Charity registration number: 1182179
The Vine (Hinckley)
Report and financial statements
for the Year ended 31 March 2022
The Vine (Hinckley)
Contents
| Page | |
|---|---|
| Trustees' report | 1 - 4 |
| Independent examiner's report to the members | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the annual accounts | 8 - 16 |
The Vine (Hinckley)
Trustees' report Year ended 31 March 2022
The trustees present their report and the financial statements for the year ended 31 March 2022.
Reference and administrative details
Charity name: The Vine (Hinckley) Charity registration number: 1182179 Address: The Vine Christian Bookshop The Borough Hinckley Leicestershire LE10 1NL
Trustees
The trustees who served during the year were as follows:
John Moore Malcolm Clarke John Dowsing Tim Pullen Karl Woodward (Resigned February 2022) Sadie Allott
Page 1
The Vine (Hinckley)
Trustees' report (continued) Year ended 31 March 2022
Structure, governance and management
The methods used to recruit and appoint new charity trustees.
Trustees are recruited via the local Christian Church communities. When a vacancy arises, the local Churches Leaders are approached for recommendations.
Nature of governing document and how the charity is constituted
The Charity was registered with The Charity Commission on 22 February 2019. The registration number is 1182179. The charity's governing document outlines its charitable objectives and the methods used to recruit and appoint new charity trustees.
Objectives and activities
The purposes of the charity as set out in its governing document
The objectives of the CIO are the advancement of the Christian Faith as revealed to us in the Bible, in practical ways and the care of all people serving or being served in The Vine (Hinckley) irrespective of their personal circumstances; signposting to specialist support and advice wherever appropriate.
The main activities undertaken in relation to those purposes during the year and to further the charity's purpose for the public benefit.
The Vine is a small coffee shop and Christian bookshop in the heart of Hinckley town centre, selling books, cards, gifts, fairtrade food, hot & cold drinks, snacks, cakes and lunches. We are mainly run by volunteers and provide a space bringing people together
The trustees have had regard to the Charity Commission's guidance on public benefit in managing the activities of the charity.
The contribution of volunteers during the year
The charity can only operate with the support of volunteers. The charity had 7 volunteers who donated approximately 21 hours of time each week. The arrangements with volunteers are difficult to value precisely in monetary terms and have not been recognised in the Statement of Financial Activities. The volunteers and the charity accept and agree that no contract of employment is created by these arrangements.
The main achievements and performance of the charity during the year
The Vine is a small coffee shop and Christian bookshop in the heart of Hinckley town centre, selling books, cards, gifts ,fairtrade food, hot & cold drinks, snacks, cakes and lunches. We are mainly run by volunteers and provide a space bringing people together throughout the week, as well as a support system for those who need it. The Vine brings people together who otherwise may not meet and provide a place to build relationships.
Supported by Hinckley & Burbage Churches Together we are able to work in partnership by bringing the Christian message to the community in practical ways thus providing a building that has frequently been described as "An oasis in the desert". From a financial business objective we aim to "break even" it is however more important to provide a unique community space for the people of Hinckley and surrounding villages.
Fundraising activities during the year
The Vine is a very small charity and it is a challenge to generate enough income to remain open each year. The charity raises a small amount funds via the "Friends of the Vine" scheme. There are no other fundraising activities.
Page 2
The Vine (Hinckley)
Trustees' report (continued) Year ended 31 March 2022
The difference the charity's performance during the year has made to the beneficiaries of the charity
We have continued to help bring people together throughout the week, as well as provide a support system for those who need it. The Vine has brought people together who otherwise may not meet and provide a place to build relationships. The Vine has continued to provide meals for people in need via the Hinckley AlterNativity project.
The degree to which the achievements and performance during the year have benefited wider society
We have continued to help bring people together throughout the week, as well as provide a support system for those who need it. The Vine has brought people together who otherwise may not meet and provide a place to build relationships.
Financial review
The results of the year and financial position are shown in the annexed financial statements.
The organisation reports a net profit for the year of £13,316 (2021: £3,492) and Net Assets of £34,722 (2021: £21,406) which reflects the profit.
The total income increased to £50,202 (2021: £28,640), a 75% increase on the previous year. This is mainly attributable to an increase in charitable activities from £10,004 to £31,119.
The total expenditure increased by over £11k during the year to £36,886 (2021: £25,148) a 47% increase on the previous year. Direct spending increased to £13,796 (2021: £13,479), charitable trading increased to £16,767 (2021: £8,087) and support costs increased to £6,323 (2021: £3,582).
Reserves policy
In relation to the Charity Commission guidance that our reserves be 50% of expenditure in the next six months, this would require a figure of £8,300 which the reserves are sufficient to meet.
Our employees are on monthly salaries with only one month's notice required, which is also the redundancy amount for calculations. Our net annual payroll costs are £13,796 for the year. Stock is only brought as needed. This means our reserves are sufficient for our needs.
Achievements and performance
Returning following lockdown in the April we decided to purchase a new computer to replace a very old system that was extremely slow and lacked the memory capacity to meet our current needs. The Vine also celebrated its 20th anniversary which is a remarkable achievement with so many Christian Book shops having to close down due to the threat of on-line buying and the increase in rent/rates.
In reality we have remained in business due to the support of our volunteers and the fact that the Hinckley United Reform Church (URC) are our landlords and were extremely supportive when we were unable to trade due to COVID.
As a board of trustees, it was agreed that we needed to improve our signage to offer clearer signposting to our building, customers can now clearly see, attached to the Shoe Repairers, a professional directional sign pointing to the Vine building.
Another major decision following COVID was to reduce our opening hours to best maximise our team of volunteers in providing adequate cover across our six trading days.
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The Vine (Hinckley)
Trustees' report (continued) Year ended 31 March 2022
Trustees' responsibilities statement
The trustees are responsible for preparing the trustees' annual report and financial statements in accordance with applicable law and United Kingdom accounting standards (United Kingdom generally accepted accounting practice).
The law applicable to charities in England and Wales requires the charity trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, 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 applicable Charities SORP 2019 (FRS102);
-
make judgements and estimates that are reasonable and prudent;
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state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that 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 and the provision of the trust deed. The are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities.
This report was approved by the board of trustees on 29 November 2023.
John Moore Trustee
Page 4
The Vine (Hinckley)
Independent examiner's report to the trustees on the unaudited financial statements of The Vine (Hinckley) Year ended 31 March 2022
I report to the Trustees on my examination of the financial statements of The Vine (Hinckley) for the year ended 31 March 2022 which are set out on pages 6 to 16.
Respective responsibilities of trustees and examiner
The charity's trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (the Act).
The Trustees consider that the audit requirement of Section 144(1) of the Act does not apply, and that that an independent examination is needed.
It is my responsibility to:
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examine the accounts under section 145 of the Charities Act
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to follow the procedures laid down in the general Directions given by the Charity Commission (under section 145(5)(b) of the Charities Act, and
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state whether particular matters have come to my attention.
Basis of independent examiner's report
My examination was carried out in accordance with the general directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charitable company and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a "true and fair view" and the report is limited to those matters set out in the statement below.
Independent examiner's statement
I have completed my examination. I confirm that no material matters have come to my attention which give 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
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the financial statements did not accord with the accounting records; or
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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.
Mrs C Woods (FCCA) Integra Accounting Limited 5 Station Road Hinckley Leicestershire LE10 1AW
29 November 2023
Page 5
The Vine (Hinckley)
Statement of financial activities
For the year ended 31 March 2022
| Unrestricted Restricted funds funds Notes £ £ Income and endowments from: Donations, grants and legacies 12 14,118 3,758 Charitable activities 13 31,119 - Other activities 14 1,206 - Investments 15 1 - Total income 46,444 3,758 Expenditure on: Direct spending 16 10,749 3,047 Charitable trading 17 16,526 241 Support costs 18 5,853 470 Total expenditure 33,128 3,758 Net income 13,316 Net movement in funds 13,316 - Reconciliation of funds Total funds brought forward 21,406 - Total funds carried forward 34,722 - |
2022 Total £ 17,876 31,119 1,206 1 50,202 13,796 16,767 6,323 36,886 13,316 13,316 21,406 34,722 |
2021 Total £ 18,634 10,004 - 2 |
|---|---|---|
| 28,640 | ||
| 13,479 8,087 3,582 |
||
| 25,148 | ||
| 3,492 | ||
| 3,492 17,914 |
||
| 21,406 |
All income and expenditure derive from continuing activities. The statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 8 to 16 form part of these financial statements.
Page 6
The Vine (Hinckley)
Balance sheet 31 March 2022
| 2022 | 2021 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 6 | 632 | 236 | ||
| 632 | 236 | ||||
| Current assets | |||||
| Stocks | 7 | 8,161 | 10,051 | ||
| Debtors | 8 | 64 | - | ||
| Cash at bank and in hand | 29,121 | 13,405 | |||
| 37,346 | 23,456 | ||||
| Creditors: amounts falling due | |||||
| within one year | 9 | ) (3,256 |
) (2,286 |
||
| Net current assets | 34,090 | 21,170 | |||
| Total assets less current liabilities | 34,722 | 21,406 | |||
| Net assets | 34,722 | 21,406 | |||
| Charity funds | |||||
| Unrestricted funds | 10 | 34,722 | 21,406 | ||
| Total charity funds | 34,722 | 21,406 |
These financial statements were approved and authorised for issue by the Board on 29 November 2023.
John Moore Trustee
The notes on pages 8 to 16 form part of these financial statements.
Page 7
The Vine (Hinckley)
Notes to the annual accounts Year ended 31 March 2022
1. General information
The address of the principal operating address is The Vine Bookshop, The Borough, Hinckley, Leicestershire, LE10 1NL.
2. Statement of compliance
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011 and UK Generally Accepted Accounting Practice.
The financial statements have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following the 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 issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The charitable activities are entirely dependent on continuing grant aid and voluntary donations as well as trading revenues. As a consequence, the going concern basis is dependent on the future flow of these uncertain funding streams. Accordingly, the Trustees have obtained forecasts and, after reviewing the financial forecasts for future periods to 31 March 2023, the Trustees are satisfied that, at the time of approving the financial statements, it is appropriate to adopt the going concern basis in preparing the financial statements. Other than these matters, the Trustees are not aware of any material uncertainties about the charity's ability to continue as a going concern.
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The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2022
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.
No amount is included in the financial statements for volunteer time in line with the SORP. Further detail is given in the Trustees' Annual Report.
Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.
The charity receives government grants in respect of the coronavirus job retention scheme and local council COVID grants. Income from government and other grants are recognised at fair value when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.
Expenditure recognition
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.
Volunteers
In accordance with SORP, and in recognition of the difficulties in placing monetary value on the contribution from volunteers, the contribution of volunteers is not included within the income of the charity.
However, the trustees value the significant contribution made to the activities of the charity by unpaid volunteers.
Taxation
The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.
Tangible assets
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
Page 9
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2022
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery - 20% straight line Computer equipment - 20% straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised using the accrual model and the performance model.
Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.
Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Defined contribution plans
The charity operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.
Fund Accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity.
Designated funds are unrestricted funds embarked by the Trustees for particular purposes.
Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of appeal or as imposed by law.
There are no endowment funds.
Winding up or dissolution of the charity
If upon winding up or dissolution of the charity there remains any assets, after the satisfaction of all debts and liabilities, the assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar object to the charity.
Page 10
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2022
4. Staff costs
The average number of persons employed during the year was:
| The average number of persons employed during the year was: | ||
|---|---|---|
| Full time staff Part time staff The aggregate payroll costs incurred during the year were: Wages and salaries Social security costs Other pension costs |
2022 1 1 2 2022 £ 10,495 31 223 10,749 |
2021 1 2 |
| 3 | ||
| 2021 £ 4,703 105 317 |
||
| 5,125 |
No employees received emoluments (excluding pension costs) in excess of £60,000 per annum.
5. The contribution of volunteers
The charity can only operate with the support of volunteers. The charity had 7 volunteers who donated approximately 21 hours of time each week. The arrangements with volunteers are difficult to valve precisely in monetary terms and have not been recognised in the Statement of Financial Activities. The volunteers and the charity accept an agree that no contract of employment is created by these arrangements.
Page 11
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2022
6. Tangible assets
| Plant and machinery Computer equipment £ £ Cost At 1 April 2021 236 - Additions - 790 Disposals ) (236 - At 31 March 2022 - 790 Depreciation At 1 April 2021 - - Charge for the year - 158 At 31 March 2022 - 158 Carrying amount At 31 March 2022 - 632 At 31 March 2021 236 - 7. Stocks 2022 £ Finished goods and goods for resale 8,161 8. Debtors 2022 £ Other debtors 64 9. Creditors: amounts falling due within one year 2022 £ Bank loans and overdrafts - Trade creditors - Accruals and deferred income 3,005 Social security and other taxes 251 3,256 |
Total £ 236 790 ) (236 790 - 158 158 632 236 2021 £ 10,051 2021 £ - 2021 £ 524 114 1,648 - 2,286 |
|---|---|
Page 12
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2022
10. Fund reconciliation
| Funds at | Funds at | Funds at | Movement in | Movement in | Movement in | Funds at | Funds at | |
|---|---|---|---|---|---|---|---|---|
| Unrestricted funds | 1 April | 2021 | funds | 31 March 2022 | ||||
| £ | £ | £ | ||||||
| Unrestricted revenue funds | 21,406 | 13,316 | 34,722 | |||||
| 21,406 | 13,316 | 34,722 | ||||||
| Restricted funds | ||||||||
| Restricted funds | - | - | - | |||||
| - | - | - | ||||||
| Total charity funds | 21,406 | 13,316 | 34,722 |
Unrestricted funds are held for all general purposes of the charity.
Page 13
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2022
11. Analysis of funds
| Movement | Movement | ||||||
|---|---|---|---|---|---|---|---|
| Income | Expenditure | in funds | |||||
| 2022 | 2022 | 2022 | |||||
| £ | £ | £ | |||||
| Unrestricted funds | |||||||
| Unrestricted revenue funds | 46,444 | ) (33,128 |
13,316 | ||||
| Restricted funds | |||||||
| Restricted funds | 3,758 | ) (3,758 |
- | ||||
| 50,202 | 36,886 | 13,316 | |||||
| The income for restricted funds is made up of the following: | |||||||
| Covid Job Retention Scheme | 1,323 | ||||||
| LCC grant | 2,435 | ||||||
| 3,758 | |||||||
| The expenses for the restricted funds are made up of the following: | |||||||
| Depreciation | 158 | ||||||
| Wages | 3,047 | ||||||
| Repairs | 312 | ||||||
| Cost of goods for primary purpose trading | 241 | ||||||
| 3,758 |
12. Donations, grants and legacies
| Unrestricted Restricted funds funds £ £ Donations and gifts from individuals 2,768 - Covid Job Retention Scheme grants - 1,323 Hinckley & Bosworth Borough Council grants 11,350 - Leicestershire County Council grants - 2,435 14,118 3,758 |
2022 Total £ 2,768 1,323 11,350 2,435 17,876 |
2021 Total £ 5,930 8,354 4,350 - |
|---|---|---|
| 18,634 |
Page 14
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2022
| 13. Charitable activities Unrestricted Restricted funds funds £ £ Sale of goods and services in accordance with the charity's objectives 31,119 - 14. Other activities Unrestricted Restricted funds funds £ £ AlterNativity events 1,206 - 15. Investment income Unrestricted Restricted funds funds £ £ Bank interest receivable 1 - 16. Direct spending Unrestricted Restricted funds funds £ £ Gross wages 10,495 3,047 Employers' NI 31 - Defined contribution pension costs 223 - 10,749 3,047 |
2022 Total £ 31,119 2022 Total £ 1,206 2022 Total £ 1 2022 Total £ 13,542 31 223 13,796 |
2021 Total £ 10,004 |
|---|---|---|
| 2021 Total £ - |
||
| 2021 Total £ 2 |
||
| 2021 Total £ 13,057 105 317 |
||
| 13,479 |
Page 15
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2022
17. Charitable trading
| Unrestricted Restricted funds funds £ £ Cost of goods for primary purpose trading 16,194 241 Music licences 332 - 16,526 241 Support costs Unrestricted Restricted funds funds £ £ Rent 940 - Cleaning and waste management 229 - Repairs and renewals 708 312 Telephone and internet 460 - Postage 44 - Stationery and printing 300 - Website costs 147 - Membership subscriptions 273 - Equipment expenses 179 - Insurance 354 - Sundry expenses - - Accountancy 1,219 - Independent examiner's fee 240 - Bank charges 476 - Training 48 - Loss on disposal of fixed assets 236 - Depreciation - 158 5,853 470 |
2022 Total £ 16,435 332 16,767 2022 Total £ 940 229 1,020 460 44 300 147 273 179 354 - 1,219 240 476 48 236 158 6,323 |
2021 Total £ 8,012 75 |
|---|---|---|
| 8,087 | ||
| 2021 Total £ 1,400 23 - 468 20 12 101 150 168 309 81 408 120 322 - - - |
||
| 3,582 |
18. Support costs
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