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2023-03-31-accounts

Trust Leeds

Charity number 1182738

A company limited by guarantee number 11331021

Annual Report and Financial Statements

for the year ended 31 March 2023

Trust Leeds

Annual Report and Financial Statements for the year ended 31 March 2023

Contents Page
Trustees' report 2 to 7
Examiner's report 8
Statement of financial activities 9
Balance sheet 10
Notes to the accounts 11 to 17

Prepared by West Yorkshire Community Accountancy Service CIO

1

Trust Leeds

Trustees' report for the year ended 31 March 2023

Reference and administrative details of the charity, its trustees and advisors

The trustees during the financial year and up to and including the date the report was approved were: Name Position Tim Sinclair Chairman Cath Follin Vice Chair Gary Wilson-Poe Treasurer Sally-Anne Greenfield Malcolm Hall Yann Nicholas Choiniere Company secretary Natasha Babar-Evans Charity number 1182738 Registered in England and Wales Company number 11331021 Registered in England and Wales Financial Conduct Authority number 973871 Registered and principal address Bankers 47-49 Austhorpe Road Triodos Leeds Deanery Road LS15 8BA Bristol BS1 5AS

Independent examiner

Alan Dodd FCCA West Yorkshire Community Accountancy Service CIO Stringer House 34 Lupton Street Leeds LS10 2QW

Structure, governance and management

The charity is a company limited by guarantee and was formed on 26 April 2018. It is governed by a memorandum and articles of association. The only persons eligible to be members of the charity are its trustees. The liability of the members in the event of the company being wound up is limited to a sum not exceeding £1.

Method of recruitment and appointment of trustees

The trustees of the charity are also the directors for the purposes of company law and are appointed by a resolution passed at a properly convened meeting of the Trustees.

2

Trust Leeds

Trustees' report (continued) for the year ended 31 March 2023

Objectives and activities

The charity's objects

The objects of the charity are the furtherance of such charitable purposes (charitable under the law of England and Wales) for the benefit of the public as the Trustees see fit from time to time in the area of benefit in particular but not limited to:

(a) the prevention or relief of poverty;

(b) supporting the work of charities or furthering charitable purposes which advance good citizenship or community development in particular promoting community capacity building and urban and rural regeneration including the provision of financial assistance, technical assistance or business advice or consultancy in order to provide training and employment opportunities for unemployed people in cases of financial or other charitable need through help:

(c) the advancement of education by providing support to community groups that seek to advance the education and skills of persons at risk of financial exclusion and poverty; and

(d) the relief of those in need by reason of age, ill-health, disability, financial hardship, unemployment or other disadvantage.

The charity's main activities

Trust Leeds works – and walks – alongside people, helping them to improve their lives by building financial independence, confidence and skills.

We do this in three ways:

Public benefit statement

In setting our objectives and planning our activities our Trustees have given serious consideration to the Charity Commission’s general guidance on public benefit and in particular the alleviation of poverty.

Vision

A Leeds where communities and families who are facing financial exclusion and poverty are strengthened, more confident, and have their entrepreneurial ambitions supported, invested in, and realised.

Mission

To work - and walk - alongside people, helping them to improve their lives by building enterprise, selfreliance, sharing and independence.

Values

Ethical, energising, nurturing, aspiring, hard-working, sharing, collaborating.

3

Trust Leeds

Trustees' report (continued) for the year ended 31 March 2023

The charity’s main objectives for the period were:

The Key Performance Indicators (KPIs) for the year to March 2023

Structure and Management

Having submitted our Financial Conduct Authority application in April 2023, the key focus for management and governance activities this year was responding to their requests for details and further understanding of our unique model. This work was underpinned by the professional expertise and encouragement of our solicitors at Capital Law LLP.

Operationally, the focus was on: supporting new and existing self-reliant groups; completing the three-year European funded programme and the associated reporting; and achieving further funding for the next stage of Trust Leeds' growth - the development era.

Membership of trade association Responsible Finance, our partnership with three other charities promoting Self-Reliant Groups, and advice from West Yorkshire Community Accounting Service, the National Council for Voluntary Action and other infrastructure bodies, ensures that the Trustees are aware of their responsibilities, best practice, and changes in our legal, regulatory and operating context.

Board meetings and related activities are structured to include elements of learning and reflection, horizonscanning, visits and input from our partners. This year the Board: held an Away Day; devised a loan programme workshop; invited guest speaker Jeanette Burgess from Walker Morris LLP to inform them of the latest expectations from our new regulator, the FCA; attended SRG events and activities; and undertook specific training related to consumer credit management and governance.

Pay and Remuneration

All Trustees give their time freely and none received remuneration. Trustees are encouraged to claim appropriate expenses, and the costs of Board meetings were kept low by the use of free meeting space courtesy of Clarion Solicitors and by conducting committee meetings online.

Trust Leeds had 1.3 full-time equivalent employees during this period, and their remuneration was set by the Board. The Governance & HR Committee monitored and supported the Annual Review programme, and undertook exit interviews with staff when contracts ended.

4

Trust Leeds

Trustees' report (continued) for the year ended 31 March 2023

Achievements and performance

The achievement of our aims and KPIs was underpinned by the work, advice and guidance of committed Trustees and a constellation of allies and stakeholders.

Highlights of the year included:

Plans for Future Periods

Trust Leeds now has three independent yet interconnected offers which help under-served people facing poverty, financial exclusion and loneliness to enterprise their way out of poverty: 1. Community Self-Reliant Groups, 2. Be Your Own Boss Self-Reliant Groups, and 3. Micro-finance: personal loans for business purposes.

Now in our 'Development Era' the Board agreed at this Summer's Away day that within three years:

Objectives for the next year include:

5

Trust Leeds

Trustees' report (continued) for the year ended 31 March 2023

Financial review

The net income for the year was £35,833, including net income of £22,190 on unrestricted funds and net income of £13,643 on restricted funds after transfers.

Highlights of the reporting period’s financial performance relate to our fundraising successes in helping us to develop Trust Leeds:

At the time of signing these accounts the charity is recovering well from the broad and deep impact of the global Covid 19 pandemic on the communities we serve, and the challenging fundraising climate. It is creating and responding to opportunities to promote the Self-Reliant Group movement as means to support, nurture and enable people to build confidence, financial capacity and purpose.

The trustees have reassessed the charity's ability to continue for at least 12 months from the date that the accounts are approved and concluded that no material uncertainties exist that cast significant doubt on the charity's ability to meet its liabilities as they fall due. Quarterly Board meetings include a detailed review of: budgets and forecasts; performance against budgets and outputs/targets committed to funders and donors; and options and needs to balance forecast income, fundraising opportunity assessments, and project development ambitions. For example, at the June 2023 Board Away Day trustees held a fundraising workshop and agreed key messages for our micro-finance fundraising campaign.

Reserves policy

The charity's free reserves, excluding fixed assets, at the year end were £29,615.

A further £32,128 of restricted donations is held for the purpose of supporting the running costs of the microfinance operation.

The Trustees have reviewed their reserves policy this year, and continue to agree a target for unrestricted reserves of between three and nine months of operating costs. This reserves target is currently in the range of £22,000 to £66,000. This includes: salaries, redundancy payments, project completion costs. In the highly unlikely event that Trust Leeds ceases its activities, the micro-finance programme will be halted and a 12-month wind-down period to complete the lending cycle repayments will be started. The estimated costs of managing this are circa £3,000.

This will allow Trust Leeds to provide continuity of charitable activities in the event of: variations and fluctuations in fundraising income and cash; emergencies; and in the case of winding down.

The level of reserves has been built up considerably this year, mainly due to recovery of Gift Aid on previous private donations.

Trust Leeds is currently meeting its reserves target. Our fundraising strategy moving forward is to achieve unrestricted donations to build up our reserves and/or funding to fully-fund projects.

6

Trust Leeds

Trustees' report (continued) for the year ended 31 March 2023

Statement of trustees' responsibilities

The trustees (who are also the directors for the purposes of company law) are responsible for preparing the Trustees report and the financial statements in accordance with the applicable law and UK Accounting Standards.

Company law requires the trustees to prepare financial accounts for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for the year. In preparing these financial statements, the trustees are required to:

select suitable accounting policies and apply them consistently;

observe the methods and principles in the Charities SORP;

make judgements and estimates that are reasonable and prudent;

state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the accounts on a going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial accounts comply with the Companies Act 2006. 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.

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (Charities SORP (FRS102)), and in accordance with the special provisions of the Companies Act 2006 relating to small companies.

approved by the board of trustees on 26/10/2023

Gary Wilson-Poe (Trustee)

7

Trust Leeds

Independent examiner's report to the trustees of Trust Leeds

I report to the charity trustees on my examination of the accounts of the charitable company for the year ended 31 March 2023, which are set out on pages 9 to 17.

Responsibilities and basis of report

As the charity's trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 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 giving me cause to believe that in any material respect:

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.

Alan Dodd FCCA

23/11/2023

West Yorkshire Community Accountancy Service CIO

Stringer House 34 Lupton Street Leeds LS10 2QW

8

Trust Leeds

Statement of Financial Activities

(including summary income and expenditure account) for the year ended 31 March 2023

Notes
2023
Unrestricted
funds
£
Income from:
Grants and donations
(2)
18,930
Donated services
(3)
2,000
Other income
-
Interest received
230
Total income
21,160
Expenditure on:
Salaries NI and pensions
(3)
3,262
Travel
96
Events, PR, marketing and website
-
Memberships
30
Insurance
44
Bank charges
-
Professional fees
2,576
Equipment
-
IT and telephone
-
Subsistence
-
Fundraising
-
SRG events and activities
116
Training
59
Independent examination
324
General office costs
17
Evaluation
-
Governance and trustee expenses
-
Freelance interpreter and communications
-
Finance support
-
Grants repaid to funders
-
Total expenditure
6,524
Net income / (expenditure)
14,636
Transfers between funds
(5)
7,554
Net movement in funds
22,190
Fund balances brought forward
7,425
Fund balances carried forward
(5)
29,615		 2023
Restricted
funds
£
102,436
-
-
-
102,436
49,956
2,838
2,631
2,109
1,038
27
5,688
1,581
395
962
96
4,206
763
600
860
-
454
2,880
4,155
-
81,239
21,197
(7,554)
13,643
59,221
72,864		 2023
Total
funds
£
121,366
2,000
-
230
123,596
53,218
2,934
2,631
2,139
1,082
27
8,264
1,581
395
962
96
4,322
822
924
877
-
454
2,880
4,155
-
87,763
35,833
-
35,833
66,646
102,479		 2022
Total
funds
£
122,347
2,000
1,721
-
126,068
66,470
1,199
1,765
1,810
669
69
6,380
3,241
4,705
478
96
2,463
1,082
600
945
1,000
600
5,853
719
380
100,524
25,544
-
25,544
41,102
66,646

All incoming resources and resources expended derive from continuing activities.

9

Trust Leeds

Balance sheet

as at 31 March 2023
2023
Unrestricted
£
Current assets
Debtors and prepayments
(6)
-
Programme related investments
709
Cash at bank and in hand
(7)
31,066
Total current assets
31,775
Current liabilities:
amounts falling due within one year
Creditors and accruals
(8)
2,160
Total current liabilities
2,160
Net current assets / (liabilities)
29,615
Net assets
29,615
Funds
Unrestricted funds
General unrestricted funds
24,615
Designated funds
(9)
5,000
Unrestricted funds
29,615
Restricted funds
-
Total funds
29,615		 2023
Restricted
£
342
-
73,482
73,824
960
960
72,864
72,864
-
-
-
72,864
72,864		 2023
Total
£
342
709
104,548
105,599
3,120
3,120
102,479
102,479
24,615
5,000
29,615
72,864
102,479		 2022
Total
£
8,138
740
65,016
73,894
7,248
7,248
66,646
66,646
2,425
5,000
7,425
59,221
66,646

For the year ending 31 March 2023 the charitable company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the charitable company to obtain an audit of its accounts for the year in question in accordance with section 476. The trustees (who are also the directors for the purposes of company law) acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime and with FRS 102 (effective January 2019).

The financial statements were approved by the board of trustees on 26/10/2023

Gary Wilson-Poe (Trustee)

10

Trust Leeds

Notes to the accounts for the year ended 31 March 2023

1 Accounting policies

Basis of accounting

These accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these accounts. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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) and with the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102. There has been no change to the accounting policies since last year. No changes have been made to the accounts for previous years.

Going concern

The trustees are satisfied that there are no material uncertainties about the charity's ability to continue.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity becomes entitled to the resources, it is more likely than not that the trustees will receive the resources and the monetary value can be measured with sufficient reliability.

Grants and donations

Grants and donations 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.

Donated assets, facilities or services are valued at their estimated value to the charity. This is the price that the charity estimates it would pay in the open market for equivalent items; or services and facilities of equivalent utility to the charity.

Programme related investments

Loans made and repayable within one year are recognised at their carrying amount. For loans repayable in more than one year the loan is initially recognised at the amount paid, with the carrying amount adjusted in subsequent year to reflect repayments and any accrued interest and adjusted if necessary for any impairment.

Expenditure and liabilities

Expenditure is recognised on an accrual basis as a liability is incurred. Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out the resources and the amount of the obligation can be measured with reasonable certainty.

Taxation

As a charity the organisation benefits from rates relief and is generally exempt from income tax and capital gains tax but not from VAT. Irrecoverable VAT is included in the cost of those items to which it relates.

11

Trust Leeds

Notes to the accounts

for the year ended 31 March 2023

1 Accounting policies continued

Tangible fixed assets

Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition. Gifted assets are shown at the value to the charity on receipt.

Pensions

The charity operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised in the year they are payable.

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 earmarked by the trustees for particular purposes.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

Further explanation of the nature and purpose of each fund is included in the notes to the accounts.

12

Trust Leeds

Notes to the accounts continued

for the year ended 31 March 2023

2 Grants and donations
2023
Unrestricted
funds
£
Donation - Rachel Lord
-
Donation - TP Recognition Fund
-
European Regional Development Fund (ERDF)
-
European Social Fund
-
Leeds Community Foundation (LCF)
-
Local Giving
-
Masons
-
The Fore
-
Tudor Trust
-
ERDF CLLD Matched funding
-
Hillards Trust
-
Kick-start
-
Refugee Council
-
Other donations
2,067
Gift aid
16,863
18,930
3 Staff costs and numbers
Gross salaries
Social security costs
Employment allowance
Pensions
Redundancy payments
Payroll fees		 2023
Restricted
funds
£
20,000
1,100
7,923
10,263
18,380
500
3,620
8,650
32,000
-
-
-
-
-
-
102,436		 2023
Total
funds
£
20,000
1,100
7,923
10,263
18,380
500
3,620
8,650
32,000
-
-
-
-
2,067
16,863
121,366
2023
£
49,326
4,694
(4,694)
1,436
2,073
383
53,218		 2022
Total
funds
£
20,000
9,717
12,246
12,165
-
-
12,730
30,000
15,477
1,000
6,915
588
1,509
-
122,347
2022
£
63,307
4,603
(4,000)
1,830
-
730
66,470

The average number of employees during the year was 3.1, being an average of 1.6 full time equivalent (2022: 6.8, 2.5 FTE). There were no employees with emoluments above £60,000.

Defined contribution pension scheme 2023 2022
£ £
Costs of the scheme to the charity for the year 1,436 1,830

4 Donated services

Events, PR, marketing and website

£2,000 of this expenditure was donated services of design and website set up costs provided by Wolfstar Consultancy (previous year £2,000)

13

Trust Leeds

Notes to the accounts continued

for the year ended 31 March 2023

5 Restricted funds
ERDF CLLD/ matched funding
European Social Fund
The Fore
Leeds CC - ABCD
Postcode Neighbourhood Trust
West Riding Masonic Charities
Micro-finance 1
Micro-finance 2
TP Recognition Fund
Tudor Trust
LCF Jimbo's Fund		 Balance b/f
£
15,477
-
-
1,300
-
-
20,000
-
-
22,444
-
59,221		 Incoming
£
7,923
10,263
8,650
-
500
3,620
-
20,000
1,100
32,000
18,380
102,436		 Outgoing
£
15,846
10,263
8,650
1,300
500
1,565
7,872
-
1,100
34,143
-
81,239		 Transfers
£
(7,554)
-
-
-
-
-
-
-
-
-
-
(7,554)		 Balance c/f
£
-
-
-
-
-
2,055
12,128
20,000
-
20,301
18,380
72,864

Fund name

Purpose of restriction

ERDF CLLD/ matched funding Energising Enterprise in East Leeds through building a local network of SRGs. A transfer was also agreed from the Tudor Trust to match funding on this scheme.

To nurture online Be Your Own Boss SRGs in West Yorkshire.

European Social Fund To nurture online Be Your Own Boss SRGs in West Yorkshire. The Fore To progress the micro-finance programme, and including the advisory costs for Financial Conduct Authority (FCA) application and the costs of FCA registration.

Leeds CC - ABCD From Leeds City Council to train community development workers. Postcode Neighbourhood Trust Supermarket Savers' Self-Reliant Group West Riding Masonic Charities To set up the SRG Lending Library of Things (small items of kit & equipment).

Micro-finance 1 Private donation to support the charity in developing its micro-finance work. Micro-finance 2 Private donation to support the charity in developing its micro-finance work.

TP Recognition Fund To recognise and support menbers in need. Tudor Trust A core grant to support the running costs of Trust Leeds as it develops and grows, including match funding for the ERDF project.

LCF Jimbo's Fund Project development and planning for Supermarket Savers' Self-Reliant Group.

6 Debtors and prepayments
Debtors
Prepayments		 2023
£
-
342
342		 2022
£
7,962
176
8,138

14

Trust Leeds

Notes to the accounts continued

for the year ended 31 March 2023

7 Cash at bank and in hand
Cash at bank
Cash in hand
8 Creditors and accruals
Creditors
Accruals
9 Designated funds
Loan pot
Fund name
Loan pot		 2023
2022
£
£
104,164
64,350
384
666
104,548
65,016
2023
2022
£
£
2,196
1,968
924
5,280
3,120
7,248
Balance b/f
Incoming
Outgoing
Transfers
Balance c/f
£
£
£
£
£
5,000
-
-
-
5,000
5,000
-
-
-
5,000
Reason for designation
To fund a pilot programme of micro-financing businesses emerging from our
Self-Reliant Groups, and the financially excluded.

10 Related party transactions

Donations from trustees and related parties

The total aggregate value of unconditional donations to the charity from the trustees or related parties was £224 (2022: £120).

Trustee expenses

During the year 1 trustee was paid a total of £121 in respect of travel (previous year: no trustees; £nil).

Trustee remuneration and benefits

No trustee received any remuneration or benefit during this or the previous year.

Remuneration and benefits received by key management personnel

The total employee benefits received by key management personnel were £39,949 (previous year: £39,662).

15

Trust Leeds

Notes to the accounts continued

for the year ended 31 March 2023

11 Funds held as agent
Fund 1
Sara Blythe
Fund 2
Geraldine Talbot
Fund 3
Grow Together Girls
Fund 4
Kentmere Camp
Fund 5
Kentmere Youth
Fund 6
Leeds Butterflies
Fund 7
Material Girls
Fund 8
Nicola Sterling		 Balance b/f
£
4
5
160
7
30
57
65
6
334		 Incoming
£
-
100
-
-
-
-
-
-
100		 Outgoing
£
-
-
70
-
-
-
-
-
70		 Balance c/f
£
4
105
90
7
30
57
65
6
364

Trust Leeds hold funds for Self-Reliant Groups established through the charity.

16

Trust Leeds

Statement of Financial Activities including comparatives for all funds (including summary income and expenditure account) for the year ended 31 March 2023

2023
2022
Unrestricted Unrestricted
funds
funds
£
£
Income
Grants and donations
18,930
2,509
Donated services
2,000
2,000
Other income
-
421
Interest received
230
-
Total income
21,160
4,930
Expenditure
Salaries NI and pensions
3,262
-
Travel
96
-
Events, PR, marketing and website
-
-
Memberships
30
1,740
Insurance
44
-
Bank charges
-
-
Professional fees
2,576
2,000
Equipment
-
-
IT and telephone
-
-
Subsistence
-
-
Fundraising
-
-
SRG events and activities
116
-
Training
59
-
Independent examination
324
-
General office costs
17
-
Evaluation
-
-
Governance and trustee expenses
-
-
Freelance interpreter and comms
-
-
Finance support
-
-
Grants repaid to funders
-
-
Total expenditure
6,524
3,740
Net income / (expenditure)
14,636
1,190
Transfers between funds
7,554
-
Net movement in funds
22,190
1,190
Fund balances brought forward
7,425
6,235
Fund balances carried forward
29,615
7,425		 2023
Restricted
funds
£
102,436
-
-
-
102,436
49,956
2,838
2,631
2,109
1,038
27
5,688
1,581
395
962
96
4,206
763
600
860
-
454
2,880
4,155
-
81,239
21,197
(7,554)
13,643
59,221
72,864		 2022
Restricted
funds
£
119,838
-
1,300
121,138
66,470
1,199
1,765
70
669
69
4,380
3,241
4,705
478
96
2,463
1,082
600
945
1,000
600
5,853
719
380
96,784
24,354
-
24,354
34,867
59,221		 2023
Total
funds
£
121,366
2,000
-
230
123,596
53,218
2,934
2,631
2,139
1,082
27
8,264
1,581
395
962
96
4,322
822
924
877
-
454
2,880
4,155
-
87,763
35,833
-
35,833
66,646
102,479		 2022
Total
funds
£
122,347
2,000
1,721
-
126,068
66,470
1,199
1,765
1,810
669
69
6,380
3,241
4,705
478
96
2,463
1,082
600
945
1,000
600
5,853
719
380
100,524
25,544
-
25,544
41,102
66,646

17