Charity registration number: 1185614
The 2 Minute Foundation
Annual Report and Financial Statements
for the period from 4 October 2019 to 31 December 2020
Fruition Accountancy LLP 29 Wood Street Stratford-upon-Avon Warwickshire CV37 6JG
The 2 Minute Foundation
Contents
| Reference and Administrative Details | 1 |
|---|---|
| Trustees' Report | 2 to 3 |
| Statement of Trustees' Responsibilities | 4 |
| Independent Examiner's Report | 5 |
| Statement of Financial Activities | 6 |
| Balance Sheet | 7 |
| Notes to the Financial Statements | 8 to 13 |
The 2 Minute Foundation
Reference and Administrative Details
Trustees
Kate Jane Cox
Emma Thomasson (appointed 24 February 2020) Melvyn John Garrett (appointed 23 February 2020) Andrew James Cummins (resigned 25 March 2021) Adam James Hall
Principal Office
Charity Registration Number Independent Examiner
2 St Helen's Close Croyde Devon EX33 1PW 1185614
Fruition Accountancy LLP 29 Wood Street Stratford-upon-Avon Warwickshire CV37 6JG
Page 1
The 2 Minute Foundation
Trustees' Report
The trustees present the annual report together with the financial statements of the charity for the period ended 31 December 2020.
Objectives and activities
Objects and aims
To promote conservation, protection and improvement of the physical and natural environment. To advance the education of the public by providing all information, advice and raising awareness on issues surrounding waste generation, waste management and waste recycling primarily across the UK and Ireland with global aspirations.
Public benefit
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
Achievements and performance
We have employed a further 3 individuals on top of the 8 employees at inception during 2020. We have set up The 2 Minute Beach School and expanded the Guardian Angel Network programme. We set up a charity shop that sells items of clothes donated by Surfdome that was destined to landfill raising funds and awareness of The 2 Minute Foundation.
We set up the #2minutesofpositivity campaign in March 2020 when the pandemic hit the UK to empower people to do something positive for 2 minutes or more to build people’s awareness of mental health and wellbeing during this unprecedented time. The campaign continues to build traction.
We have just started working alongside a waste company to make Stations from 100% recycled marine litter destined to landfill that will be rolled out across the UK.
We are developing our App to be a leader in its field thanks to corporate support received.
Financial review
Policy on reserves
Since inception, The 2 Minute Foundation has received a number of designated funds, which are held back for the planned projects. Due to this unprecedented period (Coronavirus), revenue streams via shop income, and donations have been a crucial part of its funding for its central costs. As a new charity, we have received large cash injections from the trading arm, The Beach Clean Network Limited, which was the NGO that we transitioned from. We aim to hold reserves of £50,000, representing 5 months budgeted normal operating expenditure (pre Covid-19).
Structure, governance and management
Nature of governing document
The foundation was registered as an Charitable Incorporated Organisation (CIO) on 4 October 2019 and is governed by a CIO constitution. The foundation commenced it's activities on 1 January 2020.
Recruitment and appointment of trustees
Trustees are appointed by the board inviting them for interview. Once all of the board are in agreement then the trustee is appointed.
Page 2
The 2 Minute Foundation
Trustees' Report
The annual report was approved by the trustees of the charity on 17 June 2021 and signed on its behalf by:
......................................... Melvyn John Garrett Trustee
Page 3
The 2 Minute Foundation
Statement of Trustees' Responsibilities
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial period 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 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;
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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 disclosed and explained in the financial statements; and
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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 business.
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, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees 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.
Approved by the trustees of the charity on 17 June 2021 and signed on its behalf by:
......................................... Melvyn John Garrett Trustee
Page 4
The 2 Minute Foundation
Independent Examiner's Report to the trustees of The 2 Minute Foundation
I report on the accounts of the charity for the year ended 31 December 2020 which are set out on pages 6 to 13.
Respective responsibilities of trustees and examiner
The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to:
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examine the accounts under section 145 of the 2011 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 2011 Act; and
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to 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 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 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 next statement.
Independent examiner's statement
In connection with my examination, no matter has come to my attention:
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(1) which gives me reasonable cause to believe that in any material respect the requirements:
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to keep accounting records in accordance with section 130 of the Charities Act 2011; and
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to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
......................................
29 Wood Street Stratford-upon-Avon Warwickshire CV37 6JG
17 June 2021
Page 5
The 2 Minute Foundation
Statement of Financial Activities for the Period from 4 October 2019 to 31 December 2020
| Note Income and Endowments from: Donations and legacies 2 Charitable activities 3 Other trading activities 4 Other income 5 Total Income Expenditure on: Raising funds 6 Charitable activities 7 Total Expenditure Net movement in funds Reconciliation of funds Total funds carried forward 12 |
Unrestricted funds £ 41,922 38,486 23,979 26,840 131,227 (17,317) (83,501) (100,818) 30,409 30,409 |
Restricted funds £ - 74,414 - - 74,414 - (8,662) (8,662) 65,752 65,752 |
Total 31 December 2020 £ 41,922 112,900 23,979 26,840 |
|---|---|---|---|
| 205,641 | |||
| (17,317) (92,163) |
|||
| (109,480) | |||
| 96,161 | |||
| 96,161 |
All of the charity's activities derive from continuing operations during the above period.
Page 6
The 2 Minute Foundation
(Registration number: 1185614) Balance Sheet as at 31 December 2020
| Note Current assets Debtors 10 Cash at bank and in hand Creditors: Amounts falling due within one year 11 Net assets Funds of the charity: Restricted funds Unrestricted income funds Unrestricted funds Total funds 12 |
31 December 2020 £ 28,180 68,783 |
|---|---|
| 96,963 (802) |
|
| 96,161 | |
| 65,752 30,409 |
|
| 96,161 |
The financial statements on pages 6 to 13 were approved by the trustees, and authorised for issue on 17 June 2021 and signed on their behalf by:
......................................... Melvyn John Garrett Trustee
Page 7
The 2 Minute Foundation
Notes to the Financial Statements for the Period from 4 October 2019 to 31 December 2020
1 Accounting policies
Statement of compliance
The financial statements have been prepared in accordance with 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 (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
Basis of preparation
The 2 Minute Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
Exemption from preparing a cash flow statement
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
Income and endowments
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
Donations and legacies
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
Expenditure
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
Raising funds
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Page 8
The 2 Minute Foundation
Notes to the Financial Statements for the Period from 4 October 2019 to 31 December 2020
Charitable activities
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Support costs
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
Governance costs
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
Taxation
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Trade debtors
are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of is established when there is objective evidence that the will not be able to collect all amounts due according to the original terms of the receivables.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Fund structure
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
Page 9
The 2 Minute Foundation
Notes to the Financial Statements for the Period from 4 October 2019 to 31 December 2020
2 Income from donations and legacies
| Donations and legacies; Donations from companies, trusts and similar proceeds Donations from individuals |
Unrestricted funds General £ 18,076 23,846 41,922 |
Total 31 December 2020 £ 18,076 23,846 |
|---|---|---|
| 41,922 |
3 Income from charitable activities
Unrestricted funds
| Unrestricted funds | ||
|---|---|---|
| Designated £ General £ Grants 4,536 33,950 4 Income from other trading activities Trading income; Shop income from sale of donated goods and services Sales of goods and services |
Restricted funds £ 74,414 Unrestricted funds General £ 385 23,594 23,979 |
Total 31 December 2020 £ 112,900 |
| Total 31 December 2020 £ 385 23,594 |
||
| 23,979 |
5 Other income
Other income of £26,840, is made up of Government Coronavirus grants totalling £23,340, an apprenticeship grant of £3,000, and donated services of £500.
Page 10
The 2 Minute Foundation
Notes to the Financial Statements for the Period from 4 October 2019 to 31 December 2020
6 Expenditure on raising funds
a) Costs of trading activities
| Fundraising costs Costs of goods sold |
Unrestricted funds General £ 14,873 2,444 17,317 |
Total 31 December 2020 £ 14,873 2,444 |
|---|---|---|
| 17,317 |
7 Expenditure on charitable activities
Unrestricted funds
| Grants Allocated support costs Governance costs |
General £ 2,089 80,612 800 83,501 |
Restricted funds £ 8,662 - - 8,662 |
Total 31 December 2020 £ 10,751 80,612 800 |
|---|---|---|---|
| 92,163 |
8 Analysis of governance and support costs
Governance costs
| Independent examiner fees | Unrestricted funds General £ 800 800 |
Total 31 December 2020 £ 800 |
|---|---|---|
| 800 |
Page 11
The 2 Minute Foundation
Notes to the Financial Statements for the Period from 4 October 2019 to 31 December 2020
9 Taxation
The charity is a registered charity and is therefore exempt from taxation.
10 Debtors
| 10 Debtors | |
|---|---|
| Trade debtors Prepayments Accrued income VAT recoverable Other debtors |
31 December 2020 £ 1,464 1,016 5,183 46 20,471 |
| 28,180 |
11 Creditors: amounts falling due within one year
| 11 Creditors: amounts falling due within one year | |||
|---|---|---|---|
| Accruals 12 Funds Unrestricted funds General Unrestricted Fund Designated Urestricted Designated Fund Total unrestricted funds Restricted funds Restricted Fund Total funds |
Incoming resources £ 126,691 4,536 131,227 74,414 205,641 |
Resources expended £ (100,818) - (100,818) (8,662) (109,480) |
31 December 2020 £ 802 |
| Balance at 31 December 2020 £ 25,873 4,536 |
|||
| 30,409 65,752 |
|||
| 96,161 |
Page 12
The 2 Minute Foundation
Notes to the Financial Statements for the Period from 4 October 2019 to 31 December 2020
13 Analysis of net assets between funds
| 13 Analysis of net assets between funds | |||
|---|---|---|---|
| Current assets Current liabilities Total net assets |
Unrestricted funds General £ 31,211 (802) 30,409 |
Restricted funds £ 65,752 - 65,752 |
Total funds £ 96,963 (802) |
| 96,161 |
Page 13