## **Trustees’ Report and Financial Statements**
## **for year ended 31 December 2021**
Spadework Ltd. • A company limited by guarantee Registered Charity No. 291198 • Registered Company No. 01820460
Spadework Social Enterprises CIC • A Community Interest Company Registered Company No. 13099464
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## Reference and administrative details of the charity, its trustees, and advisers
## **Contents**
- **4** Chairman’s Introduction
## **Registered Office**
Teston Road, Offham, West Malling, Kent, ME19 5NA
- **6** Objectives and activities
- **7** Public benefit
- **8** Our purpose
- **9** What we do
- **10** Horticulture
- **12** Creative arts, performing arts, and woodwork
- **13** Skills for life
## **Chairman**
Susan Murray
## **Treasurer**
Anthony Young
**Company Secretary** Anthony Young
## **Patrons**
Tom Tugendhat MP Stephen Betts George Harvey
## **Chief Executive Officer**
Kris Healey
- **16** Our impact
- **22** New services at Spadework
- **26** Spadework Social Enterprises CIC
- **27** Our impact on the local community
- **28** The future
- **29** A very big Spadework, “Thank you.”
- **30** Financial Statements
## **Date first appointed**
**Trustees of Charity** Peter Reeves 20/05/2004 Trevor Brazier 23/11/2009 Anthony Young 26/07/2011 Susan Murray 27/09/2011 Edward Hosey 27/11/2013 James Burke 27/11/2013 Reverend James Brown 20/06/2018 Mary Rimmer 19/12/2018 Hayley Brooks 01/04/2021 Nadra Ahmed OBE 01/04/2021
## **Date first appointed**
**Directors of Spadework Social Enterprises CIC** Kris Healey 24/12/2020 Susan Murray 01/05/2021 Anthony Young 01/05/2021 Gill Levett 01/05/2021
## **Independent Auditor**
Kreston Reeves LLP, Montague Place, Quayside, Chatham Maritime, Kent, ME4 4QU
## **Bankers**
NatWest, 718 London Road, Larkfield, Kent, ME20 6AN
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## – Spadework 2021 Key moments in our year
## **January to March**
➜ Vegetable Patch extension
## **April to May**
> ➜ Trainee Pods built
> ➜ Amphitheatre created
> ➜ Access to bore hole water
## **June**
> ➜ Trainees back on site
> ➜ Continued remote support for non-returners
## **July to September**
> ➜ Launch of wellbeing service, Time to Grow
> ➜ Performing Arts sessions begin
> ➜ First Spadework play performance
> ➜ First Spadio podcast
> ➜ Launch of dementia services
> ➜ Care Team shortlisted for award
## **October to December**
> ➜ Pumpkin Festival
> ➜ Café extension begins
> ➜ House Plant Hut opens
> ➜ Food Shack opens
> ➜ Christmas Tree sales
**January to December**
> ➜ Café closed
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## Chairman’s Introduction
When writing my report for 2020, naively. I never thought in 2021, we would still be in the continuing grip of the Covid pandemic.
This annual report reviews how we have managed to sustain the charity throughout this second year of Covid-related restrictions. Sometimes it seems that the last two years have condensed into one and at others time seems to have stood still.
Early 2021 saw trustees interviewing candidates for trusteeship of the charity and directors for the newly formed social enterprises trading arm. We were delighted to appoint Nadra Ahmed OBE and Hayley Brooks as trustees of the charity and Gill Levett as a director of Spadework Social Enterprises CIC.
‘Our thoughts turned towards other sections of society that our site and practices might benefit, such as those living with early-onset dementia and those experiencing problems with their mental health.’
**Sue Murray, Chairman of the trustees**
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Our Trainees started returning to Spadework in June under the careful guidance of our staff to ensure that all were kept as safe as possible. “Bubbles” of Trainees and staff were formed to prevent mixing and all buildings on the site were utilised to accommodate these groups. Members of the public accessing the site for the farm shop and garden centre were kept separate from our Trainees.
Our financial surplus for 2020 was such that for the first-time trustees were able to set aside three months’ worth of staff salaries. This achievement came with a sting in its tail as many funders declared on seeing our accounts that we had too much money in reserves and declined our request for funding. So much for being prudent!
During the year our thoughts turned towards other sections of society that our site and practices might benefit, such as those living with early-onset dementia and those experiencing problems with their mental health. The initiative began with “Time to Grow”, gentle gardening sessions on site on
Friday mornings. This was followed by our Memory Café, which brings together everyone living with dementia for a cuppa and a chat on the first Monday afternoon of the month. These initiatives are in their early stages but are well supported. We will look to expand them while keeping in mind our main function, which is to provide excellent day care for our Trainees.
It has been a bumpy year, but we have made progress with the site. We took further advantage of restricted access to it to enable the café to be extended. While that work was being carried out, the Food Shack was built and opened in time for Christmas tree sales, with hot drinks, snacks, ice creams and sugary delights on offer, as well as outdoor seating.
As ever, I would like to express my appreciation to all who contribute to Spadework’s continuing success, including volunteers, staff, funders and those who shop with us and buy raffle tickets. We could not do without you and your generosity of spirit.
Thank you.
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## Objectives and activities
**Spadework is an independent charity based in West Kent and provides meaningful opportunities for vulnerable adults from both Kent and Medway.**
**Our mission is to enable people to be more independent, less isolated and to lead happier, healthier and more fulfilling lives.**
## Policies and objectives
Spadework provides care, support and meaningful opportunities for adults with learning and other disabilities (known to us as our Trainees) in arts, crafts, catering, gardening, health, hobbies, horticulture, hospitality, information technology, life skills, performing arts, radio podcasts, retail management, wellbeing and woodwork.
Spadework provides a range of different experiences and activities to enable our Trainees to develop the skills needed to allow
them to reach their full potential. As well as providing meaningful opportunities for our Trainees, Spadework provides a number of different services across our site.
We provide three wellbeing services for adults experiencing problems with their mental health (called Time to Grow, Woodwork for Wellbeing and Time Together) and three dementia services for adults living with dementia (a Memory Café, a Peer Support Group and a Carers’ Support Group).
## Public benefit
The charity’s objective of enabling people to be more independent, is of benefit not only to our Trainees but also to their families, support networks, carers, local authorities and the wider community.
We are fortunate to have many energetic, resourceful and inspirational staff members and volunteers, who share our passion and commitment to realising our vision.
At the heart of a rural community, Spadework offers local people a unique place to meet
friends, recharge their batteries and enjoy the interaction with our beneficiaries. Our safe and stimulating site enables vulnerable adults to feel accepted for who they are, gain new skills and access new opportunities. We provide an oasis for our local community, providing a positive and uplifting space to help bring everyone together, be it someone faced with bereavement, a life-changing health diagnosis, an ageing parent, a family celebration, a club meeting or social event. The interactions that occur on our five-acre site are often emotional, meaningful and heartening.
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## Our purpose
**We passionately believe that adults with learning and other disabilities should not be held back from enjoying a full life because of other people’s perceptions about what they can and cannot do.**
At Spadework people are supported to:
- l Be more **independent** and better prepared for life outside of their family and Spadework.
- l Have an increased sense of **self-worth, belonging, and purpose** by feeling the value of doing a good job, being part of something bigger than themselves, playing an active part in the community and **feeling accepted for who they are** .
- l **Reduce their feelings of isolation** and increase their **connections with others** by feeling part of a team, accepting each other’s abilities and supporting other Trainees.
- l Be **happier** and **healthier** and have **increased mental wellbeing** .
**Most Trainees attend Spadework two days a week. Some come every weekday.**
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## What we do
Our Trainees come on site each weekday and are involved in everything that we do. When the charity was founded in 1984, the Trainees were solely involved in horticultural activities, hence our name. Over the years we have expanded the range of activities they can choose. They now include creative activities like performing arts, our own podcast “Spadio”, painting, hobbies, crafts and woodwork.
Our Trainees also learn life skills, such as learning how to cook a healthy meal or how to make a bed, skills that enable them to lead more independent lives. Our Trainees make jams and chutneys for sale in the farm shop and label apple juice that is served in the café and sold in the farm shop.
We learned a lot from the Covid pandemic. As a result, we have made positive changes to the services that we provide. For example, we changed the way we work. The Trainees now work in a small group for six weeks, so they can see a project though from start to finish. Our care team can look at trends, to see how the interests of our Trainees change. We can grow our service to meet their needs and provide more person-centred care.
## “I like to continue working on something we started the week before.”
## **Trainee K**
## **The activities fall broadly into three categories:**
Horticulture
Creative arts, and performing arts, and woodwork
Skills for life
**The average length of service is 9.5 years. The longest serving Trainee has been with us for 33 years.**
**41 % of Trainees are aged 26-35. We welcome adults of all ages.**
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**we sold more than 10,000**
## Horticulture
Horticulture remains at the heart of the skills that the Trainees learn and use on site. For example, they grow pumpkins from seed, plant the pumpkin plants and tend and water them until they are sold during our Pick Your Own Pumpkin festival. Since we started growing pumpkins in 2017, we have learned a lot about the therapeutic value of pumpkins and learned more about the 33 varieties we grew in 2021.
café and seasonal vegetables that are sold in the farm shop.
Our Trainees use their gardening skills to keep our site looking inspirational for visitors. The courtyard garden has become a showcase for many of the plants sold in the garden centre and a welcoming space for everyone who visits Spadework.
Our Trainees also tend to our vegetable gardens, growing herbs that are used in the
In 2021, with our Trainees back on site after lockdown, we renewed our focus on
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“I like different types of pumpkins – we grow them from seeds that we keep and sell to customers. I loved that… It makes me happy to see food grown from seed to pumpkin and then go to the customer.”
## **Trainee H**
horticultural activities that are of benefit to the environment. With the help of corporate volunteers, we began to rejuvenate our wildlife garden. Under the guidance of our Horticulture and Ecology Manager we have experimented with growing plants together and in rotation that have a positive impact on the soil (companion planting) and have
looked at ways to recycle and re-use materials to reduce our waste. We have also been fortunate to be given access by a local landowner and Spadework patron, Stephen Betts, to the water in his borehole. Keeping our five-acre site watered is quite a challenge for all of us. The use of bore water has also saved us a substantial amount of money.
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**podcast at spadio.org.uk**
## Creative arts, and performing arts, and woodwork
Our Trainees let their creativity shine through, whether pursuing a hobby, making arts and crafts or making wooden items in woodwork.
The skills learned in woodwork can be applied practically on site. For example, our Trainees have recently renovated the furniture for our café. They have also made bird boxes, place mats and decorations for sale in the garden centre.
We are passionate about ensuring every Trainee has a voice that is heard. When our Trainees returned on site after lockdown in
June 2021, we introduced new creative activities. Our staff work with a charity called Square Pegs Arts to deliver quality performing arts sessions. Each week we explore with our Trainees different aspects of theatre, music, and performing arts. We have had much positive feedback from our Trainees and heard plenty of laughter through the sessions.
In September 2021 our Trainees performed the first play they had written. This was followed by a Christmas play, which was enjoyed by all the Trainees who took part and by those who watched.
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Our unique podcast, which we call “Spadio”, is an opportunity for our Trainees to tell their story. In the fourth episode, for example, one of our Trainees, J, talks about his family life, sharing the story of how he nearly died at birth and how he developed a love of running. In another episode Trainee P talks about his love of films. The podcast enables people outside of Spadework to get a real understanding for who our Trainees are. The first “Spadio” podcast went live in September 2021.
We have seen positive changes to our Trainees’ confidence and engagement. It is also a great service user-generated way of promoting what we do at Spadework.
These sessions build on the skills that our Trainees developed during lockdown. When
we provided remote support via telephone and video, many of our Trainees began to develop their own voice. Now we have new services that can build on these skills.
It is all part of the evolution of Spadework as we respond to the changing needs of our Trainees.
“I enjoy coming to Spadework because it gives me the chance to learn new skills I haven’t learned before. I also like trying my hand at new stuff, being adventurous and moving with the times.”
**Trainee S**
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## Skills for life
Our skills for life activities have become some of the most popular activities for our Trainees. Some of these activities are new for 2021 and were introduced in response to the Covid pandemic and our increased understanding of the situations of the Trainees outside of Spadework.
We were fortunate to receive funding from The National Lottery Community Fund which enabled us, among other infrastructure changes, to re-purpose the Trainee Common Room into two separate rooms – orange and purple – which have become the hub of the skills for life activities.
In our fully equipped orange kitchen and purple classroom, our Trainees learn how to cook food, including fruit and vegetables grown in our vegetable garden, and to make healthy food choices. Throughout the sixweek cycle of these sessions our Trainees make menu choices. One of the weeks, which is arguably the most popular with the Trainees, is the Mystery Week. Faced with a real-life choice to have a look in the fridge, freezer and cupboards, the Trainees prepare a meal cooking with what they find.
We are grateful for the partnership we have with FareShare Kent, the regional arm of the
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“In Life skills we learn cooking and food preparation. I can now cook for my girlfriend in my supported living accommodation … I plan my menus and get food out of the freezer the night before.”
## **Trainee S**
UK’s national network of charitable food redistributors, for providing us with trays of food for use in the orange kitchen. This enables us to provide every Trainee with the food to cook.
Our Trainees have also learned how to make a bed and other household skills, how to manage money and what safe relationships look like.
Before the pandemic our Trainees were involved in customer-facing activities in the
farm shop, café and garden centre. Now they are using those skills in other ways and learning new life skills. When it is safe for the Trainees to mix again with the public, their retail, catering and hospitality skills will be applied in our Social Enterprises. The Trainee Council (Trainees who are elected by the Trainees to represent their views and shape how Spadework operates) has reported that while some Trainees miss interacting with the community, at present they are really appreciating the new activities while still making a huge contribution to their charity.
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## Our impact
## Self esteem
**Trainees are made aware of their own strengths, are involved in activities that enable them to be proud of themselves and through contributing to the community have a greater sense of purpose.**
**Aware of strengths Sense of pride Sense of purpose** 83% 96% 88% **of Trainees are aware of of Trainees feel proud of of Trainees enjoy their strengths. themselves. contributing to their community.**
“I like painting furniture for the café and picnic benches.”
## **Trainee L**
* Figures from the Spadework Impact Report 2021/22
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## Independence
**Trainees are encouraged to try new activities, such as preparing lunch for themselves and others, to make their own decisions and communicate with others. This enables our Trainees to be more independent.**
**Learn new things**
**Make life decisions**
**More confident**
93%
72%
88%
**of Trainees have learned new things at Spadework.**
**of Trainees say they make decisions that affect their lives.**
**of Trainees are more confident because of coming to Spadework.**
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## Our impact
## Trainee wellbeing
**Trainee wellbeing is at the heart of all our activities. Our Trainees form friendships, some of which are long-lasting outside of Spadework. Trainees are encouraged to talk to staff so that they are less isolated. Many activities at Spadework enable our Trainees to be physically active.**
**New friends The future Physical activity** 96% 87% 65% **of Trainees say they have of Trainees say they feel of Trainees are more made new friends at good about the future. physically active because Spadework. of coming to Spadework.**
“He is finding more confidence to ask questions and express how he feels.” **Parent/carer**
* Figures from the Spadework Impact Report 2021/22
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## Communication and participation
**Our staff encourage the Trainees to develop their communication skills and contribute to the evolution of the charity through channels like the Trainee Council. The Trainee Council is elected by the Trainees to represent the entire Trainee cohort.**
Trainee-led decisions have included the format of the day and which activities take place in which rooms, times we break for lunch and the introduction of a sports day.
Promoting greater communication, confidence and autonomy are essential in protecting vulnerable adults. A carer in a focus group observed that Trainees, “speak up more about what’s concerning them”.
**Communication**
66%
**of Trainees have better communication skills.**
“We learned how to talk to people nicely. When people come to Spadework, they are nicer, they show respect. There’s no pushing; they say, ‘Excuse me’.”
**Trainee P**
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## Freddie’s* story
## **From initially needing one-to-one support to developing more confidence and being able to attend Spadework without a personal assistant, Freddie’s story is an inspirational one.**
Freddie started coming to Spadework when he was 19 years old after leaving the autism unit at school. Freddie’s parents wanted him to develop new life skills, build a routine and have structure to his day, so were delighted to have found Spadework.
Initially, Freddie’s personal assistant (PA) came to Spadework with him in a taxi. As his confidence increased over the years, it was agreed with his parents that Freddie could try taking the taxi on his own and meeting his PA at Spadework. Although his parents were initially worried about this new arrangement, Freddie took to his increased independence straight away, gaining more confidence and skills.
“Freddie enjoys the horticultural activities and even plants beans at home now.”
Our care team observed Freddie’s confidence increasing further over the next few years, so we suggested that Freddie could try coming to Spadework without his PA. Although initially hesitant, Freddie’s parents agreed and he has been thriving since, as noted by Freddie’s father:
“He’s more likely to ask for things and talk to people. Whereas before Freddie was standing in the shadow of his PA, who did most things for him, he is now standing taller, smiling and can do so much more for himself. He’s got a
*name has been changed
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Our care team ensure that every Trainee has a voice that is heard and provide high quality person-centred care that evolves with our Trainees.
voice and feels comfortable sharing his sense of humour with people.”
Before coming to Spadework, Freddie’s parents cared for him around the clock; they described 24/7 care as “hugely draining”. Now, later in life, they can take some time to look after their own wellbeing – going for a swim or to the gym and gardening, knowing that Freddie is well cared for and enjoying his time at Spadework.
“Without Spadework, Freddie’s future would have been bleak. Spadework really helps people with special needs to grow and learn new skills so that they can live a meaningful and fulfilling life.”
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## New services at Spadework
## **Following a successful building and facilities re-configuration programme, in 2021 we introduced new services to support our wider community.**
We were particularly aware that during the Covid-19 pandemic Spadework had a mutually beneficial relationship with our wider community. Through providing services like food boxes and ensuring the farm shop stayed open during lockdown, Spadework became a support for many people within the community. Equally, we received much support from local people who volunteered their time with us, or who continued to shop in the farm shop once normal service was resumed at their regular store. We became acutely aware of the impact the pandemic had on the lifestyles and wellbeing of local
people. We wanted to give something back to the people who had so kindly helped us.
So, our new services gradually came to life.
We now offer three wellbeing services to those people experiencing problems with their mental health, Time to Grow is what we call our community gardening project. We also have Woodwork for Wellbeing and these both paved the way in 2022 for the introduction of our Time Together project, encouraging individuals to visit our café and chat to new people.
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We became acutely aware of the impact the pandemic had on the lifestyles and wellbeing of local people. We wanted to give something back to the people who had so kindly helped us.
We also became aware that many people were experiencing symptoms of dementia but were unable to get a diagnosis. Coming to terms with these changes in the life of a loved one is difficult for everyone. We therefore launched three Spadework dementia services: a Memory Café, a Carers’ Support Group and a Peer Support Group.
We are proud that we have used our safe and beautiful space to introduce services to support the wider local community. These services have been launched using the resources that we have on site and with very little financial support. It is our intention as we generate more income to extend these services to benefit more people.
## **Wellbeing services**
## **Dementia services**
> l **Time to Grow**
> l **Woodwork for Wellbeing**
> l **Memory Café**
> l **Carers’ Support Group**
> l **Peer Support Group**
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## Wellbeing services
**We appointed one of our staff members as our mental health lead. Her responsibilities include expanding our new community wellbeing services as well as ensuring staff are supported in their wellbeing.**
With one in four adults experiencing problems with their mental health (source: NHS England), we are making our site and services available to these vulnerable members of our community.
As a result of the expansion of our services, Spadework is now a hub for many diverse groups of people. We can see new connections and friendships being made on our safe, beautiful fi ve-acre site.
“I really enjoy coming here. I would be so disappointed if I couldn’t come.” **E. a regular attendee at Time to Grow**
## **Time to Grow**
## **Woodwork for Wellbein g**
> l **A three-hour session where people come together in a peaceful outdoor environment to garden, to chat and to make friends**
> l **A three-hour session for people who would like to learn a new skill, chat and make friends**
> l **Sessions run at weekends**
> l **Sessions run twice a week**
## **Impact**
## **Impact**
100%
**of people said they felt a lot happier as a result of attending**
**The taster sessions have led to regular sessions being rolled out once a week in 2022.**
77%
**reported improved physical health**
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## Dementia services
Led by our Dementia Services Co-ordinator from September 2021, we hosted a series of Memory Cafés, Carers’ Support Groups and Peer Support Groups for people who have recently received a dementia diagnosis or may be pre-diagnosis.
houses a sensory experience that creates a world seen through the eyes and ears of a person living with dementia. This is part of our mission to educate and inform our local community about living with dementia.
These services are currently being extended to include an Activity and Music Therapy Group.
We are also hosting information events to give local people the opportunity to fi nd out not only about our services, but also about other dementia services in the local area. To help people understand how people living with dementia see the world, we will also be temporarily hosting on our site a bus which
## **Impact**
- l **47 attendances at four Memory Cafes (94 hours)**
- l **27 attendances at four Carers’ Support Groups (54 hours)**
**These services began in September 2021 and we have already received positive feedback from people.**
“Take care and thank you for all you are doing with the activities you are arranging at Spadework. I hear from our Carers who attend how grateful they are to have places to take their loved ones and with the effects of Covid over the past two years this is proving to be very refreshing and so worthwhile. My thanks to you.”
**Staff member at local hospice**
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## Spadework Social Enterprises CIC
We have always tried to be as financially independent as possible.
Through our trading subsidiary, Spadework Social Enterprises CIC, we have a garden centre, café and farm shop that are open to the public seven days a week.
The pandemic put us firmly on the map, as our Farm Shop became a go-to place for many people who could not get an online delivery or were unable to go out when the supermarkets
re-opened. We worked hard to retain that support as life returned to normal. We are delighted that many people who discovered us then have continued to support us.
The income from these social enterprises supports the work of the charity and supports the local Kent economy.
**In 2021, Spadework Social Enterprises CIC generated £641,540.**
## **Garden Centre**
99%
**of our bedding plants are sourced from Kent, Essex, and Sussex.**
**Café** 65%
**of our ingredients in the café are from Kent.**
## **Farm Shop**
75% **of the products sold are from Kent-based producers.**
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## Impact on local community
**The activities at Spadework have an impact on local people who both work and volunteer with us.**
**Employees**
51 **staff members live in Kent.** 1,072 hours **of employment each week.**
**Volunteers** 32 **local people volunteer their time.** 8,112 **hours of volunteering support.**
## Our income
## Awards
**Spadework’s fundraising activities are led by our Head of Fundraising. Income generation is headed up by our Social Enterprise Department Managers.**
**----- Start of picture text -----**
Restricted grants
and donations
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**----- Start of picture text -----**
Fundraising
Unrestricted events
grants and
donations 3%
5%
7%
Commercial
CJRS* 11%
activities
46%
Contract income
28%
*Coronavirus
Job Retention
Scheme
**----- End of picture text -----**
Our Care team were shortlisted as Care Team of the Year in the 2021 Kent Care Awards. These awards celebrate the work of care staff and the care sector and are the regional part of the national Great British Care Awards. The purpose of the awards is to pay tribute to those individuals who have demonstrated outstanding excellence within their field of work.
We were delighted when Spadework’s Ashleigh Smith was named Apprentice of the Year at the Kent Care Awards and went through to the national finals as Newcomer of the Year.
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## The future
**We are proud with how Spadework has evolved, particularly through the challenges we faced because of the Covid-19 pandemic and its continuing effects. We will:**
- l Continue to put **people first** and to offer a person-centred and tailored approach to our care.
- l **Listen** to what the communities we serve tell us about our services.
- l Monitor our **impact** against our mission.
- l **Invest in our staff** to ensure we have the skills and resources to maintain a high-quality service.
- l Continue to **communicate regularly** with our supporters and volunteers.
- l Seek to **generate more income** through fundraising activities and to realise the potential of Spadework Social Enterprises CIC.
- l **Expand our facilities and extend our services** to ensure the wellbeing of our wider community and to maximise the use of our five-acre site.
- l **Reduce our environmental impact** through monitoring and, where possible, introduce measures to reduce the negative impact on our local environment, while positively contributing through the sustainable use of our land.
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## Thank you
One of the things that makes Spadework unique is its close relationship with our local community. It is a simple model for a charity where every interaction between the Trainees and our local community enriches the lives of everyone that is involved.
**----- Start of picture text -----**
A very big
Spadework,
“Thank you.”
**----- End of picture text -----**
We would like to thank the following organisations, among others, for their support:
## **Community**
Rotary Kings Hill, Rotary West Malling, Lions Club Malling, Corpus Christi Social Club Tonbridge, Malling Abbey Lodge, The Malling Society, Parkinson’s UK, St. Mary the Virgin, West Malling, St. Michael and All Angels Offham.
## **Grants, Trusts, and Foundations**
The National Lottery Foundation, Kent Community Fund and Tesco Community Grants. Many that have chosen to remain anonymous.
## **Businesses**
Brachers LLP, Parkfoot Garage, Mortgages for Business, Keystone Property Finance, Rolex, St James’s Place Wealth Management, The Swan.
**And every individual who has made a donation or shopped with us. As a small charity every penny makes a difference.**
FinanciaL Statement
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## **Financial Review**
## **Structure, governance and management**
## **a. Reserve policy**
Our objective is to achieve a position where the income from local authority grants and from the supporting activities meet the full operational costs of the charity, allowing all donations to be used for new capital projects and to allow for the creation of a reserve fund. Over the last few years our dependence on donations to cover operational shortfalls has been reducing. We would ideally like to build a reserves buffer of around £150,000 to enable the charity to continue operating whilst we achieve this goal.
- l General reserves at 31 December 2021 amounted to £80,099 (2020 - £276,486), designated funds totalled £968,672 (2020 - £760,202) and restricted funds were £30,260 (2020 - £54,980) giving total funds of £1,079,031 (2020 - £1,091,668).
- l At 31 December 2021, net current assets totalled £178,865 (2020 - £395,073).
## **a. Company status**
Spadework Ltd is a charitable company limited by guarantee with no share capital. The company was incorporated on 30 May 1984 and is governed by its Memorandum and Articles of Association.
## **b. Governance and internal control**
The Board of Trustees is responsible for selecting and recruiting suitably skilled Trustees. One third of the Trustees retire from office at each Annual General Meeting. A retiring trustee is eligible for re-election, and there is no limit on the number of times a trustee may be re-elected.
## **c. Risk management**
The Trustees have assessed the major risks to which the charity is exposed and, in particular, those related to the operations and finances of the charity. They are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.
The additional amount of general funds are deemed appropriate to be holding given the need to ensure there is access to unrestricted liquid funds in a time of uncertainty due to COVID-19.
The Trustees have developed a formal risk management process to assess business risks and implement risk management strategies. This involves reviewing the risks the charity faces, prioritising them in
FinanciaL Statement
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terms of potential impact and likelihood of occurrence, and identifying means of mitigating the risks in line with a risk profile accepted by the board.
The most significant risk facing the charity is a reduction in our funding. A reduction in income would impact on the charity’s ability to continue to operate. In terms of mitigating the risk, we strive to ensure that the income derived from our Day Opportunity Services and other supporting activities are maximised and that we are working towards identifying new funding streams.
## **Basis for preparation of accounts**
The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the group and the Charity qualify as small under section 383 of the Companies Act 2006, the Group strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
## **Statement of Trustees’ responsibilities**
The Trustees (who are also the directors of the Charity for the purposes of company law) 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).
Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not a ancial statements unless pprove the fin they are satisfied that they give a true and fair view of the state of affairs of the Group and the Charity and of their incoming resources and application of resources, including their income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:
FinanciaL Statement
34
**35**
- l select suitable accounting policies and then apply them consistently;
- l observe the methods and principles of the Charities SORP (FRS 102);
- l make judgements and accounting estimates that are reasonable and prudent;
- l state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements;
- l prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
## **Disclosure of information to auditor**
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
- l so far as that Trustee is aware, there is no relevant audit information of which the charitable group's auditor is unaware, and
- l that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of any relevant audit information and to establish that the charitable group's auditor is aware of that information.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Charity and enable them to ensure tha ancial statements t the fin comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregulaarities.
## **Auditor**
The auditor, Kreston Reeves LLP, has indicated his willingness to continue in office. The designated Trustees will propose a motion reappointing the auditor at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
## **Sue Murray, Chairman**
Date: 06/09/2022
**Spadework Limited (A company limited by guarantee)**
## **Independent auditor's report to the Members of Spadework Limited**
## **Opinion**
We have audited the financial statements of Spadework Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 December 2021 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
Page 36
**Spadework Limited (A company limited by guarantee)**
## **Independent auditor's report to the Members of Spadework Limited (continued)**
## **Other information**
The other information comprises the information included in the Annual report other than the financial statements and our Auditor's report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Trustees' report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
- the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of Trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Trustees' report and from the requirement to prepare a Strategic report.
## **Responsibilities of trustees**
As explained more fully in the Trustees' responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
Page 37
**Spadework Limited (A company limited by guarantee)**
## **Independent auditor's report to the Members of Spadework Limited (continued)**
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Capability of the audit in detecting irregularities, including fraud
The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks.
Based on our understanding of the group and charitable sector generally, and through discussion with the Trustees and other management (as required by auditing standards), we identified that the principal risks of noncompliance with laws and regulations related to health and safety, antibribery and employment law. We considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, taxation and pension legislation. We communicated identified laws and regulations throughout our team and remained alert to any indications of noncompliance throughout the audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the engagement team included:
- Discussions with management and assessment of known or suspected instances of noncompliance with laws and regulations and fraud; and
- Challenging assumptions and judgements made by management in its significant accounting estimates; and
- Confirmation of related parties with management, and review of transactions throughout the period to identify any previously undisclosed transactions with related parties outside the normal course of business; and
- Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud; and
- Conducting interviews with appropriate personnel to gain further insight into the control systems implemented, and the risk of irregularity; and
- Reading minutes of meetings of those charged with governance and reviewing correspondence with relevant regulatory authorities; and
- Physical inspection of tangible assets susceptible to fraud or irregularity; and
- Review of significant and unusual transactions and evaluation of the underlying financial rationale supporting the transactions; and
- Identifying and testing journal entries, in particular any manual entries made at the year end for financial statement preparation; and
- Performing analytical procedures to identify any unusual or unexpected relationships, including related party transactions, that may indicate risks of material misstatement due to fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
Page 38
**Spadework Limited (A company limited by guarantee)**
## **Independent auditor's report to the Members of Spadework Limited (continued)**
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the charitable company's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
- Conclude on the appropriateness of the Trustees' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in my Auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of my Auditor's report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Page 39
**Spadework Limited**
**(A company limited by guarantee)**
## **Independent auditor's report to the Members of Spadework Limited (continued)**
## **Use of our report**
This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
## **S M Robinson BA FCA FCIE DChA MCMI (Senior statutory auditor)**
for and on behalf of **Kreston Reeves LLP**
Chartered Accountants Statutory Auditor
Chatham Maritime Date: 07/09/2022
Page 40
**Spadework Limited**
## **(A company limited by guarantee)**
## **Consolidated Statement of financial activities (incorporating income and expenditure account) For the year ended 31 December 2021**
|**Note**
**Income from:**
Donations and legacies
3
Charitable activities
4
Other trading activities
5
Investments
6
**Total income**
**Expenditure on:**
Raising funds
Charitable activities
8
**Total expenditure**
**Net (expenditure)/income**
Transfers between funds
17
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
Net movement in funds
**Total funds carried forward**|**Unrestricted**
**funds**
**2021**
**£**
**282,421**
**1,191,986**
**54,534**
**13**
**1,528,954**
**23,201**
**1,515,412**
**1,538,613**
**(9,659)**
**21,742**
**12,083**
**1,036,688**
**12,083**
**1,048,771**|**Restricted**
**funds**
**2021**
**£**
**86,602**
**-**
**-**
**-**
**86,602**
**-**
**89,580**
**89,580**
**(2,978)**
**(21,742)**
**(24,720)**
**54,980**
**(24,720)**
**30,260**|**Total**
**funds**
**2021**
**£**
**369,023**
**1,191,986**
**54,534**
**13**
**1,615,556**
**23,201**
**1,604,992**
**1,628,193**
**(12,637)**
**-**
**(12,637)**
**1,091,668**
**(12,637)**
**1,079,031**|Total
funds
2020
£
854,089
1,500,242
30,485
25|
|---|---|---|---|---|
|||||2,384,841|
|||||10,047
1,769,758|
|||||1,779,805|
|||||605,036
-|
|||||605,036|
|||||486,632
605,036|
|||||1,091,668|
Page 41
Spadework Umlted
IA ¢ompany Ilm110d by guaranta•l
Regi•t•rod nnb. 1820460
Consolldated balance 8heet
AS at 31 Decèmljer 2021
20
2020
Flx•d assot8
Tangible assets
11
980,054
781,673
980,054
781,673
Current a•••ts
13
14
130.878
96.275
163.864
2*,172
Debtors
Cash at bank aNI in hand
83N55
299.799
556.311
CrèditoTS'. wnounts folling du? wrthin one
15
1120,9341
{161.238>
N•t current •wts
178,866
395,073
Total a88•ts le cmnl Ilabllftl
1,158.919
1,176,746
Creditors.. amounts falling due after morn
than one
16
(79,8881
{85.0781
T(rtal Mt a•••l•
1,079,031
1.091,668
Charlty fvnd•
Re8tricted funds
Unre8trkted fvnds
17
17
30,260
1.048,771
54.960
1,036,688
Total lund8
1,079,031
1,091,668
The Trustees ackn¢)wledge IF1r responsibSlities for WpIng ¥Ath th• requir•mgnts of the Act with re5pecl to
aCc(ntIng record5 and pr8paration of fjnanci81 st*mert¥.
The finanGial statements have bo•n prepared in acc? the provwdiong aFpl#bI8 to ènt6tiaÈ sublecl to
the $m811 companies regThe.
The financLql statemerrts approv&1 and authorisaj for issue by the TNste88 aThJ Signed their tehaw by..
Susan Murray
sure
The nc498 on pages 45 to 61 fomi part of the8e finla1 statements.
P•3e 42
8pthork Llmlt•d
(A c(xnpany Ilmlted by guarnnte•l
Ro9lBtar•d number: 1820460
Charlty balance Sheet
A8 at 31 Decemb•r 2021
2020
Not•
Flx8d ass•ts
Tangible assets
Investments
11
12
980.054
781,673
980,055
781,873
Cuvrgnl as8ets
Stocks
Debters
Cash al bank and in h8rwJ
13
14
96.275
163,864
2,172
85.466
83A66
556.311
Credrtors.. OUnt3 tslling due ¥thin one
15
1162,1211
1161,238)
Nvt curront aM•ts
40,742
395,073
Totsl Ismts leu ¢urr•nt Ilabllltl
1,020,797
1.176.746
Creilrtor¥.' arnrrtS laillrs due after mcK•
th one yew
16
179,888)
(85,078)
Net •xcludlng p•n•l¢)n •$••t
Totsl n•t a•••ts
1,091.668
1,091,668
Charfty fund•
Restricted funds
Unre8tricted fvnds
17
17
54,980
1,036,688
910.649
Total funds
940,909
1.091,668
Th• Trustees ac*nowbdge thew responstsilities for c(#nptytr¥a vth tho rnw11ennts of the Act wth respect to
accounting rttords and Pf8paralion offi'nancial staterrts.
The ffinancial $lalernents h8ve been pr8parèd in actcwdm with th¢ provisn5 lo entitle6 6ubject to
the small ccrfnpanies re9nne.
The fin
ial statements apprOd aNf aultK)ri8ed for issue by the Trustees and Signed on thèir behaff by.
ony
Treas
Susan Murray
_T_I
oal
The notes on paJes 45 10 61 fom) port d these financial staieff*nts.
Page43
**Spadework Limited**
## **(A company limited by guarantee)**
## **Consolidated statement of cash flows For the year ended 31 December 2021**
|**Note**
**Cash flows from operating activities**
Net cash used in operating activities
20
**Cash flows from investing activities**
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Cash flows from financing activities**
Repayments of borrowing
**Net cash used in financing activities**
**Change 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**
21
The notes on pages 45 to 61 form part of these financial statements|**2021**
**£**
**57,997**
**(265,524)**
**(265,524)**
**(5,190)**
**(5,190)**
**(212,717)**
**296,172**
**83,455**|2020
£
738,292|
|---|---|---|
|||(628,135)|
|||(628,135)|
|||(85)|
|||(85)|
|||110,072
186,100|
|||296,172|
Page 44
**Spadework Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2021**
## **1. General information**
Spadework Limited is a company limited by guarantee in the United Kingdom. In the event of the Charitable Company being wound up, the liability in respect of the guarantee is limited to £10 per member of the Charitable Company. The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charitable Company's operations and principal activities are set out on page 2.
## **2. Accounting policies**
## **2.1 Basis of preparation of financial statements**
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Spadework Limited 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.
The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of financial activities in these financial statements.
## **2.2 Income**
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Grants are included in the Consolidated statement of financial activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.
Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.
Page 45
**Spadework Limited**
## **(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2021**
## **2. Accounting policies (continued)**
## **2.3 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 on raising funds includes all expenditure incurred by the Group to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
## **2.4 Interest receivable**
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
## **2.5 Tangible fixed assets and depreciation**
Tangible fixed assets costing £500 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
|Freehold land|- Not depreciated|
|---|---|
|Site improvements|- 5% straight line|
|Buildings|- 5% straight line|
|Motor vehicles|- 25% reducing balance|
|Fixtures and fittings|- Various rates depending on the estimated|
||useful life of the asset|
|Assets under construction|- Not depreciated until completion|
## **2.6 Investments**
Investments in subsidiaries are valued at cost less provision for impairment.
## **2.7 Stocks**
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
## **2.8 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.
Page 46
**Spadework Limited**
## **(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2021**
## **2. Accounting policies (continued)**
## **2.9 Cash at bank and in hand**
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **2.10 Liabilities and provisions**
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
## **2.11 Financial instruments**
The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
## **2.12 Operating leases**
Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.
## **2.13 Pensions**
The Group operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Group to the fund in respect of the year.
## **2.14 Fund accounting**
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 47
**Spadework Limited**
## **(A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2021**
## **3. Income from donations and legacies**
|Donations
Government grants
Total 2020|**Unrestricted**
**funds**
**2021**
**£**
104,477
177,944
282,421
579,904|**Restricted**
**funds**
**2021**
**£**
86,602
-
86,602
274,185|**Total**
**funds**
**2021**
**£**
**191,079**
**177,944**
**369,023**
854,089|Total
funds
2020
£
600,038
254,051|
|---|---|---|---|---|
|||||854,089|
||||||
Goverment grants include furlough income of £177,944 (2020: £249,012) received through the government's furlough scheme during the COVID-19 pandemic.
Page 48
## **Spadework Limited**
## **(A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 December 2021**
## **4. Income from charitable activities**
|Charitable activities
Total 2020
**.**
**Charitable activities**|**Unrestricted**
**funds**
**2021**
**£**
1,191,986
1,500,242|**Total**
**funds**
**2021**
**£**
**1,191,986**
1,500,242|Total
funds
2020
£
1,500,242|
|---|---|---|---|
|||||
|Horticulture / Nursery
Catering
Farm shop
Logs
Other activities
Sponsorship - Kent County Council
Sponsorship - Medway Council
Sponsorship - Private
Total 2020|**Unrestricted**
**funds**
**2021**
**£**
380,167
2,925
258,448
97,431
5,160
243,194
40,132
164,529
1,191,986
1,500,242|**Total**
**funds**
**2021**
**£**
**380,167**
**2,925**
**258,448**
**97,431**
**5,160**
**243,194**
**40,132**
**164,529**
**1,191,986**
1,500,242|Total
funds
2020
£
512,538
35,067
353,219
54,125
32,733
242,449
78,026
192,085|
|---|---|---|---|
||||1,500,242|
|||||
## **5. Fundraising income Income from fundraising events**
|Pumpkin event
Total 2020|**Unrestricted**
**funds**
**2021**
**£**
54,534
30,485|**Total**
**funds**
**2021**
**£**
**54,534**
30,485|Total
funds
2020
£
30,485|
|---|---|---|---|
|||||
Page 49
**Spadework Limited**
## **(A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 December 2021**
## **6. Investment income**
|Bank interest
Total 2020
**Costs on raising funds**
Fundraising events
Total 2020|**Unrestricted**
**funds**
**2021**
**£**
13
25
**Unrestricted**
**funds**
**2021**
**£**
23,201
10,047|**Total**
**funds**
**2021**
**£**
**13**
25
**Total**
**funds**
**2021**
**£**
**23,201**
10,047|Total
funds
2020
£
25|
|---|---|---|---|
||||Total
funds
2020
£
5,636|
|||||
## **7. Costs on raising funds**
## **8. Analysis of expenditure on charitable activities**
## **Summary by fund type**
|Charitable activities
Total 2020|**Unrestricted**
**funds**
**2021**
**£**
1,515,412
1,565,754|**Restricted**
**funds**
**2021**
**£**
89,580
204,004|**Total**
**funds**
**2021**
**£**
**1,604,992**
1,769,758|Total
funds
2020
£
1,769,758|
|---|---|---|---|---|
||||||
Page 50
**Spadework Limited**
## **(A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 December 2021**
## **. Charitable activities**
|Other staff costs
Vehicle costs
Office costs
Professional costs
Site costs
Bank interest
Stock purchases
Loss on disposal of fixed assets
Auditors' remuneration
Wages and salaries
National insurance
Pension costs
Depreciation
Bad debts
Total 2020
**Staff costs**
Wages and salaries
Social security costs
Contribution to defined contribution pension
schemes|**Unrestricted**
**funds**
**2021**
**£**
5,406
9,261
141,931
29,259
69,321
5,286
435,985
-
8,450
689,858
48,078
15,523
57,054
-
1,515,412
1,565,754
**Group**
**2021**
**£**
**705,858**
**48,078**
**15,523**
**769,459**|**Restricted**
**funds**
**2021**
**£**
-
-
-
-
63,491
-
-
-
-
16,000
-
-
10,089
-
89,580
204,004
Group
2020
£
705,999
44,851
15,144
765,994|**Total**
**funds**
**2021**
**£**
**5,406**
**9,261**
**141,931**
**29,259**
**132,812**
**5,286**
**435,985**
**-**
**8,450**
**705,858**
**48,078**
**15,523**
**67,143**
**-**
**1,604,992**
1,769,758
**Charity**
**2021**
**£**
**705,858**
**48,078**
**15,523**
**769,459**|Total
funds
2020
£
7,848
4,746
138,023
19,108
221,901
5,186
535,293
22,585
4,950
705,999
44,851
15,144
39,085
5,039|
|---|---|---|---|---|
|||||1,769,758|
|||||Charity
2020
£
705,999
44,851
15,144|
|||||765,994|
## **9. Staff costs**
Page 51
**Spadework Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 December 2021**
## **9. Staff costs (continued)**
The average number of persons employed by the Charity during the year was as follows:
|Support Workers
Administrator
Managers
Weekend Staff|**Group**
**2021**
**No.**
**18**
**4**
**9**
**12**
**43**|Group
2020
No.
25
5
8
10
48||**Charity**
**2021**
**No.**
**12**
**2**
**6**
**-**
**20**|Charity
2020
No.
25
5
8
10|
|---|---|---|---|---|---|
|||||||
||||||48|
The average headcount expressed as full-time equivalents was:
|Support Workers
Administrators
Managers
Weekend Staff|**Group**
**2021**
**No.**
**15**
**2**
**9**
**6**
**32**|Group
2020
No.
20
3
7
7
37||**Charity**
**2021**
**No.**
**10**
**1**
**6**
**-**
**17**|Charity
2020
No.
20
3
7
7|
|---|---|---|---|---|---|
|||||||
||||||37|
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
|||**Group**|Group|
|---|---|---|---|
|||**2021**|2020|
|||**No.**|No.|
|In the band £70,001|- £80,000|**-**|1|
|In the band £90,001|- £100,000|**1**|-|
During the year the charity's key management personnel received employee benefits (as defined by Charities SORP FRS 102) of £302,270 (2020: £183,689), including employer's national insurance contributions of £28,410 (2020: £17,325) and employer's pension contributions of £6,275 (2020: £4,138).
## **10. Trustees' remuneration and expenses**
During the year, no Trustees received any remuneration or other benefits (2020 - £NIL).
During the year ended 31 December 2021, no Trustee expenses have been incurred (2020 - £NIL).
Page 52
**Spadework Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 December 2021**
## **11. Tangible fixed assets**
## **Group and Charity**
|**Cost or valuation**
At 1 January 2021
Additions
Transfers between classes
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020|**Freehold**
**property**
**£**
**932,824**
**141,687**
**251,836**
**1,326,347**
**518,600**
**37,801**
**556,401**
**769,946**
414,224|**Motor**
**vehicles**
**£**
**44,412**
**-**
**-**
**44,412**
**17,869**
**6,636**
**24,505**
**19,907**
26,543|**Fixtures and**
**fittings**
**£**
**84,953**
**31,730**
**-**
**116,683**
**32,236**
**22,706**
**54,942**
**61,741**
52,717|**Assets**
**under**
**construction**
**£**
**288,189**
**92,107**
**(251,836)**
**128,460**
**-**
**-**
**-**
**128,460**
288,189|**Total**
**£**
**1,350,378**
**265,524**
**-**|
|---|---|---|---|---|---|
||||||**1,615,902**|
||||||**568,705**
**67,143**|
||||||**635,848**|
||||||**980,054**|
||||||781,673|
## **12. Fixed asset investments**
|**Charity**
**Cost or valuation**
Additions
At 31 December 2021
**Net book value**
At 31 December 2021|**Investments**
**in**
**subsidiary**
**companies**
**£**
**1**|
|---|---|
||**1**|
||**1**|
Page 53
**Spadework Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 December 2021**
## **13. Stocks**
|Closing stock
**14.**
**Debtors**
**Due within one year**
Trade debtors
Other debtors
Prepayments and accrued income|**Group**
**2021**
**£**
**130,878**
**Group**
**2021**
**£**
**45,419**
**2,538**
**37,509**
**85,466**|Group
2020
£
96,275
Group
2020
£
83,409
15,168
65,287
163,864|**Charity**
**2021**
**£**
**33,942**
**Charity**
**2021**
**£**
**45,419**
**2,538**
**37,509**
**85,466**|Charity
2020
£
96,275|
|---|---|---|---|---|
|||||Charity
2020
£
83,409
15,168
65,287|
||||||
|||||163,864|
Page 54
**Spadework Limited**
## **(A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 December 2021**
## **15. Creditors: Amounts falling due within one year**
|Bank loans
Trade creditors
Amounts owed to group undertakings
Other taxation and social security
Other creditors
Accruals and deferred income|**Group**
**2021**
**£**
**9,908**
**84,054**
**-**
**16,817**
**3,055**
**7,100**
**120,934**|Group
2020
£
9,908
122,306
-
20,617
3,130
5,277
161,238|**Charity**
**2021**
**£**
**9,908**
**31,391**
**93,850**
**16,817**
**3,055**
**7,100**
**162,121**|Charity
2020
£
9,908
122,306
-
20,617
3,130
5,277|
|---|---|---|---|---|
||||||
|||||161,238|
## **16. Creditors: Amounts falling due after more than one year**
||**Group**|Group|**Charity**|Charity|
|---|---|---|---|---|
||**2021**|2020|**2021**|2020|
||**£**|£|**£**|£|
|Bank loans|**79,888**|85,078|**79,888**|85,078|
Included within the above are amounts falling due as follows:
|**Between two and five years**
Bank loans
**Over five years**
Bank loans|**41,905**
**37,983**|41,905
43,173|**41,905**
**37,983**|41,905
43,173|
|---|---|---|---|---|
Included in creditors is a loan from Natwest Bank, payable over 10 years, from 24 November 2018, at a fixed rate of 5.74% pa over the Bank's base rate. During the fixed rate period monthly instalments of £873 will be payable, with the balance of the loan being due as a final instalment.
Page 55
**Spadework Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2021**
## **17. Statement of funds**
## **Statement of funds - current year**
|**Designated funds**
Fixed Asset Fund
**General funds**
General Fund
**Total Unrestricted funds**
**Restricted funds**
Buildings Fund
National Lottery
Other Restricted Funds
**Total of funds**|**Balance at 1**
**January**
**2021**
**£**
**760,202**
**276,486**
**1,036,688**
**21,471**
**10,000**
**23,509**
**54,980**
**1,091,668**|**Income**
**£**
**-**
**1,528,954**
**1,528,954**
**-**
**40,252**
**46,350**
**86,602**
**1,615,556**|**Expenditure**
**£**
**-**
**(1,538,613)**
**(1,538,613)**
**(10,089)**
**(26,671)**
**(52,820)**
**(89,580)**
**(1,628,193)**|**Transfers**
**in/out**
**£**
**208,470**
**(186,728)**
**21,742**
**-**
**(14,177)**
**(7,565)**
**(21,742)**
**-**|**Balance at**
**31**
**December**
**2021**
**£**
**968,672**|
|---|---|---|---|---|---|
||||||**80,099**|
||||||**1,048,771**|
||||||**11,382**
**9,404**
**9,474**|
||||||**30,260**|
||||||**1,079,031**|
Page 56
**Spadework Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2021**
## **17. Statement of funds (continued)**
## **Statement of funds - prior year**
|**Designated funds**
Fixed Asset Fund
**General funds**
General Fund
**Total Unrestricted funds**
**Restricted funds**
Buildings Fund
National Lottery
Other Restricted Funds
Global Make Some Noise
**Total of funds**|Balance at
1 January
2020
£
183,797
200,787
384,584
31,773
-
21,723
48,552
102,048
486,632|Income
£
-
2,110,656
2,110,656
-
130,776
88,409
55,000
274,185
2,384,841|Expenditure
£
-
(1,575,801)
(1,575,801)
(10,302)
(46,184)
(67,314)
(80,204)
(204,004)
(1,779,805)|Transfers
in/out
£
576,405
(459,156)
117,249
-
(74,592)
(19,309)
(23,348)
(117,249)
-|Balance at
31
December
2020
£
760,202|
|---|---|---|---|---|---|
||||||276,486|
||||||1,036,688|
||||||21,471
10,000
23,509
-|
||||||54,980|
||||||1,091,668|
Page 57
**Spadework Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 December 2021**
The designated **Fixed Asset Fund** represents the net book value of the charity's fixed assets, excluding the value of the restricted Buildings Fund.
The restricted **Buildings Fund** accounts for 'lottery' grants from the Community Fund, expended on buildings and equipment. In accordance with the terms of those grant, there are restrictions on use of those assets which can apply for anything up to 80 years. Accordingly, transfers are made so that the balance on this fund is equal to the net book value of the buildings and equipment to which such restrictions apply.
The restricted **Global Make Some Noise Fund** accounts for a grants awarded to perform repairs and construction work to the Charity's premises.
The restricted **National Lottery Fund** relates to grants received from the National Lottery for various works to make improvements to the Charity's premises.
Other restricted funds relate to immaterial grants and donations received from various organisations or individuals for specific projects.
Transfers out of restricted funds during the year relate to the purchase of capital assets, in accordance with the terms of the restricted grant, and have been transfered to the Charity's designated fixed asset fund as the terms of the restriction have now lapsed.
## **18. Summary of funds**
## **Summary of funds - current year**
|Designated funds
General funds
Restricted funds|**Balance at 1**
**January**
**2021**
**£**
**760,202**
**276,486**
**54,980**
**1,091,668**
Balance at
1 January
2020
£
183,797
200,787
102,048
486,632|**Income**
**£**
**-**
**1,528,954**
**86,602**
**1,615,556**
Income
£
-
2,110,656
274,185
2,384,841|**Expenditure**
**£**
**-**
**(1,538,613)**
**(89,580)**
**(1,628,193)**
Expenditure
£
-
(1,575,801)
(204,004)
(1,779,805)|**Transfers**
**in/out**
**£**
**208,470**
**(186,728)**
**(21,742)**
**-**
Transfers
in/out
£
576,405
(459,156)
(117,249)
-|**Balance at**
**31**
**December**
**2021**
**£**
**968,672**
**80,099**
**30,260**|
|---|---|---|---|---|---|
||||||**1,079,031**|
||||||Balance at
31
December
2020
£
760,202
276,486
54,980|
|**Summary of funds - prior year**||||||
|Designated funds
General funds
Restricted funds||||||
||||||1,091,668|
Page 58
**Spadework Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2021**
## **19. Analysis of net assets between funds**
## **Analysis of net assets between funds - current year**
|Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**
**Analysis of net assets between funds - prior year**
Tangible fixed assets
Current assets
Creditors due within one year
Creditors due in more than one year
**Total**
**20.**
**Reconciliation of net movement in funds to net cash flow**
Net income/expenditure for the year (as per Statement
Activities)
**Adjustments for:**
Depreciation charges
Loss on the disposal of fixed assets
Increase in stocks
Decrease in debtors
Increase/(decrease) in creditors
**Net cash provided by operating activities**|**Unrestricted**
**funds**
**2021**
**Restricted**
**funds**
**2021**
**£**
**£**
968,672
11,382
517,591
18,878
(357,604)
-
(79,888)
-
1,048,771
30,260
Unrestricted
funds
2020
Restricted
funds
2020
£
£
760,202
21,471
522,802
33,509
(161,238)
-
(85,078)
-
1,036,688
54,980
**from operating activities**
**Group**
**2021**
**£**
of Financial
**(12,637)**
**67,143**
**-**
**(34,603)**
**78,398**
**(40,304)**
**57,997**|**Total**
**funds**
**2021**
**£**
**980,054**
**536,469**
**(357,604)**
**(79,888)**|
|---|---|---|
|||**1,079,031**
Total
funds
2020
£
781,673
556,311
(161,238)
(85,078)|
|||1,091,668
Group
2020
£
605,036
39,085
22,947
(28,081)
46,383
52,922|
|||738,292|
Page 59
**Spadework Limited (A company limited by guarantee)**
**Notes to the financial statements For the year ended 31 December 2021**
## **21. Analysis of cash and cash equivalents**
||**Group**|Group|
|---|---|---|
||**2021**|2020|
||**£**|£|
|Cash in hand|**83,455**|296,172|
## **22. Analysis of changes in net debt**
|Cash at bank and in hand
Debt due within 1 year
Debt due after 1 year|**At 1**
**January**
**2021**
**£**
**296,172**
**(9,908)**
**(85,078)**
**201,186**|**Cash flows**
**£**
**(212,717)**
**-**
**5,190**
**(207,527)**|**At 31**
**December**
**2021**
**£**
**83,455**
**(9,908)**
**(79,888)**|
|---|---|---|---|
||||**(6,341)**|
## **23. Pension commitments**
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £15,523 (2020: £15,144). Contributions totalling £3,055 (2020: £3,130) were payable to the fund at the balance sheet date and are included in creditors.
## **24. Operating lease commitments**
At 31 December 2021 the Group and the Charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
|Not later than 1 year
Later than 1 year and not later than 5 years|**Group**
**2021**
**£**
**180**
**540**
**720**|Group
2020
£
389
600
989|**Charity**
**2021**
**£**
**180**
**540**
**720**|Charity
2020
£
389
600|
|---|---|---|---|---|
||||||
|||||989|
## **25. Related party transactions**
During the year Brachers, a related party of Mary Rimmer, whom is a Trustee, due to her role with the company, made purchases of £190 (2020: £815) from Spadework and made a donation of £10,000 (2020: £Nil) to Spadework.
Page 60
**Spadework Limited (A company limited by guarantee)**
## **Notes to the financial statements For the year ended 31 December 2021**
## **26. Controlling party**
There is no overall controlling party.
## **27. Principal subsidiaries**
The following was a subsidiary undertaking of the Charity:
|**Name**|**Company**|**Registered office**|**Registered office**|**Principal activity**|**Principal activity**|**Class of**|**Holding**|**Included in**|
|---|---|---|---|---|---|---|---|---|
||**number**|**or principal**|**place**|||**shares**||**consolidation**|
|||**of business**|||||||
|Spadework Social|13099464|Spadework Nursery,||To provide||Ordinary|100%|Yes|
|Enterprises CIC||Teston Road,|||commercial||||
|||Offham,|||support to the||||
|||West Malling,|||Charity and||||
|||Kent,|||learning||||
|||ME19 5NA|||opportunities for||||
||||||the trainees||||
|The financial results of the subsidiary for the year were:|||||||||
|**Name**|||**Income**||**Expenditure**|**Profit/(Loss)**||**Net assets**|
|||||**£**|**£**|**/ Surplus/**||**£**|
|||||||**(Deficit) for**|||
|||||||**the year**|||
||||||||**£**||
|Spadework Social Enterprises CIC|||**641,540**||**(662,940)**|**(21,400)**||**(21,399)**|
The financial results of the subsidiary for the year were:
Page 61
Spadework, Teston Road, Offham, Kent. ME19 5NA Tel. 01732 870002 • Website: Spadework.org.uk
**@spadework.offham spadework.offham @spadeworkoffham**
Thanks to Stephanie Peat for design and Singlewell Print for printing this report.