Annual Report and Accounts 2021
COMPANY NUMBER: 12380538 (Limited by Guarantee) CHARITY NUMBER: 1188681 (England and Wales)
THE BREAKING BREAD TRUST
Annual Report and Accounts for the year ended 31 December 2020
Annual Report and Accounts 2021
The Breaking Bread Trust
Annual Report and Financial Statements for the year ended 31 December 2020
| C O N T E N T S | |
|---|---|
| Trustees’ Report | 3 |
| Company Information | 5 |
| Objectives and Activities | 6 |
| Financial Review | 7 |
| Reserves Policy | 7 |
| Structure Governance and Management | 8 |
| Examination of the Accounts | 9 |
| Independent Examiner’s report on the Accounts | 10 |
| Statement of Financial Activities (SoFA) | 11 |
| Balance Sheet | 12 |
| Notes | 13 |
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Annual Report and Accounts 2021
TRUSTEES’ REPORT
Annual Report Trustees 2019-2020
Introduction
For a new organisation, the trust has been extremely busy in its first year due to the impact of the Covid19 pandemic on the most disadvantaged parts of our community. Initial focus was to provide hot meals to frontline NHS staff during the first lockdown from Apr-May 2020. This expanded into a partnership with MENCAP in the London borough of Harrow to provide hot meals 3 times to 50 families whilst they isolated. The trust established partnerships with local restaurants including Taste of Lahore, Punjab Grill and Desi Dhaba to provide the hot meals.
In June 2020, the trustees decided to focus on long term food poverty alleviation and a full fledge food bank was established. The trust continues to support nearly 80 families on a monthly basis with essential food parcels through support and partnerships with Morrissons, London Community Kitchen and a grant from the London Community Foundation.
Staff Team
Food Bank Operations Manager – Mazhar Hussain
A team of dedicated volunteers assist Mr Hussain with food parcels preparation and delivery.
Trustee Team
Ahmed Raza Azam Saqib Ahmed Mohammad Hamza Saghir Nadeem Hussain (resigned 23 November 2020)
Finance
Rizwah Sheikh
Website
www.breakingbreadtrust.org
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Annual Report and Accounts 2021
Incidents and Complaints
The trust received no complaints during the period ending 30 December 2020.
Promotion and Publicity
The trust publicised its services and activities through social media channels including the website, Facebook, Twitter and Instagram.
International
The Breaking Bread Trust did not carry out any charitable activities outside of United Kingdom.
Meetings
Trustees held regular meetings throughout the year to manage the trust’s operations, partnerships and ensuring trust’s premises remained covid compliant.
Outlook
Trust continues to provide vital food support to the most disadvantaged in the London borough of Harrow and surrounding areas. Focus remains to those parts of the society who find it most difficult to access public funds. These include, refugees, asylum seekers, recently unemployed, fleeing domestic violence, etc. Large proportion of recipients are from disadvantaged ethnic backgrounds and are referred to the trust by established community organisations.
Trust has ambitions to expand to provide a Soup kitchen, Clothing bank and a collaborative space for other charitable organisations looking to alleviate mounting mental health issues, with a particular focus on youth.
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Annual Report and Accounts 2021
COMPANY INFORMATION
31[st] December 2020
INCORPORATED England on Date 30 December 2019 COMPANY NUMBER 12380538 (Limited by Guarantee) CHARITY NUMBER 1188681 in England and Wales DIRECTORS Ahmed Raza Azam Saqib Ahmed Mohammad Hamza Saghir Nadeem Hussain (Resigned 23 November 2020) COMPANY SECRETARY Saqib Ahmed REGISTERED OFFICE 249D Station Road, Harrow, HA1 2TB BANKERS Natwest Bank 315 Station Road Harrow HA1 2AD INDEPENDENT EXAMINER Salman Maqbool (FCA) Adam Accounting Services Ltd. Technology House 151 Silbury Boulevard Central Milton Keynes MK9 1LH
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Annual Report and Accounts 2021
OBJECTIVES AND ACTIVITIES
The Breaking Bread Trust was established on 30 December 2019. It operates as a charity in the not-for-profit sector and is an independent organisation.
Objectives
The objectives of the charity are:
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a) The prevention or relief of poverty in the United Kingdom and elsewhere in the world by providing grants, items and services to individuals in need and/or charities, or other organisations working to prevent or relieve poverty;
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b) To promote social inclusion for the public benefit by preventing people in the United Kingdom and elsewhere from becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society.
The trustees are aware of guidance issued by the Charity Commission on public benefit.
No grants were made in the first year as the focus of the charity has been to provide direct benefit to recipients during the pandemic. This will be reassessed once the pandemic subsides.
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Annual Report and Accounts 2021
FINANCIAL REVIEW
The Statement of Financial Activities shows a net surplus of £2,020.00 relating to sum of unrestricted and restricted funds for 2019/20.
Restricted funds carried forward at 31 December 2020 were £8,033.00.
Bank balances as at year end were £15,130.00.
We are therefore confident we have sufficient reserves carried forward in excess of our reserve requirements
RESERVES POLICY
The Board of Trustees has examined the charity’s requirements for reserves in light of the main risks to the organisation. It has been established to maintain overall reserve of 5% of the income received from all sources.
The reserves are needed to meet the working capital requirements of the charity and the Board of Trustees are confident that at this level they would be able to continue the current activities of the charity in the event of a significant drop in funding.
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Annual Report and Accounts 2021
STRUCTURE GOVERNANCE AND MANAGEMENT
Governing Document
The Breaking Bread Trust is a charitable company limited by guarantee, established originally in 30 December 2019 and then incorporated as a company limited by guarantee in England and Wales. The company was established under a Memorandum of Association, which sets out the objects and powers of the charitable company and is governed by its Articles of Association.
Recruitment and Appointment of Trustees
The directors of the company are also charity trustees for the purposes of charity law.
Risk Management
The Trustees have reviewed and approved all the main policies required to run as an effective charity. Financial reviews are conducted once a quarter to ensure the trust can continue to run it operations smoothly and has stable donations to cover its expenses. Upon establishing a full fledge food bank, trust carried out a full health & safety as well as Covid assessment to ensure trust’s premises remain safe for volunteer staff to operate in.
Organisational structure
The trust is managed by the three trustees who oversee all aspects of the organisational activities.
Day-to-day responsibility for the provision of the foodbank services rests with the foodbank operations manager. He has responsibility for the day-to-day operational management of the service, individual supervision of the volunteer staff team and ensuring that the team continues to develop their skills and working practices in line with good practice. This is monitored through regular supervision and a monthly meeting with at least one of the trustees.
Related parties
There are no related party transactions other than those stated here. A loan given to the Charity by Mr M H Saghir for £10,000.00. This was to facilitate cashflow. As at the year-end the balance remained payable.
A loan was given by Mr Nadeem Hussain for £1,600.00. This was to help with cashflow. By 17[th] December 2020 this was repaid in full to Mr Nadeem Hussain.
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Annual Report and Accounts 2021
EXAMINATION OF THE ACCOUNTS
As the charity’s income was under £250,000 the Trustees dispensed with an audit of the financial statements and instructed that they be independently examined.
This report has been prepared in accordance with the special provision of Part 15 of the Companies Act 2006 relating to small companies.
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Annual Report and Accounts 2021
Independent examiner's report to the trustees of The Breaking Bread Trust
Report to the The Breaking Bread Trust trustees/ members of 31 December 2020 On accounts for the year ended
31 December 2020 Charity no 12380538 England and Wales
I report on the accounts of the company for the year ended 31 December 2021, which are set out on pages 11 – 18.
Responsibilities and The trustees (who are also the directors of the company for the purposes of company law) are basis of report 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. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination by being a qualified member of The Institute of Chartered Accountants of England and Wales.
Having satisfied myself that the charity is not subject to audit under company law and is eligible for independent examination, 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
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to state whether particular matters have come to my attention
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
In connection with my examination, no matter has come to my attention :
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examiner’s statement (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 386 of the Companies Act 2006 and
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to prepare accounts which accord with the accounting records, comply with the accounting requirements of section 396 of the Companies Act 2006 and with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities 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
Name:
Date: Salman Maqbool 23/12/2021
Registered Body The Institute of Chartered Accountants in England and Wales Relevant professional qualification Chartered Accountant Address: 151 Silbury Boulevard, Central Milton Keynes, MK9 1LH
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Annual Report and Accounts 2021
Charity No. 1188681 in England and Wales Company No. 12380538 incorporated in England (limited by guarantee)
Statement of Financial Activities (SoFA) Year ended 31 December 2020
The charity has no other recognised gains or losses other than those included in the accounts.
Grant of £700 was received to purchase food for the food bank.
The notes on pages 13-18 form part of these financial statements.
.
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Annual Report and Accounts 2021
Charity No. 1188681 in England and Wales Company No. 12380538 incorporated in England (limited by guarantee) Accounting period: 30.12.2029 – 31.12.2020
BALANCE SHEET AS AT 31 December 2020
| 2020 £ Note FIXED ASSETS 9 846 CURRENT ASSETS Stock 668 Cash at bank and in hand 15,130 TOTAL CURRENT ASSETS 15,798 Creditors: amounts falling due within one year 10 14,424 NET CURRENT ASSETS 1,374 NET ASSETS 2,220 FUNDS OF THE CHARITY 11 Restricted income funds 5,813 - Unrestricted funds 8,033 TOTAL FUNDS 2,220 |
2020 £ Note FIXED ASSETS 9 846 CURRENT ASSETS Stock 668 Cash at bank and in hand 15,130 TOTAL CURRENT ASSETS 15,798 Creditors: amounts falling due within one year 10 14,424 NET CURRENT ASSETS 1,374 NET ASSETS 2,220 FUNDS OF THE CHARITY 11 Restricted income funds 5,813 - Unrestricted funds 8,033 TOTAL FUNDS 2,220 |
|---|---|
| Restricted income funds | |
| Unrestricted funds TOTAL FUNDS |
|
| 2,220 |
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Annual Report and Accounts 2021
Charity No. 1188681 in England and Wales Company No. 12380538 incorporated in England (limited by guarantee) Accounting period: 30.12.2019 – 31.12.2020
Trustees' responsibilities
The company was entitled to exemption from audit in accordance with section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of the accounts for the year in question in accordance with section 476 of the Companies Act 2006.
accounting records and the preparation of accounts.
These accounts have been prepared in accordance with the provisions applicable to small companies subject to the small companies regime and in accordance with FRS102 SORP.
The trustees declare that they have approved the trustees’ report (including director’s report) above.
Signed on behalf of all the charity’s trustees/directors
………………………………….……………….
S Ahmed
The Breaking Bread Trust
23 December 2021
……………………………………………….
Date of approval
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Annual Report and Accounts 2021
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 December 2020
1 Accounting Policies
The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as summarised below. They have been applied consistently throughout the year and in the preceding year.
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 accounts have been prepared in accordance with:
with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 and with the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
Change of accounting policy
The accounts present a true and fair view and no changes have been made to the accounting policies adopted in the year end accounts. There were no changes made as a result of adopting FRS 102 in the accounts prepared.
Changes to accounting estimates
No changes to accounting estimates have occurred in the reporting period.
Fund Accounting
Unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity. Restricted funds are spent according to the terms specified by the donor.
Recognition of income
These are included in the Statement of Financial Activities (SoFA) when:
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the charity becomes entitled to the resources;
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it is more likely than not that the trustees will receive the resources;
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the monetary value can be measured with sufficient reliability.
Offsetting
There has been no offsetting of assets and liabilities, or income and expenses, unless required or permitted by the FRS 102 SORP or FRS 102.
Grants and donations
Grants and donations are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS102 SORP). Grants and donations are only included in the SoFA when the general income recognition criteria are met (5.10 to 5.12 FRS102 SORP).
In the case of performance related grants, income must only be recognised to the extent that the charity has provided the specified goods or services as entitlement to the grant only occurs when the performance related conditio are met (5.16 FRS 102 SORP).
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Annual Report and Accounts 2021
Support costs
The charity has incurred expenditure on support costs.
Volunteer help
The value of any voluntary help received is not included in the accounts but is described in the trustees’ annual report.
Income from membership subscriptions
Membership subscriptions which gives a member the right to buy services or other benefits are recognised as income earned from the provision of goods and services as income from charitable activities.
Liability recognition
Liabilities are recognised where it is more likely than not that there is a legal or constructive obligation committing the charity to pay out resources and the amount of the obligation can be measured with reasonable certainty.
Governance and support costs
Support costs have been allocated between governance costs and other support. Governance costs comprise all costs involving public accountability of the charity and its compliance with regulation and good practice.
Grants with performance conditions
such grants are only recognised in the SoFA once the recipient of the grant has provided the specified service or output.
Redundancy cost
The charity made no redundancy payments during the reporting period.
Creditors
The charity has creditors which are measured at settlement amounts less any trade discounts.
Foreign currencies
Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transactio Exchange differences are taken into account in arriving at the operating result.
Tangible fixed assets for use by charity
Fixed assets (excluding investments) are stated at cost less accumulated depreciation.
Depreciation is provided at rates calculated to write off the cost of each asset over its estimated useful life.
Office Equipment
20% Straight line
Stocks and work in progress
Stocks held for sale as part of charitable trade are measured at the lower or cost or net realisable value.
Cash at bank and in hand
Cash at bank and cash 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.
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Annual Report and Accounts 2021
2 Legal Status
The company is limited by guarantee and therefore has no share capital. In the event of the company being wound up and the liabilities and winding up expenses being in excess of assets, the liability of each member is limited to £1.
3 Investment income
Investment income arises from interest bearing deposit accounts.
4 Resources expended on charitable activities
| Food purchases Rent, Rates & Utilities Property repairs and maintenance Zakat Governance costs Note 5 General expenses/IT |
Unrestricted funds Restricted income funds Total funds 2020 2020 2020 £ £ £ 3,340 - 3,340 12,624 - 12,624 11,070 - 11,070 592 592 500 - 500 1,972 - 1,972 |
|---|---|
| Total | £29,506 £592 £30,098 |
5 Support Costs
| Governance: Independent Examiners fees | Unrestricted funds Total 2020 2020 £ £ |
|---|---|
| 500 500 | |
| Total | £500 £500 |
6 Staff Costs
The charity had no paid staff through out the reporting period.
No employee had emoluments in excess of £60,000 (2020: nil). The charity trustees were not paid or received any other benefits from employment within the year. No charity Trustee received payment for professional services supplied to the charity (2020: nil).
7 Corporation Tax
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Annual Report and Accounts 2021
8 Tangible fixed assets
| Cost Additions Disposals Depreciation Charge for year At 30.12.2019 At 31.12.2020 Acc. dep.charge on disposal At 31.12.2020 Net book value At 30.12.2019 At 31.12.2020 9 Creditors and accruals Accruals Total |
Fixtures and Machinery £ 1,056 1,056 211 211 - 845 2020 £ 4424 £4,424 |
|
|---|---|---|
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Annual Report and Accounts 2021
10 Charity funds
the charity; and U - unrestricted funds
| Details of material funds held and movements during the CURRENT reporting period | Details of material funds held and movements during the CURRENT reporting period | Details of material funds held and movements during the CURRENT reporting period | Details of material funds held and movements during the CURRENT reporting period | Details of material funds held and movements during the CURRENT reporting period | Details of material funds held and movements during the CURRENT reporting period | Details of material funds held and movements during the CURRENT reporting period | ||
|---|---|---|---|---|---|---|---|---|
| Fund names | Type PE, EE R or **UR *** |
Purpose and Restrictions |
Fund balances brought forward |
Income | Expendit ure |
Transfers | Gains and losses |
Fund balances carried forward |
| £ | £ | £ | £ | £ | £ | |||
| UR | donations | 22987 | 29507 | - | - | -6520 |
||
| UR | investments | 7 | 7 | |||||
| Independent Food | UR | Grant | 700 | - | - | 700 | ||
| London Community | R | charitable activity |
8,625 | 592 | - | - | 8033 | |
| Other funds (balancing figure) |
N/a | N/a | - | - | - |
- | - | - |
| Total Funds as per balance sheet | 0 | 32,319 | 30,099 | - | 2,220 |
|||
£700 grant received was towards purchasing food.
11 Transactions with trustees and related parties
None of the trustees have been paid any remuneration or received any other benefits from an employment with their charity or a related entity.
Loans from Trustee:
On 30 March 2020 Mr M H Saghir (Trustee) had loaned the Charity £10,000.00 to provide cashflow. As at the year end this balance was due to him. The balance was paid back to him on 17 October 2021.
A loan was given by Mr Nadeem Hussain for £1,600.00. This was to help with cashflow. By 17 December 2020 this was repaid in full to Mr Nadeem Hussain.
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