Charity registration number: 1182179
The Vine (Hinckley)
Report and financial statements
for the Year ended 31 March 2023
The Vine (Hinckley)
| Contents | |
|---|---|
| Page | |
| Trustees' report | 1 - 5 |
| Independent examiner's report to the members | 6 |
| Statement of financial activities | 7 |
| Balance sheet | 8 |
| Notes to the annual accounts | 9 - 17 |
The Vine (Hinckley)
Trustees' report Year ended 31 March 2023
The trustees present their report and the financial statements for the year ended 31 March 2023.
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 Sadie Allott
Page 1
The Vine (Hinckley)
Trustees' report (continued) Year ended 31 March 2023
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 charity 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 2023
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 deficit for the year of £2,138 (2022: £13,616 surplus) and Net Assets of £32,584 (2022: £34,722) which reflects the loss.
The total income decreased to £45,430 (2022: £50,202), a 10% decrease on the previous year. This is mainly attributable to a reduction in grants from £17,876 to £3,981 as COVID support is no longer available.
The total expenditure increased by over £10k during the year to £47,568 (2022: £36,886) a 29% increase on the previous year. Direct spending increased to £15,413 (2022: £13,796), charitable trading increased to £20,693 (2022: £16,767) and support costs increased to £11,462 (2022: £6,323).
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 £5,700 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 £15,413 for the year. Stock is only brought as needed. This means our reserves are sufficient for our needs.
Page 3
The Vine (Hinckley)
Trustees' report (continued) Year ended 31 March 2023
Achievements and performance
One of our identified weaknesses as a board of Trustees was a good working knowledge of accounting to better appreciate some of the intricacies of accounting and the issues raised by our current accountant. Thankfully a friend of the Vine who had a sound practical understanding of accounts gained through their family business offered to be our adviser and assisted greatly in coming to terms with our financial systems and most questions raised by our accountant.
Three items of expenditure were the purchases of a new freezer, a display board that is sighted at the approach to the Vine and also to replace our drinks machine which is on a monthly contract.
Further evidence of our landlord's continued support was following the increase of electricity charges. The URC had predicted some substantial increase based on our past recorded history and requested a meeting to discuss our monthly rent. Following our meeting it was mutually agreed to increase our rent but thankfully they didn't charge the full amount of what they calculated and for this we were extremely grateful.
Having a rental increase and the contract hire of the new drinks machine was more than our original contract it was agreed to look at ways to increase our weekly takings, the trustees supported the motion that we should apply a small additional cost on our beverages and other menu items.
Page 4
The Vine (Hinckley)
Trustees' report (continued) Year ended 31 March 2023
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);
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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 5
The Vine (Hinckley)
Independent examiner's report to the trustees on the unaudited financial statements of The Vine (Hinckley) Year ended 31 March 2023
I report to the Trustees on my examination of the financial statements of The Vine (Hinckley) for the year ended 31 March 2023 which are set out on pages 7 to 17.
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 6
The Vine (Hinckley)
Statement of financial activities
For the year ended 31 March 2023
| Unrestricted Restricted funds funds Notes £ £ Income and endowments from: Donations, grants and legacies 12 2,890 1,091 Charitable activities 13 40,707 - Other activities 14 638 - Investments 15 104 - Total income 44,339 1,091 Expenditure on: Direct spending 16 14,499 914 Charitable trading 17 20,674 19 Support costs 18 11,304 158 Total expenditure 46,477 1,091 Net income ) (2,138 Net movement in funds ) (2,138 - Reconciliation of funds Total funds brought forward 34,722 - Total funds carried forward 32,584 - |
2023 Total £ 3,981 40,707 638 104 45,430 15,413 20,693 11,462 47,568 ) (2,138 ) (2,138 34,722 32,584 |
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 |
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 9 to 17 form part of these financial statements.
Page 7
The Vine (Hinckley)
Balance sheet 31 March 2023
| 2023 | 2022 | ||||
|---|---|---|---|---|---|
| Note | £ | £ | £ | £ | |
| Fixed assets | |||||
| Tangible assets | 6 | 474 | 632 | ||
| 474 | 632 | ||||
| Current assets | |||||
| Stocks | 7 | 7,498 | 8,161 | ||
| Debtors | 8 | 64 | 64 | ||
| Cash at bank and in hand | 28,042 | 29,121 | |||
| 35,604 | 37,346 | ||||
| Creditors: amounts falling due | |||||
| within one year | 9 | ) (3,494 |
) (3,256 |
||
| Net current assets | 32,110 | 34,090 | |||
| Total assets less current liabilities | 32,584 | 34,722 | |||
| Net assets | 32,584 | 34,722 | |||
| Charity funds | |||||
| Unrestricted funds | 10 | 32,584 | 34,722 | ||
| Total charity funds | 32,584 | 34,722 |
These financial statements were approved and authorised for issue by the Board on 29 November 2023.
John Moore Trustee
The notes on pages 9 to 17 form part of these financial statements.
Page 8
The Vine (Hinckley)
Notes to the annual accounts Year ended 31 March 2023
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.
Page 9
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2023
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 10
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2023
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:
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 11
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2023
4. Staff costs
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 |
2023 1 1 2 2023 £ 14,270 - 229 14,499 |
2022 1 1 2 2022 £ 10,495 31 223 10,749 |
|---|---|---|
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.
6. Tangible assets
| Computer equipment £ Cost At 1 April 2022 and 31 March 2023 790 Depreciation At 1 April 2022 158 Charge for the year 158 At 31 March 2023 316 Carrying amount At 31 March 2023 474 At 31 March 2022 632 |
Total £ 790 |
|---|---|
| 158 158 |
|
| 316 | |
| 474 | |
| 632 |
Page 12
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2023
| 7. Stocks Finished goods and goods for resale 8. Debtors Other debtors 9. Creditors: amounts falling due within one year Trade creditors Accruals and deferred income Social security and other taxes |
2023 £ 7,498 2023 £ 64 2023 £ 14 3,354 126 3,494 |
2022 £ 8,161 2022 £ 64 2022 £ - 3,005 251 3,256 |
|---|---|---|
Page 13
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2023
10. Fund reconciliation
| Funds at | Funds at | Funds at | Movement in | Movement in | Movement in | Funds at | Funds at | |
|---|---|---|---|---|---|---|---|---|
| Unrestricted funds | 1 April | 2022 | funds | 31 March 2023 | ||||
| £ | £ | £ | ||||||
| Unrestricted revenue funds | 34,722 | 2,138 | 32,584 | |||||
| 34,722 | 2,138 | 32,584 | ||||||
| Restricted funds | ||||||||
| Restricted funds | - | - | - | |||||
| - | - | - | ||||||
| Total charity funds | 34,722 | 2,138 | 32,584 |
Unrestricted funds are held for all general purposes of the charity.
Page 14
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2023
11. Analysis of funds
| Movement | Movement | |||||||
|---|---|---|---|---|---|---|---|---|
| Income | Expenditure | in funds | ||||||
| 2023 | 2023 | 2023 | ||||||
| £ | £ | £ | ||||||
| Unrestricted funds | ||||||||
| Unrestricted revenue funds | 44,339 | ) (46,477 |
) (2,138 |
|||||
| Restricted funds | ||||||||
| Restricted funds | 1,091 | ) (1,091 |
- | |||||
| 45,430 | 47,568 | 2,138 | ||||||
| The income for restricted funds is made up of the following: | ||||||||
| LCC grant | 1,091 | |||||||
| 1,091 | ||||||||
| The expenses for the restricted funds are made up of the following: | ||||||||
| Depreciation | 158 | |||||||
| Wages | 914 | |||||||
| Cost of goods for primary purpose trading | 19 | |||||||
| 1,091 |
12. Donations, grants and legacies
| Unrestricted Restricted funds funds £ £ Donations and gifts from individuals 2,391 - Covid Job Retention Scheme grants - - Hinckley & Bosworth Borough Council grants - - Leicestershire County Council grants - 1,091 Speaking Volumes grant 499 - 2,890 1,091 |
2023 Total £ 2,391 - - 1,091 499 3,981 |
2022 Total £ 2,768 1,323 11,350 2,435 - |
|---|---|---|
| 17,876 |
Page 15
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2023
13. Charitable activities
| 13. Charitable activities |
||
|---|---|---|
| Unrestricted Restricted funds funds £ £ Sale of goods and services in accordance with the charity's objectives 40,707 - 14. Other activities Unrestricted Restricted funds funds £ £ AlterNativity events 638 - 15. Investment income Unrestricted Restricted funds funds £ £ Bank interest receivable 104 - 16. Direct spending Unrestricted Restricted funds funds £ £ Gross wages 14,270 914 Employers' NI - - Defined contribution pension costs 229 - 14,499 914 |
2023 Total £ 40,707 2023 Total £ 638 2023 Total £ 104 2023 Total £ 15,184 - 229 15,413 |
2022 Total £ 31,119 |
| 2022 Total £ 1,206 |
||
| 2022 Total £ 1 |
||
| 2022 Total £ 13,542 31 223 |
||
| 13,796 |
Page 16
The Vine (Hinckley)
Notes to the annual accounts (continued) Year ended 31 March 2023
17. Charitable trading
| Charitable trading | ||
|---|---|---|
| Unrestricted Restricted funds funds £ £ Cost of goods for primary purpose trading 20,381 19 Music licences 293 - 20,674 19 |
2023 Total £ 20,400 293 20,693 |
2022 Total £ 16,435 332 |
| 16,767 |
18. Support costs
| Unrestricted Restricted funds funds £ £ Rent 3,210 - Cleaning and waste management 411 - Repairs and renewals 842 - Telephone and internet 618 - Postage 27 - Stationery and printing 46 - Website costs 14 - Membership subscriptions 365 - Equipment expenses 1,148 - Insurance 438 - Sundry expenses - - Accountancy 3,163 - Independent examiner's fee 240 - Bank charges 547 - Training 235 - Loss on disposal of fixed assets - - Depreciation - 158 11,304 158 |
2023 Total £ 3,210 411 842 618 27 46 14 365 1,148 438 - 3,163 240 547 235 - 158 11,462 |
2022 Total £ 940 229 1,020 460 44 300 147 273 179 354 - 1,219 240 476 48 236 158 |
|---|---|---|
| 6,323 |
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