## **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|
- 1 -
## **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.
- 2 -
**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:
- Kavli Trust
- Garfield & Weston
- William Webster Trust
- The Shears Foundation
- Bernicia Foundation
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.
- 3 -
## **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:
- Grow consistently throughout the year, to reach 259 community group members;
- Increase food supply to the community, with a target of redistributing 1,400 tonnes of surplus food during the year;
- Fully open a hub in Teesside to allow for additional growth to the south of the region; and
- Working in partnership with JET & Nourish Food School, deliver cookery skills training at the community cafe on site at Newcastle.
## **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.
- 4 -
## **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:
- Select suitable accounting policies and then apply them consistently;
- Observe the methods and principles in the charity SORP;
- Make judgements and estimates that are reasonable and prudent;
- State whether applicable accounting standards have been followed, subject to any material departures being disclosed and explained in the financial statements; and
- Prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. 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
- 5 -
## **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:
- examine the accounts under section 145 of the 2011 Act;
- follow the procedures laid down in the General Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- to state whether particular matters have come to my attention.
## **Basis of Independent 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:
- (1)
- Which gives me reasonable cause to believe that, in any material respect, the requirements to:
- keep accounting records in accordance with s130 of the 2011 Act; and
- to prepare accounts which accord with the accounting records and to comply with the accounting requirements of the 2011 Act.
have not been met; or
- (2) to which in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
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
- 6 -
## **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
- 7 -
## **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:
- The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476;
- The directors/trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
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
- 8 -
## **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.
- 9 -
## **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.
- 10 -
## **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.
- 11 -
## **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.
- 12 -
## **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.
- 13 -
## **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_
|
||||
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## **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_|
- 15 -
## **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.
- 16 -
## **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.
- 17 -
## **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.
- 18 -
## **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.
- 19 -
## **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.
- 20 -
## **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.
- 21 -