GRIT STREET AID
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR
THE YEAR ENDED MARCH 31 2021
Charity number 1183979 Company number CE017905
GRIT STREET AID ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021
I NDEX
| Administrative information | 1 |
|---|---|
| Trustees’ and Directors’ annual report | 2 – 4 |
| Independent examiner’s report | 5 |
| Statement of financial activities | 6 |
| Balance sheet | 7 |
| Notes to the financial statements | 8 – 13 |
GRIT STREET AID ADMINISTRATIVE INFORMATION FOR THE YEAR ENDED MARCH 31 2021
TRUSTEES J Donoughue Chair J Goldstone Treasurer M Chisholm (appointed 19/11/21) V McMahon D Radford (resigned 19/11/21) KEY STAFF V O’Neal (project coordinator) REGISTERED OFFICE AND 6Trojan Gardens PRINCIPAL PLACE OF BUSINESS Salford M7 2JP INDEPENDENT EXAMINER Peter Smith BA FCA DChA ACCOUNTANTS HGA Accountants and Financial Consultants t/a Chittenden Horley - Chartered Accountants 456 Chester Road Old Trafford Manchester M16 9HD BANKERS Lloyds bank plc Lewisham London
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GRIT STREET AID TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021
The trustees present their annual report together with the financial statements of the charity for the year ended March 31 2021.
REPORTING FRAMEWORK
The financial statements comply with the Charities Act 2011, the Constitution, 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 Republic of Ireland (FRS102) (effective 1 January 2019), referred to as the Charities SORP (FRS 102) (second edition – October 2019).
OBJECTIVES AND ACTIVITIES
Charitable objects
The charity is established: “For the public benefit the relief of poverty amongst those who are homeless, facing homelessness or rough sleepers in Greater Manchester who are in need, hardship and distress on account of their social and economic circumstances, in particular but not exclusively by the provision of clothing, bedding, food and drinks, helping to assist in the provision of temporary accommodation, information, advice, employment and education assistance, also signposting on issues related to healthcare, addiction and housing.”
Public benefit
The trustees confirm that they have referred to the Charity Commission's guidance on public benefit when reviewing the Charity's aims and objectives, in planning future activities, and setting the policies for the year
The charity furthers its charitable purposes for the public benefit through in planning our activities for the year we keep in mind the Charity Commission's guidance on public benefit at our trustee meetings.
ACHIEVEMENTS AND PERFORMANCE
During this period, we have been operating a mobile support service for rough sleepers in Greater Manchester. The services now operate 5 days a week Monday to Friday. We provided food, drink, clothing and tent equipment to aid people who live on the street to help them survive. We have also offered advocacy for people where required and liaise with the necessary support groups to meet any specific needs in connection with their wellbeing and accommodation. Across Greater Manchester we provided relief for approximately 50 people per week. A volunteer began voluntary work in March 2020 and later became the second person to be employed by Grit Street Aid on a part time basis in June 2020. In total there are some 10 volunteers.
This year has been challenging for us all at Grit Street Aid, and we have had to adapt our approach as a result of the lockdown restrictions.
We have recently expanded our work to include assisting the local authority’s homeless prevention and mental health teams in their efforts to locate missing persons, 2 of which were located after extensive searches throughout Greater Manchester. We were hoping to develop opportunities for our service users to assist us in our work, but this has proved difficult during the lockdown. We hope to develop this aspect of our work as restrictions are eased.
FINANCIAL REVIEW
Overview and Principal funding sources
We are a recently registered charity and at the start of this financial period we were operating on small donations from the public, and a number of grants and awards. The organisation was run on a purely voluntary basis. We applied for and received funding from Awards for All (£19,996), which covered the wages for the new member of staff. We further received funding from other funders —Salford CVS (£1750), Tesco (£500), Eleanor Peel (£2000), Hill Dickenson (£2,500), Albert Hunt (£2000), Duchy of Lancaster (£2000), Forever Manchester (£19,375).
We have been working with our local CVS and have identified what our financial needs are, where we might get funding from and have applied for further funding. In March 2020 the Covid-19 pandemic started to have an impact on everybody's lives and one of the consequences was that there was an increase in emergency funding which has changed the financial picture for the organisation markedly.
Investment policy
The charity aims to maintain sufficient reserves to meet day to day expenditure.
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GRIT STREET AID TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021
Reserves policy
The trustees aim to maintain free reserves (unrestricted funds not invested in fixed assets or otherwise designated) at a level which equates to approximately three months of charitable expenditure. The trustees consider that this level will provide sufficient funds to respond to applications for grants and ensure that support and governance costs are covered.
This would give a target level at March 31 2021 of c£8k.
Free reserves at March 2021 are £14,112, c£6k above the target level. However, the charity is in its early stages and the need for free reserves will be kept under review.
Going concern
The Charity's main source of income is donations and grants. The Trustees consider that it is appropriate to prepare the accounts on a going concern basis and, consequently, the accounts do not include any adjustments that would be necessary if these sources of income should cease.
FUTURE PLANS
The charity plans continuing the activities outlined above in the forthcoming years subject to satisfactory funding arrangements.
STRUCTURE GOVERNANCE AND MANAGEMENT
Governing Document
Grit Street Aid is a Charitable Incorporated Organisation (CIO) registered with the charity Commission in England and Wales, and is governed by its Trust Deed dated June 19 2019. It has been established as a foundation CIO.
Appointment of trustees
New trustees ae appointed by the existing trustees and serve for an initial period of three years, after which they may put themselves forward for re-appointment. No more than 1/3 of trustees are due for re-appointment in any one year.
Trustee induction and training
Many of those who are appointed trustees are familiar with the work of the charity before taking up office, having attended events and services. On being appointed to the Management Committee, they are invited and encouraged to attend a short meeting to discuss their role with the charity, which covers: polies and procedures; the obligations of the Management Committee and its members; and the financial situation.
Organisation
The charity must have no more than seven and no fewer than three trustees. The charity’s governing document does not specify how often trustees should meet but they currently meet monthly. At these meetings they agree the broad strategy and areas of activity for the charity, including investments, reserves, risk management, and performance.
The day to day management of the charity is currently delegated to the Project Co-ordinator.
Related party transactions and Co-operation with other organisations
None of our trustees receive remuneration or other benefit from their work with the charity. Any connection between a trustee or senior manager with any service providers must be disclosed to the full board of trustees in the same way as any other contractual relationship with a related party. Trustees must declare any conflict of interest as a standard agenda item at each meeting.
There were no related party transactions in the year (2020 – none).
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GRIT STREET AID TRUSTEES’ AND DIRECTORS’ ANNUAL REPORT FOR THE YEAR ENDED MARCH 31 2021
TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS
The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Charity law requires the trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charitable Charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable Charity for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP (FRS 102) (second edition – October 2019);
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures 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 adequate 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. 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.
APPROVAL
Approved by the Management Committee and signed on its behalf by:
J Goldstone – Trustee Date: 31/01/22
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INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF GRIT STREET AID FOR THE YEAR ENDED MARCH 31 2021
I report to the charity trustees on my examination of the accounts of the charity for the year ended March 31 2021 which are set out on pages 6 to 13.
Responsibilities and basis of report
As the charity’s trustees you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the charity’s accounts carried out under section 145 of the Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner's statement
Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.
I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
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:
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accounting records were not kept in respect of the charity as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do 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.
Peter Smith BA FCA DChA
Chittenden Horley Chartered Accountants & Charity Specialists
HGA Accountants and Financial Consultants Ltd Chartered Accountants 456 Chester Road Old Trafford Manchester M16 9HD Date: 31/01/22
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GRIT STREET AID STATEMENT OF FINANCIAL ACTIVITIES (including the income and expenditure account) FOR THE YEAR ENDED MARCH 31 2021
| Notes INCOME Donations 2 Charitable activities 3 TOTAL INCOME EXPENDITURE Costs of raising funds 4 Charitable activities 5 TOTAL EXPENDITURE NET INCOME/(EXPENDITURE) BEFORE TRANSFERS Transfers between funds NET MOVEMENT IN FUNDS TOTAL FUNDS BROUGHT FORWARD 10 CARRIED FORWARD 10 |
Unrestricted Funds £ 19,646 - |
Restricted Funds £ - 20,375 |
Total Total 2021 2020 £ £ 19,646 208 20,375 11,000 |
|---|---|---|---|
| 19,646 | 20,375 | 40,021 11,208 |
|
| - 5,060 |
- 28,273 |
- 48 33,333 3,850 |
|
| 5,060 | 28,273 | 33,333 3,898 |
|
| 14,586 | (7,898) - |
6,688 7,310 - - |
|
| 14,586 (474) |
(7,898) 7,898 |
6,688 7,310 7,424 114 |
|
| 14,112 | - | 14,112 7,424 |
The notes on pages 8 - 13 form part of these financial statements.
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GRIT STREET AID BALANCE SHEET AS AT MARCH 31 2021
| Notes CURRENT ASSETS Debtors 8 Cash at Bank and in Hand CREDITORS Amounts falling due in one year 9 NET CURRENT ASSETS NET ASSETS FUNDS Unrestricted 10 Restricted 10 TOTAL FUNDS |
2021 £ - 15,172 |
2021 2020 2020 £ £ £ - 8,204 8,204 780 14,112 7,424 14,112 7,424 14,112 (474) - 7,898 14,112 7,424 |
|---|---|---|
| 15,172 1,060 |
||
The notes on pages 8 to 13 form part of these financial statements.
Approved by the Trustees and authorised for issue on: 31/01/22
And signed on their behalf by:
J Goldstone - Trustee
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GRIT STREET AID NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021
1 ACCOUNTING POLICIES
Basis of preparation
The financial statements have been prepared: under the historic cost convention; 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 (FRS102) effective January 1 2019 (second edition – October 2019); and the Charities Act 2011 and UK Generally Accepted Practice.
The accounts (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 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) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The charity constitutes a public benefit entity as defined by FRS102.
The financial statements are prepared in £ sterling, the functional currency of the charity.
Estimates and judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Income recognition
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. The following applies to particular types of income:
Grants , whether of a capital or revenue nature, are recognised when the charity has entitlement to the funds, any performance conditions have been met and it is probable that the income will be received.
Donations from individuals and other bodies (not being of the nature of a grant) are recognised when receivable.
Earned income is measured at the fair value of the consideration received or receivable for services and goods supplied, net of discounts and VAT.
Deferred income
Income is only deferred and included in creditors when:
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The income relates to a future accounting period
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A sales invoice has been raised ahead of the work being carried out and there is no contractual entitlement to the income until the work has been done
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Not all the terms and conditions of the grant have been met, including the incurring of expenditure and the grant conditions are such that unspent grant must be refunded
Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
Costs of raising funds including those associated with fundraising activities and managing investments Charitable activities costs of undertaking the work of the charity.
The charity is not registered for VAT and cannot recover any input tax charged. Costs are stated inclusive of VAT were charged.
Allocation of support costs
Support costs are those functions which assist the work of the charity either by supporting the delivery of charitable activities or by supporting the generation of funds. They include back office functions, staff costs, management support, insurance and professional fees. The basis of allocations is set out in note 8.
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GRIT STREET AID NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021
1 ACCOUNTING POLICIES (continued)
Tangible fixed assets and depreciation
Individual fixed assets costing more than £500 are capitalised at cost and would be depreciated over their estimated useful lives on a straight line basis. The charity does not currently have any fixed assets.
Debtors
Trade and other debtors are recognised at the settlement amount due and prepayments are valued at the amount prepaid.
Cash at bank and in hand
Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.
Financial instruments
The charity has only basic financial instruments which are initially recorded at cost, and subsequently measured at their settlement value.
Statement of cashflows
Advantage is taken of the exemptions in the SoRP not to present a statement of cashflows.
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GRIT STREET AID NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021
| Unrestricted 2 DONATIONS & LEGACIES £ Revenue grants Albert Hunt Grant 5,000 Dowager Countess Eleanor Peel Tru 2,500 COVID Response 9,996 Duchy of Lancaster Benevolent Fund 2,000 Donations & legacies Donations - General 150 19,646 3 INCOME FROM CHARITABLE ACTIVITIES Awards for All - Forever Manchester - Groundwork UK - Salford CVS Wellbeing Fund - Total - 4 COSTS OF RAISING FUNDS Other fundraising costs - - 5 CHARITABLE EXPENDITURE Salary costs 12,787 Food 4,625 Clothing and other costs 2,820 Van hire and running costs 10,531 Telephone 414 Staff expenses 327 Support and Governance costs Insurance 535 Office costs & other costs 394 Professional fees 900 Allocated to restricted funds (28,273) 5,060 |
Unrestricted | 2021 Restricted |
Total | Unrestricted | 2020 Restricted Total |
|---|---|---|---|---|---|
| £ - - - - - |
£ 5,000 2,500 9,996 2,000 - 150 |
£ - - - - 208 |
£ £ - - - - - - - - - 208 |
||
| 19,646 | - | 19,646 | 208 | - 208 |
|
| 19,375 500 500 |
- 19,375 500 500 |
- - - - |
10,000 10,000 - - - - 1,000 1,000 |
||
| - | 20,375 | 20,375 | - | 11,000 11,000 |
|
| - | - | - | 48 | - 48 |
|
| - | - | - | 48 | - 48 |
|
| 12,787 4,625 2,820 10,531 414 327 535 394 900 (28,273) |
- - - - - - - - - 28,273 |
12,787 4,625 2,820 10,531 414 327 535 394 900 - |
2,102 - 35 720 153 - - 60 780 (3,102) |
- 2,102 - - 35 - 720 - 153 - - - 60 - 780 3,102 - |
|
| 5,060 | 28,273 | 33,333 | 748 | 3,102 3,850 |
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GRIT STREET AID
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021
| 6 NET INCOMING RESOURCES AFTER TRANSFERS This is stated after charging/(crediting): Accountant/Independent examiner's fees (inc VAT) Report Accountancy Directors' remuneration & trustees' expenses 7 STAFF COSTS Staff costs Salaries and wages Social security costs Pension costs |
2021 2020 £ £ 400 280 500 500 - - 12,787 2,102 - - - - 12,787 2,102 |
|---|---|
No employee earned more than £60,000 in either year.
b Key management personnel
The key management personnel comprise the trustees. Chief executive and consultancy services have been provided by another charity which has charged for its member of staff's time. The trustees do not receive any remuneration for their services.
| The average number of employees during the year was: Charitable 8 DEBTORS Sundry debtors Prepayments & other debtors 9 CREDITORS falling due within one year Social security and other taxes Accruals |
2021 2020 Average Average number number 2 1 2 1 £ £ - - - - - - 1,060 780 1,060 780 |
|---|---|
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GRIT STREET AID NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021
10 STATEMENT OF FUNDS
| 2020/21 Income Expenditure transfers 31/03/2021 £ £ £ £ 19,646 (5,060) - 14,112 19,646 (5,060) - 14,112 - (7,898) - - 19,375 (19,375) - - 500 (500) - - 500 (500) - - 20,375 (28,273) - - 40,021 (33,333) - 14,112 |
2020/21 Income Expenditure transfers 31/03/2021 £ £ £ £ 19,646 (5,060) - 14,112 19,646 (5,060) - 14,112 - (7,898) - - 19,375 (19,375) - - 500 (500) - - 500 (500) - - 20,375 (28,273) - - 40,021 (33,333) - 14,112 |
2020/21 Income Expenditure transfers 31/03/2021 £ £ £ £ 19,646 (5,060) - 14,112 19,646 (5,060) - 14,112 - (7,898) - - 19,375 (19,375) - - 500 (500) - - 500 (500) - - 20,375 (28,273) - - 40,021 (33,333) - 14,112 |
2020/21 Income Expenditure transfers 31/03/2021 £ £ £ £ 19,646 (5,060) - 14,112 19,646 (5,060) - 14,112 - (7,898) - - 19,375 (19,375) - - 500 (500) - - 500 (500) - - 20,375 (28,273) - - 40,021 (33,333) - 14,112 |
2020/21 Income Expenditure transfers 31/03/2021 £ £ £ £ 19,646 (5,060) - 14,112 19,646 (5,060) - 14,112 - (7,898) - - 19,375 (19,375) - - 500 (500) - - 500 (500) - - 20,375 (28,273) - - 40,021 (33,333) - 14,112 |
2020/21 Income Expenditure transfers 31/03/2021 £ £ £ £ 19,646 (5,060) - 14,112 19,646 (5,060) - 14,112 - (7,898) - - 19,375 (19,375) - - 500 (500) - - 500 (500) - - 20,375 (28,273) - - 40,021 (33,333) - 14,112 |
2020/21 Income Expenditure transfers 31/03/2021 £ £ £ £ 19,646 (5,060) - 14,112 19,646 (5,060) - 14,112 - (7,898) - - 19,375 (19,375) - - 500 (500) - - 500 (500) - - 20,375 (28,273) - - 40,021 (33,333) - 14,112 |
|---|---|---|---|---|---|---|
| b/f and c/f 31/03/2020 01/04/2020 £ (474) |
(474) | 7,898 - - - |
7,898 | 7,424 | ||
| 2019/20 rom previous organisation Income Expenditure transfers £ £ £ £ 114 208 (796) - 114 208 (796) - - 10,000 (2,102) - - - - - - - - 1,000 (1,000) - - 11,000 (3,102) - 114 11,208 (3,898) - |
||||||
| f | Unrestricted funds: General fund Total unrestricted funds Restricted Funds: Awards for All Forever Manchester Groundwork UK Salford CVS Wellbeing Fund Total restricted funds |
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GRIT STREET AID NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31 2021
11 ANALYSIS OF COMPANY NET ASSETS BETWEEN FUNDS
| Fund balances at March 31 2021 are represented by:- Net Current assets Fund balances at March 31 2020 are represented by: - Net Current assets |
Unrestricted Funds £ 14,112 |
Restricted Funds Total £ £ - 14,112 |
|---|---|---|
| 14,112 | - 14,112 |
|
| 7,424 | - 7,424 |
|
| 7,424 | - 7,424 |
12 TAXATION
The Company is a registered charity and is entitled to claim annual exemption from UK corporation tax.
13 CAPITAL COMMITMENTS
There were no capital commitments authorised and contracted for at the end of the year (2020 £Nil).
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