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2023-03-31-accounts

Charity Registration no. 1182905

THE USEFUL WOOD COMPANY

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

1

THE USEFUL WOOD COMPANY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Anthony Hewat Michael Deavin George Varney Stephen Barter Brian Henry Charity number 1182905 Registered office and 15-29 Goldsworth Road Principle address Woking Surrey GU21 6JT

Independent Examiner

P I Vickerman 31a Nightingale Road Godalming Surrey GU7 2HP

Bankers

HSBC 6 Commercial Way Woking Surrey GU21 6EZ

2

THE USEFUL WOOD COMPANY

CONTENTS

Page
Trustees’ report 4 - 5
Independent Examiner’s report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial accounts 9 - 14

3

THE USEFUL WOOD COMPANY

TRUSTEES’ REPORT (INCLUDING DIRECTORS’REPORT)

FOR THE YEAR ENDED 31 MARCH 2023

The Trustees have pleasure in submitting the Report and Accounts for the year to 31st March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity’s governing document 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 and the Republic of Ireland (FRS 102)’’ (as amended for accounting periods commencing from 1 January 2016).

Governance

The charity is a Charitable Incorporated Organization (CIO), and is a member of the National Community Wood Recycling Project, which supports a national network of over 30 wood recycling organisations with similar aims, providing marketing to national construction companies, training resources and advice.

Activities

The heart of the trustees of The Useful Wood Company (TUWC) continues to see those on the margins of society, and who have suffered various traumas that result in loss of confidence and self-esteem, get work experience, training and support to enable them to achieve employment and contribute back to society and the community.

The TUWC continues to operate from premises which are rent and rates free, and which include yard, workshops and a retail/display area. We currently have three collection vans which collect waste wood from building and commercial sites which is then sorted and suitable timber used to make bespoke and stock products, selling wood on and to use this for our products. This supports both the wood recycling project and our work with beneficiaries.

The charity continues to work towards its vision being helped by volunteer “alongsiders/ supervisors” helping beneficiaries by mentoring, encouragement and advice. Our beneficiaries are referred to us by statutory and nonstatutory bodies such as Welcome Church, Woking Job Centre, Probation Service (Payback), Surrey Choices, The York Road Project (Homeless) amongst others.

Achievement

Since TUWC started operations in September 2019 we have seen year on year growth in the numbers of volunteers and beneficiaries, in 2022/23 we have been able to achieve saving approximately 12,156 cubic yards of wood from landfill. In terms of our social action, we have achieved a total of 1,104work experience days and notable achievement with 37 beneficiaries and we have been helped by 12 volunteer supervisors. During this operating period the year saw 9 beneficiaries achieve employment which has been exciting and encouraging.

Operations

TUWC has continued to operate from premises in Goldsworth Road Woking which are provided by Welcome Church who continued to lease these from a development company. Within the lease there is provision for the landlord to serve 3 months’ notice. The landlord is in the process of drawing up a new lease for our current premises which will run to March 2026.

Collection of waste wood, continues to be the main source of income but encouragingly we have again seen increases in both retail and wood sales The collection service is actively marketed nationally by NCWRP to major construction companies and TUWC remains free to source such collections with a greater focus having been made locally. Wood that cannot be used or resold is sent to be chipped for biomass fuel.

The charity currently employs 3 full time and one part staff, an operations manager, two drivers and workshop manager, and there are three vans in use.

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The opportunities for the beneficiaries include working in the retail area, helping the van in wood collections, sorting the wood, marketing, office/administrative help, and working in the workshop to produce retail and bespoke products and gain competence in using machinery.

Finances

No applications for grant support were submitted during this reporting period,

The charity has continued to benefit from premises that are rent-free and with 100% rate relief. We are mindful that new premises may be needed from 31st of March 2024 with the subsequent increase in costs. The trustees have built up reserves in the charity in order to be able to relocate when necessary.

In the year to March 2023, the charity recognised grant income of £7,826, received donations of £1,476, interest of £269 and earned income of £254,181, mainly from wood collection, but also from the sale of recycled wood and products made in the workshop. Expenditure, all on, or in support of, charitable activities amounted to £224,651, leaving a surplus of £39,101 in the year. Reserves at the year-end were £124,714.

Trustees’ Responsibilities

Charity law requires the trustees to prepare financial statements for each financial period which give a true and fair view of the state of the affairs of the charity as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial period. In preparing those financial statements, the trustees should follow best practice and:

The trustees are responsible for maintaining proper accounting records which 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. The trustees are also responsible for safeguarding the assets of the charity and to take reasonable steps for the prevention and detection of fraud and other irregularities. This report was approved by the trustees on 14 December 2023 and signed on their behalf by:

Anthony A Hewat (Chair of Trustees)

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THE USEFUL WOOD COMPANY

INDEPENDENT EXAMINER’S REPORT

TO THE TRUSTEES OF THE USEFUL WOOD COMPANY

I report to the trustees on my examination of the financial statements of The Useful Wood Company (the charity) for the year to 31 March 2023 as set out on pages 7 to 14.

Responsibilities and basis of report

The charity’s trustees are responsible for the preparation of the financial statements. The Charity’s trustees consider an audit is not required for this financial period under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed.

It is my responsibility to:

Basis of independent examiner’ 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 Charity 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 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’ and the report is limited to those matters set out in the statement below.

Independent examiner’s statement

In connection with my examination, no matter has come to my attention:

P I Vickerman FCA Practising Accountant 31a Nightingale Road Godalming Surrey GU7 2HP

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THE USEFUL WOOD COMPANY

STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Unrestricted Restricted Total Unrestricted Restricted Total
Notes funds Funds funds funds funds funds
£ £ £
Income from:
Donations & 3 1,476 - 1,476 2,370 - 2,370
legacies
Grants 3 - 7,826 7,826 - 7,542 7,542
Charitable 4 254,181 - 254,181 164,355 - 164,355
activities
Investment 5 269 - 269 6 - 6
Income
Total Income 255,926 7,826 263,752 166,731 7,542 174,273
Expenditure on:
Charitable 6 215,746 12,815 228,561 154,300 7,542 161,842
activities
Net Income 40,180 (4,989) 35,191 12,431 - 12,431
Opening fund 80,624 4,989
85,613
68,193 4,989 73,182
balances
Net income for the 40,180 (4,989) 35,191 12,431 - 12,431
year /
Net movement of
funds
Closing fund 120,804 - 120,804 80,624 4,989 85,613
balances

7

THE USEFUL WOOD COMPANY

BALANCE SHEET AS AT 31 MARCH 2023

As at
31 March 2023
Notes
Fixed Assets:
Tangible assets
11
31,007
Current Assets:
Stock
12
1,197
Debtors & prepayments
13
41,081
Cash at bank and in hand
92,373
134,651
Creditors: Amounts falling due
within one year
14
36,389
98,262
Total assets less current liabilities
129,269
Creditors: Amounts falling due
after more than one year
14
8,465
Net Assets
120,804
Income funds:
Unrestricted funds
120,804
Restricted funds
-
Total
120,804
As at
31 March 2022
£
£
27,536
795
21,836
73,386
96,018
21,626
74,392
101,928
16,315
85,613
80,624
4,989
85,613
As at
31 March 2022
£
£
27,536
795
21,836
73,386
96,018
21,626
74,392
101,928
16,315
85,613
80,624
4,989
85,613
85,613
85,613

The notes on pages 10 – 16 form part of these financial statements.

Approved by the trustees on 14 December 2023 and signed on their behalf by:

Anthony A Hewat (Chair of Trustees)

8

THE USEFUL WOOD COMPANY

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

The Useful Wood Company was incorporated in England and is a charitable incorporated organisation which is registered with the Charity Commissioners for England and Wales. It’s registered office is at 15-29, Goldsworth Road, Woking, Surrey, GU21 6JT.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity’s governing document, 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 and the Republic of Ireland (FRS 102)’’ (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and use of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require the deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.

1.5 Resources expended

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliability.

1.6 Tangible fixed assets

The acquisition of minor capital items such as fixtures, fittings and equipment below a cost of £200 are charged to revenue in period they were purchased.

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Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. This also applies to gifted assets which are valued at an amount in excess of £200.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

 Fixtures, fittings and equipment 20% straight line  Motor vehicle 25% straight line

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If anysuch indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments.

1.9 Financial assets and liabilities

Debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Creditors

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Donations and grants
2023 2022
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
Donations and legacies £ £ £ £ £ £
Donations & Gifts (non gift- 826 - 826 1,970 - 1,970
aided)
Donations & Gifts (gift-aided) - - - - - -
Grants Received - 7,826 7,826 - 7,542 7,542
Donations in Kind 650 - 650 400 - 400
9,302 7,826 9,302 2,370 7,542 9,912
Grants receivable for core
activities
Woking Borough Council - 4,086 4,086 - 4,250 4,250
Shanley Foundation - 625 625 - - -
Clothworkers - 3,125 3,125 - - -
Grant income deferred - (3,708) (3,708)
Grant income recognised - 7,000 7,000
Grants Received - 7,826 7,826 - 7,542 7,542

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4 Income from charitable 2023 2022
activities
Unrestricted Restricted Total Unrestricted Restricted Total
Funds funds funds funds funds funds
£ £ £ £ £ £
Sales within charitable activities - wood recycling
National Collections 173,789 - 173,789 105,819 - 105,819
Local Collections 26,173 - 26,173 13,430 - 13,430
Product Sales 16,039 - 16,039 10,503 - 10,503
Wood Sales 31,953 - 31,953 29,087 - 29,087
Hardware Sales 3,200 - 3,200 2,543 - 2,543
Pallet Sales 1,868 - 1,868 1,469 - 1,469
Firewood Sales 138 - 138 487 - 487
Miscellaneous Sales 1,021 - 1,021 1,017 - 1,017
254,181 - 254,181 164,355 - 164,355
5 2023 2022
Investments
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
£ £ £ £ £ £
Interest Received (Gross) 269 - 269 6 - 6
6 Expenditure on 2023 2022
charitable activities
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds Funds funds funds funds
£ £ £ £ £ £
Workshop consumables 2,117 - 2,117 2,505 - 2,505
Small tools & minor 4,075 - 4,075 6,205 - 6,205
equipment
Machinery maintenance 828 - 828 273 - 273
Hardware purchases 3,097 - 3,097 2,695 - 2,695
Wood purchases 113 - 113 939 - 939
Paints, adhesives & finishes 1,009 - 1,009 464 - 464
Packaging materials - - - 27 - 27
Waste disposal costs 56,672 - 56,672 28,112 - 28,112
Van costs (incl van hire) 33,173 - 33,173 15,882 - 15,882
Van depreciation 2,849 7,826 10,675 2,160 6,299 8,459
Protective clothing 998 - 998 1,592 - 1,592
Staff costs 75,292 4,989 80,281 65,718 - 65,718
Light, heat & power 13,718 - 13,718 8,883 - 8,883
Volunteers’ expenses (incl 1,660 - 1,660 633 - 633
refreshments)
195,601 12,815 208,416 136,088 6,299 142,387
Support costs (note 7) 18,668 - 18,668 16,989 1,243 18,232
Governance costs (note 8) 1,477 - 1,477 1,223 - 1,223
215,746 12,815 228,561 154,300 7,742 161.842

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7 Support Costs 2023 2022
Unrestricted Restricted Total Unrestricted Restricted Total
funds Funds Funds funds funds funds
£ £ £ £ £ £
Printing, postage & stationery 189 - 189 14 - 14
Telephone & internet 702 - 702 618 - 618
IT costs 391 - 391 540 - 540
Repairs & maintenance 47 - 47 157 - 157
Marketing, PR & website 3,316 - 3,316 2,262 - 2,262
Travelling & motor expenses 133 - 133 36 - 36
Cleaning 478 - 478 401 - 401
Safety & first aid 967 - 967 886 - 886
Franchise fee 190 - 190 190 - 190
Sundry expenses 295 - 295 855 - 853
Training 262 - 262 222 - 222
Fixtures & fittings (moveable) - - - 100 - 100
Water supply 4,000 - 4,000 8,000 - 8,000
Merchants’ charges 1,077 - 1,077 779 - 779
Bank charges 56 - 56 40 - 40
Payroll services 263 - 263 228 - 228
Provision for doubtful debts 3,910 - 3,910 (96) - (96)
Equipment Depreciation 2,392 - 2,392 1,757 1,243 3,000
18,668 - 18,668 16,989 1,243 18,232

8 Governance Costs

8 Governance Costs 2023 2022
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds Funds funds funds funds
£ £ £ £ £ £
Business insurance 727 - 727 723 - 723
Independent Examiners fee 750 - 750 500 - 500
1,477 - 1,477 1,223 - 1,223

9 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period (2022 – none).

10 Employees

The charity had, on average, 3 employees during the year (2022 - 2).

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11 Tangible Fixed Assets 31 March 2023 31 March 2022 31 March 2022
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
£ £ £ £ £ £
Cost:
Additions in period 16,447 92 16,539 953 4,250 5,203
Balance brought forward 13,507 32,950 46,457 12,554 28,700 41,254
Total 29,954 33,042 62,996 13,507 32,950 46,457
Depreciation:
Provision for period 5,242 7,826 13,068 3,187 8,272 11,459
Balance brought forward 7.663 11,258 18,921 4,476 2,986 7,462
Total 12,905 19,084 31,989 7,663 11,258 18,921
Net Book Value at start of 5,844 21,692 27,536 8,078 25,714 33,792
period
Net Book Value at end of 17,049 13,958 31,007 5,844 21,692 27,536
period
31 March 2023 31 March 2022
Plant & Motor Total Plant & Motor Total
Machinery, vehicles Machinery, vehicles
etc etc
£ £ £ £ £ £
Cost:
Additions in period 1,339 15,200 16,539 5,203 - 5,203
Balance brought forward 12,622 33,835 46,457 7,419 33,835 41,254
Total 13,961 49,035 62,996 12,622 33,835 46,457
Depreciation:
Provision for period 2,393 10,675 13,068 3,000 8,459 11,459
Balance brought forward 5,404 13,517 18,921 2,404 5,058 7,462
Total 7,797 24,192 31,989 5,404 13,517 18,921
Net Book Value at start of 7,218 20,318 27,536 5,015 28,777 33,792
period
Net Book Value at end of 6,164 24,843 31,007 7,218 20,318 27,536
period
12 Stocks 31 March 2023 31 March 2022
£ £
Stock of consumable items 1,197 795
13 Debtors 31 March 2023 31 March 2022
Amounts falling due within one £ £
year:
Trade debtors 44,253 19,555
Provision for doubtful debts (3,910) -
Other debtors 738 2,281
Total 41,081 21,836

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14 Creditors 31 March 2023 31 March 2022
£ £
Creditors: amounts falling due within one year
Trade creditors -
VAT 9,137 4,276
Other creditors 423 398
Accrued expenses 18,979 9,126
Deferred Income 7,850 7,826
Total 36,389 21,626
Creditors: amounts falling
due after more than one year
Deferred Income 8,465 16,315
Total 8,465 16,315

15 Rent free accommodation

The charity currently benefits from rent free accommodation, which includes a workshop, a retail area and a storage area. The charity has been advised that the landlord is in the process of drawing up a new lease for our current premises which will run to March 2026.

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