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2024-03-31-accounts

Company Registered Number: 02394165 Charity Registered Number: 801819

PECAN

(A Company Limited by Guarantee)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

PECAN

(A Company Limited by Guarantee)

CONTENTS

Page
Reference and Administrative Details of the Charity, its Trustees and Advisers 1 - 2
Trustees' Report 3 - 10
Statement of Trustees' Responsibilities 11
Independent Auditors' Report on the Financial Statements 12 - 15
Statement of Financial Activities 16
Balance Sheet 17
Statement of Cash Flows 18
Notes to the Financial Statements 19 - 46

(A Company Limited by Guarantee)

PECAN

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2024

Trustees Paul Jones, Chair of Trustees (resigned 3 May 2024)
Eleanor Orr, Treasurer
Helen Palmer
Esenam Agubretu
David Porter (resigned 12 September 2023)
Albert Acheampong Berchie (resigned 6 June 2024)
Bonike Bracewell (resigned 12 September 2023)
Isabel Lennox (resigned 15 August 2024)
Fiona Philippa Tudor, Interim Chair of Trustees
Jennifer Brown
Terryna D'Souza
Sarolta Stuckey Beeri (appointed 5 December 2023)
Amy Jacks (appointed 5 March 2024)
Company registered
number
02394165
Charity registered
number
801819
Registered office
121A Peckham High Street
London
SE15 5SE
Company secretary
Christopher Price (resigned 31 January 2024)
Peter William Constantine Edwards (appointed 15 April 2024)
Senior management
Christopher Price - Chief Executive Officer (resigned 31 January 2024)
Peter Edwards - Chief Executive Officer (appointed 15 April 2024)
Deborah Hayman-Nkhoma - Head of Services
Sharon Hunt - Head of Food Services (resigned 26 September 2023)
Shahid Mughal - Head of Food Services (appointed 4 September 2023)
Independent auditor
MHA
Statutory Auditor
6th Floor
2 London Wall Place
London, United Kingdom
EC2Y 5AU

Page 1

PECAN

(A Company Limited by Guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024

Bankers Barclays Bank plc United Kingdom House 180 Oxford Street London W1D 1NN CCLA Senator House 85 Victoria Street London EC4V 4ET Solicitors Grant Saw 110-114 Norman Road Greenwich London SE10 9EH

Page 2

(A company limited by guarantee)

PECAN

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

The Trustees of Pecan present their report and financial statements for the year ended 31 March 2024.

Pecan’s Charitable Objects

Pecan is governed by its Memorandum and Articles of Association. These state that Pecan’s objects are:

Policies to further our Objects

Pecan’s Board of Directors agreed the revision of the Vision, Values and Ethos statements as follows.

Mission

Pecan’s Mission is to:

‘Restore futures and see an end to poverty in all its forms’ We aim to achieve this through equipping people in our community both practically and emotionally to believe in their potential ;

Vision

“Transforming lives through kindness, belief, hope”

Values

Pecan offers a breadth of interventions which comes together through working from our values of Kindness, Belief and Hope. These values underpin the culture of the Charity.

"I want to express my heartfelt thanks to the foodbank for delivering a food parcel. Being housebound, the delivery was truly appreciated, and I am incredibly grateful!"

“The pantry helps me to have a healthier diet, it is an essential to the benefit of the community”

“I used to cry every day before I met you: now I feel better.”

Belief

“The staff at Pecan were really supportive.” 

  - _**“You really made an impact on me and**_

  - _**opened a new door for me for the future.”**_

Page 3

PECAN

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Ethos

As a Christ-centred organisation, Pecan seeks to treat all people with dignity, openness and respect, demonstrating Jesus’ grace and love in action.

Respect

Pecan respects all clients provided that they treat members of staff or volunteers in the same manner.

Culture

The culture of the staff and volunteer team is grounded in Pecan’s ethos as an inclusive Christ-centred organisation. This is demonstrated in the way all interact with each other. Everybody aims to show kindness and respect, seeking in each encounter to uplift people with honesty and to be regarded as a trusted partner.

Pecan's Charitable Objectives:

Pecan’s practical objectives aim to do the following:-

  1. To address the multiple needs of all involved and work towards their social inclusion, through the development and delivery of holistic projects.

  2. To work with and support local churches in meeting the practical needs of the community.

  3. To challenge inequality and injustice on a local and national level, with and for our community.

Our aim is to seek to serve people in a way that empowers them to gain control of their lives. Our heart continues to be in Peckham with outreach across the borough of Southwark and other London boroughs.

Trustees

The Trustees of the Charity who held office during the year and to the date of this report are listed on page 1. In April 2024 Paul Jones stepped down after 4 years’ service as Chair of the Board, and many more as a Trustee. The Trustees wish to highlight his exceptional dedication to Pecan. Throughout the year the Trustees had due regard to the guidance issued by the Charity Commission on public benefit.”

Structure, Governance and Management

Governing Document

Pecan is a charitable company limited by guarantee, incorporated on 12 June 1989 and registered as a Charity on 21 July 1989. The company was established under a Memorandum of Association with the Charity Commission which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount of up to £1.

Page 4

(A company limited by guarantee)

PECAN

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Recruitment and Appointment of Members and Trustees

Members

Membership is open to churches that sign and continue to affirm the Churches Together Statement of Faith and whose principal place of worship is situated in Peckham or the London Borough of Southwark.

Once accepted for membership a senior church leader (“SCL”) from each member church (“Member Church”) is invited to be the representative of their Member Church. They have the opportunity to nominate a different person (“Substitute”) from their Member Church to attend meetings and vote on behalf of the Member Church. Neither SCL’s nor Substitutes can be currently employed by Pecan.

Members are invited to an annual meeting. The annual meeting must include Pecan’s Annual General Meeting and may also include:

The Board of Directors

The Directors of Pecan are also Trustees of the Charity. The Board meets monthly and in a number of subcommittees; they set policy and direction for the Charity and oversee the work of the Chief Executive Officer.

All of the directors are Christians and are church attendees and members ; they voluntarily help Pecan to maintain its Christian ethos and are not remunerated.

The Board of Directors (‘The Board’) is made up of people who have relevant experience and expertise relating to their role as trustees and a concern for Pecan’s work in providing support for the marginalised and unemployed. The Board may appoint new Directors, either as a replacement of a Director or as an additional Director, to the Board. Such appointments must be confirmed by election at the next Annual General Meeting. Appointment of the Secretary is the Board’s function.

New Trustees are recruited by advertising, including through newsletters to our member and supporter network. The diversity in background and skills of the Trustees is regularly reviewed as we aim to recruit Trustees with distinctive experience in their fields. Most Trustees live in or near South London.

The Board may delegate its powers to sub-committees consisting of members of the Board who have expertise in that particular area of management. All proceedings and decisions made by the sub-committee are reported to the following full Board meeting. New Trustees participate in a full induction programme upon appointment.

Senior Management

Key management personnel consists of the Board of Directors (who are not remunerated), the Chief Executive Officer (CEO), the Head of Services, and the Head of Food Services. In January 2024 Chris Price moved to head another organisation role after 11 years of distinguished service as CEO of Pecan. The Trustees are very grateful both to him and to the Head of Services and the Head of Food Services, who between them went above and beyond in sharing aspects of the CEO’s role during the three months prior to the new incumbent taking up his post.

The day-to-day management of the Charity is the responsibility of the CEO. Staff remuneration is benchmarked every three years by an HR consultant. They use comparison information provided by Croner and the National Council for Voluntary Organisations (NCVO) and compare this with other Christian charities with whom the consultant is in touch and able to survey anonymously. The report is presented to the Board of directors who decide and approve the salaries of each pay grade.

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PECAN (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

The annual staff survey revealed that 96% of staff are motivated and feel that people are treated in line with Pecan’s values. While the current mission is viewed as crucial for the organisation’s future, staff believe the training offer needs review, especially during role changes. Looking ahead, key priorities include addressing cost of living, employment, and mental health challenges. Staff also envision future services being communitybased, holistic, and focused on wellbeing, with interest in exploring a social enterprise by 2025.

Operational Structure

All programs of work are managed by project managers. Senior management provides support and oversight of projects and ensures that standards are maintained across the organisation. Senior management also takes the lead on applying for new contracts and the strategic planning and monitoring of the organisation.

Pecan and other charities/organisations

In order to achieve Pecan’s objectives, the Charity works in partnership with local, national and government agencies whilst retaining a focus on its London neighbourhood.

Risk Assessment

The Charity maintains a risk register. It is presented to the Board by the CEO at each meeting ; significant risks are identified, and mitigating actions agreed and monitored at subsequent meetings. Pecan considers strategic, financial and funding, operational, reputational, legal and compliance risks that may arise over the short- and long-term. It has sought to manage these risks through business planning; investing in financial controls and its fundraising resource; reviewing its reserves policy; filling key board and management roles; and circulating regulatory guidance among trustees and staff.

Performance statistics :

----- Start of picture text -----
Numbers of clients supported 2022/23 2023/24
Foodbank (people supplied) 11,433 8,948
Peckham Pantry (visits) 16,585 16,516
Women’s Services (women referred to services) 138 225
Together Café (opened November 2022) 389 911
Employment Support (All programme registrations) 719 301
Cost of Living successful applications 3,769 1,174
Total 33,033 28,075
----- End of picture text -----

Pecan’s Southwark Foodbank distributed over 102 tonnes of food (2022/23: 110 tonnes), with a value of £180,000. This fed 2,160 households, 5,924 adults and 3,031 children. Food was supplied through donations from supermarket collection points, The Felix Project, Bankuet, churches, schools and colleges, individuals, and community groups. Some purchases were made to keep staples available. At the foodbank sessions we provided Financial Inclusion advice to 250 clients helping them achieve financial gains.

Peckham Pantry received 16,516 visits from 1,800 unique households with 3,418 adults and 1,811 children. We distributed 97 tonnes of discounted food (2022/23: 72 tonnes) to provide 481,000 meals. The main food suppliers have been The Felix Project and City Harvest. The Pantry is staffed by Pecan employees and volunteer ambassadors who have benefited or continue to benefit from the Pantry. This was the Peckham Pantry's third full year as a 6 day a week operation and the high number of visits in 2022/23 was maintained in 2023/24. We estimate that our clients have saved £173,000 by shopping at the pantry. The biggest challenge continues to be the regular supply of a variety of food, including cupboard items, a range of fruit and vegetables and culturally appropriate food. With the right selection of food in stock, the number of people coming to the pantry will continue to grow. We have increased our supplies of hygiene products, including nappies and other baby care products, as these products are often in high demand.

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PECAN (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Pecan’s Women’s Services provides a safe, welcoming, one-stop-shop support for those affected by the criminal justice system and for women seeking information, and community. The Women’s Centre saw a steep increase in activity compared to 2022/23, and supported over 225 women passing through the Women’s Centre for either drop-in, advocacy appointments, workshops or events. The service provided 740 in-person 1:1 advocacy sessions, and a further 516 advocacy appointments over video or phone call. The Women’s Centre hosted three special events over the year, and delivered a total of 166 workshops online and in person. A total of three wellbeing packs were sent to over 90 women across the year, containing wellbeing advice, puzzles, recipes and poetry. Women are referred by partners such as Probation, Pause, Southwark wellbeing hub, Southwark Asylum Seekers Day Centre and Change, Grow, Live (CGL) drug and alcohol services. Many women also self-refer for advocacy having heard about our service through word of mouth from friends or acquaintances we have already supported.

Together is a community-driven café-style forum designed to foster connection and combat isolation. Established as a ‘warm space,’ it hosts weekly sessions centred on conversation and a variety of activities, including crafting, games, and dressmaking. Together offers a welcoming environment for those facing challenges such as loneliness, isolation, or depression, providing a safe space to connect with others. Additionally, it serves as a resource hub where individuals can access support from advisers on issues like debt management. Some of its key activities include the Black Men's Mental Health Group, Creative Writing for Wellbeing, Poetry Pop-up events, and Black History Month celebrations. Together responds to suggestions from the community it serves, and, for example, its celebrations of Chinese New Year in February 2024 were customer led.

Employment Between April and June 2023, the employment team provided support to the final 27 clients on the Step 2 Success and Positive Turn Around programs, as well as assisted 140 walk-ins with their CVs. Additionally, we began a new contract with Southwark Works (Employment Services for Southwark Residents) for the Parents and Unpaid Carer Project, valued at £168,000 per year, with the potential for a two-year extension. Under this project, the team supported 230 clients, with 51 securing employment, 114 obtained accredited qualifications, 10 advanced to better-paying jobs, and 11 gained valuable work experience.

Christmas vouchers : Our Christmas campaign appealed for donations to provide £50 and £25 supermarket vouchers to people in need. People were referred by Pecan’s Women’s Service, Employment Support, Pantry, Foodbank and Together café. A total of 150 vouchers were distributed. These are some of the comments of recipients:

1. "The voucher was an absolute blessing during a difficult time. It allowed me to get everything we needed for a special Christmas, and I can't thank you enough for the support."

2. "Having the voucher made a huge difference for our family. We were able to enjoy a warm, hearty meal together, which really lifted our spirits during the holiday season."

3. "The kindness behind this voucher touched my heart. It helped us get through a tough period, and I was able to provide for my children when they needed it most."

4. "This voucher came at just the right time. With everything going on, it was a relief to have one less thing to worry about, especially around the holidays."

5. "I’m so grateful for the voucher. It made a real impact, allowing us to buy essential groceries and enjoy a healthy, happy Christmas together. Your generosity means the world to us."

Cost of Living Hardship Fund : Between November and March, Pecan partnered with Southwark Council's Cost of Living Fund to support the community during the winter months. During this period, Pecan referred 1,174 households to receive a £100 grant to assist with winter expenses. Of these referrals, 955 were approved, with the majority of rejections due to previous payments. As a result, our clients received a total of £95,500 in financial assistance, aiding them in covering essential household bills.

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PECAN (A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Volunteers

----- Start of picture text -----
Volunteer statistics 2020/21 2021/22 2022/23 2023/24
Average number of volunteers per month 46 34 31 35
Average number of hours volunteered per month 614 400 406 470
Average number of hours donated per volunteer 13.35 11.75 13.1 13.4
Value @ London Living Wage £88,089 £52,974 £58,244 £74,142
----- End of picture text -----

Volunteers are essential to the services being able to go beyond a basic response. They provide additional resources, friendship, and skills in the running of every aspect of Pecan. This is what makes such a difference to the experience everyone who visits Pecan receives. We have seen a healthy number of volunteers ending their volunteering by finding employment at Pecan or other local organisations.

Volunteers are welcome in every project and in our central service, but Southwark Foodbank and Peckham Pantry continue to hold the vast majority of volunteer posts due to the nature of their operation.

Without the compassion and dedication of our volunteers, Southwark Foodbank would not have been able to meet the challenge of so many who experienced food insecurity. Many of our volunteers have themselves experienced food insecurity and are able to provide insight into what was most helpful in their own experience. Thank you to each and every one of you.

Fundraising

During the year we continued to work with Felton Fundraising who are contracted to apply to charitable trusts on behalf of Pecan. Felton does not make direct approaches to members of the public. Applications and letters are agreed and sent by either Head of Services or the CEO. We paid £11,928 for their services and they secured/received pledges for £242,484 (2023 - £198,048). The Head of Services directly manages the contact with Felton Fundraising, with support from the Partnerships Manager. Pecan is regulated by the Fundraising Regulator. In 2023/24 no fundraising complaints were received.

Pecan’s Partnership Manager manages our community and corporate fundraising. This involves working with local businesses, faith groups and educational establishments. They also manage a database of supporters, social media, and external communications. Clients are never required to contribute or become financial supporters of Pecan. Newsletters with financial requests only go to individuals who have asked to be on our supporters list.

Contracts

The CEO manages the process of bidding for contracts. Bids are written either by the CEO or project managers. Pecan tends not to be the prime contractor on bids and seeks to be a preferred sub-contractor. In the last year an external bid-writing consultant was engaged for just one bid.

Premises

Over the year we used our premises to support community activities and generate income. Two third sector organisations use desk space: Prosper 4 and Southwark Everywoman’s Centre. Our meeting rooms were not used by any community groups during the year.

Financial Review

Our incoming resources in 2023/24 were £1,831,188 (2023 - £1,754,751). The income is a mixture of Restricted Income of £1,226,028 (2023 - £1,109,907) where the funder determines what we spend the money on and Unrestricted Income of £605,160 (2023 - £644,844). The Charity’s equity-based investment increased in value by £44,395 (2022 – Decrease of £20,374) which was allocated to the unrestricted fund.

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(A company limited by guarantee)

PECAN

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2024

Expenditure during the year was £1,849,480 (2023 - £1,755,622) leaving a net surplus before transfers for the year of £26,103 (2023 – deficit £21,145) split as £63,535 restricted deficit (2023 – £62,079 surplus), £93,012 unrestricted surplus (2023 – £79,950 deficit) and £3,374 endowment deficit (2023 - £3,374).

Our restricted fund has increased due to this year’s net movement in funds after transfers to £464,906 (2023 - £449,523).

The unrestricted fund has increased due to this year’s net movement in funds after transfers to £792,384 (2023 - £778,290) of which we hold Designated Funds of £338,848 (2023 - £345,612) representing the Fixed Assets and General Funds of £453,536 (2023 - £432,678).

Reserves

Total funds held by the Charity as at 31st March 2024 were £1,351,779 (2023 - £1,325,676). The Trustees have reviewed the Charity’s need for reserves in line with the guidance issued by the Charity Commission. The Trustees believe that in order to safeguard the Charity’s services and the obligations to staff and creditors in the event of delays in receipt of grants, or any shortfall in fundraising income, six months’ running costs which equates to £634,544 should be held in free reserves (unrestricted reserves excluding tangible fixed assets). Against the target we are holding £453,536 in free reserves at the year end.

Restricted reserves at year end amounted to £464,906 (2023 - £449,523) which have donor-imposed restrictions and are held in cash at year end but will be expended over future financial years. In addition, we have a Designated fund of £338,848 (2023 - £345,612) which represent the value of the tangible fixed asset and a further Endowment fund of £94,489 (2023 - £97,863) which is also restricted. The Designated and Endowment funds reflect the investment made by the Trustees over the years in operational assets which are not convertible into cash without affecting the operational running of the business and are not therefore considered to be freely available.

The remaining free reserve held at the year-end amounted to £453,536 (2023 - £432,678). During the financial year end the Charity chose to use an element of this reserve to help deliver our services in areas where funding was not otherwise available.

Pecan is using reserves to ensure we can provide essential services during the cost of living crisis and to meet shortfalls in funding. In our annual report for 2022/23 we said “We recognise that this is not a sustainable solution and that we will need to manage budgets extremely well during the coming year.” In 2023/24 we again needed to draw on our reserves. During Q2 of 2024/25 Trustees reviewed expenditure, identifying cost cutting measures, allocated resources for fundraising, and revised the reserves policy. In turn, management sought to renegotiate supplier contracts, replanned costs for a range of scenarios, appointed a full-time fundraiser postyear-end and adjusted the reserves policy.

Investment performance

In investing the Charity’s assets, the Trustees aim to generate a reasonable income, whilst investing safely, ethically and in such a way that they are sufficiently accessible to support cashflow or to cover any funding shortfall. In order to meet these objectives, the Trustees invest the bulk of the Charity assets in the CCLA Charity Official Investment Fund (COIF) and cash. At the end of the year, the Charity held £416,032 (2023 - £496,791) in various bank deposits and £525,377 (2023 - £480,982) in equity-based investment funds.

The diversification and flexibility of the investments coupled with low interest rates during the year has given Trustees the reassurance that the dividend received of £23,832 (2023 - £7,138) and interest received of £2,686 (2023 - £1,134) were reasonable. We recognise values fluctuated in the financial year. CCLA have stated that ‘financial stocks were especially volatile in the month of March, as difficulties emerged at a handful of institutions.’ CCLA expect markets to improve in the next financial year. Pecan will continue to work with CCLA and deliver returns to support income and with a low appetite for risk.

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PECAN (A company Ilmited by guarantee) TRUSTEES, REPORT FOR THE YEAR ENDED 31 MARCH 2024 In so far as the Trustees are aware: This report was approved and authorised for issue by the Trustees and signed on its behalf by.. (f i.J Fiona Philippa Tudor Interim Chair of Trustees Date: Page 10

PECAN (A Company Limited by Guarantee) STATEMENT OF TRUSTEES, RESPONSIBIUTIES FOR THE YEAR ENDED 31 MARCH 2024 The Trustees (who are also the Directors of the Charity for the purposes of company law) are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affair5 of the Charty and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements. the Trustees are required to.. select suitable accounting policies and then apply them consistently-, observe the methods and principles of the Charities SORP (FRS 102)., make judgements and accounting estimates that are reasonable and prudent- state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements- prepa￿ the financial statements on the going concem basis unless it is inappropriate to presume that the Charity will continue in business. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the 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. In so far as the Trustees are aware: there is no relevant audit infomiation of vthich the charitable companys auditors are unaware., and the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit infomiation and to establish that the auditors are aware of that information. The Trustees are responsible for the maintenance and integrity of the corporate and financial information on the Charitys website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Approved by order of the Members of the Board of Trustees and signed on ¢ts behalf by.. Fiona Philippa Tudor Interim Chair of Trustees Date.. . s Lo L4 . Page11

PECAN

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PECAN

Opinion

We have audited the financial statements of Pecan (the 'Charity') for the year ended 31 March 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

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PECAN (A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PECAN (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the Statement of Trustees' Responsibilities, the Trustees (who are also the Directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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(A Company Limited by Guarantee)

PECAN

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PECAN (CONTINUED)

In preparing the financial statements, the Trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

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PECAN

(A Company Limited by Guarantee)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF PECAN (CONTINUED)

Use of our report

This report is made solely to the charitable company's Members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's Members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and its Members, as a body, for our audit work, for this report, or for the opinions we have formed.

Sudhir Singh FCA (Senior Statutory Auditor) for and on behalf of MHA Statutory Auditor London, United Kingdom

Date: 28 December 2024

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).

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PECAN

(A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2024

Note
Income from:
Donations and grants
4
Charitable activities
5
Other trading activities
6
Investments
7
Total income
Expenditure on:
Raising funds
8
Charitable activities
9,10
Total expenditure
Net income/
(expenditure) before
net (losses)/ gains
on investments
Net gains/(losses) on
investments
15
Net income/
(expenditure)
Transfers between
funds
19
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in
funds
Total funds carried
forward		 Unrestricted
funds
2024
£
501,879
69,831
6,932
26,518
605,160
67,717
488,826
556,543
48,617
44,395
93,012
(78,918)
14,094
778,290
14,094
792,384		 Restricted
funds
2024
£
576,561
641,712
7,755
-
1,226,028
-
1,289,563
1,289,563
(63,535)
-
(63,535)
78,918
15,383
449,523
15,383
464,906		 Endowment
funds
2024
£
-
-
-
-
-
-
3,374
3,374
(3,374)
-
(3,374)
-
(3,374)
97,863
(3,374)
94,489		 Total
funds
2024
£
1,078,440
711,543
14,687
26,518
1,831,188
67,717
1,781,763
1,849,480
(18,292)
44,395
26,103
-
26,103
1,325,676
26,103
1,351,779		 Total
funds
2023
£
716,014
1,027,733
2,732
8,272
1,754,751
69,465
1,686,157
1,755,622
(871)
(20,374)
(21,245)
-
(21,245)
1,346,921
(21,245)
1,325,676

All income and expenditure derive from continuing operations.

The Statement of Financial Activities includes all gains and losses recognised in the year. The notes on pages 19 to 46 form part of these financial statements.

Page 16

PECAN (A Company Llmited by Guaranto•) REGISTERED NUMBER: 02394165 BALANCE SHEET AS AT 31 MARCH 2024 2024 2024 2023 2023 Note Fixed assets Tangible assets Investments 14 433,426 525,377 443,564 480,982 15 958,803 924,546 Current assets Stocks Debtors.. Amounts falling due wthin one year Cash at bank and in hand 16 17 22 26,805 211,366 416,032 20,182 90.160 496,791 654,203 607,133 Creditors.. Amounts falling due within one year 18 (261,227) (206,003) Net current assets 392,976 401,130 Total net assets 1,351,779 1,325,676 Charity funds Endowment funds Restricted funds Unrestricted funds 19 19 19 94,489 464.906 792.384 97,863 449,523 778,290 Total funds 1,351.779 1,325,676 The Trustees acknowledge their responsibilrties for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of financial statements. The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by.. Fiona Philippa Tudor Interim Chair of Truste Date.. Eleanor Orr Treasurer The notes on pages 19 to 46 form part of these financial statements. Page 17

PECAN

(A Company Limited by Guarantee)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024		 2023
£
(157,153)
8,272
8,272
(148,881)
645,672
496,791
Note
Cash flows from operating activities
Net cash used in operating activities
21
Cash flows from investing activities
Investment income
7
Net cash provided by investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22		 2024
£
(107,277)
26,518
26,518
(80,759)
496,791
416,032

The notes on pages 19 to 46 form part of these financial statements.

Page 18

PECAN (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1. General information

Pecan is a charitable company limited by guarantee and is registered with the Charity Commission (Charity Registered Number 801819) and Registrar of Companies (Company Registration Number (02394165) in England and Wales.

In the event of the Charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the Charity. Members are comprised of founder churches.

The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charity’s operations and principal activities are:

(a) To advance the Christian religion.

(b) The relief of unemployment for the benefit of the public in such ways as may be thought fit, including providing training and other assistance to help people find employment.

(c) The relief of poverty in particular among unemployed people.

(d) To preserve and protect the physical environment for the benefit of the public by the promotion of waste reduction, re-use, reclamation and recycling and the use of recycled products.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Pecan meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in pound sterling, which is the presentational and functional currency of the Charity, and are rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Page 19

PECAN (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.2 Going concern

The Charity recorded a loss for the 12 months to 31 March 2024.

PECAN drew on reserves in the year and subsequently updated its reserves policy in August 2024 to better reflect the fluctuations in turnover of a Charity with multiple projects. As such, the board agreed 4-6 months running costs should be held in free reserves (unrestricted reserves excluding tangible fixed assets).

The Trustees have assessed the use of going concern and have considered possible events or conditions that might cast significant doubt on the ability of the charity to continue as a going concern. The assessment has included the preparation of budget, cashflow and operational scenarios by management for a period to 31 December 2025; a review of liquidity and solvency; the requirement to renew or replace funding for individual projects with a view on the prospects of winning external support for each; and the nature of the Charity’s longstanding multi-service model.

In the period since 31 March 2024 the Charity has taken the following steps:

The Trustees have therefore made their assessment for a period which they consider is the foreseeable future, being at least one year from the date of approval of these financial statements. Based on this analysis, the Trustees have concluded that there are no conditions or events anticipated that create a material uncertainty, and they can have a reasonable expectation that the charity has adequate resources to continue as a going concern for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing these financial statements.

. The Trustees have therefore made this assessment for a period which they consider is the foreseeable future, being at least one year from the date of the approval of these financial statements. Based on this analysis the Trustees have concluded that whilst risk and uncertainties exist in the future, particularly in relation to future funding, there are no conditions or events anticipated that create a material uncertainty, and they can have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. The Charity therefore continues to adopt the going concern basis in preparing these financial statements.

Page 20

PECAN

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

For donations to be recognised the Charity will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfillment of those conditions is within the control of the Charity and it is probable that they will be fulfilled.

Income from trading activities includes income earned from fundraising events and trading activities to raise funds for the Charity. Income is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

The Charity receives government grants in respect of furthering its charitable objectives. Income from government and other grants are recognised at fair value when the Charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met then these amounts are deferred.

Investment income is earned through holding assets for investment purposes such as shares and property. It includes dividends and interest. Where it is not practicable to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the Charity’s right to receive payment is established.

The value of volunteer time is not recognised as income.

Where practicable, donated goods for distribution to the beneficiaries of the Charity are included in stock and donations in the financial statements upon receipt. If it is impracticable to assess the fair value at receipt or if the costs to undertake such a valuation outweigh any benefits, then the fair value is recognised as a component of donations when it is distributed and an equivalent amount recognised as charitable expenditure.

Page 21

PECAN (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.4 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Expenditure on raising funds incurred seeking voluntary contributions through donations and the running of fundraising events during the year.

Expenditure on charitable activities includes all costs incurred on furthering the objects of the Charity.

Other expenditure represents those items not falling into the categories above.

All expenditure is inclusive of irrecoverable VAT.

2.5 Termination payments

Termination payments are recognised immediately upon becoming a constructive obligation.

2.6 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.7 Taxation

The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Page 22

PECAN (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.8 Tangible fixed assets and depreciation

Tangible fixed assets costing £1,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold buildings - 2%
Fixtures and fittings - 25%
Office equipment - 50%

No depreciation is charged on freehold land.

2.9 Investments

Fixed asset investments are a form of basic financial instrument are initially recognised at their transaction value and subsequently measured at their fair value using the closing quoted market price or the share of the Net Asset Value of the fund (if unlisted). All gains and losses are taken to the Statement of Financial Activities as they arise.

The Statement of Financial Activities includes all net gains and losses arising on revaluation and disposals throughout the year. As investments are revalued to fair value continuously, no realised gains or losses arise.

2.10 Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

2.11 Debtors

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

2.12 Cash at bank and in hand

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

Page 23

PECAN

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.13 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.14 Financial instruments

The Charity only holds basic financial instruments. The financial assets and financial liabilities of the Charity are as follows:

Debtors – trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 17. Prepayments are not financial instruments.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Liabilities – trade creditors, accruals and other creditors will be classified as financial instruments, and are measured at amortised cost as detailed in Note 18. Taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability, as in the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.

2.15 Operating leases

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term.

2.16 Pensions

When employees have rendered service to the Charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The Charity operates a defined contribution plan for the benefit of its employees which are administered by outside independent pensions providers. Contributions are expensed as they become payable.

Page 24

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

2. Accounting policies (continued)

2.17 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

The endowment funds represents the net book value of improvement works to 121 Peckham High Street building. Depreciation is charged to this fund each year.

3. Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:

Page 25

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

4. Income from donations and grants

Donations and gifts
Gift aid reclaimed
Donated goods distributed to beneficiaries
Total 2024
Donations and gifts
Gift aid reclaimed
Donated goods distributed to beneficiaries
Total 2023		 Unrestricted
funds
2024
£
133,589
11,330
356,960
501,879
Unrestricted
funds
2023
£
127,049
4,097
307,646
438,792		 Restricted
funds
2024
£
558,970
17,591
-
576,561
Restricted
funds
2023
£
254,258
22,964
-
277,222		 Total
funds
2024
£
692,559
28,921
356,960
1,078,440
Total
funds
2023
£
381,307
27,061
307,646
716,014

Page 26

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

5. Income from charitable activities

Central
Community Development
Employability
Women's Services
Total 2024
Central
Community Development
Employability
Women's Services
Total 2023		 Unrestricted
funds
2024
£
-
69,224
206
401
69,831
Unrestricted
funds
2023
£
43,158
66,437
85,453
-
195,048		 Restricted
funds
2024
£
-
307,260
116,691
217,761
641,712
Restricted
funds
2023
£
-
491,000
-
341,685
832,685		 Total
funds
2024
£
-
376,484
116,897
218,162
711,543
Total
funds
2023
£
43,158
557,437
85,453
341,685
1,027,733

Page 27

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

5. Income from charitable activities (continued)

Included within income from charitable activities are the following grants received from government sources. There are no unfulfilled conditions or other contingencies attached to these grants:

Southwark Council - Community Capacity and Environment and Ecology
grants (FoodBank)
Southwark Council - Community Capacity and Environment and Ecology
grants (HOurBank)
Southwark Council - Asylum Seeker & Refugee Football
Southwark Council - Together Common Purpose
Southwark Council - Foodbank Common Purpose
Southwark Council - Common Purpose
Southwark Council - Procurement
Southwark Council - SFAA
Southwark Council - Pantry
Southwark Local Economy Team
NHS SOUTH EAST LONDON - Women's MH
Prospects Services (DWP) - partly funded by Education and Skills Funding
Agency/partly funded by European Social Fund
Lambeth Council - Women in Prison
G4S - partly funded by The Department of Work and Pensions/partly funded
by the European Social Fund (the negative amount shown is a result of a
claw back from a previous period).
Advance Charity - Ministry of Justice
Step Ahead - The Mayor's European Social Fund (ESF) 2019-23
Programme
LTEN - The Mayor's European Social Fund (ESF) 2019-23 Programme
Round 2 -Ex-Offenders		 2024
£
-
-
-
22,525
6,890
34,220
-
99,475
3,600
144,302
50,000
-
121,811
(4,885)
-
-
2,024
479,962		 2023
£
26,000
29,500
4,000
-
-
-
29,810
43,200
-
-
-
36,202
121,352
19,687
37,750
10,123
19,441
377,065

Page 28

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

6. Income from other trading activities

Meeting room hires
Fundraising
Meeting room hires		 Unrestricted
funds
2024
£
6,932
-
6,932		 Restricted
funds
2024
£
5,001
2,754
7,755
Unrestricted
funds
2023
£
2,732		 Total
funds
2024
£
11,933
2,754
14,687
Total
funds
2023
£
2,732

Page 29

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

7. Income from investments

Unrestricted
funds
2024
£
Dividend income
23,832
Bank interest receivable
2,686
Total 2024
26,518
Unrestricted
funds
2023
£
Dividend income
7,138
Bank interest receivable
1,134
Total 2023
8,272		 Total
funds
2024
£
23,832
2,686
26,518
Total
funds
2023
£
7,138
1,134
8,272

Page 30

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

8. Expenditure on raising funds

Unrestricted
funds
2024
£
Direct costs
12,823
Support costs
54,894
67,717
Unrestricted
funds
2023
£
Support costs
69,465		 Total
funds
2024
£
12,823
54,894
67,717
Total
funds
2023
£
69,465

The CCLA investment management costs cannot easily be identified as investments held in a “pooled fund”, and hence are not disclosed as costs of raising funds.

In 2023 all expenditure on raising funds was from unrestricted funds.

Analysis of support costs

Staff costs
Fundraising		 2024
£
34,450
20,444
54,894		 2023
£
42,618
26,847
69,465

Page 31

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

9. Analysis of expenditure on charitable activities - by fund

Community Development
Employability
Women's Services
Total 2024
Central
Community Development
Employability
Women's Services
Total 2023		 Unrestricted
funds
2024
£
88,355
14,789
28,722
488,826
Unrestricted
funds
2023
£
97,028
376,253
161,674
-
634,955		 Restricted
funds
2024
£
1,093,253
162,001
391,269
1,289,563
Restricted
funds
2023
£
29,376
686,761
-
331,691
1,047,828		 Endowment
funds
2024
£
3,374
-
-
3,374
Endowment
funds
2023
£
3,374
-
-
-
3,374		 Total
funds
2024
£
1,184,982
176,790
419,991
1,781,763
Total
funds
2023
£
129,778
1,063,014
161,674
331,691
1,686,157

Page 32

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

10. Analysis of expenditure on charitable activities - by type

Community Development
Employability
Women's Services
Total 2024		 Activities
undertaken
directly
2024
£
956,157
120,965
311,564
1,388,686		 Support
costs
2024
£
228,825
55,825
108,427
393,077		 Total
funds
2024
£
1,184,982
176,790
419,991
1,781,763
Central
Community Development
Employability
Women's Services
Total 2023		 Activities
undertaken
directly
2023
£
-
888,252
129,388
264,064
1,281,704		 Support
costs
2023
£
129,778
174,762
32,286
67,627
404,453		 Total
funds
2023
£
129,778
1,063,014
161,674
331,691
1,686,157

Page 33

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

10. Analysis of expenditure on charitable activities - by type (continued)

Analysis of support costs

Staff costs
Depreciation
Project costs
Human resources
Premises
Overheads
Management services
IT support
Governance
Irrecoverable VAT expenditure		 Total
funds
2024
£
186,886
10,138
6,607
-
71,515
6,563
17,142
6,966
56,573
30,687
393,077		 Total
funds
2023
£
231,879
10,138
762
21,320
81,200
3,790
3,264
2,613
41,574
7,913
404,453

Governance costs are analysed in Note 11.

11. Governance costs

Auditors' remuneration - Audit of the financial statements
Auditors' remuneration - Other services
Auditors' remuneration - Prior year under accrual
Consultancy fees
Other governance costs		 2024
£
20,500
3,500
-
41,513
2,364
67,877		 2023
£
19,500
3,300
(4,250)
22,522
502
41,574

Of the total governance costs, £56,573 (2023 - £41,574) were allocated to charitable activities - support costs and £11,304 (2023 - £NIL) were allocated to raising funds - support costs.

Page 34

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

12. Staff costs

Wages and salaries
Social security costs
Pension costs		 2024
£
892,672
76,273
71,684
1,040,629		 2023
£
884,278
75,956
72,561
1,032,795

Included within staff costs above are termination benefits of £9,653 (2023 - £3,575) , of which £NIL were non-contractual benefits (2023 - £NIL) awarded with Trustee approval.

The average number of persons employed by the Charity during the year was as follows:

Direct staff
Support staff		 2024
No.
27
7
34		 2023
No.
32
6
38

No employee received remuneration amounting to more than £60,000 in either year.

The Charity considers its Key Management Personnel to comprise of the Trustees, the Chief Executive Director, Head of Services and Head of Food Services. The total amount of employee benefits, including employer’s national insurance contributions, received by Key Management Personnel is £164,216 (2023 - £204,149).

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2023 - £NIL) .

During the year ended 31 March 2024, expenses totalling £276 were reimbursed or paid directly to one Trustee (2023 - £427 reimbursed or paid to one Trustee).

Page 35

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

14. Tangible fixed assets

Cost or valuation
At 1 April 2023
At 31 March 2024
Depreciation
At 1 April 2023
Charge for the year
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023		 Freehold
land and
buidlings
£
656,898
656,898
213,334
10,138
223,472
433,426
443,564		 Office
equipment
£
8,935
8,935
8,935
-
8,935
-
-		 Total
£
665,833
665,833
222,269
10,138
232,407
433,426
443,564

Included within freehold land and buildings is land of £150,000 (2023 - £150,000) which is not depreciated.

Page 36

PECAN

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

15.
Fixed asset investments
Cost or valuation
At 1 April 2023
Revaluations
At 31 March 2024
Net book value
At 31 March 2024
At 31 March 2023
The fixed asset investments all relate to investments held in CCLA.
16.
Stocks
Donated goods
17.
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income		 2024
£
26,805		 CCLA
investments
£
480,982
44,395
525,377
525,377
480,982
2023
£
20,182
2023
£
34,864
5,381
49,915
90,160		 CCLA
investments
£
480,982
44,395
525,377
525,377
480,982
2023
£
20,182
2023
£
34,864
5,381
49,915
90,160
2024
£
106,299
4,946
100,121		 2023
£
34,864
5,381
49,915
211,366 90,160

Page 37

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

18. Creditors: Amounts falling due within one year

Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income
Deferred income at 1 April
Resources deferred during the year
Amounts released from previous periods
Deferred income at 31 March		 2024
£
85,194
20,271
10,827
144,935
261,227
2024
£
128,243
111,875
(128,243)
111,875		 2023
£
14,114
17,073
8,809
166,007
206,003
2023
£
360,004
128,243
(360,004)
128,243

Income is deferred where grant agreements cover a number of years and a time-based condition can be implied.

Income in respect of the following was received in the 2023/24 financial year but has been deferred to the next financial year:

Charles Hayward Foundation
Southwark Council
Trussel Trust (PathFinder Programme)
Impact on Urban Health (formerly Guy's and St Thomas Charity grant)
Henry Smith Charity		 2024
£
-
8,125
-
73,750
30,000
111,875		 2023
£
6,250
10,000
59,493
22,500
30,000
128,243

Page 38

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

19. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Fixed asset fund
General funds
General funds
Community
Development
Total Unrestricted
funds
Endowment funds
Endowment funds
Restricted funds
General
Community
Development
Employability
Women's services
Total of funds		 Balance at 1
April 2023
£
345,612
427,016
5,662
432,678
778,290
97,863
(34,656)
434,813
-
49,366
449,523
1,325,676		 Income
£
-
536,967
68,193
605,160
605,160
-
-
687,884
117,739
420,405
1,226,028
1,831,188		 Expenditure
£
(6,764)
(464,272)
(85,507)
(549,779)
(556,543)
(3,374)
-
(736,293)
(162,001)
(391,269)
(1,289,563)
(1,849,480)		 Transfers
in/(out)
£
-
(90,570)
11,652
(78,918)
(78,918)
-
34,656
-
44,262
-
78,918
-		 Gains/
(Losses)
£
-
44,395
-
44,395
44,395
-
-
-
-
-
-
44,395		 Balance at
31 March
2024
£
338,848
453,536
-
453,536
792,384
94,489
-
386,404
-
78,502
464,906
1,351,779

Page 39

PECAN

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

19. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Fixed asset fund
General funds
General funds
Employability
Community
Development
Total Unrestricted
funds
Endowment funds
Endowment funds
Restricted funds
General
Community
Development
Employability
Women's services
Total of funds		 Balance at
1 April 2022
£
353,415
602,178
(66,218)
(17,042)
518,918
872,333
101,237
(5,280)
385,321
(14,093)
7,403
373,351
1,346,921		 Income
£
-
492,194
85,478
67,172
644,844
644,844
-
-
736,253
-
373,654
1,109,907
1,754,751		 Expenditure
£
(7,803)
(490,475)
(161,674)
(44,468)
(696,617)
(704,420)
(3,374)
(29,376)
(686,761)
-
(331,691)
(1,047,828)
(1,755,622)		 Transfers
in/(out)
£
-
(156,507)
142,414
-
(14,093)
(14,093)
-
-
-
14,093
-
14,093
-		 Gains/
(Losses)
£
-
(20,374)
-
-
(20,374)
(20,374)
-
-
-
-
-
-
(20,374)		 Balance at
31 March
2023
£
345,612
427,016
-
5,662
432,678
778,290
97,863
(34,656)
434,813
-
49,366
449,523
1,325,676

Page 40

PECAN (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

Statement of funds (continued)

Fixed asset fund - This fund represents the amount of Charity funds locked up in Freehold land and buildings and other fixed assets which are needed for operational purposes. The funds are carried at the net book value of the fixed assets at the Balance Sheet date, after deducting any outstanding loans, endowment funds or restricted funds used to finance their operation.

Unrestricted funds are general funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Projects financed by restricted funds are supported by unrestricted funding where necessary. This occurs where the funding is in arrears or the incidence of expenditure on the project occurs disproportionately at the beginning of the project compared to the income flows. Where restricted projects end the year with a deficit, this is met by after year-end restricted income or transfers from unrestricted funds.

Transfers have been made from unrestricted funds to restricted funds to cover deficits in project funding.

General restricted funds - These are funds that can be used to support the function of Pecan to deliver services. This can be for capital items and for revenue expenditure to support the furtherance of the organisation’s objectives.

Community development fund - Funding for work on the Pecan Foodbank, Hourbank and Community projects.

Employability fund - Funding for use in providing information, advice and guidance (IAG) to clients on incapacity benefit.

Endowment fund – the endowment funds represents the net book value of improvement works to 121 Peckham High Street building. Depreciation is charged to this fund each year.

Women's services - Funding for work on the Women's Service project.

Page 41

PECAN (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

20. Analysis of net assets between funds

Analysis of net assets between funds - current period

Unrestricted
funds
2024
£
Tangible fixed assets
338,937
Fixed asset investments
525,377
Current assets
189,297
Creditors due within one year
(261,227)
Total
792,384		 Restricted
funds
2024
£
-
-
464,906
-
464,906		 Endowment
funds
2024
£
94,489
-
-
-
94,489		 Total
funds
2024
£
433,426
525,377
654,203
(261,227)
1,351,779

Analysis of net assets between funds - prior period

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Total		 Unrestricted
funds
2023
£
345,701
480,982
157,610
(206,003)
778,290		 Restricted
funds
2023
£
-
-
449,523
-
449,523		 Endowment
funds
2023
£
97,863
-
-
-
97,863		 Total
funds
2023
£
443,564
480,982
607,133
(206,003)
1,325,676

Page 42

(A Company Limited by Guarantee)

PECAN

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

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

Net income/expenditure for the period (as per Statement of
Financial Activities)
Adjustments for:
Depreciation charges
14
Losses/(gains) on investments
15
Investment income
7
Decrease/(increase) in stock
16
Decrease/(increase) in debtors
17
(Decrease)/increase in creditors
18
Net cash used in operating activities
22.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
23.
Analysis of changes in net debt
At 1 April
2023
£
Cash at bank and in hand
496,791
496,791		 2024
£
26,103
10,138
(44,395)
(26,518)
(6,623)
(121,206)
55,224
(107,277)
2024
£
416,032
416,032
Cash flows
£
(80,759)
(80,759)		 2023
£
(21,245)
11,178
20,374
(8,272)
16,337
40,433
(215,958)
(157,153)
2023
£
496,791
496,791
At 31 March
2024
£
416,032
416,032

Page 43

PECAN (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

24. Pension commitments

The Charity contributes to employees defined contribution stakeholder pension schemes. The amount recognised as an expense in the period was £71,684 (2023 - £72,561). Contributions totalling £5,803 (2023 - £4,869) were payable to the fund at the Balance Sheet date and are included within Creditors: Amounts falling due within one year.

25. Operating lease commitments

At 31 March 2024 the Charity had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years		 2024
£
24,312
29,941
54,253		 2023
£
3,420
6,845
10,265

The following lease payments have been recognised as an expense in the Statement of Financial Activities:

2024 2023
£ £
Operating lease rentals 3,420 5,723

Page 44

PECAN (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

26. Related party transactions

During the year, the Charity received donations of £NIL (2023 - £6,000) from Tisbury Telegraph Trust of which Eleanor Orr is a common Trustee. £NIL of these donations were restricted for Community Development activities (2023 - £3,000 restricted) . There were no balances outstanding as at 31 March 2024 (2023 - £NIL).

During the year, the Charity received donations of £3,600 (2023 - £3,600) from All Saint's Church of which Eleanor Orr is a common Trustee. All of these donations were restricted for Community Development activities (2023 - £3,600 restricted). There were no balances outstanding as at 31 March 2024 (2023 - £NIL).

During the year, the Charity made payments totalling £13,564 (2023 - £9,137) to All Saint's Church of which Eleanor Orr is a common Trustee. The payments were for rental of space at the church. £NIL (2023 - £1,253) was payable to All Saint's Church as at 31 March 2024.

During the year, the Charity made payments totalling £NIL (2023 - £220) to St Mary's Church & Community Centre, a former related party of Trustee Eleanor Orr. The payments were for the rental of space at the church. There were no balances outstanding as at 31 March 2024 (2023 - £NIL). .

During the year, unrestricted donations made from individual Trustees totalled £99 (2023 - £560).

There were no other related party transactions in either the current or previous reporting years, other than Key Management Personnel remuneration disclosed in Notes 12 and 13.

Page 45

PECAN (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

27. Major funders

We would like to thank the following trusts, companies, churches, local businesses, community organisations and schools who made a donation to us during the year:

Trusts & Foundations

Southwark Council Impact on Urban Health Women In Prison Henry Smith NHS SOUTH EAST LONDON ICB Trussell Trust National Lottery Charles Hayward The Fyrish Foundation Girdlers Company Charitable Trust London Community Foundation David Foundation Partnerhsip Southwark

Business Donations

Hochtief Murphy Fish Need Water COOP Local Community Fund Womble Bond Dickin DCUK J.P. Morgan Securities PLC Norton Rose Fulbright LLP F M Conway Ltd Hoxton Southwark Vanguard Asset Management Raffall Limited Accenture Cornhill LG CWU GREATER LONDON SALTASH ENTERPRISE Cloudinary UK Ltd Folio Society

Churches

All Saints Camberwell Brandon Baptist Church Church Action Education Church Action on Poverty CPMI UK Elim Pentecostal Church Donation_St Barnabas Church Faith Temple Rye Lane Chapel St Johns PPC East UPC GBI Youth

Community and Schools London School of Commerce Dulwich Nursery James Allen Girls School St John & St Clements School St Michaels College Tuke School

Page 46