Charity Registration No. 518985
Company Registration No. 02108184 (England and Wales)
K.I.N.D.
A COMPANY LIMITED BY GUARANTEE
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
K.I.N.D. A COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Dr C P Arthur C C Davies P Scanlon M Wafer S Green Chief Executive Officer S Yip Secretary M Wafer Charity number 518985 Company number 02108184 Registered office 19 Back Canning Street Liverpool Merseyside L8 7PB Independent examiner Mr Peter Taaffe FCA CTA DChA BWM Castle Chambers 43 Castle Street Liverpool L2 9SH Bankers Barclays Bank Plc Liverpool Branch 48B - 50 Lord Street Liverpool L2 1TD Solicitors Brabners LLP Horton House Exchange Flags Liverpool L2 3YL
K.I.N.D. A COMPANY LIMITED BY GUARANTEE CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 4 |
| Statement of trustees' responsibilities | 5 |
| Independent examiner's report | 6 |
| Statement of financial activities | 7 - 8 |
| Balance sheet | 9 - 10 |
| Statement of cash flows | 11 |
| Notes to the financial statements | 12 - 27 |
K.I.N.D. A COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees present their report and financial statements for the year ended 31 December 2020.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association , the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016) .
Objectives and activities for the public benefit
The Charity was incorporated as a private company number 0 2108184, limited by guarantee, on 9 March 1987 and is ruled by its Memorandum and Articles of Association, although the Charity has existed since 1975.
Its principal object is to provide or assist in the provision of facilities for recreation and other leisure time occupations of children and young persons who are in conditions of need, hardship or distress by the provision of breaks or outings with the object of educating and assisting them to develop their physical, mental and spiritual well being in a caring, but structured and disciplined environment.
The charity depends significantly on the service of volunteers and on donations for its day to day running.
The major areas of activity each year are, broadly, the Residential Project, KIND SEED Centre, the Christmas Appeal and the provision of year round assistance to children and their families.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
Achievements and performance
2020 has been a year that no one could have predicted or indeed would have wanted! It has been a year of change and doing things in a completely different way. A big thank you needs to go to Stephen and the team for how they have adjusted to very difficult and demanding circumstances, yet still have been able to support those families most in need.
The Centre
2020 has been a very quiet time. We had children up until March 23rd and then only during the 6 weeks of summer and 1 week of October half-term Club. We have had to devise new procedures to make our centre as Covid secure as possible. Thanks must go to Don, Paul Dixon and Martin Swift our beekeeper for keeping the grounds and pond in such great condition.
Programmes
We ran our Out of School programme until the 23 rd March and then we were able to provide 6 weeks of Summer and 1 week of October half-term. All of the staff team: Stephen, Trish, Dave, Kayleigh, Indi, Leanne, Don, Roisin, Aimie and Erin have worked extremely hard in and out of the centre to keep the work of KIND going. Leanne has now completed her Level 3 and this year we welcomed two new trainees: Aimie and Erin. Please keep up to date with everything at the centre by visiting our website and Facebook. These are constantly updated.
- 1 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020
CRISIS FOOD PROGRAMME
After being forced to close in March and furloughing the staff for a number of months, Stephen and a team of volunteers embarked on our 12-week Crisis Food & Education Pack programme. Each week between 150-200 families were provided with wonderful food packs, which included fresh fruit and veg, meat and over 50 food items including cheese and eggs. The project reached out to over 9,000 disadvantaged children and adults from within our Merseyside community. We were working through a variety of other organisations to reach those families most in need.
Funding for this project came from a variety of sources and between us we made a real difference in many lives during this time of crisis. Perhaps as important as the material gifts we made was the knowledge to the families that they were not on their own, that others were looking out for them.
Christmas Appeal
2020 Christmas Appeal was different. Wherever possible we had to try and adhere to Covid rules, but it was difficult. This year we reached out to over 8,500 children and adults providing food, toys and clothing. Special thanks must go to David Day at Scale Distribution for allowing us use of their wonderful warehouse for packing both our Christmas and New Year hampers.
Thanks also to all the team at Scale Distribution who were so helpful and welcoming. Let’s hope that the 2021 Christmas Appeal is back to normal.
Practical Help
During 2020 the demand for help increased dramatically due to Covid. We helped hundreds more families, especially with food and clothing.
The Future
The plans for the renovation and rescue of the former Welsh Church in Liverpool 8 have been progressing very well. We have now almost completed Stage 1 of our Heritage Lottery grant and building plans for the new designs have been submitted for planning consent. We continue to work hard with Merseyside Buildings Preservation Trust and hopefully we will have some exciting news in 2021. Please do watch this space.
We never got to celebrate our 45 th Birthday in 2020, but we are hoping that when things return to a more normal state that we shall be able to have some sort of celebration in 2021.
Conclusion
The Board and myself again would like to recognise and applaud the staff team of: Stephen, Trish, Dave, Kayleigh, Indi, Leanne, Don, Roisin, Aimie and Erin and all of our wonderful volunteers. They have all performed so well in these very difficult and strange times. I know that we can rely on them to ensure that our children will be back as soon as it is safe and practical. We want 2021 to be a wonderful year.
- 2 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020
Financial review
The charity's income for the year amounted to £776,913 (2019: £394,889). Total expenditure amounted to £438,008 (2019: £404,614). This has resulted in a surplus of £338,905 for the year (2019: deficit of £9,725).
Unrestricted funds (excluding designated funds) of the charity totalled £422,795 at 31 December 2020 (31 December 2019: £415,293). Restricted funds of the charity totalled £286,997at 31 December 2020 (31 December 2019: £28,460).
Although the balance sheet shows that there were total unrestricted funds of £422,795 at 31 December 2020, £203,791 of this represents fixed assets, none of which is available to the trustees to defray ongoing running costs. This leaves £219,004 free spendable reserves. The Designated Fund of £453,738 represents funds set aside out of unrestricted funds for spending on building maintenance, school activities, salaries and future projects.
KIND is a traditional charity which relies solely on the generosity of its friends and supporters in order to provide its much needed services. In order to ensure that these services would continue in a downturn in donations the Charity is aiming to have six months' running costs in free reserves. The charity receives no central or local government funding and is still one of the few remaining charities that does not charge for its services and programmes.
Risk management
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to manage exposure to those risks.
For a small charity risk management is an essential part of planning. KIND is very fortunate because it has a solicitor and numerous Trustees on its board who are used to dealing with large companies. Financially the charity is extremely well regulated and the monthly reconciliation of accounts ensures that any financial difficulties are brought to the attention of the Board very quickly. KIND staff have regular training to ensure that they are aware of the latest safeguarding issues and other health and safety issues that may impinge upon our work. As a small charity I feel that we are doing our best to ensure that any risk is kept to a minimum.
Structure, governance and management
The charity is a company limited by guarantee . The liability in respect of the guarantee as set out in the memorandum, is limited to £1 per member of the company .
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Dr C P Arthur
C C Davies
P Scanlon M Wafer S Green
Appointment of trustees
Trustee recruitment remains a priority for the Board, who are keen to recruit new trustees with skills and qualities that will enhance the performance of the charity. The Board are also intending that there is a more inclusive trustee base. Like all smaller charities, KIND is constantly striving to strengthen its Trustee board. We have a very good core of trustees who have been with the organisation for a long time. But we are constantly looking to recruit new trustees to help strengthen the board.
- 3 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020
The Charity is registered by the Charity Commissioners for England and Wales, registration number 518985. The number of trustees of the Board shall not be less than 5 and not more than 12. The Board may from time to time appoint any member of the Association as a trustee to fill a casual vacancy or by way of addition to the Board. Any member so appointed shall retain this office only until the next Annual General Meeting, but he shall then be eligible for re-election. He shall not be taken into account in determining the members of the Board who are to retire by rotation at such meetings. The trustees met on a regular basis throughout the year.
Trustee induction and training
All potential trustees are offered the opportunity to have a face-to-face discussion with both Stephen our CEO and Peter our Chair of Trustees before they make the final decision to join or not. Once they have agreed to become Trustees there is an induction process and all Trustees will be required to have a DBS certificate.
Organisation
Day-to-day decision-making is delegated to the Chief Executive Officer , Stephen Yip . Decisions regarding the long term strategy of the charity are approved by the board of trustees.
The remuneration arrangements for all staff are reviewed annually by t he Trustees. The Trustees have historically looked at wages paid within our sector and have decided that our wage scales , because of the nature of our work , are both competitive and fair. They have always increased wages in line with inflation and as a charity we feel that we offer salaries that are commensurate with duties and responsibilities.
Asset cover for funds
Notes 19 to 21 set out income and expenditure attributable to the various funds and a description of the trusts. These assets are sufficient to meet the charity's obligations on a fund by fund basis.
Small company provisions
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
The trustees' r eport was approved by the Board of Trustees.
Dr C P Arthur
Trustee Dated: 10 April 2021
- 4 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2020
The trustees, who are also the directors of K.I.N.D. for the purpose of company law, are responsible for preparing the Trustees' Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these accounts, 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
-
prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 5 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF K.I.N.D.
I report to the trustees on my examination of the accounts of K.I.N.D. (the charity) for the year ended 31 December 2020.
This report is made solely to the charity's trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My examination has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my examination, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity 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 the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’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 ICAEW, 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 charity as required by section 386 of the 2006 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements 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 financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Mr Peter Taaffe FCA CTA DChA
BWM Chartered Accountants Castle Chambers 43 Castle Street Liverpool L2 9SH
Dated: 16 April 2021
- 6 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
| Current financial year Unrestricted Restricted funds funds 2020 2020 Notes £ £ Income from: Donations and legacies 3 568,268 4,140 Charitable activities 4 - 201,895 Other trading activities 5 - - Investments 6 1,384 - Other income 7 1,226 - Total income 570,878 206,035 Expenditure on: Raising funds 8 - 4,899 Charitable activities 9 433,109 - Total expenditure 433,109 4,899 Net income/(expenditure) 137,769 201,136 Transfers between funds 19 (57,401) 57,401 Net movement in funds 80,368 258,537 Fund balances at 1 January 2020 796,165 28,460 Fund balances at 31 December 2020 876,533 286,997 |
Total 2020 £ 572,408 201,895 - 1,384 1,226 776,913 4,899 433,109 438,008 338,905 - 338,905 824,625 1,163,530 |
Total 2019 £ 350,351 23,760 18,854 746 1,178 394,889 6,383 398,231 404,614 (9,725) - (9,725) 834,350 824,625 |
|---|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 7 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
| Prior financial year Unrestricted Restricted funds funds 2019 2019 Notes £ £ Income from: Donations and legacies 3 345,693 4,658 Activities for generating funds 4 - 23,760 Other trading activities 5 18,854 - Investments 6 746 - Other income 7 1,178 - Total income 366,471 28,418 Expenditure on: Raising funds 8 589 5,794 Charitable activities 9 378,093 20,138 Total expenditure 378,682 25,932 Net (expenditure)/income (12,211) 2,486 Transfers between funds 19 (6,590) 6,590 Net movement in funds (18,801) 9,076 Fund balances at 1 January 2018 814,966 19,384 Fund balances at 31 December 2019 796,165 28,460 |
Total 2019 £ 350,351 23,760 18,854 746 1,178 394,889 6,383 398,231 404,614 (9,725) - (9,725) 834,350 824,625 |
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
- 8 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE BALANCE SHEET
AS AT 31 DECEMBER 2020
| Notes Fixed assets Intangible assets 13 Tangible assets 14 Current assets Debtors 16 Cash at bank and in hand Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Income funds Restricted funds 19 Unrestricted funds Designated funds 20 General unrestricted funds |
2020 £ £ 10,430 193,361 203,791 330,466 635,967 966,433 (6,694) 959,739 1,163,530 286,997 453,738 422,795 876,533 1,163,530 |
2019 £ £ 13,410 198,355 211,765 65,270 555,062 620,332 (7,472) 612,860 824,625 28,460 380,872 415,293 796,165 824,625 |
|---|---|---|
- 9 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2020
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020.
The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 10 April 2021
C C Davies
Trustee
Company Registration No. 02108184
- 10 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2020
| Notes Cash flows from operating activities Cash generated from/(absorbed by) operations 23 Investing activities Purchase of intangible assets Purchase of tangible fixed assets Interest received Net cash generated from/(used in) investing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year |
2020 £ - (1,200) 1,383 |
£ 80,722 183 80,905 555,062 635,967 |
2019 £ (14,900) (25,670) 747 |
£ (40,007) (39,823) (79,830) 634,892 555,062 |
|---|---|---|---|---|
- 11 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
Company information
K.I.N.D. is a UK Registered Charity and a Company Limited by Guarantee. The registered office address can be found on the Legal and Administration Information page to the accounts.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2 Going concern
At the time of approving the accounts and as detailed in the Trustees’ report the Trustees have considered the impact of Covid-19 on the charity and the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the ‘going concern’ basis of accounting in preparing the accounts .
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the accounts.
Designated funds comprise unrestricted funds that have been set aside by trustees for a particular purpose. The aim and use of the designated fund s are set out in the notes to the financial statements.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.
Grants, including grants for the purchase of fixed assets, are recognised in full in the Statement of Financial Activities in the year in which they are receivable .
Clothing and other items donated for resale through the charity's shop are included as income within other trading activities when they are sold.
- 12 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.5 Expenditure
Expenditure reflects all amounts paid and accrued during the year. Expenditure includes any VAT which cannot be fully recovered and is reported as part of the expenditure to which it relates. All costs are allocated between the expenditure categories of the Statement of Financial Activities (SOFA) on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly, support costs are apportioned on an appropriate basis.
Raising funds include the costs associated with printing the charity's annual calendar.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
Governance costs represent costs associated with meeting the constitutional and statutory requirements of the charity and include the independent examination fees and costs linked to the strategic management of the charity.
Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include staff salaries, premises and other costs and governance costs which support the charity's activities. These costs have been allocated to expenditure on charitable activities.
1.6 Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website costs 20% straight line
1.7 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
| Freehold land | Nil |
|---|---|
| Health & Wellbeing Centre | 2% straight line |
| K.I.N.D. SEED Centre & Outdoor classroom 2% straight line | |
| Computers | 25% straight line |
| Fixtures, fittings & equipment | 15% reducing balance |
| Motor vehicles | 25% reducing balance |
| Sports area | 10% straight line |
Any gain arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income for the year.
- 13 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.8 Impairment of fixed assets
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ).
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.
1.10 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.11 Employee benefits
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
- 14 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
1 Accounting policies
(Continued)
1.12 Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13 Taxation
The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income or gains falling within those exemptions. The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
- 15 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
3 Donations and legacies
| Unrestricted Restricted funds funds 2020 2020 £ £ Donations and gifts 497,861 4,140 Grants receivable 70,407 - 568,268 4,140 Donations and gifts Individuals 160,314 - Companies 32,990 - Trusts 51,849 - Schools and church groups 15,221 - Councils 17,975 - Sponsorship of 2020 Calendar - 4,140 Investors 15,053 - Gift aid 40,145 - Christmas appeal 90,236 - Sports area - - Crisis food programme 74,078 - 497,861 4,140 Grants receivable for core activities Job retension Scheme 70,407 - 70,407 - |
TotalUnrestricted Restricted funds funds 2020 2019 2019 £ £ £ 502,001 345,693 4,658 70,407 - - 572,408 345,693 4,658 160,314 102,607 - 32,990 12,606 - 51,849 44,404 - 15,221 21,118 - 17,975 3,000 - 4,140 - 4,658 15,053 17,037 - 40,145 24,652 - 90,236 97,080 - - 23,189 - 74,078 - - 502,001 345,693 4,658 70,407 - - 70,407 - - |
Total 2019 £ 350,351 - 350,351 102,607 12,606 44,404 21,118 3,000 4,658 17,037 24,652 97,080 23,189 - 350,351 - - |
|---|---|---|
- 16 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
| 4 | Activities for generating funds | ||
|---|---|---|---|
| Restricted | Restricted |
||
| fund | fund |
||
| 2020 | 2019 |
||
| £ | £ |
||
| Performance related grants | 201,895 | 23,760 |
|
| Performance related grants | |||
| The Heritage Lottery | 201,895 | 23,760 |
|
| 201,895 | 23,760 |
||
| 5 | Other trading activities | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Shop income | - | 18,854 | |
| 6 | Investments | ||
| Unrestricted | Unrestricted | ||
| funds | funds | ||
| 2020 | 2019 | ||
| £ | £ | ||
| Interest receivable | 1,384 | 746 |
- 17 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
7 Other income
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2020 | 2019 | |
| £ | £ | |
| Other income | 1,226 | 1,178 |
Other income of £1,226 relates to a Feed-in Tariff (FIT) payment received from the charity's energy provider.
8 Raising funds
| RestrictedUnrestricted Restricted funds funds funds 2020 2019 2019 £ £ £ Fundraising Other fundraising costs 4,899 - 5,794 Trading costs Operating charity shops - 589 - 4,899 589 5,794 |
Total 2019 £ 5,794 589 6,383 |
|---|---|
- 18 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
9 Charitable activities
| Centre activities Christmas appeal Crisis food programme Total 2020 £ £ £ £ Staff costs 185,779 - - 185,779 Depreciation and amortisation 9,175 - - 9,175 Project and centre costs 52,787 - - 52,787 Christmas Appeal - 104,123 - 104,123 Crisis food programme - - 76,060 76,060 247,741 104,123 76,060 427,924 Share of governance costs (see note 10) 5,185 - - 5,185 252,926 104,123 76,060 433,109 Analysis by fund Unrestricted funds 252,926 104,123 76,060 433,109 For the year ended 31 December 2019 Centre activities Christmas appeal £ £ Staff costs 210,349 - Depreciation and impairment 7,579 - Project and centre costs 63,560 - Christmas Appeal - 111,025 281,488 111,025 Share of governance costs (see note 10) 5,718 - 287,206 111,025 Analysis by fund Unrestricted funds 267,068 111,025 Restricted funds 20,138 - 287,206 111,025 |
Total 2019 £ 210,349 7,579 63,560 111,025 - 392,513 5,718 398,231 Total 2017 £ 210,349 7,579 63,560 111,025 392,513 5,718 398,231 378,093 20,138 398,231 |
|---|---|
K.I.N.D. staff run the Centre activities and the Christmas Appeal.
Volunteers are an essential part of the Christmas Appeal and the work at the Centre.
- 19 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
10 Support costs
| Governance costs £ Independent examination fees 1,464 Accountancy 2,196 Legal and professional 400 Bank charges 1,125 5,185 Analysed between Charitable activities 5,185 |
2020 Governance costs £ £ 1,464 1,416 2,196 2,424 400 400 1,125 1,478 5,185 5,718 5,185 5,718 |
2019 £ 1,416 2,424 400 1,478 5,718 5,718 |
|---|---|---|
Total governance costs have been recharged to centre activities.
Governance costs includes payments to the accountants of £ 1,464 (201 9 : £ 1,416 ) for independent examination fees and £ 2,196 (201 9 : £ 2,424 ) for accountancy services. Taxation services fees of £nil (2019: £300) are included in accounts fees.
11 Trustees
None of the trustees (or any persons connected with them) received any remuneration or re-imbursed expenses from the charity during the year (2019: £Nil) .
- 20 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
12 Employees
Number of employees
The average monthly number of persons employed by the company during the year was:
| Administration Environmental and Social Educational staff Employment costs Wages and salaries Social security costs Other pension costs |
2020 Number 1 7 8 2020 £ 172,948 9,383 3,448 185,779 |
2019 Number 1 8 9 2019 £ 194,636 11,890 3,823 210,349 |
|---|---|---|
There were no employees whose annual remuneration was £60,000 or more.
13 Intangible fixed assets
| Intangible fixed assets | |
|---|---|
| Website costs | |
| £ | |
| Cost | |
| At 1 January 2020 and 31 December 2020 | 14,900 |
| Amortisation and impairment | |
| At 1 January 2020 | 1,490 |
| Amortisation charged for the year | 2,980 |
| At 31 December 2020 | 4,470 |
| Carrying amount | |
| At 31 December 2020 | 10,430 |
| At 31 December 2019 | 13,410 |
- 21 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
| 14 Tangible fixed assets Freehold land £ Cost At 1 January 2020 593,498 Additions - At 31 December 2020 593,498 Depreciation and impairment At 1 January 2020 441,942 Depreciation charged in the year - At 31 December 2020 441,942 Carrying amount At 31 December 2020 151,556 At 31 December 2019 151,556 |
Health & Wellbeing Centre £ 10,927 - 10,927 1,093 219 1,312 9,615 9,834 |
Fixtures, fittings & equipment £ 26,972 1,200 28,172 19,668 1,185 20,853 7,319 7,303 |
Computers Motor Vehicles £ £ 24,210 13,600 - - 24,210 13,600 22,162 10,373 1,417 807 23,579 11,180 631 2,420 2,048 3,227 |
KIND SEED Centre £ 944,761 - 944,761 944,761 - 944,761 - - |
Sports area £ 25,670 - 25,670 1,283 2,567 3,850 21,820 24,387 |
Total £ 1,639,638 1,200 1,640,838 1,441,282 6,195 1,447,477 193,361 198,355 |
|---|---|---|---|---|---|---|
- 22 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
14 Tangible fixed assets
(Continued)
Land and buildings, previously capitalised, include expenditure in respect of improvements to two leasehold properties - the KIND SEED Centre and the Health and Wellbeing Centre - which are built upon leasehold land owned by Liverpool City Council.
During a previous year the charity purchased the freehold to the land for the Health and Wellbeing Centre and the KIND SEED Centre from Liverpool City Council.
The leasehold improvements of both the Health and Wellbeing Centre and the KIND SEED Centre had been fully depreciated over the term of the lease and currently have a net book value of £nil. The trustees are considering having a valuation carried out on the land and buildings in the future.
| 15 Financial instruments Carrying amount of financial assets Debt instruments measured at amortised cost Carrying amount of financial liabilities Measured at amortised cost |
2020 £ 676,122 4,322 |
2019 £ 587,629 4,595 |
|---|---|---|
Financial assets measured at amortised cost includes other debtors and cash balances .
Financial liabilities measured at amortised cost includes accruals.
| 16 Debtors Amounts falling due within one year: Other debtors Prepayments and accrued income |
2020 £ 40,145 290,321 330,466 |
2019 £ 24,642 40,628 65,270 |
|---|---|---|
17 Creditors: amounts falling due within one year
| Other taxation and social security Other creditors Accruals and deferred income |
2020 £ 2,372 662 3,660 6,694 |
2019 £ 2,877 755 3,840 7,472 |
|---|---|---|
- 23 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
| 18 Analysis of net assets between funds Unrestricted funds Unrestricted designated funds Restricted funds 2020 2020 2020 £ £ £ Fund balances at 31 December 2020 are represented by: Intangible fixed assets 10,430 - - Tangible assets 193,361 - - Current assets/ (liabilities) 219,004 453,738 286,997 422,795 453,738 286,997 |
Total Unrestricted funds Unrestricted designated funds Restricted funds 2020 2019 2019 2019 £ £ £ £ 10,430 13,410 - - 193,361 198,355 - - 959,739 203,528 380,872 28,460 1,163,530 415,293 380,872 28,460 |
Total 2019 £ 13,410 198,355 612,860 824,625 |
|---|---|---|
- 24 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
19 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
| Balance at 1 January 2019 £ Big Lottery 19,384 Sponsorship of annual calendar - Heritage Lottery - 19,384 |
Movement in funds Income Expenditure £ £ - (20,138) 4,658 (5,794) 23,760 - 28,418 (25,932) |
Transfers Balance at 1 January 2020 £ £ 754 - 1,136 - 4,700 28,460 6,590 28,460 |
Movement in funds Income Expenditure £ £ - - 4,140 (4,899) 201,895 - 206,035 (4,899) |
Transfers Balance at 31 December 2020 £ £ - - 759 - 56,642 286,997 57,401 286,997 |
|---|---|---|---|---|
Big Lottery - funding of 3 staff members at the SEED Centre. This funding stopped in 2018, the shortfall in funding of £754 was funded out of unrestricted funds.
Sponsorship of annual calendar - contributions towards the calendar. Additional expenditure for the calendar was funded out of unrestricted funds.
Heritage Lottery - Grant funding towards the Welsh Church Project. 10% plus any VAT on expenditure is to be funded by the charity, £56,642 has been funded from unrestricted funds.
- 25 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
20 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| Balance at 1 January 2019 Expenditure £ £ KIND SEED Centre and Health and Wellbeing Centre 80,000 - Wages and salaries 172,500 (52,124) Children's breaks and other projects 47,500 - The Welsh Church project 104,750 - 404,750 (52,124) |
Transfers Balance at 1 January 2020 £ £ - 80,000 (754) 119,622 - 47,500 29,000 133,750 28,246 380,872 |
Transfers Balance at 31 December 2020 £ £ - 80,000 - 119,622 - 47,500 72,866 206,616 72,866 453,738 |
|---|---|---|
The K.I.N.D. SEED Centre and Health and Wellbeing Centre fund was set up to provide essential maintenance and refurbishment of those buildings.
The wages and salaries fund represents monies set aside which will be used in the event of a decrease in funding.
The Children's breaks and other project fund which includes an 11 week out of school programme and environmental and social educational programmes represents monies set aside that if in the event of a decrease in funding, the charity would still be able to offer these projects for the next year.
K.I.N.D. was successful with their application to the Heritage Lottery, to renovate the 157 year-old former Welsh Presbyterian Church on Princes Road that is now completely derelict, into a vibrant, sustainable and environmentally friendly centre for the whole community. Any available funds at the year end have been set aside for this project which currently still at the planning stage.
21 Company limited by guarantee
K.I.N.D. is incorporated under the Companies Act as a company limited by guarantee. The liability of the members is limited to £1.
22 Related party transactions
Remuneration of key management personnel
| 2020 | 2019 | |
|---|---|---|
| £ | £ | |
| Aggregate remuneration | 17,898 | 17,362 |
There were no other related party transactions.
- 26 -
K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020
| 23 Cash generated from operations 2020 £ Surplus/(deficit) for the year 338,905 Adjustments for: Investment income recognised in statement of financial activities (1,384) Depreciation, impairment of tangible fixed assets and amortisation of intangible fixed assets 9,175 Movements in working capital: (Increase) in debtors (265,196) (Decrease)/increase in creditors (778) Cash generated from/(absorbed by) operations 80,722 |
2019 £ (9,725) (746) 7,579 (37,457) 342 (40,007) |
|---|---|
- 27 -