**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 2021**
## **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 **Charity number** 518985 **Company number** 02108184 **Registered office** 19 Back Canning Street Liverpool Merseyside L8 7PB **Independent examiner** Mr Peter Taaffe FCA CTA DChA Tempest Suite 5.1 12 Tithebarn Street Liverpool L2 2DT **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 - 3|
|Statement of trustees' responsibilities|4|
|Independent examiner's report|5|
|Statement of financial activities|6 - 7|
|Balance sheet|8 - 9|
|Statement of cash flows|10|
|Notes to the financial statements|11 - 27|
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
The trustees present their report and financial statements for the year ended 31 December 2021.
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**
2021 has been another year of uncertainty and change. Again, our team has risen to the demands and adjusted our services to carry on supporting and meeting the needs of our children and families.
## **The Centre**
We didn’t have children visit the Centre until Easter and then we were fully booked until the Christmas break. The team again followed all Covid advice to keep our children, staff and families as safe as possible. Thanks again to Don, Paul Dixon and Martin Swift our beekeeper for ensuring that our garden and pond areas looked wonderful.
## **Programmes**
We ran our Easter Club and then were fortunate enough to run all of our Out of School programme. We were also able to run our education schools programme for the majority of the year after Easter. The staff team, led by Stephen and including Trish, Kayleigh, Dave, Don, Indi, Leanne, Roisin, Amie and Erin have worked extremely hard in very difficult circumstances to ensure that our children and families have had the best services from the Charity to meet their needs. Please keep updated with everything on our website and Facebook – these are constantly updated.
## **Crisis Food Programme**
We again undertook our Crisis Food Programme from February to March in order to support children and families who were really struggling during the lockdown. As in 2020, we also included education packs for the children. We again provided support for between 150-200 families each week, providing them with wonderful food packs which included fresh fruit and veg, a meat pack, free range eggs, bread, cheese and over 50 other items. The project again reached out to over 9,000 disadvantaged children and adults from across our Merseyside community. We worked through a variety of other organisations to ensure that we reached those families most in need.
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **Christmas Appeal**
This year we packed and distributed 1500 family sized Christmas food hampers and over 400 toy and clothing packs. Working through a variety of organisations and individuals who referred families in need, we were able to make Christmas a very special and happy time for thousands of children and adults from across our community.
## **Practical Help**
2021 has seen an increased demand for this form of support and again as a charity we have risen to that demand.
## **The Welsh Church**
Plans are still progressing for the rescue and renovation of the derelict Welsh Church in Liverpool 8. We are still working closely with Merseyside Buildings Preservation Trust and Heritage Lottery. However, we are experiencing difficulties with Liverpool City Council, who have been very hard to work with and do not share our vision or optimism for the building. The negativity and lack of response has been very disheartening.
## **Conclusion**
The Board and myself have gone through some very difficult times this year and we can only imagine what some of the families that KIND supports have been going through. However, our staff team need to be applauded and their efforts recognised by all in our city for their continuing commitment, dedication and hard work in supporting children and families in need from within our community. They are a real credit and we are proud to be a part of the same team.
## **Financial review**
The charity's income for the year amounted to £490,756 (2020: £776,913). Total expenditure amounted to £763,935 (2020: £438,008). This has resulted in a deficit of £273,179 for the year (2020: surplus of £338,905).
Unrestricted funds (including designated funds) of the charity totalled £890,351 at 31 December 2021 (31 December 2020: £876,533). Restricted funds of the charity totalled £nil at 31 December 2021 (31 December 2020: £286,997).
Although the balance sheet shows that there were total unrestricted funds (excluding designated funds) of £505,351 at 31 December 2021, £195,691 of this represents fixed assets, none of which is available to the trustees to defray ongoing running costs. This leaves £309,660 free spendable reserves. The Designated Fund of £385,000 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 a minimum of six months' of unrestricted 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.
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **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.
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 3 to 11 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: 28 June 2022
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES' RESPONSIBILITIES** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
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.
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## **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 2021.
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 Suite 5.1 12 Tithebarn Street Liverpool L2 2DT
Dated: 5 July 2022
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Current financial year**
**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
469,814
3,320
Charitable activities
**4**
-
15,672
Investments
**5**
775
-
Other income
**6**
1,175
-
**Total income**
471,764
18,992
**Expenditure on:**
Raising funds
**7**
-
4,850
Charitable activities
**8**
452,958
-
Other
**12**
-
306,127
**Total expenditure**
452,958
310,977
**Net income/(expenditure)**
18,806
(291,985)
Transfers between funds
**18**
(4,988)
4,988
**Net movement in funds**
13,818
(286,997)
Fund balances at 1 January 2021
876,533
286,997
**Fund balances at 31 December 2021**
890,351
-|**Total**
**2021**
**£**
473,134
15,672
775
1,175
490,756
4,850
452,958
306,127
763,935
(273,179)
-
(273,179)
1,163,530
890,351|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|
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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## **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 2021**_
## **Prior financial year**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2020**
**2020**
**Notes**
**£**
**£**
**Income from:**
Donations and legacies
**3**
568,268
4,140
Activities for generating funds
**4**
-
201,895
Investments
**5**
1,384
-
Other income
**6**
1,226
-
**Total income**
570,878
206,035
**Expenditure on:**
Raising funds
**7**
-
4,899
Charitable activities
**8**
433,109
-
**Total expenditure**
433,109
4,899
**Net (expenditure)/income**
137,769
201,136
Transfers between funds
**18**
(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|
|---|---|
The statement of financial activities includes all gains and losses recognised in the year.
The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE BALANCE SHEET**
## _**AS AT 31 DECEMBER 2021**_
|**Notes**
**Fixed assets**
Intangible assets
**13**
Tangible assets
**14**
**Current assets**
Debtors
**15**
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
**18**
Unrestricted funds
Designated funds
**20**
General unrestricted funds|**2021**
**£**
**£**
7,450
188,241
195,691
44,988
657,810
702,798
(8,138)
694,660
890,351
-
385,000
505,351
890,351
890,351|**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|
|---|---|---|
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE BALANCE SHEET (CONTINUED)**
## _**AS AT 31 DECEMBER 2021**_
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 2021.
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 28 June 2022
C C Davies
## **Trustee**
## **Company Registration No. 02108184**
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**23**
**Investing activities**
Purchase of tangible fixed assets
Interest received
**Net cash generated from investing**
**activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
-
776|**£**
21,067
776
21,843
635,967
657,810|**2020**
**£**
(1,200)
1,383|**£**
80,722
183
80,905
555,062
635,967|
|---|---|---|---|---|
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **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 .
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **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.
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **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.
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **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.
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## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **3 Donations and legacies**
|**Unrestricted**
**Restricted**
**funds**
**funds**
**2021**
**2021**
**£**
**£**
Donations and gifts
440,078
3,320
Grants receivable
29,736
-
469,814
3,320
**Donations and gifts**
Individuals
114,093
-
Companies
28,521
-
Trusts
76,625
-
Schools and church
groups
3,930
-
Councils
39,600
-
Sponsorship of 2022
Calendar
-
3,320
Investors
14,120
-
Gift aid
30,923
-
Christmas appeal
86,447
-
Awards For All
5,800
-
Crisis food programme
40,019
-
440,078
3,320
**Grants receivable for**
**core activities**
Job Retention Scheme
29,736
-
29,736
-|**Total**Unrestricted
Restricted
funds
funds
**2021**
2020
2020
**£**
£
£
443,398
497,861
4,140
29,736
70,407
-
473,134
568,268
4,140
114,093
160,314
-
28,521
32,990
-
76,625
51,849
-
3,930
15,221
-
39,600
17,975
-
3,320
-
4,140
14,120
15,053
-
30,923
40,145
-
86,447
90,236
-
5,800
-
-
74,078
74,078
-
443,398
497,861
4,140
29,736
70,407
-
29,736
70,407
-|Total
2020
£
502,001
70,407
572,408
160,314
32,990
51,849
15,221
17,975
4,140
15,053
40,145
90,236
-
74,078
502,001
70,407
70,407|
|---|---|---|
- 15 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **4 Activities for generating funds**
|||**Restricted**|
Restricted|
|---|---|---|---|
|||**fund**|
fund|
|||**2021**|
2020|
|||**£**|
£|
||Performance related grants|15,672|
201,895|
||**Performance related grants**|||
||The Heritage Lottery|15,672|
201,895|
|||15,672|
201,895|
|**5**|**Investments**|||
|||**Unrestricted**|Unrestricted|
|||**funds**|funds|
|||**2021**|2020|
|||**£**|£|
||Interest receivable|775|1,384|
- 16 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **6 Other income**
||**Unrestricted**|Unrestricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Other income|1,175|1,226|
Other income of £1,175 (2020: £1,226) relates to a Feed-in Tariff (FIT) payment received from the charity's energy provider.
## **7 Raising funds**
||**Restricted**|Restricted|
|---|---|---|
||**funds**|funds|
||**2021**|2020|
||**£**|£|
|Fundraising|||
|Other fundraising costs|4,850|4,899|
||4,850|4,899|
- 17 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **8 Charitable activities**
|**Centre**
**activities**
**Christmas**
**appeal**
**Crisis food**
**programme**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Staff costs
202,810
-
-
Depreciation and impairment
8,099
-
-
Project and centre costs
85,498
-
-
Christmas Appeal
-
94,574
-
Crisis food programme
-
-
56,641
296,407
94,574
56,641
Share of governance costs (see note 9)
5,336
-
-
301,743
94,574
56,641
**Analysis by fund**
Unrestricted funds
301,743
94,574
56,641
**For the year ended 31 December 2020**
Unrestricted funds
252,926
104,123
76,060|**Total**
**2021**
Centre
activities
Christmas
appeal
Crisis food
programme
2020
2020
2020
**£**
£
£
£
202,810
185,779
-
-
8,099
9,175
-
-
85,498
52,787
-
-
94,574
-
104,123
-
56,641
-
-
76,060
447,622
247,741
104,123
76,060
5,336
5,185
-
-
452,958
252,926
104,123
76,060
452,958
252,926
104,123
76,060|Total
2020
£
185,779
9,175
52,787
104,123
76,060
427,924
5,185
433,109
433,109
433,109|
|---|---|---|
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.
- 18 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **9 Support costs**
|**Governance**
**costs**
**£**
Independent examination fees
1,507
Accountancy
2,261
Legal and professional
514
Bank charges
1,054
5,336
Analysed between
Charitable activities
5,336|**2021**
Governance
costs
**£**
£
1,507
1,464
2,261
2,196
514
400
1,054
1,125
5,336
5,185
5,336
5,185|2020
£
1,464
2,196
400
1,125
5,185
5,185|
|---|---|---|
Total governance costs have been recharged to centre activities.
Governance costs includes payments to the accountants of £ 1,507 (20 20 : £ 1,464 ) for independent examination fees and £ 2,261 (20 20 : £ 2,196 ) for accountancy services.
## **10 Trustees**
None of the trustees (or any persons connected with them) received any remuneration or re-imbursed expenses from the charity during the year (2020: £Nil) .
- 19 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **11 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|**2021**
**Number**
1
7
8
**2021**
**£**
188,453
10,775
3,582
202,810|2020
Number
1
7
8
2020
£
172,948
9,383
3,448
185,779|
|---|---|---|
There were no employees whose annual remuneration was £60,000 or more.
## **12 Other**
||**Restricted**|Restricted|
|---|---|---|
||**funds**|funds|
||**£**|£|
||**2021**|2020|
|Welsh Church planning costs|306,127|-|
Welsh Church expenditure of £306,127 relates to costs incurred over the last 3 years for the planning stage of a potential new site for the Centre and has been 80% funded by The Heritage Lottery. Expenditure has previously been held as a prepayment with the hope of capitalising in the future but as discussed in the Trustees' report, this project has run into difficulties and therefore all costs incurred to date have been allocated to expenditure.
- 20 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**13**|**Intangible fixed assets**||
|---|---|---|
|||**Website costs**|
|||**£**|
||**Cost**||
||At 1 January 2021 and 31 December 2021|14,900|
||**Amortisation and impairment**||
||At 1 January 2021|4,470|
||Amortisation charged for the year|2,980|
||At 31 December 2021|7,450|
||**Carrying amount**||
||At 31 December 2021|7,450|
||At 31 December 2020|10,430|
- 21 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **14 Tangible fixed assets**
|**Freehold land**
**£**
**Cost**
At 1 January 2021
593,498
At 31 December 2021
593,498
**Depreciation and impairment**
At 1 January 2021
441,942
Depreciation charged in the year
-
At 31 December 2021
441,942
**Carrying amount**
At 31 December 2021
151,556
At 31 December 2020
151,556|**Health &**
**Wellbeing**
**Centre**
**£**
10,927
10,927
1,311
219
1,530
9,397
9,615|**Fixtures,**
**fittings &**
**equipment**
**£**
28,172
28,172
20,854
1,098
21,952
6,220
7,319|**Computers Motor Vehicles**
**£**
**£**
24,210
13,600
24,210
13,600
23,579
11,180
631
605
24,210
11,785
-
1,815
631
2,420|**KIND SEED**
**Centre**
**£**
944,761
944,761
944,761
-
944,761
-
-|**Sports area**
**£**
25,670
25,670
3,850
2,567
6,417
19,253
21,820|**Total**
**£**
1,640,838
1,640,838
1,447,477
5,120
1,452,597
188,241
193,361|
|---|---|---|---|---|---|---|
- 22 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **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 Debtors**
|**Amounts falling due within one year:**
Other debtors
Prepayments and accrued income
**16**
**Financial instruments**
**Carrying amount of financial assets**
Debt instruments measured at amortised cost
**Carrying amount of financial liabilities**
Measured at amortised cost|**2021**
**£**
30,923
14,065
44,988
**2021**
**£**
699,446
4,489|**2020**
**£**
40,145
290,321
330,466
**2020**
**£**
676,122
4,322|
|---|---|---|
Financial assets measured at amortised cost includes other debtors , accrued income and cash balances .
Financial liabilities measured at amortised cost includes accruals and other creditors .
## **17 Creditors: amounts falling due within one year**
|Other taxation and social security
Other creditors
Accruals and deferred income|**2021**
**£**
3,649
721
3,768
8,138|**2020**
**£**
2,372
662
3,660
6,694|
|---|---|---|
- 23 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **18 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 2020**
**£**
Sponsorship of annual calendar
-
Heritage Lottery
28,460
28,460|**Movement in funds**
**Income**
**Expenditure**
**£**
**£**
4,140
(4,899)
201,895
-
206,035
(4,899)|**Transfers**
**Balance at**
**1 January 2021**
**£**
**£**
759
-
56,642
286,997
57,401
286,997|**Movement in funds**
**Income**
**Expenditure**
**£**
**£**
3,320
(4,850)
15,672
(306,127)
18,992
(310,977)|**Transfers**
**Balance at**
**31 December**
**2021**
**£**
**£**
1,530
-
3,458
-
4,988
-|
|---|---|---|---|---|
Sponsorship of annual calendar - contributions towards the calendar. Additional expenditure of £1,530 (2020: £759) 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, £3,459 has been funded from unrestricted funds.
- 24 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
|**19**
**Analysis of net assets between funds**
**Unrestricted funds**
**Unrestricted**
**designated**
**funds**
**Restricted**
**funds**
**2021**
**2021**
**2021**
**£**
**£**
**£**
Fund balances at 31
December 2021 are
represented by:
Intangible fixed assets
7,450
-
-
Tangible assets
188,241
-
-
Current assets/
(liabilities)
309,660
385,000
-
505,351
385,000
-|**Total**
Unrestricted
funds
Unrestricted
designated
funds
Restricted funds
**2021**
2020
2020
2020
**£**
£
£
£
7,450
10,430
-
-
188,241
193,361
-
-
694,660
219,004
453,738
286,997
890,351
422,795
453,738
286,997|Total
2020
£
10,430
193,361
959,739
1,163,530|
|---|---|---|
- 25 -
**K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **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 2020**
**£**
KIND SEED Centre and Health and
Wellbeing Centre
80,000
Wages and salaries
119,622
Children's breaks and other projects
47,500
The Welsh Church project
133,750
380,872|**Transfers**
**Balance at**
**1 January 2021**
**Transfers**
**Balance at**
**31 December**
**2021**
**£**
**£**
**£**
**£**
-
80,000
-
80,000
-
119,622
85,378
205,000
-
47,500
52,500
100,000
72,866
206,616
(206,616)
-
72,866
453,738
(68,738)
385,000|
|---|---|
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. Funds have been transferred from general unrestricted reserves so that the amount set aside should be enough to cover a years worth of staff costs.
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. Funds have been transferred from general unrestricted reserves so that the amount set aside should be enough to cover the next years worth of projects..
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. Up until 2021, any available funds had been set aside for this project. As mentioned in the Trustees' report and note 8, this project has run into some difficulties and the designated funds have been released back to unrestricted funds for future projects.
## **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.
- 26 -
## **K.I.N.D. A COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2021**_
## **22 Related party transactions**
||**Remuneration of key management personnel**|||
|---|---|---|---|
|||**2021**|**2020**|
|||**£**|**£**|
||Aggregate remuneration|25,350|17,898|
||Trustees donated £5,033 during the year (2020: £3,920).|||
||There were no other related party transactions (2020: none).|||
|**23**|**Cash generated from operations**|**2021**|**2020**|
|||**£**|**£**|
||(Deficit)/surpus for the year|(273,179)|338,905|
||Adjustments for:|||
||Investment income recognised in statement of financial activities|(775)|(1,384)|
||Depreciation, impairment of tangible fixed assets and amortisation of|||
||intangible fixed assets|8,099|9,175|
||Movements in working capital:|||
||Decrease/(increase) in debtors|285,478|(265,196)|
||Increase/(decrease) in creditors|1,444|(778)|
||**Cash generated from operations**|21,067|80,722|
- 27 -