REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
CHANGING LIVES TOGETHER |
REPORT OF THE TRUSTEES AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
REGISTERED COMPANY NUMBER: |
REGISTERED CHARITY NUMBER: |
CHANGING LIVES TOGETHER |
REPORT OF THE TRUSTEES AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
CHANGING LIVES TOGETHER |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Page |
Report of the Trustees | 1 | to | 5 |
Report of the Independent Auditors | 6 | to | 8 |
Statement of Financial Activities | 9 |
Balance Sheet | 10 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 | to | 23 |
CHANGING LIVES TOGETHER (REGISTERED NUMBER: 07400060) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). |
OBJECTIVES AND ACTIVITIES |
Overview |
We are a Social Enterprise committed to delivering meaningful environmental, social and community impact and making a difference to the people of Cheshire. We provide creative solutions to social and environmental issues. Structured as a charitable company, we aim to be financially sustainable through enterprise but our social impacts (the way we help change people's lives) are at the core of why we do what we do. |
We work extensively within our community to support people through a variety of work, training and volunteering programmes for long term unemployed, those with learning difficulties, ex-offenders, vulnerable, disabled and the excluded and isolated. We help give back that self-esteem that is often lost when Life's difficulties get on top of us. |
Operational and retail |
Affordable furniture, paint and appliances |
Our warehouse team continued throughout the year to help the environment by collecting domestic Bulky Waste to reuse and recycle items that would otherwise be sent to landfill or other waste destinations. We work with our membership organisation, the Reuse Network, in providing "take-back" schemes for a number of national retailers where we help reduce waste as well as bringing damaged and "orphan" items back in to use. These activities of repair and "up-cycling" provide work placement opportunities for the individuals we support.This saved consumers over £500,000 in buying preloved instead of new. |
Emergency assistance |
We operate contracts with Local Authorities and Housing Associations to provide their welfare assistance schemes. We supply starter packs, furniture and white goods to hundreds of people and families in need every year in Cheshire East, Cheshire West & Chester and Warrington. These schemes ensure those in need gain access to essential household items and receive an efficient delivery and installation process. In 2022, we supported over 5,000 families. |
Bulky waste |
Not all large household waste goes to landfill. We are proud to support Cheshire West Recycling Limited and Warrington Borough Council in collecting bulky domestic waste - and we try and repair, reuse and recycle as much as we can, last year we collected nearly 7000 products, reusing or recycling 49%. |
Community engagement |
Our Buddying and Befriending scheme has been successful in securing a grant from The National Lottery Community Fund from April 21 for a period of 3 years. This has enabled us to continue our great work helping those who are over 50 living across Cheshire West and Cheshire East and are experiencing loneliness and social isolation. The service delivers 300 matches between volunteers and clients each year. |
Throughout the year our team of Family Support continued their exceptional work in their school placements helping to help improve attendance, behaviour and achievement. They focus on early intervention, helping parents to develop the necessary coping skills and helping them to access a broad range of services. If our team can't help, they will put families in touch with somebody who can and arrange introductions. |
CHANGING LIVES TOGETHER (REGISTERED NUMBER: 07400060) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
The Cheshire Food Hub now rebranded as The Very Green Grocery |
Since starting out in 2020, the food hub has gone from strength to strength in its provision and distribution of surplus food across Cheshire West. Utilising two vehicles we are collecting tonnes of surplus food across Cheshire, last year alone we calculate over 13,000 individual shops took place saving customers £250,000 in food costs and reducing carbon emissions by 500 tonnes of food intended for landfill. |
In November 2022 we rebranded our community grocery to ensure an attractive shopping environment, protecting the dignity of our customers and we are now serving an average of 100 shoppers per session, 3 times a week. Our shoppers pay £5 a shop and take away around £20-£25 of food, helping them stretch their budgets whilst reducing food waste. With the of living crisis this service has seen a huge increase in demand and we are working hard with our partners to secure food for the whole community. |
The other part of the work at the hub is the bringing together of volunteering opportunities. From warehousing, distribution, box projects, shop support, café service, gardening projects and building maintenance there is something for everyone. We have seen over 300 hundred volunteers come through the hub. Each one of our volunteers has been passionate about supporting their community. |
Our site at Lostock has also been opened Monday to Friday with Community Café offering low-cost hot food, the site now functions fully as a Community Centre open for use by partners and community groups. In 2023 we will also acquire another site in Winsford to open a second Very Green Grocery and Community Centre. |
Further more CLT is exploring the opportunity to provide surplus food distribution to the whole of Cheshire through a dedicated warehouse facility. |
Community transport branded as Yourbus |
We operate our Community Transport minibus services (Yourbus), which is contracted by Cheshire West and Chester Council. The services we provide are Home to School, Adult Social Care, Dial A Ride and other contracts as required. These services provide, either free or subsidised, access to schools, care centres, the high street, leisure and other services for members of the community who might otherwise miss out. |
At the end of 2022 we relocated the service from offices in Northwich to our Head Office at Winsford, this enabled us to reduce running costs as well as providing more secure storage of vehicles. |
With over 2,000 schools trips and over 3,000 adult social care trips, the team transported over 10,000 passengers in 2022. |
How many lives did we change in 2022? |
We made a difference to our community by: |
- | Arranging thousands of Community Transport journeys; |
- | Providing affordable furniture, electrical items, beds and bedding through our shops; |
- | Supporting the distribution of surplus food prevents landfill and feeds people in a cost of living crisis. |
- | Helping hundreds of people with a Buddy & Befriending pairs to reduce loneliness and isolation amongst the over 50's; |
- | Supporting many families in crisis across Cheshire and Warrington (working with 3 Local Authorities and their Local Welfare Assistance Schemes); |
- | Giving our people employment, training and development opportunities. |
And we made a difference to the environment by: |
- | Saving over 6,000 items - furniture, appliances, paint & electrical waste - from landfill; |
- | Saving over 45,000 tons of CO2 from our atmosphere, including the cost of production of new equivalent goods instead of preloved ; |
- | Supporting 7,500 families with furniture and white goods. |
- | Our collective services saved consumers over £1 million pounds from our homewares and food supply. |
All of this has only been possible by the hard work, sacrifice and dedication of so many of our people - staff, volunteers and friends - and donors and funding partners, particularly in local government. The trustees sincerely thank you all. |
CHANGING LIVES TOGETHER (REGISTERED NUMBER: 07400060) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FINANCIAL REVIEW |
Financial position |
Our long-term policy has been to stand on our own feet with sustainable results and without excessive dependence on grant income. We reinvest when we can in our people and we are slowly building our reserves to a normal level for a charity of our size and complexity. |
Total income in 2022 was £2,443,079 (2021 £2,582,394) and the charity incurred a deficit of £76,082 (2021 a surplus of £224,190). |
Investment policy |
Available funds are transfered to interest bearing bank or building society accounts to maximise returns. |
Reserves policy |
The Trustees have agreed that the appropriate level of unrestricted liquid reserves should be sufficient to cover 3 months of routine expenditure i.e. to provide working capital to cover delays in the receipt of payments and grants and to provide a cushion for unexpected emergencies. |
We are close to achieving this. Our reserves at 31 December 2022 were £485,663. |
STRUCTURE, GOVERNANCE AND MANAGEMENT |
Governing document |
Changing Lives in Cheshire (charity 1139983 and company 07400060) was incorporated on 7 October 2010 and commenced trading on the same date. The principal governing document is the Articles of Association adopted on 21 March 2019. |
The objects of the charity are: |
1 . |
The relief of those in need by reason of youth, age, ill-health, disability, financial hardship or other disadvantage, in particular but not exclusively, by the provision of affordable furniture, recycled and reused items and the provision of training, voluntary positions and work expenerience. |
2 . |
The protection and preservation of the physical and natural environment in particular but not exclusively by the promotion of sustainable waste management practices. |
3 . |
To provide transport facilities in particular but not exclusively in Cheshire and the surrounding area for people who have special need of such facilities because they are elderly, poor or disabled, people with young children or those living in isolated areas where there are no adequated public transport facilities. |
Recruitment and appointment of new trustees |
We have a written policy for the recruitment and induction of new trustees that gives all candidates a fair chance to see us in action and to deliver efficient support on appointment. |
Management and governance |
We continue to develop our Management and Governance structures. |
Risk management |
The trustees have regard to the Charities Commission guidance on Public Benefit and a robust approach to Risk Management. The trustees monitor risk by ensuring that the identification, assessment and mitigation of risk is linked to the achievement of the charity's operational objectives. |
The trustee board at each meeting reviews Health and Safety performance, Safeguarding and Management Information (financial and operational) with a review of current and future obligations. The trustee board also reviews the financial impact of risk as part of operational budget planning and monitoring. Full consideration is given to the risks attached to significant new activities or opportunities, as is risk associated with external factors such as new legislation or new requirements from funders. |
REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
Registered Charity number |
CHANGING LIVES TOGETHER (REGISTERED NUMBER: 07400060) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
Registered office |
Trustees |
Auditors |
Chartered Accountants |
Statutory Auditors |
Darland House |
44 Winnington Hill |
Northwich |
Cheshire |
CW8 1AU |
Solicitors |
Browne Jacobson LLP |
Mowbray House |
Castle Meadow Road |
Nottingham |
NG2 1BJ |
Bankers |
Santander UK plc |
Bridle Road |
Merseyside |
L30 4GB |
STATEMENT OF TRUSTEES' RESPONSIBILITIES |
The trustees (who are also the directors of Changing Lives Together for the purposes of company law) are responsible for preparing the Report of the Trustees 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 which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to |
- | select suitable accounting policies and then apply them consistently; |
- | observe the methods and principles in the Charity SORP; |
- | make judgements and estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. |
The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
CHANGING LIVES TOGETHER (REGISTERED NUMBER: 07400060) |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued |
In so far as the trustees are aware: |
- | there is no relevant audit information of which the charitable company's auditors are unaware; and |
- | the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. |
AUDITORS |
The auditors, Murray Smith LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
Approved by order of the board of trustees on |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHANGING LIVES TOGETHER (REGISTERED NUMBER: 07400060) |
Opinion |
We have audited the financial statements of Changing Lives Together (the 'charitable company') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, 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 (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 UK, including the FRC'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. |
Other information |
The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Trustees has been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHANGING LIVES TOGETHER (REGISTERED NUMBER: 07400060) |
Matters on which we are required to report by exception |
In the light of the 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 Report of the Trustees. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of trustees' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. |
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. |
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. |
Our 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 a Report of the Independent Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The audit procedures designed to identify irregularities included: |
- | Enquiry of management and those charged with governance around actual and potential litigation and claims |
- | Enquiry of company staff with responsibilities for compliance matters to identify any instances of non-compliance with laws and regulations |
- | Reviewing any minutes available of meetings of those charged with governance |
- | Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations |
- | Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. |
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentations or through collusion. |
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 Report of the Independent Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHANGING LIVES TOGETHER (REGISTERED NUMBER: 07400060) |
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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
44 Winnington Hill |
Northwich |
Cheshire |
CW8 1AU |
CHANGING LIVES TOGETHER |
STATEMENT OF FINANCIAL ACTIVITIES |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Unrestricted | Restricted | Total | Total |
fund | funds | funds | funds |
Notes | £ | £ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies | 3 |
Charitable activities | 6 |
Other trading activities | 4 |
Investment income | 5 |
Other income |
Total |
EXPENDITURE ON |
Raising funds | 7 |
Charitable activities | 8 |
Total |
NET INCOME/(EXPENDITURE) | ( |
) | ( |
) |
RECONCILIATION OF FUNDS |
Total funds brought forward |
TOTAL FUNDS CARRIED FORWARD | 561,745 |
CHANGING LIVES TOGETHER (REGISTERED NUMBER: 07400060) |
BALANCE SHEET |
31 DECEMBER 2022 |
2022 | 2021 |
Unrestricted | Restricted | Total | Total |
fund | funds | funds | funds |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 15 |
Investments | 16 |
CURRENT ASSETS |
Stocks | 17 |
Debtors | 18 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 19 | ( |
) | ( |
) | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 20 | ( |
) | ( |
) | ( |
) |
NET ASSETS |
FUNDS | 23 |
Unrestricted funds | 561,745 |
Restricted funds | - |
TOTAL FUNDS | 561,745 |
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. |
The financial statements were approved by the Board of Trustees and authorised for issue on |
CHANGING LIVES TOGETHER |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 10,561 | 214,317 |
Interest paid | (12,293 | ) | (8,298 | ) |
Net cash (used in)/provided by operating activities | (1,732 | ) | 206,019 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (3,228 | ) | (1,148 | ) |
Interest received | 3,200 | 421 |
Net cash used in investing activities | (28 | ) | (727 | ) |
Cash flows from financing activities |
New loans in year | - | 79,653 |
Loan repayments in year | (32,504 | ) | (32,119 | ) |
Net cash (used in)/provided by financing activities | (32,504 | ) | 47,534 |
Change in cash and cash equivalents in the reporting period |
(34,264 |
) |
252,826 |
Cash and cash equivalents at the beginning of the reporting period |
608,449 |
355,623 |
Cash and cash equivalents at the end of the reporting period |
574,185 |
608,449 |
CHANGING LIVES TOGETHER |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | RECONCILIATION OF NET (EXPENDITURE)/INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES |
2022 | 2021 |
£ | £ |
Net (expenditure)/income for the reporting period (as per the Statement of Financial Activities) |
(76,082 |
) |
224,190 |
Adjustments for: |
Depreciation charges | 11,152 | 14,079 |
Losses on investments | 3 | - |
Interest received | (3,200 | ) | (421 | ) |
Interest paid | 12,293 | 8,298 |
Decrease/(increase) in stocks | 15,883 | (17,505 | ) |
(Increase)/decrease in debtors | (23,770 | ) | 142,297 |
Increase/(decrease) in creditors | 74,282 | (156,621 | ) |
Net cash provided by operations | 10,561 | 214,317 |
2. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank | 608,449 | (34,264 | ) | 574,185 |
608,449 | (34,264 | ) | 574,185 |
Debt |
Debts falling due within 1 year | (32,504 | ) | (1,747 | ) | (34,251 | ) |
Debts falling due after 1 year | (123,445 | ) | 34,251 | (89,194 | ) |
(155,949 | ) | 32,504 | (123,445 | ) |
Total | 452,500 | (1,760 | ) | 450,740 |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
1. | STATUTORY INFORMATION |
Changing Lives Together is a private company, limited by guarantee, registered in England and Wales. The company's registered number, registered charity number and registered office can be found in the Reference and Administrative Details section of the Trustees' Report. |
The presentation currency of the financial statements is in Pounds Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) ( (effective 1 January 2019) and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
Changing Lives Together meets the definition of a public benefit entity under FRS 102. |
Going concern |
The charitable company meets its day to day working capital requirements through its cash resources and available loan facilities. The trustees have reviewed current and forecast activity and cash requirements for a period of at least 12 months from the date of the signing of the financial statements which show, taking into account reasonably possible changes in performance, that the charitable company should be able to operate within its available cash resources. After making enquiries, the trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. The charitable company therefore continues to adopt the going concern basis in preparing its financial statements. |
Income |
The policies adopted for the recognition of income are as follows: |
Sale of goods |
Income from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of income can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods. |
Rendering of services |
When the outcome of a transaction can be estimated reliably, income is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to a notable milestone. |
Where the outcome cannot be measured reliably, income is recognised only to the extent of the expenses recognised that are recoverable. |
Grants |
Income from government and other grants, whether 'capital' grants or 'revenue' grants, is recognised when the charity has entitlement to the funds, and performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. |
Expenditure |
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. |
Goodwill |
Goodwill relates to the amount paid in connection with the acquisitions of a business, and is now fully amortised. |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. |
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: |
Plant and machinery | - 20% on cost |
Fixtures and fittings | - 25% on cost |
Computer equipment | - 33% on cost |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. Stocks of unsold donated goods are valued only at the cost of bringing the items to their present location as it is not considered practical to estimate the fair value due to their cost being nil and their value is uncertain until sold. |
Taxation |
The charity is exempt from corporation tax on its charitable activities. |
Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. |
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the Statement of Financial Activities over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals payable under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The charitable company makes contribution to employees' pension schemes. Contributions payable are charged to the Statement of Financial Activities in the period to which they relate. |
Short term debtors and creditors |
Short term debtors and creditors with no stated interest rate are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, cash held with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
3. | DONATIONS AND LEGACIES |
2022 | 2021 |
£ | £ |
Donations |
4. | OTHER TRADING ACTIVITIES |
2022 | 2021 |
£ | £ |
Shop income |
Waste credits, recycling, scrap and waste collection | 362,622 | 327,138 |
Training and work experience | 2,360 | 7,200 |
5. | INVESTMENT INCOME |
2022 | 2021 |
£ | £ |
Rents received |
Interest receivable |
6. | INCOME FROM CHARITABLE ACTIVITIES |
2022 | 2021 |
Activity | £ | £ |
Transport | Charitable activities | 445,270 | 416,723 |
Grants | Charitable activities | 437,032 | 717,993 |
Grants received, included in the above, are as follows: |
2022 | 2021 |
£ | £ |
General fund | 134,108 | 242,105 |
Buddying & befriending | 3,808 | - |
Break free grant | 5,096 | 9,608 |
BSOG | 6,400 | - |
DEFRA - Food hub | - | 32,385 |
Edsential community | - | 147,691 |
Family support | 63,986 | 94,851 |
Food hub grant | 34,293 | - |
Groundworks | 33,370 | 33,000 |
Kitchen grant | 2,950 | - |
Love Lostock Cheshire Food hub | 1,000 | - |
National lottery community fund | 79,224 | 91,943 |
Sanctuary housing | 1,500 | - |
Slowcooker grant | 20,600 | 37,903 |
Kickstart training | 2,360 | - |
Ukraine project grant | 1,550 | - |
Wellbeing | 31,308 | 28,507 |
Winter household fund | 15,479 | - |
437,032 | 717,993 |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
7. | RAISING FUNDS |
Other trading activities |
2022 | 2021 |
£ | £ |
Opening stock |
Purchases |
Closing stock | ( |
) | ( |
) |
Staff costs | 605,584 | - |
Hire of plant and machinery | 9,081 | 7,437 |
Licensing | 1,542 | 4,129 |
Bad debts | (12,000 | ) | 12,000 |
Vehicle hire | 56,951 | 60,424 |
Motor expenses | 48,104 | 72,014 |
Sub contractors | - | 81,427 |
Other direct costs | 104,338 | 42,609 |
Property repairs | 39,941 | - |
Impairment losses | 3 | - |
1,438,461 | 952,395 |
In the prior period all staff costs were disclosed under charitable activities. |
8. | CHARITABLE ACTIVITIES COSTS |
Support |
Direct | costs (see |
Costs | note 9) | Totals |
£ | £ | £ |
Charitable activities | 1,040,500 | 40,200 | 1,080,700 |
9. | SUPPORT COSTS |
Governance |
Finance | costs | Totals |
£ | £ | £ |
Charitable activities | 13,236 | 26,964 | 40,200 |
10. | NET INCOME/(EXPENDITURE) |
Net income/(expenditure) is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Auditors' remuneration - current year | 8,500 | 17,622 |
Auditors' remuneration - accountancy services | 4,000 | - |
Auditors' remuneration - assurance services | 450 | - |
Auditors' remuneration - prior year | 4,750 | - |
Depreciation - owned assets |
Hire of plant and machinery | 9,081 | 7,437 |
Other operating leases | 65,035 | 156,088 |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
11. | TRUSTEES' REMUNERATION AND BENEFITS |
There were no trustees' remuneration or other benefits for the year ended 31 December 2022 nor for the year ended 31 December 2021. |
Trustees' expenses |
There were no trustees' expenses paid for the year ended 31 December 2022 nor for the year ended 31 December 2021. |
12. | STAFF COSTS |
2022 | 2021 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
1,279,692 | 1,155,669 |
The average monthly number of employees during the year was as follows: |
2022 | 2021 |
Management team | 4 | 5 |
Warehouse/reuse | 28 | 24 |
Administrative | 5 | 9 |
Retail | 4 | 5 |
Community hubs | 3 | 3 |
Community engagement | 9 | 12 |
Community transport | 20 | 17 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was: |
2022 | 2021 |
£60,001 - £70,000 |
Total emoluments for key management personnel totalled £241,616 (2021: £197,808). |
13. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES |
Unrestricted | Restricted | Total |
fund | funds | funds |
£ | £ | £ |
INCOME AND ENDOWMENTS FROM |
Donations and legacies |
Charitable activities |
Other trading activities |
Investment income |
Other income |
Total |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
13. | COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - continued |
Unrestricted | Restricted | Total |
fund | funds | funds |
£ | £ | £ |
EXPENDITURE ON |
Raising funds |
Charitable activities |
Total |
NET INCOME |
RECONCILIATION OF FUNDS |
Total funds brought forward | 337,555 | - |
TOTAL FUNDS CARRIED FORWARD | 561,745 | - | 561,745 |
14. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 January 2022 and 31 December 2022 |
AMORTISATION |
At 1 January 2022 and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
15. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
16. | FIXED ASSET INVESTMENTS |
There were no investment assets outside the UK. |
The charity owned 100% of the Ordinary share capital in the below three companies. Each of the companies has been dormant from incorporation. |
- Changing Lives in Cheshire Limited (11935815) - Dissolved 21/02/2023 |
- Changing Lives in Ellesmere Port Limited (11534973) - Dissolved 21/02/2023 |
- Changing Lives in Warrington Limited (09842887) - Dissolved 21/02/2023 |
17. | STOCKS |
2022 | 2021 |
£ | £ |
Stocks |
18. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments and accrued income |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
19. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2022 | 2021 |
£ | £ |
Other loans (see note 21) |
Trade creditors |
Social security and other taxes |
VAT | 18,361 | 6,556 |
Other creditors |
Deposits held on account | 16,897 | 22,723 |
Accruals and deferred income |
20. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2022 | 2021 |
£ | £ |
Other loans (see note 21) | 123,445 |
21. | LOANS |
An analysis of the maturity of loans is given below: |
2022 | 2021 |
£ | £ |
Amounts falling due within one year on demand: |
Other loans | 34,251 | 32,504 |
Amounts falling between one and two years: |
Other loans - 1-2 years |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
22. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2022 | 2021 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
23. | MOVEMENT IN FUNDS |
Net |
movement | At |
At 1.1.22 | in funds | 31.12.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 561,745 | (90,942 | ) | 470,803 |
Restricted funds |
Food Hub Grant | - | 14,860 | 14,860 |
TOTAL FUNDS | (76,082 | ) | 485,663 |
Net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 2,140,155 | (2,231,097 | ) | (90,942 | ) |
Restricted funds |
Break Free Grant | 5,096 | (5,096 | ) | - |
Groundworks | 33,370 | (33,370 | ) | - |
Family Support | 63,986 | (63,986 | ) | - |
National Lottery Community Fund | 79,224 | (79,224 | ) | - |
Wellbeing | 31,308 | (31,308 | ) | - |
Slowcooker Grant | 20,600 | (20,600 | ) | - |
BSOG | 1,833 | (1,833 | ) | - |
Food Hub Grant | 38,860 | (24,000 | ) | 14,860 |
Buddying & Befriending | 3,808 | (3,808 | ) | - |
Winter Household Fund | 15,479 | (15,479 | ) | - |
Sanctuary Housing | 1,500 | (1,500 | ) | - |
Love Lostock Cheshire Food Hub | 1,000 | (1,000 | ) | - |
Kitchen Grant | 2,950 | (2,950 | ) | - |
Kickstart Training | 2,360 | (2,360 | ) | - |
Ukraine Project Grant | 1,550 | (1,550 | ) | - |
( |
) | 14,860 |
TOTAL FUNDS | ( |
) | (76,082 | ) |
Comparatives for movement in funds |
Net |
movement | At |
At 1.1.21 | in funds | 31.12.21 |
£ | £ | £ |
Unrestricted funds |
General fund | 337,555 | 224,190 | 561,745 |
TOTAL FUNDS | 337,555 | 224,190 | 561,745 |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
23. | MOVEMENT IN FUNDS - continued |
Comparative net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 2,106,506 | (1,882,316 | ) | 224,190 |
Restricted funds |
Break Free Grant | 9,608 | (9,608 | ) | - |
Groundworks | 33,000 | (33,000 | ) | - |
Family Support | 94,851 | (94,851 | ) | - |
National Lottery Community Fund | 91,943 | (91,943 | ) | - |
Edsential Community | 147,691 | (147,691 | ) | - |
DEFRA - Food Hub | 32,385 | (32,385 | ) | - |
Wellbeing | 28,507 | (28,507 | ) | - |
Slowcooker Grant | 37,903 | (37,903 | ) | - |
475,888 | (475,888 | ) | - |
TOTAL FUNDS | 2,582,394 | (2,358,204 | ) | 224,190 |
A current year 12 months and prior year 12 months combined position is as follows: |
Net |
movement | At |
At 1.1.21 | in funds | 31.12.22 |
£ | £ | £ |
Unrestricted funds |
General fund | 337,555 | 133,248 | 470,803 |
Restricted funds |
Food Hub Grant | - | 14,860 | 14,860 |
TOTAL FUNDS | 337,555 | 148,108 | 485,663 |
CHANGING LIVES TOGETHER |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
23. | MOVEMENT IN FUNDS - continued |
A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: |
Incoming | Resources | Movement |
resources | expended | in funds |
£ | £ | £ |
Unrestricted funds |
General fund | 4,246,661 | (4,113,413 | ) | 133,248 |
Restricted funds |
Break Free Grant | 14,704 | (14,704 | ) | - |
Groundworks | 66,370 | (66,370 | ) | - |
Family Support | 158,837 | (158,837 | ) | - |
National Lottery Community Fund | 171,167 | (171,167 | ) | - |
Edsential Community | 147,691 | (147,691 | ) | - |
DEFRA - Food Hub | 32,385 | (32,385 | ) | - |
Wellbeing | 59,815 | (59,815 | ) | - |
Slowcooker Grant | 58,503 | (58,503 | ) | - |
BSOG | 1,833 | (1,833 | ) | - |
Food Hub Grant | 38,860 | (24,000 | ) | 14,860 |
Buddying & Befriending | 3,808 | (3,808 | ) | - |
Winter Household Fund | 15,479 | (15,479 | ) | - |
Sanctuary Housing | 1,500 | (1,500 | ) | - |
Love Lostock Cheshire Food Hub | 1,000 | (1,000 | ) | - |
Kitchen Grant | 2,950 | (2,950 | ) | - |
Kickstart Training | 2,360 | (2,360 | ) | - |
Ukraine Project Grant | 1,550 | (1,550 | ) | - |
778,812 | (763,952 | ) | 14,860 |
TOTAL FUNDS | 5,025,473 | (4,877,365 | ) | 148,108 |
24. | RELATED PARTY DISCLOSURES |