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2022-03-31-accounts

FARESHARE NORTH EAST

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Charity Number: 1189901

DEBÉRE LIMITED

Chartered Accountants Swallow House Parsons Road Washington Tyne and Wear NE37 1EZ

FARESHARE NORTH EAST

FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

CONTENTS PAGES
Officers and professional advisers 1
Trustees’ annual report 2 to 5
Independent Examiners Report 6
Statement of financial activities 7
Balance sheet 8
Notes to the financial statements 9 - 21

FARESHARE NORTH EAST

MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS

YEAR ENDED 31 MARCH 2022

Reference and Administrative Information

Registered Office Stamfordham Road
Westerhope
Newcastle upon Tyne
NE5 5HH
Board of Trustees Sir Paul Ennals
Craig Bankhead
Jane Streather
Jane Tiplady
Andrew Hook
Graeme Heron
Molly Dunne
Chief Executive Jake Hanmore
Independent Examiner Debére Limited
Chartered Accountants
Swallow House
Parsons Road
Washington
Tyne & Wear
NE37 1EZ
Bankers Unity Trust Bank Plc
4 Brindley Place
Birmingham
B1 2JB

FARESHARE NORTH EAST

REPORT OF THE TRUSTEES

YEAR ENDED 31 MARCH 2022

The trustees present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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).

Objectives & Activities

The charity’s objectives are contained in its Foundation Constitution, which states (a) the relief of poverty and the promotion of good health and nutrition in North East England by redistributing surplus produce (in particular food) to organisations working to meet the needs of individuals in social, economic, health-related or emotional distress, and the needs of children; and (b) the conservation, protection and improvement of the physical environment through the reduction of food waste. The trustees have referred to the guidance in the Charity Commission’s general guidance on public benefit when reviewing aims and objectives, and in planning future activities. In particular, the trustees consider how planned activities will contribute to the aims & objectives they have set.

Now into its second year as a fully registered charity, building on a decade of experience operating as a Community Interest Company as part of Changing Lives, FareShare North East has gone from strength to strength. The high water mark of our activities during the Covid-19 Pandemic has subsided, leaving behind a sustainable charity that is capable of delivering double the amount of impact based on levels before the Pandemic.

As anticipated, the number of groups FareShare North East supports has reduced to a more manageable level of 220 groups throughout the year, compared to 356 during the previous year. The amount of food redistributed has also decreased to 1,470 tonnes, down from 2,021, over the course of the year. To give comparison to before the Pandemic, FareShare North East redistributed just 637 tonnes across the whole of 2019, to an average of just over 100 community groups. Being able to scale up to respond to Covid-19 quickly, and being able to return to operate sustainably at more than double the former capacity, shows that FareShare North East has adapted well to life as an independent charity and can expect to deliver sustainable growth in future. Details of specific aims, activities, and achievements are included in the Achievements and Performance section of the Trustees Report below.

Achievements & Performance

FareShare North East serves one of 21 regions covered by the FareShare Network. In partnership with FareShare UK, FareShare North East covers the geographic North East of England, working to re-distribute fit for purpose, in-date, quality surplus products from the food industry to charities and community groups. A wide range of groups benefit, including school breakfast clubs, drop-in centres, homelessness projects and pantries.

During the reporting year of 2021/22, FareShare North East redistributed 1,470 tonnes of food to 220 charities, which contributed towards providing 3.4 million meals in the community. Although less food was redistributed overall, this should be seen as a successful return to a new normal, with FareShare North East now able to sustainably support the redistribution of twice as much food compared to before the pandemic.

YEAR ENDED 31 MARCH 2022

FARESHARE NORTH EAST

REPORT OF THE TRUSTEES (continued)

Financial Review

Now into the second full year of operating as an independent charity, FareShare has managed to establish sufficient reserves to ensure it can continue to operate sustainably. These reserves have enabled FareShare to confidently continue to serve many of the community groups that it signed up during the Covid-19 pandemic, as well as having an eye towards future growth and capacity improvements.

One of these major capacity improvements was agreed by the Board of Trustees early in the year, which involved investing in a substantially larger chiller and freezer to give capacity for future growth. This chiller was funded out of core costs, on the understanding that FareShare UK, the national charity responsible for the wider network, fully supported these growth plans and suggested that they would shortly be in a position to retrospectively fund such endeavours. The relevant funding was received as expected early in the current financial year.

As with the previous Annual Report, risks to food volume were identified as a key threat to future sustainability. Investing in capacity to receive more food and continuing to carefully manage existing inventory are key measures to help mitigate this risk, with FareShare North East continuing to do both carefully and sustainably.

Additionally, this year the hive up process between the old Community Interest Company that FareShare used to operate with and the CIO took place, with all assets and resources from the CIC transferring to the CIO, which are now represented in this set of accounts.

Principal Funding Sources

The charity has a mix of funding sources, from grants, trusts, corporate partners, and contributions from community groups through membership of FareShare North East’s redistribution activities. In past years this last stream of income, the community group membership, has formed the vast majority of income for the charity.

Notable funders this year include:

During the year a hive-up transfer from the dormant Community Interest Company that FareShare used to operate took place, with recent funders of the CIC noted in this year’s Annual Report for the CIO.

Reserves Policy

As at 31 March 2022 the total unrestricted reserves were £229,860, of which £60,000 belongs to a designated fund for closure costs, £88,301 belongs to a designated capital fund whilst £81,559 consists of unrestricted funds available to cover operational costs.

The Trustees have set a reserves target of the equivalent of at least 6 months operational costs, plus the equivalent of any associated redundancy and winding up costs as the minimum value of unrestricted reserves to be held at any one time. This creates a target for 2022/23 of £291,693. Currently the unrestricted reserve is £81,559 and the closure cost fund £60,000. Whilst this is significantly below our reserves target, trustees are confident that we will make progress towards the target in the coming financial year. The main reason for the drop is that during the year a new chiller was purchased costing over £70,000 and a transfer was made to the capital fund to cover the NBV of this asset. Funding was received from FareShare UK after the end of the year to cover this acquisition and this grant will be reflected in the accounts for 2022/23.

FARESHARE NORTH EAST

REPORT OF THE TRUSTEES (continued)

YEAR ENDED 31 MARCH 2022

Plans for Future Periods

The key objectives for the charity in 2022/23 are:

Structure, Governance, and Management

Governing Document

The charity is registered as a Charitable Incorporated Organisation with the Charity Commission. The charity is governed by a Foundation Model Constitution document.

Recruitment and Appointment of New Trustees

The current trustees of the charity were appointed during the formation and registration of the organisation with the Charity Commission. Trustees are appointed for terms of no more than four years, and can serve no more than three consecutive terms. New trustees, up to a maximum of 12, can be appointed by the existing trustees.

Organisational Structure

The charity is governed by the Board of Trustees who are responsible for setting the strategic direction of the organisation and establishing policy. A Chief Executive is appointed by the Trustees to manage the day to day affairs of the charity.

Induction and Training of New Trustees

All new Trustees receive an induction briefing from the Chair and are invited to visit the regional centre in Newcastle to gain a greater understanding of how the organisation performs its work. As opportunities present themselves, Trustees are encouraged to attend external training events provided by organisations such as VONNE or Connected Voice that support the third sector in the North East.

Key Management Remuneration

All senior management pay scales are determined by the Board of Trustees and are in line with local and national roles at an equivalent level.

Wider Network

FareShare North East forms part of the FareShare network. As part of this national group the operations of FareShare North East are restricted to the North East of England, however there are opportunities to collaborate with the wider national network, especially in applying to certain types of funding.

FARESHARE NORTH EAST

REPORT OF THE TRUSTEES (continued) YEAR ENDED 31 MARCH 2022

Risk Management

The charity has an Executive Sub-committee, consisting of the Chair, Treasurer, and two experienced Trustees. Along with the Chief Executive, this Sub-committee meets quarterly to review key risks. These risks are assessed and logged in a comprehensive risk register, which covers risks including, but not limited to, Governance, External Risks, Finance, Operations, Regulatory, and Compliance.

Trustees’ responsibilities in relation to the Financial Statements

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the income resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are responsible for safeguarding the assets of the charity and, hence, taking reasonable steps for the prevention and detection of fraud and other irregularities.

Independent Examiner

A Resolution to appoint Claire Miller at Debére Limited as Independent Examiner for the ensuing year will be proposed at the Annual General Meeting.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Approved by the trustees on 6 September 2022 and signed on its behalf by

Sir Paul Ennals - Chair

FARESHARE NORTH EAST

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF FARESHARE NORTH EAST

YEAR ENDED 31 MARCH 2022

I report on the accounts of the Charitable Incorporated Organisation for the year ended 31 March 2022, which are set out on pages 7 to 21.

Respective Responsibilities of Trustees and Examiner

The charity’s trustees are responsible for the preparation of the accounts. The charity’s trustees consider that an audit is not required for this period under section 144(2) of the Charities Act 2011 (‘the 2011 Act’), and that an independent examiners report is needed.

It is my responsibility to:

Basis of Independent Examiners Report

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the accounts present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent Examiner’s Statement

In connection with my examination, no matter has come to my attention:

have not been met; or

Claire Miller BA (Hons) FCA Independent Examiner

ON BEHALF OF DEBÉRE LIMITED Chartered Accountants

Swallow House Parsons Road Washington Tyne and Wear NE37 1EZ

Date: 6 September 2022

FARESHARE NORTH EAST

STATEMENT OF FINANCIAL ACTIVITIES

YEAR ENDED 31 MARCH 2022

Note
Unrestricted
Funds
General
£
Unrestricted
Funds
Designated
£
Restricted
Funds
£
Income from:
Other trading activities
4
17,243
–
–
Charitable activities
5
387,800
–
123,233
Donations and legacies
43,604
–
–
Total income
448,647
–
123,233


Expenditure:
Charitable activities
447,798
18,628
42,821
Total expenditure
6
447,798
18,628
42,821



Net incoming / (outgoing)
resources before transfers
8
849
(18,628)
80,412
Transfers
Gross transfers between funds
(85,765)
85,765
–
Net movement in funds
(84,916)
67,137
80,412
Total funds brought forward
166,475
81,164
61,341
Total funds carried forward
81,559
148,301
141,753


 Total
Funds
2022
£
17,243
511,033
43,604
571,880

509,247
509,247

62,633
–

62,633
308,980
371,613
 Total
Funds
2021
£
18,563
546,158
3,812
568,533
259,553
259,553
308,980
–
308,980
–
308,980

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derives from continuing activities.

The notes on pages 9 to 21 form part of these financial statements

FARESHARE NORTH EAST Charity Number: 1189901 BALANCE SHEET

31 MARCH 2022

Notes
Fixed assets
Intangible assets
9
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors:amounts falling due within one
year
12
Net current assets
Creditors: amounts falling due after
more than one year
13
Net assets
Net assets
Funds
Restricted funds
14
Unrestricted funds:
15
Designated funds
General funds
Total charity funds
16		 2022
£
2,680
188,560
90,166
223,097
313,263
(108,013)
£
191,240
205,250
(24,877)
371,613
141,753
148,301
81,559
371,613
 2021
£
£
1,780
47,099
48,879
171,390
195,530
366,920
(106,819)
260,101
–
308,980
61,341
81,164
166,475
308,980

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)).

For the year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors/trustees responsibilities:

These financial statements were approved by the Board of Trustees on 6 September 2022 and signed on their behalf by:

Sir Paul Ennals Chair

The notes on pages 9 to 21 form part of these financial statements

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

Basis of preparation of financial statements

The financial statements have been prepared in accordance with the charity’s governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)”. The charity is a Public Benefit Entity as defined by FRS 102.

The address of the charity’s registered office and principal place of business is Stamfordham Road, Westerhope, Newcastle upon Tyne, NE5 5HH.

.

Fareshare North East 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

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the levels of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

Fund accounting

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of overheads and support costs.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Income

Income is recognised in the period in which the charity is entitled to receipt and the amount can be measured with reasonable certainty. Income is deferred only when the charity has to fulfil conditions before becoming entitled to it or where the donor has specified that the income is to be expended in a future period.

Voluntary income received by way of donations and gifts to the charity is included in full in the Statement of Financial Activities when received. Intangible income is not included unless it represents goods or services which would have otherwise been purchased. Gifts in kind are valued and brought in as income and the appropriate expenditure. There were no gifts in kind in the year ended 31 March 2022.

Investment income

Interest is included when receivable by the charity.

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES (continued)

Expenditure

All expenditure is accounted for on an accruals basis.

Charitable activities include all costs relating to activities where the primary aim is part of the objects of the charity along with the indirect costs. The indirect costs have been apportioned on a reasonable basis.

Governance costs include salary (approximately 10% of Chief Executive Officer role) cost attributable to the management of the charity’s assets, organisational and administration and compliance with constitutional and statutory requirements. Governance costs also include audit and accountancy fees as well as the Annual General Meeting costs.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the Statement of Financial Activities on a straight-line basis over the period of the lease.

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 held at bank and cash in hand.

Liabilities and provisions

Liabilities are recognised when there is an obligation at the Statement of Financial Position 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 within interest payable and similar charges.

Financial instruments

The charity has elected to apply the provisions of Section 11 “Basis Financial Instruments” of FRS 102, in full to all of its financial instruments. All of the charities financial assets and financial liabilities qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Pension costs

The charity provides a defined contribution scheme for employees. The assets of the scheme are held separately from those of the charity. The annual contributions payable are charged to the Statement of Financial Activities.

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES (continued)

Intangible Assets and Amortisation

Intangible assets are initially recorded at cost and are subsequently stated at cost less any accumulated amortisation and impairment losses.

Amortisation is calculated so as to write off the cost of an asset, less it’s estimated residual value, over the useful economic life of that asset as follows:

Website development

33% straight line

Tangible Fixed Assets and Depreciation

Tangible fixed assets are capitalised and included at cost.

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:

Equipment 15% reducing balance Motor vehicles 25% reducing balance

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense unless these costs are required to be capitalised as an intangible or tangible fixed asset.

Employees are only entitled to carry forward unused holiday entitlement in exceptional circumstances, and only by agreement with management. The cost of any unused entitlement is recognised in the period in which the employee’s services are required.

Critical Accounting Estimates and Areas Of Judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectation of future events that are believed to be reasonable under the circumstances.

The only significant area of judgement is the useful economic lives of fixed assets, details of which are given above.

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

2. STATEMENT OF FINANCIAL ACTIVITIES FOR THE PRIOR YEAR

Note
Unrestricted
Funds
General
£
Unrestricted
Funds
Designated
£
Restricted
Funds
£
Income from:
Other trading activities
4
18,563
–
–
Charitable activities
5
370,519
–
175,639
Donations and legacies
3,812
–
–
Total income
392,894
–
175,639

Expenditure:
Charitable activities
138,941
6,314
114,298
Total expenditure
6
138,941
6,314
114,298


Net incoming / (outgoing)
resources before transfers
8
253,953
(6,314)
61,341
Transfers
Gross transfers between funds
(87,478)
87,478
–
Net movement in funds
Total funds brought forward
–
–
–
Total funds carried forward
166,475
81,164
61,341

3.
COMPANY STATUS
The company is a charitable incorporated organisation.
4.
INCOME FROM OTHER TRADING ACTIVITIES		 Total
Funds
2021
£
18,563
546,158
3,812
568,533
259,553
259,553
308,980
–
–
308,980
Unrestricted
Funds
Restricted
Funds

£
£
Miscellaneous income
17,243
–
17,243
–		 2022
£
17,243
17,243		 2021
£
18,563
18,563

In the year ended 31 March 2022, income from other trading activities of £17,243 (2021: £18,563) was unrestricted and £nil (2021: £nil) was restricted.

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

5 INCOME FROM CHARITABLE ACTIVITIES

Unrestricted
Funds
Restricted
Funds
£
£
Covid related grant
–
–
Community Foundation
1,000
–
Castles & Coast Housing Association
–
–
Aviva Crowdfunder
–
–
DEFRA Support
–
–
Light Up Wylam
–
–
Manning Trust
–
–
The National Lottery Community Fund
–
–
Asda Funding
–
–
FSUK
2,928
30,000
WRAP
–
–
Transition Fund
–
–
Clothworkers
–
–
Fundraising
–
–
Membership income – CFM
272,313
–
Membership income – FSUK grant
–
–
William Webster Trust
3,000
–
The Shears Foundation
5,000
–
Bernicia Foundation
9,000
–
Kavli Foundation
–
82,083
Garfield Weston
25,000
–
318,241
112,083

Grants transferred from the CIC:
Unrestricted
Funds
Restricted
Funds
£
£
The National Lottery Community Fund
–
11,150
WRAP
60,659
–
Hadrian Trust
2,000
–
FORE
4,900
–
LGA
1,000
–
Greggs
1,000
–
69,559
11,150

Total income from charitable activities
387,800
123,233		 2022
£
–
1,000
–
–
–
–
–
–
–
32,928
–
–
–
–
272,313
–
3,000
5,000
9,000
82,083
25,000
430,324

2022
£
11,150
60,659
2,000
4,900
1,000
1,000
80,709

511,033		 2021
£
10,000
20,250
1,000
927
25,000
1,707
1,000
72,349
30,500
33,201
39,688
40,000
9,900
2,859
159,156
98,621
–
–
–
–
–
546,158
2021
£
–
–
–
–
–
–
–

546,158

In the year ended 31 March 2022, income from charitable activities of £387,800 (2021: 370,519) was unrestricted and £123,233 (2021: £175,639) was restricted.

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

6. EXPENDITURE

Charitable activities
Governance costs		 Direct
Costs
£
22,181
–
22,181		 Staff
Costs
£
243,033
–
243,033		 Depre-
ciation
£
30,764
–
30,764		 Other
Costs
£
210,669
2,600
213,269		 2022
£
506,647
2,600
509,247		 2021
£
256,953
2,600
259,553

In the year ended 31 March 2022, total expenditure of £466,426 (2021: £145,255) was unrestricted and £42,821 (2021: £114,298) was restricted.

Governance costs are made up as follows:

Governance costs are made up as follows:
Independent Examiners fees
Accountancy fees
Other costs are made up as follows:
Rent and utilities
Telephone
Printing and office supplies
Website costs
Repairs and maintenance
Cleaning and hygiene
Travelling expenses
Motor vehicles expenses
Vehicle hire
Equipment hire
Insurance
Fees and subscriptions
Training
Advertising
Consultancy and legal fees
Voluntary expenses
Bank charges
Interest payable on hire purchase agreements
Sundry expenses
Bad debt provision
Loan owed from group undertaking written off
Amounts owed from group undertaking written off		 2022
£
1,250
1,350
2,600

2022
£
5,133
1,300
5,940
607
5,107
4,122
1,698
47,179
11,097
2,935
2,355
1,249
533
842
18,621
6,195
575
786
1,242
22,203
61,245
9,705
210,669
 2021
£
1,250
1,350
2,600
2021
£
4,800
683
2,052
1,149
10,107
3,127
–
21,272
9,796
–
2,958
72
822
–
12,404
10,656
317
–
315
–
–
–
80,530

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

7. STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL

The aggregate payroll costs were:

Wages and salaries
Social security costs
Other pension costs
Staff support costs		 2022
2021
£
£
226,593
136,234
12,058
7,783
3,982
3,536
400
–
243,033
147,553

No employee earned in excess of £60,000 (2021: none) during the year.

Particulars of employees:

The average number of staff employed by the charity during the financial period amounted to:

2022 2021
No No
Total 13 9

Key management personnel

The key management personnel of the charity comprise the trustees and the business manager. Total employee benefits of the key management personnel for the year were £1,100 (2021: £990).

Trustees' remuneration and expenses

No remuneration directly or indirectly out of the charity was paid or payable for the current and previous periods to any trustee or any persons known to be connected with any of them. No reimbursement of expenses has been made or is due to be made to any of the trustees in respect of the current and previous periods.

As part of the organisation’s insurance policy, trustees have been indemnified against consequence of any neglect or default on their behalf.

8. NET INCOMING / OUTGOING RESOURCES

Net incoming/(outgoing) resources are stated after charging:

2022 2021
£ £
Depreciation and amortisation 30,764 13,591
Accountancy and Independent Examiner’s fees 2,600 2,600

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

9 INTANGIBLE FIXED ASSETS

Website
Development
£
Cost
At 31 March 2021 2,000
Additions 2,000
Disposals –
At 31 March 2022 4,000
Amortisation
At 31 March 2021 220
Charge for the year 1,100
Disposals –
At 31 March 2022 1,320
Net book value
At 31 March 2022 2,680
At 31 March 2021 1,780
ANGIBLE FIXED ASSETS
Equipment Motor Vehicles Total
£ £ £
Cost
At 31 March 2021 8,155 52,315 60,470
Additions 94,152 76,973 171,125
Disposals – – –
At 31 March 2022 102,307 129,288 231,595
Depreciation
At 31 March 2021 292 13,079 13,371
Charge for the year 13,400 16,264 29,664
Disposals – – –
At 31 March 2022 13,692 29,343 43,035
Net book value
At 31 March 2022 88,615 99,945 188,560
At 31 March 2021 7,863 39,236 47,099

10 TANGIBLE FIXED ASSETS

All tangible fixed assets are held for charitable purposes.

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

11. DEBTORS

Trade debtors
VAT and social security
Prepayments and accrued income
Amounts due from group undertakings
 2022
£
83,477
4,072
2,617
–
90,166		 2021
£
74,188
18,407
1,688
77,107

171,390

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022
£
Trade creditors
12,894
Accruals and deferred income (see below)
76,400
Other creditors
3,007
Hire purchase agreements
15,712
108,013
 2021
£
4,124
90,300
12,395
–
106,819

The obligations under hire purchase agreements of £15,712 (2021: £nil) are secured by way of a fixed charge over the assets acquired.

31 March 31 March
2021 Receivable Released 2022
£ £ £ £
Middlesbrough Football Club Foundation – 20,000 – 20,000
Middlesbrough Philanthropic 30,000 – – 30,000
Garfield Weston 25,000 – (25,000) –
Membership fees 32,700 26,400 (32,700) 26,400
87,700 46,400 (57,700) 76,400

The deferrals included in creditors relate to those grants, donations and income specified as relating to a specific period and represent those parts of the grants, donations or income which relate to periods subsequent to the accounting year end and are treated as grants or income in advance, or alternatively where there are conditions which must be fulfilled prior to entitlement or use of the grant or donation by the charity.

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Hire purchase agreements 2022
2021
£
£
24,877
–

The obligations under hire purchase agreements of £24,877 (2021: £nil) are secured by way of a fixed charge over the assets acquired.

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

14. RESTRICTED FUNDS

For the year ended 31 March 2022

Balance
31 March
2021
£
The National Lottery
Community Fund
–
Asda Funding
17,743
FSUK
7,687
WRAP
29,574
Clothworkers
6,337
Kavil Foundation
–
Big Lottery
–
61,341		 Movement in resources:
Incoming
Outgoing
Transfers to
Unrestricted
Balance
31 March
2022
£
£
£
£
11,150
(11,150)
–
–
–
(2,154)
–
15,589
–
(1,922)
–
5,765
–
(22,636)
–
6,938
–
(1,584)
–
4,753
82,083
–
–
82,083
30,000
(3,375)
–
26,625
123,233
(42,821)
–
141,753

For the period ended 31 March 2021:

The National Lottery Community Fund
Asda Funding
FSUK
WRAP
Clothworkers		 Movement in resources:
Incoming
Outgoing
Transfers to
Unrestricted
Balance
31 March
2021
£
£
£
£
62,350
(62,350)
–
–
30,500
(12,757)
–
17,743
33,201
(25,514)
–
7,687
39,688
(10,114)
–
29,574
9,900
(3,563)
–
6,337
175,639
(114,298)
–
61,341

The National Lottery Community Fund

Funding received to cover core costs for staff wages and volunteer costs (2021: funding also covered PPE expenditure).

Asda Funding

Capital funding received for capital improvements (2021: funding also covered driver salaries).

FSUK

Central van funding received for the purchase of a van (2021: funding also covered driver salaries and £7,501 towards the CEO role).

WRAP

Funding received for various capacity enhancement, including reach truck, PPT, safety barriers, forklift truck charging, handwash and wage costs.

Clothworkers

Funding received for the purchase of a forklift truck.

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

14. RESTRICTED FUNDS (continued)

Big Lottery

Funding received for the purchase of a fridge freezer.

Kavil Foundation

During the year funding was awarded from the Kavli Trust for a two calendar year period. This funding is restricted in the first year to cover six months of core costs for the upcoming Tees Food Hub, due to open late 2022, and fund a training programme in partnership with Nourish Food School. This training programme is due to run throughout the two year programme and will support beneficiaries in gaining valuable cookery life skills. For the second year, in addition to the partnership with Nourish Food School, funding has been awarded to recruit a Training Manager to support an in-house warehouse training programme.

15 UNRESTRICTED FUNDS

For the year ended 31 March 2022:

Balance At Balance
31 Mar At 31 Mar
2021 Incoming Outgoing Transfers 2022
£ £ £ £ £
Designated funds:
Capital fund 21,164 – (18,628) 85,765 88,301
Contingencies for closure 60,000 – – – 60,000
Total designated funds 81,164 – (18,628) 85,765 148,301
General funds 166,475 448,647 (447,798) (85,765) 81,559
247,639 448,647 (466,426) – 229,860

For the period ended 31 March 2021:

Balance
At 31 Mar
Incoming Outgoing Transfers 2021
£ £ £ £
Designated funds:
Capital fund ___ (6,314) 27,478 21,164
Contingencies for closure – – 60,000 60,000
Total designated funds – (6,314) 87,478 81,164
General funds 392,894 (138,941) (87,478) 166,475
392,894 (145,255) – 247,639

Designated funds are as follows:

Capital fund – This fund includes all of the assets that are not covered by restricted funds less any hire purchase liabilities in relation to the assets.

Contingencies for closure – the balance has been based on the estimated costs of closing the charity.

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

16. ANALYSIS OF NET ASSETS BETWEEN FUNDS

For the year ended 31 March 2022:

Intangible Tangible Net Long
fixed fixed Current Term Total
assets assets assets Liabilities 2022
£ £ £ £ £
Restricted funds:
Asda Funding – 15,589 – – 15,589
FSUK – 5,765 – – 5,765
WRAP – 6,938 – – 6,938
Clothworkers – 4,753 – – 4,753
Kavil Foundation – – 82,083 – 82,083
Big Lottery – 26,625 – – 26,625
– 59,670 82,083 – 141,753
Designated funds:
Capital fund – 128,890 (15,712) (24,877) 88,301
Contingencies for closure – – 60,000 – 60,000
General unrestricted funds 2,680 – 78,879 – 81,559
Total funds 2,680 188,560 205,250 (24,877) 371,613

For the period ended 31 March 2021:

Intangible
Tangible
Net current
fixed assets
fixed assets
assets
£
£
£
Restricted funds:
Asda Funding
–
2,971
14,772
FSUK
–
7,687
–
WRAP
–
8,940
20,634
Clothworkers
–
6,337
–
–
25,935
35,406
Designated funds:
Capital fund
–
21,164
–
Contingencies for closure
–
–
60,000
General unrestricted funds
1,780
–
164,695
Total funds
1,780
47,099
260,101		 Total
2021
£
17,743
7,687
29,574
6,337
61,341
21,164
60,000
166,475
308,980

17. CONTROLLING PARTY

In the opinion of the trustees the charity is not controlled by any single party.

FARESHARE NORTH EAST

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2022

18. TAXATION

The charity is exempt from tax on income and gains falling within Section 505 of the Taxes Act 1988 or Section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.