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2023-03-31-accounts

Charity registration number 1199124

HAILSHAM FOODBANK

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023

HAILSHAM FOODBANK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr M Brown (Appointed 8 December 2022)
Mr S D Fry (Appointed 30 May 2022)
Rev R M Graham (Appointed 30 May 2022)
Mr C P Joyes (Appointed 30 May 2022)
Father R P Kelly (Appointed 30 May 2022)
Mr P Kiegera (Appointed 8 December 2022)
Mr S P Mewett (Appointed 21 September 2023)
Charity number 1199124
Principal address 4 Market Square
Hailsham
East Sussex
BN27 1AG
Independent examiner Colin Dadswell FCA FCCA DChA
Caladine Limited
Chantry House
22 Upperton Road
Eastbourne
East Sussex
BN21 1BF
Bankers CAF Bank Ltd
25 Kings Hill
West Malling
Kent
ME19 4JQ

HAILSHAM FOODBANK

CONTENTS

Page
Trustees' report 1 - 2
Independent examiner's report 3
Statement of financial activities 4
Statement of financial position 5
Notes to the financial statements 6 - 14

HAILSHAM FOODBANK

TRUSTEES' REPORT

FOR THE PERIOD ENDED 31 MARCH 2023

The trustees present their annual report and financial statements for the period ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's constitution, the Charities Act 2011 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).

Objectives and activities

The objects of the charity are the relief of financial hardship amongst people in Hailsham and the surrounding area in such ways as the Trustees from time-to-time think fit, in particular, but not exclusively by:

and to provide such services with a Christian ethos, supported by churches in Hailsham.

The Charity achieves these objects by providing a Foodbank service in the town in conjunction with the Trussell Trust.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

Significant activities and achievements against objectives

Between 9 December and the end of March the foodbank gave out 2,426 emergency food parcels - 1935 adults and 1,066 children. We saw a 64% increase in need between January and March compared to last year. The majority of people are referred due to low income followed by debt, benefit delays and sickness. The Citizens Advice Advisor and Community Money Advice Advisor funded by the Financial Inclusion grant are working hard to address these issues.

The warehouse moved to space within Wealden District Council from the beginning of December which gave a larger space and is more accessible.

15,944kg of food was donated and 17,226kg given out in food parcels. Despite this short reporting period, which encompasses Christmas when we get extra donations, 4% of our stock was purchased by the foodbank from funds and 7% was collected from other local foodbanks.

With the current Cost of Living Crisis we have seen a drop in donations but continue to have good support from local business, schools, churches and the wider community.

Financial review

The Charity received income of £125,636 and incurred expenditure of £72,501 during the first period ended 31 March 2023. The overall result for the year was a surplus of £53,135.

At 31 March 2023 the Charity had a positive fund balance of £53,135 made up of £22,229 in restricted funds and £30,906 in general unrestricted funds.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the period.

HAILSHAM FOODBANK

TRUSTEES' REPORT (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2023

Structure, governance and management

The charity is a Charitable Incorporated Organisation, registered with the Charity Commission in England and Wales on 30 May 2022.

The trustees who served during the period and up to the date of signature of the financial statements were:

Mr M Brown (Appointed 8 December 2022) Mr S D Fry (Appointed 30 May 2022) Rev R M Graham (Appointed 30 May 2022) Mr C P Joyes (Appointed 30 May 2022) Father R P Kelly (Appointed 30 May 2022) Mr P Kiegera (Appointed 8 December 2022) Mr S P Mewett (Appointed 21 September 2023)

Recruitment and appointment of trustees

New trustees with appropriate skills and experience are appointed as and when the need arises.

Statement of trustees' responsibilities

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 incoming 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 sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees' report was approved by the Board of Trustees.

Mr S P Mewett Trustee

4 January 2024

HAILSHAM FOODBANK

INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF HAILSHAM FOODBANK

I report to the trustees on my examination of the financial statements of Hailsham Foodbank (the charity) for the period ended 31 March 2023.

Responsibilities and basis of report

As the trustees of the charity you are responsible for the preparation of the financial statements in accordance with the requirements of the Charities Act 2011 (the 2011 Act).

I report in respect of my examination of the charity’s financial statements carried out under section 145 of the 2011 Act. In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

I understand that this has been done in order for financial statements to provide a true and fair view in accordance with Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Colin Dadswell FCA FCCA DChA

Caladine Limited Chantry House 22 Upperton Road Eastbourne East Sussex BN21 1BF

Dated: 16 January 2024

HAILSHAM FOODBANK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE PERIOD ENDED 31 MARCH 2023

Unrestricted Restricted Total
funds funds
2023 2023 2023
Notes £ £ £
Income from:
Donations and legacies 3 92,636 32,984 125,620
Investments 4 16 - 16
Total income 92,652 32,984 125,636
Charitable activities 5 61,746 10,755 72,501
Net income and movement in funds 30,906 22,229 53,135
Reconciliation of funds:
Fund balances at 30 May 2022 - - -
Fund balances at 31 March 2023 30,906 22,229 53,135

The statement of financial activities includes all gains and losses recognised in the period. All income and expenditure derive from continuing activities.

HAILSHAM FOODBANK

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2023

2023
Notes £ £
Fixed assets
Property, plant and equipment 10 8,013
Current assets
Inventories 11 5,181
Trade and other receivables 12 1,683
Cash at bank and in hand 41,866
48,730
Current liabilities 13 3,608
Net current assets 45,122
Total assets less current liabilities 53,135
The funds of the charity
Restricted income funds 15 22,229
Unrestricted funds 30,906
53,135

The financial statements were approved by the trustees on 4 January 2024

Mr P Kiegera Trustee

Mr S P Mewett Trustee

HAILSHAM FOODBANK

NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Hailsham Foodbank is a Charitable Incorporated Organisation registered 30 May 2022.

1.1 Reporting period

The first accounting period of the Charity begun on 30th May 2022 when the Charity was registered, and ended on 31 March 2023 being the end of the charity's financial period. Subsequent accounts will be drawn up to 31 March each year.

1.2 Accounting convention

The financial statements have been prepared in accordance with the charity's constitution, the Charities Act 2011, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 charity has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.

The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.5 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

HAILSHAM FOODBANK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2023

1 Accounting policies (Continued)

1.6 Expenditure

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 are allocated on the portion of the asset’s use.

1.7 Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis:

Fixtures and fittings 20% Reducing Balance Computers 20% Reducing Balance Motor vehicles 20% Reducing Balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.8 Impairment of non-current assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.9 Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

HAILSHAM FOODBANK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2023

1 Accounting policies (Continued)

1.11 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.12 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

HAILSHAM FOODBANK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from donations and legacies

Unrestricted Unrestricted Restricted Restricted Total
funds funds
2023 2023 2023
£ £ £
Donations and gifts 27,649 - 27,649
Grants 21,272 32,984 54,256
Donated food 43,715 - 43,715
92,636 32,984 125,620
Donations and gifts
Donations 14,089 - 14,089
Assets transferred from The Crosslink Trust 9,560 - 9,560
Funds transferred from The Crosslink Trust 4,000 - 4,000
27,649 - 27,649
Grants receivable for core activities
East Sussex County Council 5,989 - 5,989
Trussell Trust 3,094 27,732 30,826
PJ Skips 4,000 - 4,000
Crowdfunding 7,629 - 7,629
Sussex Community Foundation - 4,602 4,602
Other Grants under £1,000 560 650 1,210
21,272 32,984 54,256

HAILSHAM FOODBANK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2023

4 Income from investments

Unrestricted Unrestricted
funds
2023
£
Interest receivable 16
5 Expenditure on charitable activities
Foodbank
2023
£
Direct costs
Staff costs 15,855
Depreciation and impairment 2,003
Food purchases 44,434
Motor expenses 395
Sundry expenses 19
Waste disposal 396
Warehouse expenses 457
Van rental costs 180
Community Money Advice costs 2,394
Acts 435 gifts 650
66,783
Share of support and governance costs (see note 6)
Support 2,572
Governance 3,146
72,501
Analysis by fund
Unrestricted funds 61,746
Restricted funds 10,755
72,501

HAILSHAM FOODBANK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2023

6 Support costs allocated to activities

Support costs allocated to activities
2023
£
Rent and rates 2,047
Telecommunications and IT 415
Office expenses 90
Bank charges 20
Governance costs 3,146
5,718
Analysed between:
Foodbank 5,718
2023
Governance costs comprise: £
Accountancy 1,680
Bookkeeping 1,466
3,146

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the period.

8 Employees

The average monthly number of employees during the period was:

2023
Number
3
Employment costs 2023
£
Wages and salaries 15,256
Other pension costs 599
15,855

There were no employees whose annual remuneration was more than £60,000.

HAILSHAM FOODBANK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2023

8 Employees (Continued)

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

Aggregate compensation

2023 £ 7,651

9 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

10 Property, plant and equipment

10 Property, plant and equipment
Fixtures and
Computers		 Motor Total
fittings vehicles
£ £ £ £
Cost
Additions 5,546 2,423 2,048 10,017
At 31 March 2023 5,546 2,423 2,048 10,017
Depreciation and impairment
Depreciation charged in the period 1,109 485 410 2,004
At 31 March 2023 1,109 485 410 2,004
Carrying amount
At 31 March 2023 4,437 1,938 1,638 8,013
11 Inventories
2023
£
Finished goods and goods for resale 5,181
12 Trade and other receivables
2023
Amounts falling due within one year: £
Prepayments and accrued income 1,683

HAILSHAM FOODBANK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2023

13 Current liabilities

Current liabilities
2023
£
Accruals and deferred income 3,608

14 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to profit or loss in respect of defined contribution schemes was £599.

15 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 30 May
Incoming
Resources
At 31		 March
2022 resources expended 2023
£ £ £ £
Citizens Advice Adviser - 5,000 - 5,000
Community Money Advice - 10,468 (2,394) 8,074
ACTS 435 - 650 (650) -
Warehouse Supervisor - 12,066 (5,448) 6,618
Warehouse Facilities - 4,800 (2,263) 2,537
- 32,984 (10,755) 22,229

Citizens Advice Adviser

Grant funding was received to cover the costs of providing an adviser from Citizens Advice who is based at the foodbank to provide advice to users as needs arise. Costs paid to the adviser are set against the funding received.

Community Money Advice

Grant funding was received to cover the costs of providing a Community Money Adviser who is based at the foodbank to provide financial advice to users as needs arise. Costs paid to the adviser are set against the funding received.

Acts 435

Acts 435 (registered charity number 1131305) is a platform that facilitates a connection between those who are in need and those who want to help. A partner charity can post a request for help on behalf of an individual onto the Acts 435 platform so it can be met by donors. The money collected by Acts 435 is distributed to the partnered charity. The partnered charity can then purchase the items appealed for and subsequently donate them to the individual in need. The restricted fund represents monies received from Acts 435 and the corresponding expenditure.

Warehouse Supervisor

Grant funding was received to offset the costs of employing a warehouse supervisor for additional hours. Wages paid to the supervisor are set against the funding received.

HAILSHAM FOODBANK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE PERIOD ENDED 31 MARCH 2023

15 Restricted funds (Continued)

Warehouse Facilities

Grant funding was received to offset the costs of renting a warehouse where food donations are stored. Rent and associated costs are charged to the fund.

16 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 30 At 30 May
Incoming
Incoming
Resources
Resources
At 31		 March
2022 resources expended 2023
£ £ £ £
General funds - 92,652 (61,746) 30,906
Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
2023 2023 2023
£ £ £
Fund balances at 31 March 2023 are represented by:
Property, plant and equipment 8,013 - 8,013
Current assets/(liabilities) 22,893 22,229 45,122
30,906 22,229 53,135

17 Analysis of net assets between funds

18 Related party transactions

There were no disclosable related party transactions during the period.