds set aside by the trustees out of unrestricted general funds for the specific future purposes or projects.
## **1f. Depreciation**
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.
Equipment
straight line 33.33%
page 11
**Paper Cup Project**
## **1g. Pension Costs**
The company operates a defined contribution pension scheme. The pension charge represents the amounts payable by the company to the fund in respect of the year.
## **1h. Turnover**
Turnover represents the invoiced value of goods and services supplied by the company, net of value added tax and trade discounts.
## **1i. Income Recognition**
Items of income are recognised and included in the accounts when all of the following are met: (1) The charity has entitlement to the funds; (2) Any performance conditions attached to the income have been met or are fully within the control of the charity; (3) There is sufficient certainty that receipt of the income is considered probable and (4) The amount can be measured reliably.
## **1j. Cash At Bank And In Hand Policy**
Cash at bank and in hand includes cash and short term liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **1k. Creditors And Provisions Policy**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement value amount after allowing for any discount due.
## **1l. Financial Instruments Policy**
The charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
## **1m. Basis Of Preparing Accounts**
At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. They also confirm that the period considered in making this assessment was at least 12 months from the date of approval of these accounts. Hence the trustees continue to adopt the going concern basis of accounting in preparing the accounts.
page 12
**Paper Cup Project**
## **1n. Basis Of Accounting**
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015) and the requirements of the Statement of Recommended Practice, Accounting and Reporting by Charities.
## **2. PENSION CONTRIBUTIONS**
|**2. PENSION CONTRIBUTIONS**|||
|---|---|---|
|Pension contributions|**2023**
**£**
1,513
1,513|_2022_
_£_
_1,077_|
|||_1,077_|
## **3. TANGIBLE FIXED ASSETS**
|**Cost**
At 01/04/2022
At 31/03/2023
**Depreciation**
At 01/04/2022
For the year
At 31/03/2023
**Net Book Amounts**
At 31/03/2023
At 31/03/2022
**4. DEBTORS**
Amounts falling due within one year:
Other debtors|**Equipment**
**£**
1,299
1,299
866
433
1,299
-
433
**2023**
**£**
3,926
3,926|**Total**
**£**
1,299|
|---|---|---|
|||1,299|
|||866
433|
|||1,299|
|||-|
|||433|
|||_2022_
_£_
_1,556_|
|||_1,556_|
page 13
## **Paper Cup Project**
## **5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
|**5. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**|||
|---|---|---|
|Taxation and social security
Other creditors|**2023**
**£**
462
7,137
7,599|_2022_
_£_
_636_
_6,072_|
|||_6,708_|
## **6. UNRESTRICTED FUNDS**
|General fund|**Brought**
**forward**
**£**
44,305
44,305|**Incoming**
**resources**
**£**
119,891
119,891|**Outgoing**
**resources**
**£**
(143,728)
(143,728)|**Transfers**
**£**
-
-|**Carried**
**forward**
**£**
20,468|
|---|---|---|---|---|---|
||||||20,468|
page 14
**Paper Cup Project**
## **7. RESTRICTED FUNDS**
|Enterprise Development Programme
Crowdfunder Ltd
The SpeedoMick Foundation
Charities Aid Foundation America
Liverpool Charity and Voluntary Services
Liverpool City Council
Condition Improvement Fund (CIF)
Citizens Advice
Community Foundation|**Brought**
**forward**
**£**
833
2,248
2,000
300
1,913
1,570
-
-
-
8,864|**Incoming**
**resources**
**£**
-
-
1,600
-
-
-
2,000
200
2,500
6,300|**Outgoing**
**resources**
**£**
(833)
(2,248)
(3,600)
(300)
(1,913)
(1,570)
(2,000)
(200)
(2,500)
(15,164)|**Transfers**
**£**
-
-
-
-
-
-
-
-
-
-|**Carried**
**forward**
**£**
-
-
-
-
-
-
-
-
-|
|---|---|---|---|---|---|
||||||-|
## **Enterprise Development Programme**
Funding for salaries
## **Crowdfunder Ltd**
Funding for setting up and running a coffee shop
## **The SpeedoMick Foundation**
Funds for equipment
## **Charities Aid Foundation America**
Funds for refurbishment of coffee shop
## **Liverpool Charity and Voluntary Services**
Funds for supporting people experiencing homelessness
## **Liverpool City Council**
Funding for alarm and electrical work of refurbishment
## **Condition Improvement Fund (CIF)**
Funding for salaries
## **Citizens Advice**
Funding for outdoor planters
## **Community Foundation**
Funding for kitchen equipment
page 15
## **Paper Cup Project**
## **8. INCOMING RESOURCES**
|**Restricted Funds**
Restricted Project Grants
Liverpool City Council
Community Foundation for Merseyside
Enterprise Development Programme
Crowdfunder Ltd
**General Unrestricted Funds**
Donations
Merseyrail
Cafe Sales
Venue Hire
**Total Incoming Resources**|**2023**
3,800
-
2,500
-
-
6,300
38,089
5,250
74,707
1,845
119,891
126,191|**2022**
24,490
1,570
-
32,250
-
58,310
20,307
2,500
5,576
-
28,383
86,693|
|---|---|---|
## **9. RESOURCES EXPENDED**
|Salaries
Accommodation and Other Beneficiary Costs
Storage
Independent Examination
Accountancy
Legal Fees
Professional Fees and Consultancy
Consumable Supplies and Provisions
Subscriptions
IT and Website
Health, Safety and Sanitation
Advertising
Depreciation
Refurbishment and Repairs
Premises and Administration Costs|**2023**
98,223
233
1,573
700
770
-
-
25,950
396
1,030
4,308
250
433
5,063
19,963
158,892|**2022**
51,671
123
509
700
770
2,522
2,500
4,245
109
1,812
480
311
433
10,877
4,695
81,757|
|---|---|---|
page 16
**Paper Cup Project**
## **10. GENERAL INFORMATION**
Paper Cup Project (Charity Number 1181449) is a Charitable Incorporated Organisation that registered as a Charity 7 January 2019. Its registered office is Paper Cup Coffee, Queen Square, Liverpool, Merseyside, L1 1RH. The accounts are stated in sterling the functional currency of the Charity.
## **11. TAXATION**
The Charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
## **12. NET ASSETS BY FUND**
## **Net Assets by Fund**
|Tangible Fixed Assets
Net Current Assets|**Unrestricted**
**Funds**
-
20,468
20,468|**Restricted**
**Funds**
-
-
-|**Total**
Funds
-
20,468
20,468|
|---|---|---|---|
page 17
## **Paper Cup Project**
## **Incoming Resources for the year ended 31/03/2023**
|**Incoming resources**
**Incoming resources from generated funds**
**Charitable Activity**
Liverpool City Council
Donations
Community Foundation for Merseyside
Other Income
Enterprise Development Programme
The SpeedoMick Foundation
Charities Aid Foundation America
Liverpool Charity and Voluntary Services
The Albert Hunt Trust
Rise Construction
Skelton Charity
Cargill Global Funding
Merseyrail
Cafe Sales
Condition Improvement Fund (CIF)
Citizens Advice|-
38,089
2,500
1,845
-
1,600
-
-
-
-
-
-
5,250
74,707
2,000
200|**2023**
**£**
126,191
126,191
126,191|_1,570_
_20,857_
_-_
_450_
_32,250_
_2,000_
_5,085_
_4,405_
_5,000_
_500_
_1,500_
_5,000_
_2,500_
_5,576_
_-_
_-_|_2022_
_£_
_86,693_
_86,693_
_86,693_|
|---|---|---|---|---|
page 18
## **Paper Cup Project**
## **Expenses for the year ended 31/03/2023**
|**Expenses**
**Costs of generating funds**
**Charitable Activities**
Accommodation
Rates
Service charge
Heat and light
Repairs and renewals
Fundraising Costs
Consumable Supplies & Provision
Refurbishment expenses
Consumable items and merchandise
Pest control
Salaries
NIC employer (wages and salaries)
Pension contributions
Staff welfare
Accountancy fees
Consultancy fees
Legal costs (revenue)
Travel and parking
Insurance
Health and Safety, PPE
Postage, printing and stationery
Telephone
IT & Website Costs
Subscriptions
Storage Costs
Bank charges
Sundry expenses
Depreciation of equipment|**2023**
**£**
-
857
6,753
8,055
5,063
250
21,073
-
4,877
1,020
94,504
2,206
1,513
233
1,470
-
-
630
1,131
3,288
1,613
434
1,030
396
1,573
-
490
433
158,892
158,892|_2022_
_£_
_123_
_-_
_1,394_
_1,098_
_200_
_311_
_3,813_
_10,677_
_432_
_-_
_50,347_
_247_
_1,077_
_-_
_1,470_
_2,500_
_2,522_
_576_
_201_
_480_
_22_
_51_
_1,812_
_109_
_509_
_198_
_1,155_
_433_|
|---|---|---|
|||_81,757_|
|||_81,757_|
page 19