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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- 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:
- examine the accounts under section 145 of the 2011 Act;
- 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
- 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:
- (1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act 2011; and
- 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