The Neighbourly Foundation **Trustees Report and Financial Statements** TRUSTEE REPORT **3** **----- Start of picture text -----**
TRUSTEE REPORT
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## **Contents** |**Contents**
TRUSTEE REPORT|| |---|---| |About the Neighbourly Foundation|**04**| |Report from the Chair of Trustees|**05**| |Purpose and activities|**06**| |Aims and objectives|**08**| |Vision and strategy|**10**| |2021-2022 highlights|**12**| |Achievements and performance|**14**| |Corporate partners|**22**| |Individual donors|**23**| |Trusts and Foundations|**24**| |Charity partners|**26**| |Our commitment to donors and supporters|**27**| |Financial review 2021-22|**28**| |Principal risks and uncertainties|**30**| |Structure governance and management|**31**| |Our charity details|**33**| |Statements of Trustees responsibilities|**34**| |Independent Auditors report|**35**| |Financial statements|**38**| |Statement of fnancial activities for the year ended 31 March 2022|**39**| |Balance sheet at 31 March 2022|**40**| |Cashfow statement for the year ended 31 March 2022|**41**| |Reconciliation of net income to net cash fow|**41**| |Notes to the Financial Statements|**42**| TRUSTEE REPORT TRUSTEE REPORT TRUSTEE REPORT **04** **05** ## **About Us** The Neighbourly Foundation (charity no. 1189514) is an independent foundation which collaborates closely with Neighbourly Limited, the awardwinning giving platform that helps businesses make a **positive impact** by donating volunteer time, money and surplus products to local communities. The Foundation was established as a charity to advance general charitable purposes and operates to grant funds to other charitable organisations and projects. It was set up in response to the COVID-19 pandemic in 2020 to provide easier access to funding for our network of over 21,000 good causes, that support people in need and look after the health and wellbeing of communities across the UK & Ireland. The Foundation provides the route for its corporate partners to ensure funds are delivered efficiently and at scale to pre-vetted local causes that deliver against specific social and environmental impact themes. ## **21,000** Neighbourly connects businesses with over **21,000** vetted local good causes across the UK and Ireland. ## **Report from the Chair of Trustees** The fund subsequently totalled just under £75,000 and was disbursed as micro-grants to help small charities and good causes have a bigger positive environmental impact for local communities. We launched the Foundation at the start of the COVID-19 pandemic in 2020, at a time of unprecedented strain for communities across the country. During the first year we were focused on establishing solid foundations for the charity, whilst supporting our clients and our network of local charities and community organisations through a period of great uncertainty and challenge. At the start of 2022, amid much political and social conversation about the urgent need to build back better and level up, the country entered a new period of challenge with the onset of the cost of living crisis and the outbreak of war in Ukraine. Inflation reached a 40 year high and projections suggested it could hit 15% by the start of 2023, with warnings of ‘pain ahead’. Our second year has been about building on those foundations and growing the profile of the Neighbourly Foundation. We have continued to respond to the impact of the pandemic and the growing desire of corporate partners that want to deliver targeted, fast-response and scalable donation management programmes into the local communities where they operate. What this means for the network of local charities and good causes that the Foundation supports is a further rise in demand for support from hard-hit communities that are suffering from a new wave of poverty issues, access to food and mental health challenges. Our community survey in June 2022 highlighted that 82% of local causes had faced a rise in demand for their services in the past 3 months and 95% believe the cost of living crisis is creating demand for their services from households that have not needed to access support before. At the end of April 2021 our network of charitable organisations stood at around 16,000. 12 months later it was nearing 20,000 and will be closer to 25,000 by the end of 2022. Our aim is to continue to grow and support this charity network and respond to its needs, in line with the corporate funding that we are able to bring into the Foundation. In the financial year 2021-22, we supported many of our founding corporate partners including M&S, the B&Q Foundation, Cadent Gas, Heineken, Southern Co-op, RSA Insurance, Aldi and giffgaff, delivering bespoke and impactful grant programmes. In addition, we are also delighted to have facilitated major new grants programmes on behalf of Virgin Media O2 and Sainsbury’s. In total for this reporting period, the Foundation has made charitable payments of over £3.7 million, which is a 65% increase on the £2.2 million paid out in our first 13 months of operations. In 2021, the Neighbourly Foundation launched its first environmental programme, ‘Seeds of Change’, to coincide with the COP26 conference in Glasgow. This programme brought together financial support from Southern Co-op and RSA Insurance. I would like to thank our trustees for their continued guidance and support, and to the Neighbourly team who provide the resources to ensure that targeted impact is delivered by the Foundation to areas of society most in need. Together with our network of donors, good causes and key partners, we are delighted that we have been able to grow our charitable donations so significantly in our second year of operations, providing much needed support for our local communities and the frontline causes that operate within them. **On behalf of the Board of Trustees of the Neighbourly Foundation, I’m pleased to present our annual report for 20212022, which covers the charity’s second year of operations.** **Steve Butterworth Chair of Trustees** TRUSTEE REPORT TRUSTEE REPORT TRUSTEE REPORT **06** TRUSTEE REPORT **07** ## **Purpose & activities** The purpose of the Neighbourly Foundation is to support charities and good causes that improve the health and wellbeing of communities across the UK and Ireland. The Foundation operates to provide grants to other charitable organisations, enabling our corporate partners to disburse both their own and their employee donations, and respond efficiently to critical need within local communities. The Foundation provides corporate partners the option to make donations on a donor-advised basis, to be deployed as part of an emergency response or via joint partner campaigns that align with the Foundation’s current social and environmental impact themes. **of all money donated is awarded to charity recipients** ## **100%** The Foundation is registered with the Fundraising Regulator and the ICO. The Trustees award grants to not-for-profit organisations based in the UK & Ireland that are either registered with the relevant charity regulator for their region or carry out community activities that are recognised as charitable. The Foundation may also consider proposals from charities that are established outside the UK and noncharitable organisations that are established either in the UK or elsewhere. The type of activity undertaken includes funding projects that address key impact areas: - ⬤ Pandemic recovery - ⬤ Community Investment and Integration - ⬤ Health & Wellbeing - ⬤ Skills for the Future - ⬤ Stewardship of the Environment 100% of all money donated is awarded to charity recipients and there are no minimum and maximum grant amounts. For donor-advised funds, the grant amounts are determined by the client donor. In the case of grants which are intended to be used for emergency aid or according to one of the Foundation’s impact themes, funds are typically administered as micro-grants in the region of £500-£5,000 per charity applying, which allows the fund to minimise risk and extend impact. The Neighbourly Foundation disburses funds generated through several different financial donation mechanisms: - ⬤ Employee Match Giving - ⬤ Grant Management Programmes - ⬤ In-Store Fundraising - ⬤ Online Donations - ⬤ Text-to-Give Donations - ⬤ Resource Circularity - ⬤ Waste Reduction/GHG Emissions TRUSTEE REPORT TRUSTEE REPORT TRUSTEE REPORT **08** **09** ## **Aims and objectives** This report covers the second year of operations for the Foundation, during which time its aims and objectives were focused on of the **building the profile** Foundation with corporate partners and disbursing funds according to current clients’ donation management programmes. There remains an urgent need within communities for help and from businesses wanting a targeted response mechanism for supporting local good causes. The reporting period covers a challenging time, with the ongoing impact of the pandemic, the war in Ukraine and the cost of living crisis creating significant demand on the network of good causes we support. The criteria and measures used to assess success in this period include: Successfully demonstrating our ability to respond to urgent needs, act flexibly and responsibly in support of the charity network, and report back on key impact measures in its first year has allowed the Foundation to further its purposes by engaging with additional corporate partners that understand the importance of building strong communities. - ⬤ Funds donated against impact themes set by the Foundation and donor businesses - ⬤ Number and geographical location of charities and causes supported - ⬤ Estimated number of end-beneficiaries - ⬤ Speed of fund allocation according to individual programme goals ## Aims for the reporting period: - ⬤ Project specific criteria, for example meals provided or number of people in isolation supported - ⬤ Respond effectively to community needs in relation to ongoing pandemic impact and the cost of living crisis - ⬤ Feedback from recipient charities and groups on the social and environmental impact created, including quantitative and qualitative measures - ⬤ Build the profile of the Neighbourly Foundation and its donation management services with existing and prospective clients - ⬤ Programme / client specific KPIs ## Longer-term, the Foundation aims to: ⬤ Continue to respond effectively to community needs, in relation to future waves of COVID-19, the cost of living crisis and other societal or environmental pressures, utilising experience and feedback gained in the reporting period ⬤ Use community insights to inform the direction of corporate programmes - ⬤ Further develop its Impact Reporting capabilities as a key enabler in unlocking additional community investment - ⬤ Build out the potential beneficiary network to over 25,000 charities and community causes by the end of the next reporting period (April 2023) - ⬤ Work with Neighbourly on technology developments to further streamline payment processes - ⬤ Increase its profile and in doing so, extend its reach and impact, working with additional corporate partners - ⬤ Invite additional trustees to join the board TRUSTEE REPORT TRUSTEE REPORT TRUSTEE REPORT **10** ## **Vision and strategy** The vision of The Neighbourly Foundation is to improve the health and wellbeing of local communities and environments by encouraging and facilitating corporate community investment. The Foundation is governed by the charity trustees, who have a duty to apply the Foundation’s assets to advance its objectives and have ultimate responsibility for all grantmaking decisions. The Foundation has a Strategic Partnership Agreement with Neighbourly Ltd under which Neighbourly provides resources to the Foundation free of charge to support its charitable activities. The relationship between the two organisations is one of association and collaboration. Helping people to fulfil their potential and achieve aspirations through educational programmes and support to access jobs that provide financial independence ## The Neighbourly Foundation’s key priorities are to support charities and community causes that are: - ⬤ Working to alleviate hunger, for example by ⬤ Supporting the health and wellbeing of providing food provisions and emergency individuals through programmes that reduce supplies and supporting those campaigning social isolation and deliver community to eliminate the root causes of poverty and the cohesion, support with mental and physical need for charitable food provision health and improve access to healthy environments - ⬤ Supporting elderly or vulnerable members of the community and those suffering economically, socially or from ill health as a result of the pandemic, cost of living crisis, global conflict or other macro forces - ⬤ Improving environmental sustainability through the promotion and creation of green spaces, protection of natural habitats and local biodiversity, acceleration of a low carbon future and waste reduction programmes - ⬤ Helping people to fulfil their potential and achieve aspirations through educational programmes and support to access jobs that provide financial independence TRUSTEE REPORT TRUSTEE REPORT **12** **13** ## **2021-2022 highlights** ## **million** total paid out in grants to charitable organisations and projects from April 2021 to March 2022. **% 65** increase in donations compared to the Foundation’s first 13 month reporting period from March 2020 to March 2021. ## **million** people supported weekly by the charities that have received donations. ## **£75,000** Launch of environmental grants programme ‘Seeds of Change’ to coincide with COP26, donating just under £75,000 as micro-grants to help small charities and good causes with environmental projects **2,900** ## **1.3 million** charities and community causes supported by donations from the Foundation. Launch of donor-led grant programmes with new corporate partners Virgin Media O2 and Sainsbury’s, with payments totalling a combined £1.3 million. TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T **14** ## **Achievements & performance** ## **Neighbourly campaigns** ## ‘Seeds of Change’ Environmental Programme ## The Neighbourly Community Fund Launched in March 2020 as an emergency response to COVID-19, the community fund distributed £1.23 million as £400 micro-grants in its first year (2020-21). Launched in October 2021 to coincide with COP26, the Seeds of Change programme was a Neighbourly-led campaign which brought together support in the form of donations and volunteer time from Southern Co-op, RSA, Cadent, Coca-Cola EP, Danone and M&G. In this reporting period, a further £58.9k was paid out as micro-grants to over 140 charities and community groups, continuing with the original aims of the fund to support communities negatively affected by the pandemic. Just under £75,000 was donated as micro-grants to help small charities and good causes have a bigger positive environmental impact for local communities. In total 186 £400 grants were paid out for this campaign in 2021-22. ## **£58,900** ## **£75,000** **was donated as micro-grants to help small charities and good causes** **was paid out as micro-grants to over 140 charities** **----- Start of picture text -----**
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"The Seeds of Change grant
helped us educate young people
about the field-to-plate process
whilst also teaching them about
nature's positive impact on
emotional well-being"
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TRUSTEE REPORT T R U S T E E R E P O R T T R U S T E E R E P O R T **16** **17** ## **Corporate client programmes** £95,182 was donated to charities and community groups by Cadent’s matched giving initiative through the Neighbourly Foundation. Up to £400 in matched funds was offered to any charities supported by Cadent employees through fundraising or personal donations, with more than 139,000 people supported in the 2021-22 period. “We are a small PTA devoted to improving the learning experience of our children. Cadent’s generosity will allow us to purchase new learning resources , which will benefit the children now and for years to come” Park Hill Junior School £2,849 was donated by M&G through the Neighbourly Foundation as part of their Breaking Barriers Building Futures campaign. Financial donations of around £20 per volunteer were offered alongside volunteering activities to help pay for resources and staff time. Good causes were selected based on proximity to M&G office locations. “About 27 volunteers from M&G and Freshfields joined us to distribute meal packs, clothes, toiletries, bags, blankets and food bank supplies to homeless people, refugees and the elderly in central London. We had an impactful programme that benefitted many disadvantaged members of the community who attended the event.” Refuge Network UK £8,660 was donated by Heineken through the Neighbourly Foundation as part of their Brewing Good Cheer 2021 campaign. £3,606 was donated by giffgaff through the Neighbourly Foundation as part of the ‘giffgaff gives back’ initiative. The campaign offered grants of £150 to charities and good causes nominated by Heineken pubs. Giffgaff gave support through grants of £400 to grassroot causes based in local communities nationwide. “We’ve worked with Neighbourly on our annual Brewing Good Cheer campaign for six years, and over this time, we have hosted hundreds of charities and good causes up and down the country in one of our pubs. During the lockdowns and unable to open to the public, many pubs continued to support their local communities from providing food to hosting online events and fundraising – and through our Brewing Good Cheer campaign we wanted to support these efforts. We worked once again with Neighbourly on a nomination and payment process for our pubs to select local charities to receive a donation from the Neighbourly Foundation to continue their work.” Sam Tarratt, Senior Sustainability & Community Impact Manager, HEINEKEN UK TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T T R U S T E E R E P O R T **18** **19** £161,879 was donated by Southern Co-op through the Neighbourly Foundation as part of their local funding scheme that’s focused on safer, greener, healthier and more inclusive projects, Love Your Neighbourhood Local Partnerships campaign and Food Bank campaign. Good causes across the South of England were able to apply for grants up to £500 as part of the local funding campaign and £500 flat payment for food banks. Varied amounts of up to £3,000 were awarded for the local partnerships. “The funding enabled us to be able to deliver food parcels to our members during the pandemic. Members answered the door with beaming smiles and some with tears of joy for seeing a friendly face. Thank you for this grant, it has made a wonderful positive impact on our members’ mental wellbeing during a very challenging time.” £400,000 was donated by Virgin Media O2 through the Neighbourly Foundation as part of the Virgin Media O2 Together Fund. The fund’s purpose was to supercharge hundreds of local charities across the UK as the nation emerged from the pandemic and to support local charities that champion and celebrate community spirit, belonging and togetherness across the UK. Grants of £1,000 were awarded to environmental and community belonging projects. “We are now able to deliver a much better service to some of the most vulnerable. Without your support our reopening would have suffered” Age Concern Bracknell Forest £272,654 was donated by Aldi through the Neighbourly Foundation as part of their Children’s Cupboard Initiative. Funds were raised through Aldi PR and social media campaigns and through in-store promotions which were distributed as £400 micro-grants to charities that were supporting children with access to food. “Trust House received an Aldi Community Cupboard Grant in March 2021, the £400 awarded has made a **massive impact to our programme** to beat holiday hunger. Over Easter and the May half term, the funds have been used to feed the 60 plus families we support and we will also be able to utilise the funds during the summer break. Thanks to this funding, our families have been able to stretch their budgets further, ensuring that **no child goes hungry** during school holidays.” MHA Communities Trust House Whitefield, Manchester TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T T R U S T E E R E P O R T **20** **21** £963,057 was donated by Sainsbury’s through the Neighbourly Foundation as part of their ‘Helping Everyone Eat Better’ community grants programme and their ‘Help Brighten a Million Christmases’ 2021 initiative. £297,595 was donated by RSA Insurance through the Neighbourly Foundation via the RSA Climate Change and Education Grants. RSA’s dividend forfeiture programme distributed unclaimed dividends to charities, CICs and community organisations that were all working towards climate and risk education goals. Grants ranged from £400 - £15,000 and over 47,000 individuals were supported. For the ‘Helping Everyone Eat Better’ Programme, funds were donated as minimum £500 grants to help charities, CICs and community groups support projects that aim to help people access food, and/or help lift people out of food poverty. “Huge thanks to RSA Group and Neighbourly for the £10,000 grant the Breck Foundation has received from RSA’s Climate Change and Risk Education programme. This grant will enable us to educate 1000s of children and young people in South-East England about online grooming and exploitation” For their Christmas initiative, between 1st-24th December 2021, Sainsbury’s and Argos stores across the UK raised money for a range of good causes through fundraising by store staff, as well as from customers who were invited to offer financial and food donations both in-store and online. Sainsbury’s and Argos matched the value of all financial and food donations in this period, up to a maximum of £1.5 million across all locations. Beneficiary causes were nominated by employees at the participating Sainsbury’s and Argos stores. “This grant was extremely important to our kitchen as we were cooking on sub standard equipment before. It really has helped speed things up and get us to where we need to be.” The Breck Foundation - **47,000** individuals were Book shop Brixton **----- Start of picture text -----**
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TRUSTEE REPORT TRUSTEE REPORT TRUSTEE REPORT **22** **23** ## **Corporate partners** We’d like to thank the Foundation’s corporate partners for their contributions to the Foundation during this period. Without their support and continued dedication to community investment, we would not have been able to positively impact the many thousands of charities and millions of individuals that have benefited from our programmes. Neighbourly Community Fund donors: Neighbourly Foundation clients that have donated to charities in this reporting period: M&S, Lidl, Aldi, Danone, Coca-Cola European Partners, Heineken, giffgaff, Southern Co-op and Jefferies International. - ⬤ The B&Q Foundation Neighbourly ‘Seeds of Change’ donors: - ⬤ Cadent Gas - ⬤ Heineken - ⬤ M&G Southern Co-op and RSA. - ⬤ RSA - ⬤ Southern Co-op - ⬤ giffgaff - ⬤ Virgin Media O2 - ⬤ Aldi - ⬤ Sainsbury’s ## **Individual donors** In the 2021-22 period, a number of partner campaigns facilitated donations from customers, through online payments made on the Neighbourly platform. ## **£1,836** was donated in total by individual donors through partner campaigns, which breaks down as follows: £1,165 direct to the Neighbourly Foundation online £408 from Aldi campaigns £253 from Lidl campaigns £10 from Southern Co-op campaigns - ⬤ M&S TRUSTEE REPORT TRUSTEE REPORT TRUSTEE REPORT **24** **25** T R U S T E E R E P O R T ## **Trust and foundations** In the 2021-22 period, the B&Q Foundation donated £1,421,168 through the Neighbourly Foundation to charities that meet its mission, to help everyone to have a space where they feel at home. The grants are focused on improving the places and spaces of charities who support people who are most in need with a safe and welcoming environment, ranging in value from £500 to £5,000. It is estimated that 208,000 people were positively impacted through these grants. Projects funded include improving, maintaining, providing or creating places to make people feel comfortable, safe and welcome. “Within these spaces, people are encouraged to pause, take a breath, make memories, speak privately, process grief, reflect, find peace, re-fuel and find joy. The accessibility, comfort and visual cohesion that the new furniture has brought make the Quiet Room and Cafe far more appealing and calming environments for our beneficiaries and will continue to for many years.” Mountbatten Hampshire TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T TRUSTEE REPORT **26** **27** ## **Charity partners** Donations have been made to charities through the following programmes: |**Programme**|**Charities supported**| |---|---| |B&Q Foundation|321| |Candent Gas|237| |Heineken|45| |M&G|10| |RSA|62| |Southern Co-op|113| |gifgaf|9| |Virgin Media 02|402| |Aldi|661| |Sainsburys|707| |Neighbourly Community Fund|147| |Neighbourly ‘Seeds of Hope’|186| **2,900 1.1M** charities and community causes supported across all programmes, that helps an average of 375 people every week. people supported weekly by the charities that have received donations from the Foundation. ## Key Sustainable Development Goals supported by The Foundation: |**SDG**|**Grand total**|**% by**
**SDG**| |---|---|---| |Good health and wellbeing|£1,424,447|38%| |No poverty|£622,514|17%| |Zero hunger|£523,213|14%| |Reduced inequalities|£391,563|10%| |Sustainable cities and communities|£229,446|6%| |Life on land|£144,438|4 %4%| |Quality education|£125,255|3%| |Climate action|£122,246|3%| |Gender equality|£73,724|2%| |Other (1% and under)|£103,815|3%| |Grand total|£3,761,413|100%| - Grants are made based on completion of an online application form, which significantly reduces the time it takes for a charity to apply, compared to traditional methods of completing and submitting paper forms. Grant awards are made based on qualifiers against the grant terms and are either made on a first come first served basis, or are awarded based on donor-advised selection or employee nomination. All recipient charities are strictly vetted by our partner Neighbourly Ltd prior to any award being made. ## **Our commitment to donors and supporters** We are grateful for the generosity of our donors and supporters and we commit to: - Safeguard personal details and abide by data protection laws - Work closely with the Foundation’s charity and community cause network to ensure that donations are used for the purpose for which they are given - Distribute donations so they have the maximum impact according to the aims of the funding - Provide impact reports on the social and environmental benefits of the donations - Be open and transparent about vetting and distribution processes and procedures - Encourage feedback and foster close relationships - Provide the services of a dedicated support team TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T T R U S T E E R E P O R T **28** **29** ## **Financial review 2021-22** During this reporting period, the Neighbourly Foundation received £3.994m of restricted funding and donated £3.76m in grants to charitable organisations. ## **Where our income** ## **comes from** All of our income has come from charitable donations, either from the Foundation’s corporate partners, trusts and foundations, individual donors or Neighbourly Ltd. All donations are treated as restricted with the exception of Neighbourly Ltd, whose donation is to support running costs of the charity. **----- Start of picture text -----**
Individual Neighbourly
donations - Ltd -
£1,836 £26,988
(0%) (0.5%)
Trusts and Corporate
Foundations - Donations -
£1,466,343 £2,498,745
(36.8%)
(62.7%)
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## **Where we spend our income** Our sole activity is granting funds to other charitable organisations and projects, therefore this accounts for 99% of our spend. Any administrative costs, for example audit fees, insurance etc, are covered by donations from Neighbourly Ltd. **----- Start of picture text -----**
Administrative
costs -£23,600
(1%)
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Grants to
charitable
organisations
and projects -
£3,761,300 (99%)
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## **Reserves** The majority of cash at bank is restricted with only a small balance being unrestricted. Grants are then made to charitable organisations from balances held on behalf of corporate and other donors. Unrestricted funds are held to cover the running costs of the charity including, for example, audit fees and insurance. Under the Strategic Partnership Agreement with Neighbourly Ltd, all resources to enable the charity to operate e.g. access to the Neighbourly platform and staff costs, are provided free of charge. The trustees have concluded that it is necessary to maintain only minimal reserves to cover the running costs of The Neighbourly Foundation and at any time sufficient reserves are held to cover three months of committed expenditure. At the period end the charity had total reserves of £781k with restricted reserves of £771k and unrestricted reserves of £10k. The restricted reserves are not available for general purposes of the charity and are to be donated to other charitable organisations in the next period. ## **Going concern** The trustees have a reasonable expectation that The Neighbourly Foundation has adequate resources through its partnership with Neighbourly Ltd to continue to operate for the foreseeable future. Hence the annual financial statements have been prepared on the going concern basis. Please refer to the Notes to the Financial Statements for further detail. TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T TRUSTEE REPORT **30** **31** ## **Principal risks and uncertainties** The Neighbourly Foundation has been proactive in providing guidance to its network of causes regarding the management of risks, whilst continuing to survey causes periodically to ensure we remain responsive to changing needs. Neighbourly continues to expand its number of corporate partners donating through the Foundation in order to provide relevant support for local good causes and communities. The Foundation is operating in a challenging environment due to a number of factors. The ongoing impacts of the pandemic and cost of living crisis are creating a huge strain on the charitable sector, as well as long-term financial and health implications for beneficiaries. The ongoing pandemic, inflation, cost of living crisis and war in Ukraine are expected to create significant uncertainties and spikes in demand for charities and community organisations, whilst they face reduced funding and resources, increased costs and reduced volunteer capacity. The UK is also facing ongoing upheaval as a result of Brexit and rising energy costs which are plunging more families into poverty. An additional threat for communities is climate related disasters, including flooding. ## **Structure governance and management** The Neighbourly Foundation is a company limited by guarantee (12541286) (England and Wales) incorporated 31 March 2020 and is registered with the Charity Commission as a charity (1189514). It is governed by its Memorandum and Articles of Association adopted on the same date. Resolution of 13 September 2021, to all The Articles contain a conflict of trustees from time to time. The liability interest provision to ensure that of each member under the guarantee Neighbourly Connected Directors is £1. cannot participate in any decision making that the trustees recognised The Foundation has a Strategic as Independent Directors consider Partnership Agreement with relates to the relationship between Neighbourly Ltd under which the Neighbourly Foundation and Neighbourly has agreed to provide Neighbourly. resources to the Foundation free of charge for the Foundation to pursue its Board meetings are held quarterly, charitable purposes. The relationship some of which during the reporting between the two organisations is period have been held virtually. one of association and collaboration and not one involving direction or **Related parties** control. Neighbourly Ltd recognises Steve Butterworth acts as the Chair and understands that the trustees of the charity and is also the CEO of have responsibility for governing the Neighbourly Ltd. Chris Kelly is nonFoundation and does not interfere executive Director of Neighbourly Ltd. in the day to day running of the Both own shares in that company. Foundation. Neighbourly does not act in any way that prejudices the independent decision-making of the trustees or which inhibits the trustees’ ability to fulfil their charity law duties. ## **Objects** The Objects of the Foundation as set out in the Memorandum and Articles of Association. The Foundation has been established to advance general charitable purposes for the public benefit and will operate principally by granting funds to charitable organisations and projects which are charitable under the law of England and Wales (provided that the Charity may not further any purposes which are not charitable in accordance with the laws of Scotland and Northern Ireland). Steve Butterworth acts as the Chair of the charity and is also the CEO of Neighbourly Ltd. Chris Kelly is nonexecutive Director of Neighbourly Ltd. Both own shares in that company. ## **Organisation** The charity was established on 31 March 2020 as a company limited by guarantee, with Neighbourly Ltd as its sole member. Further to a Special Resolution of 26 February 2021 the membership was transferred from Neighbourly Ltd to Howard Russell, one of its trustees, and further to a TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T TRUSTEE REPORT **32** **33** ## **Our charity details** ## **Charity Name:** The Neighbourly Foundation **Registered Charity Number:** 1189514 (England and Wales) **Registered Company number:** 12541286 (England and Wales) ## **Remuneration** None of our trustees receive remuneration or other benefit from their work with the charity. ## **Recruitment of Trustees** The charity ended the year with four trustees supporting the charity. As the charity grows it will aim to recruit additional trustees who have the skills the charity needs to develop. It values the benefits of having members with different backgrounds, expertise and experience. ## **Trustee induction and training** All new trustees will undertake an induction programme, which includes visiting our partner Neighbourly, understanding the roles and duties of the trustees, company and charity law and governance, and financial and risk management. ## **Risk management** The trustees are cognisant of the reliance that the Foundation has on its partnership with Neighbourly. The trustees regularly seek assurances that support remains in place and will do so for the foreseeable future. ## **Public Benefit** The trustees confirm they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives, and in planning future activities. The Neighbourly Foundation’s focus on pandemic recovery, community health and wellbeing, skills development and environmental stewardship, working in partnership with local charities and community groups, will have a direct and positive benefit on individuals that are isolated, marginalised or vulnerable and those living in deprived neighbourhoods. ## **Fundraising Standards** The trustees are aware of current legislation and updated guidance from the Charity Commission. We are a fully contributing member to the Fundraising Regulator and follow best practice in our fundraising. We are compliant with the regulation where it applies to us. We do not contract with third party fundraising organisations. **By order of the board of trustees Steve Butterworth (Chair)** ## **Trustees and Directors:** Steve Butterworth (Chair of Trustees) Chris Kelly Howard Russell Nicholas Smailes ## **Registered office:** Engine Shed, Station Approach, Redcliffe, Bristol BS1 6QH ## **Bankers:** Lloyds Bank, 3rd Floor, 25 Gresham Street, London, EC2V 7HN ## **Legal advisers:** Bates Wells, 100 Queen Street Place, London, EC4R 1BE ## **Auditors:** Bishop Fleming LLP, 10 Temple Back, Bristol, BS1 6FL TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T **35** ## **Statements of Trustee responsibilities** The charity trustees (who are also the directors of the Neighbourly Foundation for the purposes of company law) are responsible for preparing a **Trustees’ Annual Report** and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies. - ⬤ Select suitable accounting policies with the Companies Act 2006. They and then apply them consistently; are also responsible for safeguarding the assets of the charity and the group - ⬤ Observe the methods and and hence taking reasonable steps for - principles in the Charities SORP; the prevention and detection of fraud - ⬤ Make judgements and estimates and other irregularities. In so far as that are reasonable and prudent; the trustees are aware at the time of approving our Trustees’ Annual Report: Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to: - ⬤ State whether applicable UK accounting standards have ⬤ There is no relevant information, been followed, subject to any being information needed by material departures disclosed the auditor in connection with and explained in the financial preparing their report, of which statements; and the group’s auditor is unaware, and - and - ⬤ Prepare the financial statements on the going concern basis unless ⬤ The trustees, having made it is inappropriate to presume enquiries of fellow directors and that the charity will continue in the group’s auditor that they ought business. to have individually taken, have each taken all steps that he/she - The trustees are responsible for is obliged to take as a director in - keeping adequate accounting records order to make themselves aware - that disclose with reasonable accuracy at any time the financial position of the of any relevant audit information and to establish that the auditor is - charity and to enable them to ensure aware of that information. The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply ## **Independent Auditors report** Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Other information** ## **Opinion** We have audited the financial statements of The Neighbourly Foundation (the ‘charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). The other information comprises the information included in the Annual report other than the financial statements and our Auditors’ report thereon. The trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. ## **Conclusions relating to going concern** In our opinion the financial statements: - ⬤ Give a true and fair view of the state of the charitable company’s affairs as at 31 March 2022 and of its incoming resources and application of resources, including its income and expenditure for the period then ended; In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. - ⬤ Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and We have nothing to report in this regard. - ⬤ Have been prepared in accordance with the requirements of the Companies Act 2006 ## **Basis for opinion** Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Steve Butterworth - Chair of Trustees Date: 31 October 2022 TRUSTEE REPORT T R U S T E E R E P O R T **37** - ⬤ We have not received all the information and explanations we require for our audit; or **Opinion on other matters prescribed by the companies act 2006** - ⬤ The trustees were not entitled - **2006** to prepare the financial statements in accordance with - In our opinion, based on the work the small companies regime undertaken in the course of the audit: and take advantage of the - ⬤ The information given in the small companies’ exemptions in Trustees’ Report for the financial preparing the Trustees’ Report and period for which the financial from the requirement to prepare a statements are prepared is Strategic report. consistent with the financial statements. **Responsibilities** ## **Responsibilities of the trustees** - ⬤ The Trustees’ Report has been prepared in accordance with applicable legal requirements. As explained more fully in the Trustees’ Responsibilities statement, the trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. **Matters on** **which we are required to report by exception** In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report. - In preparing the financial statements, - We have nothing to report in respect the trustees are responsible for of the following matters in relation to assessing the charitable company’s which Companies Act 2006 requires us ability to continue as a going concern, to report to you if, in our opinion: disclosing, as applicable, matters related to going concern and using - ⬤ Adequate accounting records the going concern basis of accounting - have not been kept, or returns unless the trustees either intend to adequate for our audit have not liquidate the charitable company or to been received from branches not cease operations, or have no realistic visited by us; or alternative but to do so. - ⬤ The financial statements are not in agreement with the accounting records and returns; or - ⬤ Certain disclosures of trustees’ remuneration specified by law are not made; or ## **Auditors’** ## **responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors’ Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - ⬤ We have considered the nature of the sector, control environment and financial performance; - ⬤ We have considered the results of enquiries with management and trustees in relation to their own identification and assessment of the risk of irregularities within the entity; and - ⬤ We have reviewed the - documentation of key processes and controls and performed walkthroughs of transactions to confirm that the systems are operating in line with documentation. As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override. - We have also obtained understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, FRS 102 and UK tax legislation. In addition, we considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or avoid a material penalty. Our procedures to respond to risks identified included the following: - ⬤ Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - ⬤ Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; - ⬤ Reviewing board meeting minutes; - ⬤ Enquiring of management in relation to actual and potential claims or litigations; ⬤ Performing detailed transactional testing in relation to the recognition of revenue with a particular focus around year-end cut off; and In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgments made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business. - ⬤ We also communicated identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit. - Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org. uk/auditorsresponsibilities. This description forms part of our Auditors’ report. ## **Use of our report** This report is made solely to the trustees in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an Auditors’ Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the trustees for our audit work, for this report, or for the opinions we have formed. **David Butler FCA DChA (Senior statutory auditor)** for and on behalf of **Bishop Fleming LLP Chartered Accountants Statutory Auditors** **10 Temple Back, Bristol, BS1 6FL** **Date: 31 October 2022** TRUSTEE REPORT T R U S T E E R E P O R T TRUSTEE REPORT **38** **39** ## **Financial Statements** The trustees present their annual report together with the audited financial statements of the Charity for the year ended 31 March 2022. The Annual Report serves the purposes of both a Trustees’ Report and a Directors’ Report under company law. The trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the **charitable company’s governing document** and the provisions of the Statement of Recommended Practice (SORP) 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). Since the Charity qualifies as small under section 383 of the Companies Act 2006, the Group Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013 has been omitted. Statement of financial activities for the year ended 31 March 2022 ||Notes|Unrestricted Funds|Restricted Funds|2022 Total Funds|2021 Total Funds|| |---|---|---|---|---|---|---| |||£’000|£’000|£’000|£’000|| |Income from:||||||| |Donations and legacies|2|27|3,967|
3,994|
2,841|| |Other income|3|-|-|-|22|| |Total||27|3,967|3,994|2,863|| |Expenditure on:||||||| |Charitable activities|5|23|3,761|3,784|2,292|| |Total||23|3,761|3,784|2,292|| |Net income/(expenditure)||4|206|210|571|| |Reconciliation of funds:||||||| |Total funds brought forward||6|565|571|-|| |Net movement||4|206|210|571|| |Total funds carried forward||10|771|781|571|| The Statement of Financial Activities includes all gains and losses recognised in the period. The notes on pages 42 to 48 form part of these financial statements. TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T T R U S T E E R E P O R T **40** **41** ## Balance sheet at 31 March 2022 ||Notes|2022|2021| |---|---|---|---| |||£’000|£’000| |Current assets|||| |Debtors|10|165|16| |Cash at bank||631|569| |Total||796|585| |Creditors|||| |Amounts falling due within one year|11|(15)|(14)| |Net current assets/(liabilities)||781|571| |Total assets less current liabilities||781|571| |Total net assets
Charity funds
Restricted funds
Unrestricted funds
Total funds|12
12|781
771
10
781|585
565
6
571| The trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the trustees and signed on their behalf by: ## Cashflow statement for the year ended 31 March 2022 ||2022|2021| |---|---|---| ||£’000|£’000| |Cash fows from operating activities:||| |Net cash provided by / (used in operating activities)|62|569| |Change in cash and cash equivalents in the reporting period|62|569| |Cash and cash equivalents at the beginning of the period|569|-| |Cash and cash equivalents at the end of the period|631|569| ## Reconciliation of net income to net cash flow ||2022|2021| |---|---|---| ||£’000|£’000| |Net income for the period:|210|571| |Adjustments for:||| |Decrease/(increase) in debtors|(149)|(16)| |Increase in creditors|1|14| |Net cash provided by operating activities|62|569| Steve Butterworth - Chair of Trustees Date: 31 October 2022 The notes on pages 42 to 48 form part of these financial statements. TRUSTEE REPORT TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T **42** **43** ## **Notes to financial statements** ## **General Information** The Neighbourly Foundation is a charitable company limited by guarantee and not having a share capital, registered in England and Wales. The registered office is Engine Shed, Station Approach, Bristol, BS1 6QH. The members of the charity are the Trustees named below: Steve Butterworth Chris Kelly Howard Russell Nicholas Smailes ## **1. Accounting Policies** ## **BASIS OF PREPARATION OF FINANCIAL STATEMENTS** The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The Neighbourly 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. ## **GOING CONCERN** ## **EXPENDITURE** The accounts have been prepared on a going concern basis which assumes that sufficient working capital will be available for operational requirements. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. To conclude on this basis the trustees reviewed the cash flow forecast to October 2023 (12 months from the date of signing). As ongoing funding from Neighbourly Ltd is also key in our considerations, the budget and cash flow forecasts of the company were also reviewed. No material uncertainties were identified. ## **INCOME** 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. Grants are included in the Statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued. Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity’s objectives, as well as any associated support costs. Grants payable are charged in occurs before income is received, the the period when the offer is made income is accrued. except in those cases where the offer Other income is recognised in the is conditional, such grants being period in which it is receivable and recognised as expenditure when the to the extent the goods have been conditions attaching are fulfilled. provided or on completion of the Grants offered subject to conditions service. which have not been met at the period end are noted as a commitment, but not accrued as expenditure. All expenditure is inclusive of irrecoverable VAT. ## **INTEREST RECEIVABLE** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited. ## **DEBTORS** Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. ## **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. ## **LIABILITIES AND PROVISIONS** Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost. ## **FINANCIAL INSTRUMENTS** The Charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method. ## **FUND ACCOUNTING** General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements. Investment income, gains and losses are allocated to the appropriate fund. TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T TRUSTEE REPORT **45** **44** ## 2. Income from donations and legacies ||2022|2021| |---|---|---| ||£’000|£’000| |Restricted - Donations|3,967|2,841| |Unrestricted - Donations|27|-| |Total|3,994|2,841| ## 3. Other incoming resources ||resources|| |---|---|---| ||2022|2021| ||£’000|£’000| ||27|22| Income from participating interests - Unrestricted ## 4. Analysis of grants |||2022|2021| |---|---|---|---| |||£’000|£’000| |Grants|to|institutions
3,761|2,276| The Neighbourly Foundation provides micro-grants to support good causes in line with the charitable objectives. Further analysis can be found under the ‘Charity Partners’ heading earlier in this report ## 5. Analysis of expenditure on charitable activities ||2022|2021| |---|---|---| ||£’000|£’000| |Unrestricted funds|23|16| |Restricted funds|3,761|2,276| |Charitable activities|3,784|2,292| ## 6. Allocation of ## support costs Support costs of £23,000 are allocated to charitable activities. These costs include Marketing costs (£10,000), audit and accountancy fees (£9,000), legal fees (£1,000), bank fees (£1,000) and insurance (£2,000). All other support costs are borne directly by Neighbourly Limited and are not recharged to The Neighbourly Foundation as it is not possible for the allocation to be accurately determined. ## 7. Auditors ## remuneration The auditors’ remuneration amounts to an auditor fee of £8,500, and preparation of accounts of £2,000. ## 8. Staff costs Staff costs are borne wholly by Neighbourly Limited and not recharged to The Neighbourly Foundation. ## 9. Trustees’ ## remuneration and ## expenses During the period, no trustees received any remuneration or other benefits. During the period ended 31 March 2022, no trustee expenses have been incurred. ## 10. Debtors ## 11. Creditors: Amounts falling ||2022|2021||2022|2021| |---|---|---|---|---|---| ||£’000|£’000||£’000|£’000| |Due within one year|||Other creditors|-|1| |Trade debtors|140|-|||| ||||Accruals and deferred||| |Amounts owed by|25|16|income|15|13| |participating interests|||||| |Total|165|16|Total|15|14| ## 12. Statement of funds |**Statement of funds**|Opening balance|Income|Expenditure|Transfers|Balance at 31 March| |---|---|---|---|---|---| |**current period**|at 1 April 2021|||in/out|2022| |||£’000|£’000|£’000|£’000| |Unrestricted funds|||||| |Income from participating interests|6|27|(23)|-|10| |Restricted funds|||||| |B&Q|-|1,466|(1,421)|-|45| |Cadent|6|113|(95)|-|24| |Lidl|5|125|-|(5)|125| |RSA|29|315|(298)|(2)|44| |Sainsbury’s|-|1,238|(963)|-|275| |Southern Co-op|100|114|(162)|(17)|35| |Aldi|301|-|(273)|-|28| |VM02|-|400|(400)|-|| |Good health & well-being|31|20|(12)|8|47| |Climate change|11|-|-|-|11| |Reduced inequalities|1|19|(4)|-|16| |Volunteering support|-|75|-|-|75| |Community fund - SOC|-|66|(74)|32|24| |Community fund - COVID19|81|16|(59)|(16)|22| |Total of funds|565
571|3,967
3,994|(3,761)
-
(3,784)||771
781| TRUSTEE REPORT TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T **46** **47** 1. |**Statement of funds**|Opening balance|Income|Expenditure|Transfers in/out|Balance at| |---|---|---|---|---|---| |**prior period**|at 1 March 2020||||31 March 2021| |||£’000|£’000|£’000|£’000| |Unrestricted funds|||||| |Income from participating|-|22|(16)|-|6| |interests|||||| |Restricted funds|||||| |B&Q|-|589|(589)|-|-| |RSA|-|318|(289)|-|29| |Southern Co-op|-|143|(43)|(5)|100| |Aldi|-|374|(73)|(2)|301| |Community fund - COVID19|-|1,289|(1,228)|-|81| |Good health & well-being|-|89|(32)|-|37| |Climate change|-|11|-|-|11| |Reduced inequalities|-|23|(22)|-|1| |Zero hunger|-|5|-|-|5| ||-|2,841|(2,276)|-|565| |Total of funds||2,863|(2,292)|-|571| projects that aim to help people to access food, and/ or help lift people out of food poverty. spirit, belonging and togetherness. **B&Q:** These funds are allocated to support projects that are improving, maintaining, providing or creating places to make people feel comfortable, safe and welcome. **Community Fund - COVID-19:** These funds were restricted to support local communities suffering as a result of the pandemic. **Southern Co-op:** These funds were allocated to good causes local to Southern Co-op stores that support people with food provision or help deliver greener, safer, healthier and more inclusive neighbourhoods. **Cadent:** These funds are restricted to fund causes that Cadent employees are passionate about and match their own fundraising efforts. ## **Community Fund - (SOC) Seeds of Change** **Environmental Fund:** These funds were donated as micro-grants to help small charities and good causes have a bigger positive environmental impact for local communities. **Aldi:** These funds were allocated to food banks and aid organisations supporting children with food provision. **RSA:** RSA’s dividend forfeiture programme distributed unclaimed dividends to charities, CICs and community organisations that were all working towards climate and risk education goals. **Virgin Media O2:** The fund’s purpose was to supercharge local charities across the UK as the nation emerged from the pandemic and to support groups that champion and celebrate community We also have a number of smaller funds that support good health & well-being; climate change; reduced inequalities and zero hunger. **Sainsbury’s:** These funds were donated to help charities, CICs and community groups support ## 13. Summary of funds |**Statement of funds**|Opening balance at|Income|Expenditure|Transfers in/|Balance at 31| |---|---|---|---|---|---| |**current period**|1st April 2021|||out|March 2022| |||£’000|£’000|£’000|£’000| |General funds|6|27|(23)|-|10| |Restricted funds
Total|565
571|3,967
3,994|(3,761)
(3,784)|-
-|771
781| |**Statement of funds**|Opening balance at|Income|Expenditure|Transfers in/|Balance at 31| |---|---|---|---|---|---| |**prior period**|1st March 2020|||out|March 2021| |||£’000|£’000|£’000|£’000| |General funds|-|27|(16)|-|6| |Restricted funds
Total|-|2,841
2,863|(2,276)
(2,292)|-
-|565
571| ## 14. Analysis of net assets between funds - current period ||Unrestricted funds|Restricted funds|Total funds|Total funds| |---|---|---|---|---| ||2022|2022|2022|2021| ||£’000|£’000|£’000|£’000| |Current assets|25|771|796|585| |Creditors due within one year|(15)|-|(15)|(14)| |Total|10|771|781|571| ## 15. Reconciliation of net movement in funds to net cash flow from operating activities ||2022|2021| |---|---|---| ||£’000|£’000| |Net income for the period (as per SOFA)|210|571| |Adjustments for:|-|-| |Decrease/(increase) in debtors|(149)|(16)| |Increase in creditors|1|14| |Net cash provided by operating activities|62|569| TRUSTEE REPORT TRUSTEE REPORT TRUSTEE REPORT T R U S T E E R E P O R T **48** ## 16. Analysis of cash and cash equivalents |
cash equivalents||| |---|---|---| ||2022|2021| ||£’000|£’000| |Cash at bank and in hand|631|569| |Total cash and cash equivalents|631|569| ## 17. Analysis of changes in net debt |
net debt||| |---|---|---| |Cash fows|2022|2021| |£’000|£’000|£’000| |Cash at bank and in hand
631|631|569| ## 18. Member’s liability Each member of the charitable company undertakes to contribute to the assets of the company in the event of it being wound up while he/she is a member, or within one year after he/she ceases to be a member, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before he/she ceases to be a member. ## 19. Related party transactions The Neighbourly Foundation has not entered into any related party transaction during the period, nor are there any outstanding balances owing between related parties and The Neighbourly Foundation at 31 March 2022. Trustees remuneration and expenses is detailed in note 9. ## 20. Controlling ## party There is no registrable person or registrable relevant legal entity at the date of signing. TRUSTEE REPORT TRUSTEE REPORT The Neighbourly Foundation **Trustees Report and Financial Statements**