2023-03-31-accounts

Company no. 01697726 Charity no. 287088

The Sofa Project

Report and Financial Statements

31 March 2023

The Sofa Project

Contents

For the year ended 31 March 2023

	Page
Reference and administrative details	1
Report of the trustees
Structure, governance and management	2
Objectives & activities	2
Achievements and performance	3
Financial review	4
Plans for the future	5
Statement of responsibilities of trustees	5
Independent examiners report	6
Statement of financial activities	7
Balance sheet	8
Statement of cash flows	9
Notes to the financial statements	10 - 19

The Sofa Project

Reference and administrative details

For theyear ended 31 March 2023	For theyear ended 31 March 2023
Company number	01697726
Charity number	287088
Registered office	48-54 West Street
and operational	St Philips
address	Bristol
	BS2 0BL
Trustees	Trustees, who are also directors under company law, who served during
	the year and up to the date of this report were as follows:
	Ruth Snary	Chair
	Chris Neild	Vice chair
	Marianne Reed	Resigned 12/09/23
	Caroline Turner-Inskip	Resigned 04/05/23
	Keith Hicks
	Peter Templeton
	David Wait	Resigned 30/01/23
	Moira Booth
	Daniella Radice	Resigned 02/02/23
	Colin Smart
	Shelley Sturdy	Appointed 28/04/23
	Olufunmilola	Appointed 27/07/23
	Buraimoh-Ademuyewo
Company secretary	Nicola Peck
and chief executive
officer
Bankers	Lloyds Bank
	102 Regent's Street
	Kingswood
	Bristol
	BS15 2HT
Solicitors	Osborne Clarke
	2 Temple Back East
	Temple Quay
	Bristol
	BS1 6EG

1

The Sofa Project

Report of the trustees

For the year ended 31 March 2023

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the Memorandum and Articles of Association and the Statement of Recommended Practice - Accounting and Reporting by Charities (effective from January 2015).

Structure, governance and management

SOFA Project has a board of eight Trustees at the end of the financial year 2023. During the year David Wait and Daniella Radice resigned due to the pressure of other work. I would like to thank them for their work whilst board members. They will be very much missed. We hope to appoint another Trustee in the coming year. I am grateful to all the Trustees who give of their time and expertise to assist to our CEO Nicci Peck in the administration of the SOFA Project.

Objectives and Activities

Our charitable objects as defined in the charity’s Articles of Association are:

• (a) The relief of poverty by renovating and supplying furniture, household goods and domestic and electrical equipment to persons who are in conditions of need, hardship or distress.

• (b) To promote social inclusion for the public benefit by preventing people becoming socially excluded, relieving the needs of those people who are socially excluded and assisting them to integrate into society, including but not limited to, the provision of training, education, rehabilitation and employment and volunteering opportunities.

• (c) To protect and preserve the environment by recycling and re-using manufactured goods and chattels.

SOFA, the charity is a company limited by guarantee and is governed by its Articles of Association.

The management of the Charity is under the guidance of the CEO Nicci Peck, who oversees all the operational and executive matters and executes the governance decisions made by the board at their bimonthly trustee meetings. Extraordinary meetings may be called by the Chair or at the request of board members. This was done so in the last financial year because of decisions that needed to be taken after the pandemic. The CEO has regular meetings with the Chair and Vice-chair and keeps board members informed of the charities position by email. She asks for responses if they are necessary.

As before, the charity continues to regularly provide support to the Local Crisis Prevention Fund operated by Bristol City Council and currently operates a contract with them to supply reconditioned electrical goods and good quality furniture to those identified as being in need by Bristol City Council. The Charity works with a local company, Furnished Homes to fulfil this contract.

We offer training and employment to serving prisoners from and in prisons local to Bristol, HMP Leyhill and HMP Bristol. Prisoners from Leyhill (an Open prison) come to our warehouse to work in our operations and we also take furniture for upcycling into our workshop within HMP Bristol. Our CEO has ongoing negotiations with the women’s prison HMP Eastwood Park, and we very much hope in the coming year we will be able to take work into the women’s prison. This will be very valuable to the prisoners in teaching them skills which will enable them to find work after their sentences are complete.

SOFA Project is a long-established local charity and is very active in the Bristol area. We currently have two retail shops selling very good quality used furniture, refurbished electrical goods and unused paint, all at very reasonable cost, to those who cannot afford new products or those who wish to purchase pre-used items. Plans to open another retail shop were discontinued as it was felt that the economic climate was not conducive at present to commit to another physical retail shop. Instead, plans were made to open a retail space in our existing warehouse to the general public where goods could be sold to them directly, as well as to further develop our online sales.

SOFA Project is licensed by the Environmental Agency to fully refurbish white goods. It is quite unusual for a charity to hold such a license. White goods are refurbished which prevents them being sent to landfill thereby fulfilling one of our charitable objectives. All our refurbished white goods are sold with a minimum of six-month warranties.

SOFA Project is an active member of the Reuse Network. This is a national charity which negotiates contracts with large companies on behalf of smaller charities. The contract that they negotiated for example with the local John Lewis Store is very valuable to us as they donate goods directly to us for sale in our shops. Other contracts with national firms are also negotiated.

2

The Sofa Project

Report of the trustees

For the year ended 31 March 2023

Our CEO appoints staff and decides upon their remuneration, the board decides upon the salary of the CEO and senior staff. All staff and board members work hard to support the aims and objectives of this charity that was set out earlier in this report. A number of former prisoners are employed upon release from prison. We have two members of staff who have now worked for the Charity for 20 years and the Board plan a small ceremony in order to acknowledge their achievements and commitment to our Charity.

The Charity maintains a detailed risk log. This is regularly reviewed and updated under the guidance of the CEO and by two of our experienced Trustees.

The Trustees confirmed that they have referred to the guidance contained in the charity commission and general guidance on public benefit when reviewing the charities aims and objectives.

Achievements and Performance

SOFA Project is a charity and social enterprise business which was established over 40 years ago for the purpose of supplying good quality used furniture to those in need in the Bristol area. The acronym stands for “Shifting Old Furniture Around.” The project continues to operate successfully under the dynamic leadership of our CEO Nicci Peck. Our aims are broadly the same as before, running our shops and warehouse. Furniture and white goods are collected from the general public and the white goods are refurbished, furniture is checked and repaired where necessary and prepared for sale in our warehouse. Items are sold in our shops or distributed to people in need when requested to do so by Bristol City Council.

This year we have also been developing our on-line donation, shopping and social media capability. In the latter part of the year, we created an online sales capability through eBay.

Following the pandemic, conditions continue to be challenging, as it is for many small businesses and charities, but we continue to fulfil our charitable aims. We are able to supply people in Bristol with white goods and furniture which are desperately needed during the Cost of Living Crisis. Bristol City Council commissioned us for a further 4 years to use our services to provide people, whom they identify, who are in real need of the goods that we can supply. We share a contract with Furnished Homes in order to supply these goods. We are grateful to Bristol City Council for their support. The used paint scheme, operated under the administration of the Community RePaint network continues successfully and is used by members of the public who buy the paint from our shops at minimal cost. Paint is also donated free of charge to a wide range of other charities and organisations such as homeless charities, scout groups, schools, nurseries and community organisations. We are grateful once more to Bristol Waste for partnering with us in this venture. This scheme saves a large amount of paint being sent to landfill sites where it is classed as hazardous waste.

Our new vans, which were contracted last year, have proved very successful as they are now compliant with the new clean air zone introduced by Bristol City Council. The vans can travel all over Bristol without incurring additional costs.

SOFA Project continues to work with HMP Leyhill, giving serving prisoners who are nearing the end of their sentences training and work opportunities. They also experience life outside the prison before they leave custody. This work was curtailed during the pandemic, but we are pleased that it has now resumed as normal. We are now also taking work into HMP Bristol where prisoners “upcycle” items for sale in our shops. SOFA Project provides workshops in the prison in order to show prisoners how successful upcycling furniture can be achieved. The Prison Governors of Leyhill and Bristol Prison believe this work is invaluable to reduce re-offending.

Our CEO also offers work and opportunities to young people and others who have found difficulty in finding regular work. We employ apprentices in our administrative and operations as we strongly believe in supporting young people in order develop their skills, confidence and abilities. Employing apprentices within the organisations bring fresh perspectives to our organisation. We are able to help develop their skills so as to fully benefit them in their future careers.

We continue to hold an AATF licence [Approved, Authorised Transfer Facility] with the Environmental Agency which is quite unusual for a charity. This license enables us to fully refurbish & test white goods to a high standard as well as to provide training opportunities for staff and HMP Leyhill prisoners who are placed with us. All electric appliances supplied to households are covered by a minimum of a full six-month warranty.

3

The Sofa Project

Report of the trustees

For the year ended 31 March 2023

Financial review

The pandemic affected the work of the Charity, but I am pleased to report that we have largely recovered from the effect of the pandemic and been able to continue with our valuable work in the Bristol community.

Our CEO, together with our accountant Nathan Brady of Stepping Stones Accountancy, furnish the board with monthly financial statements and both attend the bimonthly Trustee meetings where the financial position is discussed and plans for the future formed. We are grateful to board members, especially Chris Neild and Colin Smart for their financial and business advice.

The last few years have proved challenging, but we have shown our ability to adjust to new market forces while continuing to adhere to our social objectives. In a previous report it was suggested that we should open another retail outlet, but this has not proved to be viable. Instead, plans have been made to open up our warehouse to the public as a retail outlet and to develop our online capability.

We are developing our presence on social media with regular newsletters to inform the general public of our activities as well as regular posting on Instagram and Twitter. This is proving very popular with our supporters and widening our public profile.

SOFA Project is immensely grateful to all the Charitable Trusts and Foundations who continue to support us by donating funds to us. The total amount donated can be seen in our accounts. Whilst funding the Charity largely through its own activities is the stated aim, it could not continue to operate and fulfil its social objectives if it does not receive these valuable donations.

The staffing level for the year ending March 2023 was 16 Employees

The board considers that a reserve of £70,000 to cover two months underlying expenditure is a realistic level as we are a social enterprise and a charity whose main income comes from trading.

The majority of our trading income comes from retail trading and a local government contract. In addition, however, we rely upon generous grants and donations from our funders in order to support our social enterprise aims and balance the bottom line.

We continue to strive to operate with a monthly surplus so the reserves can be built to the required level. The trustees have noted that the target for the reserves has not been met in 2022/23 and that it is important to take measures to restore the required level of financial stability.

4

The Sofa Project

Report of the trustees

For the year ended 31 March 2023

Plans for the future

I have decided after seven years in the role of Chair of the Board of Trustees of SOFA Project to step down; Chris Neild has also decided to step down from his role as Vice-Chair. I am delighted that Keith Hicks has put his name forward for election as the new Chair and that Peter Templeton has offered to take the role as Vice-Chair. Both have considerable experience that will be invaluable to the Charity moving forward. I left the board after the Annual General Meeting in November, but Chris Neild will stay on as a Trustee. I am very confident that Keith Hicks and Peter Templeton will lead and guide the Board of Trustees and SOFA Project into a successful future.

The continuing difficult operating climate of greater demand on our services through the Cost of Living Crisis and pressure on high street sales calls for determined action to strengthen our financial position. A number of new initiatives were started towards the end of the financial year, these include exploring the re-introduction of Gift Aid, Sunday trading and opening our warehouse to the general public as a sales venue. Further measures will be explored in the coming months.

Plans are now well ahead at HMP Eastwood Park women’s prison where our workshop will be established in order that the women can “upcycle furniture” for sale in our shops. We are currently seeking further funding to help us drive and support this great initiative.

I know that this will be a very valuable addition to the work of the prison service who continue to support and appreciate our work.

The furniture and white goods that that are for sale in our shops are very high quality and appreciated by the members of the public who continue donate and to buy from our shops.

In my last report I mentioned that we were looking at the possibility of engaging with BANES council to operate a Reuse shop on site at one of their HWRCs but after a more detailed exploration of the project it was decided that this was not a viable financial option for us. However, we are continuing to work with them in partnership in furthering the reuse of household furniture.

All of the above meet with the stated charitable objectives of SOFA Project.

Statement of responsibilities of the trustees

The trustees are required to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and the incoming resources and application of resources, including the net income or expenditure, of the charity for the year. In preparing those financial statements the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• ▪ observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• ▪ state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements; and

• ▪ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006. The trustees 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 confirm that to the best of their knowledge there is no information relevant to the audit of which the auditors are unaware. The trustees also confirm that they have taken all necessary steps to ensure that they themselves are aware of all relevant audit information and that this information has been communicated to the auditors.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

Approved by the trustees on 30 November 2023 and signed on their behalf by

Ruth Snary - Trustee

5

Independent examiners report

To the members of

The Sofa Project

I report to the charity trustees on my examination of the accounts of the company for the year ended 31st March 2023 which are set out on pages 1 to 19.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ("the 2006 Act").

Having satisfied myself that the accounts of the company are not required to be audited under part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your company's accounts as carried out under section 145 of the Charities Act 2011 ("the 2011 Act"). In carrying out my examination I have followed the directions given by the Charity Commission under section 145 (5) (b) of the 2011 Act.

Independent Examiner's Statement

Since the company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Insititute of Chartered Accountants in England and Wales which is one of the listed bodies.

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:

1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

2. the accounts do not accord with those records; or

3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a "true and fair view" which is not a matter considered as part of an independent examination; or

4. the accounts have not been prepared in accordance with the methods and principle of the Statement of Recommended Practice for accounting and reporting by charities.

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

Kevin Edenborough Chartered Accountant TC Group Ground Floor Wessex House Pixash Lane Keynsham Bristol BS31 1TP

Date:

6

The Sofa Project

Statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 March 2023

Note Income from: Donations and legacies 3 Charitable activities 4 Investments 5 Total income Expenditure on: Raising funds Charitable activities Total expenditure 6 7 Reconciliation of funds: Total funds brought forward Total funds carried forward Net income / (expenditure) and net movement in funds	Unrestricted £ 102,775 452,768 38,191 593,734 11,323 651,302 662,625 (68,891) 91,656 22,765	2023 Total £ 102,775 452,768 38,191 593,734 11,323 651,302 662,625 (68,891) 91,656 22,765	2022 Total £ 106,177 446,299 32,266 584,742 10,706 559,796 570,502 14,240 77,416 91,656

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 17 to the accounts.

7

The Sofa Project

Balance sheet

As at 31 March 2023

----- Start of picture text -----
2023 2022
Note £ £ £
Fixed assets
Tangible fixed assets 10 2,343 3,071
Investments 11 1 1
2,344 3,072
Current assets
Stocks 13,612 22,615
Debtors 12 112,538 141,880
Cash at bank and in hand 11,195 21,160
137,345 185,655
Current liabilities
Creditors: amounts falling due within 1 year 13 51,479 56,701
Bank overdraft 30,630 -
82,109 56,701
Net current assets 55,236 128,954
Total assets less current liabilities 57,580 132,026
Creditors: amounts falling due after more than 1 year (34,815) (40,370)
Net assets 15 22,765 91,656
Funds 16
Unrestricted funds:
Designated funds 2,344 3,072
General funds 20,421 88,584
Total charity funds 22,765 91,656
----- End of picture text -----

For the financial year in question the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

No members have required the company to obtain an audit of its accounts for the year in question in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibility for complying with the requirements of the Act with respect to accounting records and for the preparation of accounts.

These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies' regime.

Approved by the trustees on 30 November 2023 and signed on their behalf by

Ruth Snary - Trustee

8

The Sofa Project

Statement of cash flows

For the year ended 31 March 2023

Note Cash used in operating activities: Net cash provided by / (used in) operating activities 17 Cash flows from investing activities: Dividends, interest and rents from investments Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Net cash provided by / (used in) investing activities Cash flows from financing activities: Proceeds from long-term borrowings Repayment of long-term borrowings Net cash provided by / (used in) financing activities Increase / (decrease) in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	2023 £ (73,741) 38,191 - 510 38,701 - (5,555) (5,555) (40,595) 21,160 (19,435)	2022 £ (66,330) 32,266 (915) - 31,351 - (3,959) (3,959) (38,938) 60,098 21,160

9

The Sofa Project

Notes to the financial statements

For the year ended 31 March 2023

1. Accounting policies

a) Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities in preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies

The Sofa Project 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 note(s).

b) Going concern basis of accounting

The accounts have been prepared on the assumption that the charity is able to continue as a going concern, which the trustees consider appropriate having considered the charity's ability to generate its own income over the next twelve months.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from the government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Voluntary income is received by way of donations and gifts and is included in full in the Statement of Financial Activities when receivable. Gifts donated for resale are included as income when they are sold. Donated assets are included at the value to the charity where this can be quantified and a third party is bearing the cost. In line with the SORP FRS102, the value of services provided by volunteers has not been included.

Income from the charity's shops and investment income is included in the year in which it is receivable.

d) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and the economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), general volunteer time is not recognised.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

10

The Sofa Project

Notes to the financial statements

For the year ended 31 March 2023

e) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity: this is normally upon notification of the interest paid or payable by the bank.

f) Funds accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity.

g) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities based on the time employees have spent in each function and weighted by their salary and employer's national insurance contributions. The calculation produced the following split:

Raising funds 4% Charitable activities 96%

i) Tangible fixed assets

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

Computer equipment 20% straight line Fixtures and fittings 20% straight line Motor vehicles 15% reducing balance Computer software and website 20% straight line

j) Stock

Donated goods are not valued as the volume and low value of items makes it impractical to measure the fair value of these goods.

Finished goods are valued at cost plus value added during refurbishment, where appropriate. Raw stock is valued at cost.

11

The Sofa Project

Notes to the financial statements

For the year ended 31 March 2023

k) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

l) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

m) Financial instruments

The trust only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently recognised at amortised cost using the effective interest method.

n) Operating leases

Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the statement of financial activities on a straight line basis over the minimum lease term.

o) Pensions

The company operates a defined contribution pension scheme. Contributions are recognised in the profit and loss account in the period in which they become payable in accordance with the rules of the scheme.

p) Termination benefits

Where an employee recieves a termination benefit the cost is recognised at the date the employee is notified.

12

The Sofa Project

Notes to the financial statements

For the year ended 31 March 2023

2. Prior period comparatives: statement of financial activities

Income from: Donations and legacies Charitable activities Investments Total income Expenditure on: Raising funds Charitable activities Total expenditure Net income / (expenditure) Transfers between funds Net movement in funds Donations and legacies Total donations and legacies Income from charitable activities Sale of paint Sale of graded domestic appliances Revenue from transport and logistics Sale of donated furniture Total income from charitable activities Sale of new furniture Sale of used domestic appliances Sale of new domestic appliances Donations Government grants	Restricted £ - - - Restricted £ - - - - - - - -	Restricted £ - - - - - - - - - - £ 102,775 - 102,775 £ 193,228 1,277 48,852 166,833 8,693 9,566 24,319 452,768 Unrestricted Unrestricted	£ 106,177 446,299 32,266 584,742 10,706 559,796 570,502 14,240 - 14,240 2023 Total £ 102,775 - 102,775 2023 Total £ 193,228 1,277 48,852 166,833 8,693 9,566 24,319 452,768 Unrestricted	2022 Total £ 106,177 446,299 32,266 584,742 10,706 559,796 570,502 14,240 - 14,240 2022 Total £ 92,764 13,413 106,177 2022 Total £ 192,014 3,104 48,067 171,595 1,763 11,601 18,155 446,299

3. Donations and legacies

4. Income from charitable activities

13

The Sofa Project

Notes to the financial statements

For the year ended 31 March 2023

5. Investment income

Rent and management fees Bank interest Total investment income	Restricted £ - - -	£ 38,177 14 38,191 Unrestricted	2023 Total £ 38,177 14 38,191	2022 Total £ 32,261 5 32,266

6. Expenditure

Raising funds £ 9,028 - - - - - - Independent examiner - - - Protective & safety equipment - Finance costs - - - Sub-total 9,028 2,295 11,323 Total expenditure Allocation of governance and support Staff costs Cost of goods sold Production costs Transport costs Establishment costs Office expenses Legal & professional Depreciation Other costs Bank charges (Profit)/Loss on disposal of fixed assets Bad debts	Charitable activities £ 184,106 171,049 34,768 26,111 87,491 32,429 46,928 - 571 - 1,325 2,763 3,147 (353) 5,875 596,210 55,092 651,302	£ 56,637 - - - - - - 750 - - - - - - - 57,387 (57,387) - Support and governance costs	2023 Total £ 249,771 171,049 34,768 26,111 87,491 32,429 46,928 750 571 - 1,325 2,763 3,147 (353) 5,875 662,625 - 662,625	2022 Total £ 238,473 163,256 35,890 21,544 89,336 29,154 36,175 750 992 (54,075) 1,141 2,553 1,257 - 4,056 570,502 - 570,502

14

The Sofa Project

Notes to the financial statements

For the year ended 31 March 2023

7. Net movement in funds

This is stated after charging:

2023 £ Depreciation 571 Nil Nil  68,722  16,450 Auditors'/Independent examiner remuneration: Independent examiners fee 750 Staff costs and numbers Staff costs were as follows: 2023 £ Salaries and wages 265,254 Social security costs 10,845 Employer pensions 3,139 279,238 No employee earned more than £60,000 during the year (2022: none). 2023 No. Average number of employees 21 Trustees' indemnity insurance Trustees' reimbursed expenses Amounts payable under operating leases Property Equipment

2022 £ 992 Nil Nil 68,722 17,982 750 2022 £ 256,320 15,589 3,473 275,382 2022 No. 21

8. Staff costs and numbers

The key management personnel of the charity comprise the trustees, the Chief Executive Officer and the Operations Manager. The total employee benefits of the key management personnel of the charity were £50,043 (2022: £47,417).

None of the trustees have been paid any remuneration or received any other benefits from an employment with the charity or a related entity. No trustee expenses have been incurred during the period.

15

The Sofa Project

Notes to the financial statements

For the year ended 31 March 2023

9. Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

10. Tangible fixed assets

Cost At 1 April 2022 Additions in year Disposals at cost At 31 March 2023 Depreciation At 1 April 2022 Charge for the year Eliminated on disposal for the year At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022	Equipment £ 68,636 - (528) 68,108 67,677 253 (371) 67,559 549 959	Motor vehicles £ 55,247 - - 55,247 53,135 318 - 53,453 1,794 2,112	Total £ 123,883 - (528) 123,355 120,812 571 (371) 121,012 2,343 3,071

11. Investments

The charitable company owns 100% of the issued ordinary share capital of Sofa Environmental Services CIC, a company registered in England and Wales. The company has been dormant since incorporation. The investment is valued at historic cost (£1).

16

The Sofa Project

Notes to the financial statements

For the year ended 31 March 2023

12. Debtors

Trade debtors Other debtors - FH (note 14) Prepayments Other debtors	2023 £ 1,677 87,041 1,271 22,549 112,538	2022 £ 63,827 50,914 2,146 24,993 141,880

13. Creditors: amounts due within 1 year

Trade creditors Accruals Other taxation and social security Bank loans Other creditors	2023 £ 9,089 22,211 2,927 5,000 12,252 51,479	2022 £ 23,415 23,413 3,227 5,000 1,646 56,701

14. Deferred income - Furnished Homes

Deferred income comprises income received in advance from Furnished Homes Ltd under a joint contract to supply goods on behalf of Bristol City Council. Income is recognised in the statement of financial activities when the associated goods and services have been delivered.

Balance at 1 April Amount released to income Amount deferred in the year Balance at 31 March	2023 £ (50,914) (276,127) 240,000 (87,041)	2022 £ (32,654) (254,780) 236,520 (50,914)

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The Sofa Project

Notes to the financial statements

For the year ended 31 March 2023

15. Analysis of net assets between funds

Tangible fixed assets Investments Current assets Current liabilities Non-current liabilities Net assets at 31 March 2023	£ £ - 2,343 - 1 - 137,345 - (82,109) - (34,815) - 22,765 Restricted funds Unrestricted funds	Total funds £ 2,343 1 137,345 (82,109) (34,815) 22,765

16. Movements in funds

Designated funds: Fixed asset fund Total designated funds Total funds General funds Unrestricted funds Total unrestricted funds	At 1 April 2022 £ 3,072 3,072 88,584 91,656 91,656	Income £ - - 593,734 593,734 593,734	£ (571) (571) (662,054) (662,625) (662,625) Expenditure	£ £ (157) 2,344 (157) 2,344 157 20,421 - 22,765 - 22,765 Transfers between funds At 31 March 2023

Purpose of designated funds

The designated fund represents the net book value of fixed assets held by the charity.

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The Sofa Project

Notes to the financial statements

For the year ended 31 March 2023

17. Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds Adjustments for: Depreciation charges Finance cost Dividends, interest and rents from investments Loss / (profit) on the sale of fixed assets Decrease / (increase) in stock Decrease / (increase) in debtors Increase / (decrease) in creditors Cash generated from operations Interest paid Net cash provided by / (used in) operating activities	2023 £ (68,891) 571 3,147 (38,191) (353) 9,003 29,342 (5,222) (70,594) (3,147) (73,741)	2022 £ 14,240 992 1,257 (32,266) - 3,507 (62,551) 9,748 (65,073) (1,257) (66,330)

18. Related party transactions

There were no related party transactions during the period.

19. Other financial commitments

At the year end the company had commitments under non-cancellable operating leases as set out below:

Operating leases which expire: within one year within two to five years	Property £ 64,527 120,000 184,527	Total £ 64,527 120,000 184,527

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