ACTS Trust - Charities report - 21.1

REGISTERED COMPANY NUMBER: 05929370 (England and Wales)

REGISTERED CHARITY NUMBER: 1119911

REPORT OF THE TRUSTEES AND

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2020

FOR

ACTS TRUST

Page

Report of the Trustees

1

to

4

Independent Examiner's Report

5

Statement of Financial Activities

6

Balance Sheet

7

Notes to the Financial Statements

8

to

14

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 August 2020. 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

Objectives and aims

We have two teams: Energize and Restore.

Energize works with young people aged 11+ providing positive activities across the city to boost self-esteem and raise the aspirations of young people. We do this in partnership with local schools and community groups as well as delivering holiday schemes across the estates.

Restore works with people aged 16+ supporting them into a life free from poverty. We support through tangible aid such as food, clothing and furniture but we also provide advice and guidance (such as debt advice) - all done relationally through mentoring and befriending.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

It is with a huge sense of pride and gratitude that I write this report to celebrate the work of Acts Trust for the year 2019-2020. As we continue into our second decade of service to the City of Lincoln the whole team of 120+ volunteers, and small team of 4 full time and 5 part time plus sessional staff, should be proud of the work we have, together achieved towards our mission to empower people to end poverty in Lincoln.

Acts Trust is a Christian faith-inspired charity. The organisation was set up in 2007 by Alive Church Lincoln (formerly New Life Lincoln), to build on projects started by volunteers in the church. Acts is faith based but not faith biased and we are committed to serving the needs of all people in the City of Lincoln regardless of their religion, gender, ethnicity, sexual orientation or ability. Although Acts Trust is connected to Alive Church, the charitable aims of the Trust are not explicitly Christian and can be summarised as the relief of poverty, providing education and being a community connecting point.

We are ...

Empowering

We empower people to unlock the potential within themselves, enabling them to overcome challenges and to proactively make positive changes in their lives.

Bold

We fearlessly stand our ground while we dare to believe that change is possible.

Champions

We passionately speak up for those who don't feel they have a voice and we energetically champion people: cheering them on to win, demonstrating that empowered people can end poverty.

Intelligent

We are an intelligent and innovative team who understand those with whom we work, are creative in finding solutions to problems and constantly monitor our effectiveness.

Reputable

We are a locally rooted charity with an excellent reputation within our City for delivering high quality sustainable results.

All of our programmes and activities connect together - ensuring holistic support. So that, for example, someone needing emergency support with food or furniture can quickly access support that can help deal with the root causes of the problem, such as debt or employment advice, mental health support or befriending. We can support young people by also supporting the whole family.

Achievements and challenges

Along with the rest of the global population, Acts Trust has had to navigate our way through the Coronavirus Pandemic. We entered the lockdown in March 2020 with an unprecedented amount of people reliant on our services, the uncertainty of how the UK would be affected by the disease and the anticipated social impact of lockdown on the poorest in our city spurred our team into action. We were able to organise ourselves quickly and we pivoted our services to enable those who needed crisis support to access the right help.

In this reporting period we served 5480 people with emergency food. However In the last half of this reporting period (which was the first six months of the Covid Lockdown period) we delivered 3081 food parcels to families and individuals

Other challenges we have navigated include:

-

The staff team having to work alone from home and not together as a team - challenge to support them transition to the new way of working and helping them to protect their own mental health

-

Core income and fees from schools compounded by the pandemic which led to some members of staff having to be furloughed

Despite these challenges, it has been inspiring to see the team tirelessly working to ensure the people we serve still have access to the support they need. Some of the achievements we are most proud of include;

-

Successful response to giving campaigns which has enabled us to protect our emergency provision of aid and to plan for significant project developments to help us through the recovery stage

-

Creation of a "Good Citizen Guide" that was written by us, published by our local authority and shared widely as a practical response to supporting people during the pandemic

-

Fast creation of local partnerships to respond to food poverty including a delivery service for food parcels

-

The design of a brand new online food parcel referral system that enabled effective cross-organisational working

-

Launch of 'Night Light' Crisis Cafes for people facing a mental health crisis in the late evenings. This is a significant achievement given that the project was launched during a pandemic

During the year and unrelated to Covid -19 we took the difficult decision to close the Furniture Recycling Project which had been under review for the previous 12 month period. The project was financially unviable and the directors felt unable to continue to support the project from charity reserves.

We continue to develop our plans for a more sustainable approach to supporting people in food poverty and have been working towards a model for a food cooperative which will combine affordable food with wrap around support as an empowering approach to help people out of poverty.

Our greatest asset continues to be our team of talented staff and volunteers who have an inspiring passion and drive to empower people to end poverty. We know we can't do this alone and joining with strategic partners who share our vision is the best way forward. We are grateful to have a working alignment with many other organisations. Simon Hoare, our CEO continues to represent Acts on the Lincoln Food Partnership Board and he also leads the steering group of the Greater Lincoln Active Faith Network and sits on the steering group of the Lincoln Against Poverty Board as well as representing the third sector at the Lincolnshire Chamber of Commerce.

It is inspiring to see the work that has taken place over the 14 short years that Acts Trust has been in operation and I believe we are positively positioned for another good year which will see more people empowered to end poverty in their own lives and their city.

We finished the year with funds of £190,741 and I would like to take this opportunity to express my gratitude, first of all to Simon Hoare for his diligence and leadership of the charity, as well as the wider leadership and management team who show incredible passion and commitment to the work of the Trust, and of course to the hundreds of volunteers who donate their time and skills to help work towards our shared aspirational goal of the elimination of poverty in Lincoln.

FINANCIAL REVIEW

Reserves policy

The Trustees have examined the Charity's requirement for reserves in light of the main risks to the organisation. It has established a policy to keep this under review.

The incoming resources for the year amounted to £397,683 (2019 - £273,690) and the outgoing resources for the year amounted to £270,209 (2019 - £311,133) resulting in a surplus of £127,474 (2019 - deficit of £37,443).

The free reserves at the year end totalled £147,054 (2019 - £50,809).

FUTURE PLANS

Due to the uncertainty of future occurrences of lockdowns and restrictions due to the COVID-19 pandemic, we will operate dual planning; for when we are able to reopen our activities 'in person' and contingency plans for continuing or reverting to online provision. This relates to groups and courses that we run for young people and adults. During the year ahead we also plan to extend the provision on the Night Light Cafes for those facing a mental health crisis. This is especially important as the long term effects of social distancing and isolation become apparent.

We also plan to launch a pilot of a Community Grocery as a 'next step' for supporting people experiencing food poverty, in a bid to reduce dependency on food banks. Through Energize we plan to extend our schools provision as we develop our services. We acknowledge from this pandemic year that out of school activity is most vulnerable to cancelation and closure whereas schools work has more protection and likelihood of continuing throughout.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 8 September, 2006 and charitable status for the company was granted with effect from 3 July, 2007. The company was established under a Memorandum of Association 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, all available funds shall go to a charitable cause.

Recruitment and appointment of new trustees

The directors of the company are also charity trustees for the purposes of charity law and under the company's articles are known as directors. The trustees seek to appoint persons who share the ethos of the charity to bring a balance of skills and strengths to the board.

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

05929370 (England and Wales)

Registered Charity number

1119911

Registered office

Alive Church

Newland

LINCOLN

LN1 1XD

Trustees

N. J. Woodcock

Mrs. J. Blundell

Mrs S. Wade (resigned 10.6.20)

D. Collins

J. Harrison

Mrs A Russell

J. Boughton-Thomas (appointed 8.2.21)

Mrs. L. Tanser (appointed 8.2.21)

Company Secretary

Mrs. A. Lyons

Independent Examiner

P. T. Gallant

F.C.A

Smethurst & Co LLP

12 Abbey Road

GRIMSBY

DN32 0HL

Bankers

Yorkshire Bank plc,

8 Guildhall Street

LINCOLN

LN1 1TT

PUBLIC BENEFIT

We have complied with the duty in section 17(5) of the Charities Act 2011 to have due regard to public benefit guidance published by the Commission when reviewing our aims and objectives and in planning future activities. In particular, the Directors/Trustees consider how planned activities will contribute to the aims and objectives they have set.

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of ACTS Trust 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.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by order of the board of trustees on 25 May 2021 and signed on its behalf by:

Mrs. J. Blundell - Trustee

Independent examiner's report to the trustees of ACTS Trust ('the Company')

I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 August 2020.

Responsibilities and basis of report

As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').

Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act.

Independent examiner's statement

Since your charity's gross income exceeded £250,000 your examiner must be a member of a listed body. I can confirm that I am qualified to undertake the examination because I am a registered member of F.C.A which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

1.	accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or

2.	the accounts do not accord with those records; or

3.	the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4.

the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

P. T. Gallant

F.C.A

Smethurst & Co LLP

12 Abbey Road

GRIMSBY

DN32 0HL

25 May 2021

31.8.20

31.8.19

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

137,097

-

137,097

89,946

Charitable activities

Core

58,589

150,459

209,048

169,313

Other trading activities

2

15,347

-

15,347

14,431

Other income

36,191

-

36,191

-

Total

247,224

150,459

397,683

273,690

EXPENDITURE ON

Raising funds

8,139

-

8,139

11,792

Charitable activities

Core

142,840

119,230

262,070

299,341

Total

150,979

119,230

270,209

311,133

NET INCOME/(EXPENDITURE)

96,245

31,229

127,474

(37,443

)

RECONCILIATION OF FUNDS

Total funds brought forward

50,809

12,458

63,267

100,710

TOTAL FUNDS CARRIED FORWARD

147,054

43,687

190,741

63,267

31.8.20

31.8.19

Unrestricted

Restricted

Total

Total

fund

funds

funds

funds

Notes

£

£

£

£

FIXED ASSETS

Tangible assets

7

1,876

-

1,876

2,863

CURRENT ASSETS

Debtors

8

12,160

-

12,160

14,381

Cash at bank and in hand

152,293

43,687

195,980

64,682

164,453

43,687

208,140

79,063

CREDITORS

Amounts falling due within one year

9

(19,275

)

-

(19,275

)

(18,659

)

NET CURRENT ASSETS

145,178

43,687

188,865

60,404

TOTAL ASSETS LESS CURRENT LIABILITIES

147,054

43,687

190,741

63,267

NET ASSETS

147,054

43,687

190,741

63,267

FUNDS

10

Unrestricted funds

147,054

50,809

Restricted funds

43,687

12,458

TOTAL FUNDS

190,741

63,267

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2020 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for

(a)	ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

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 25 May 2021 and were signed on its behalf by:

J. Blundell - Trustee

1.	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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

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.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

25% Reducing Balance

Motor vehicles

-

25% Reducing Balance

Computer equipment

-

25% Straight Line

Fixed assets are not capitalised if they cost less than £500.

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.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

2.	OTHER TRADING ACTIVITIES

31.8.20

31.8.19

£

£

Fundraising

15,347

14,431

3.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.8.20

31.8.19

£

£

Independent examiners fee

2,786

2,937

Depreciation - owned assets

987

831

4.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 August 2020 nor for the year ended 31 August 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2020 nor for the year ended 31 August 2019.

5.	STAFF COSTS

The average monthly number of employees during the year was as follows:

31.8.20

31.8.19

Core Staff

8

10

No employees received emoluments in excess of £60,000.

Key management remuneration paid to key management during the year amounts to £30,611 (2019 - £30,111)

6.	COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

Unrestricted

Restricted

Total

fund

funds

funds

£

£

£

INCOME AND ENDOWMENTS FROM

Donations and legacies

62,522

27,424

89,946

Charitable activities

Core

54,980

114,333

169,313

Other trading activities

14,431

-

14,431

Total

131,933

141,757

273,690

EXPENDITURE ON

Raising funds

11,792

-

11,792

Charitable activities

Core

137,000

162,341

299,341

Total

148,792

162,341

311,133

NET INCOME/(EXPENDITURE)

(16,859

)

(20,584

)

(37,443

)

Transfers between funds

(19,903

)

19,903

-

Net movement in funds

(36,762

)

(681

)

(37,443

)

RECONCILIATION OF FUNDS

Total funds brought forward

87,571

13,139

100,710

TOTAL FUNDS CARRIED FORWARD

50,809

12,458

63,267

7.	TANGIBLE FIXED ASSETS

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 September 2019 and 31 August 2020

3,892

3,800

5,033

12,725

DEPRECIATION

At 1 September 2019

1,973

3,387

4,502

9,862

Charge for year

480

103

404

987

At 31 August 2020

2,453

3,490

4,906

10,849

NET BOOK VALUE

At 31 August 2020

1,439

310

127

1,876

At 31 August 2019

1,919

413

531

2,863

8.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.20

31.8.19

£

£

Trade debtors

9,972

9,221

Other debtors

2,188

5,160

12,160

14,381

9.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.20

31.8.19

£

£

Trade creditors

11,097

9,095

Social security and other taxes

1,387

1,797

Other creditors

2,862

2,588

Credit card

3,929

5,179

19,275

18,659

10.	MOVEMENT IN FUNDS

Net

movement

At

At 1.9.19

in funds

31.8.20

£

£

£

Unrestricted funds

General fund

50,809

96,245

147,054

Restricted funds

Other restricted funds

3,591

(3,291

)

300

Food Bank

4,807

5,908

10,715

Restore

-

2,440

2,440

Energize

3,282

5,007

8,289

Mental health promotion

778

(425

)

353

Crisis Cafe

-

12,979

12,979

Essentials

-

8,611

8,611

12,458

31,229

43,687

TOTAL FUNDS

63,267

127,474

190,741

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

247,224

(150,979

)

96,245

Restricted funds

Other restricted funds

-

(3,291

)

(3,291

)

Food Bank

17,764

(11,856

)

5,908

Restore

10,475

(8,035

)

2,440

Energize

53,876

(48,869

)

5,007

Mental health promotion

5,406

(5,831

)

(425

)

NET/Covid funds

9,500

(9,500

)

-

Crisis Cafe

43,438

(30,459

)

12,979

Essentials

10,000

(1,389

)

8,611

150,459

(119,230

)

31,229

TOTAL FUNDS

397,683

(270,209

)

127,474

Comparatives for movement in funds

Net

Transfers

movement

between

At

At 1.9.18

in funds

funds

31.8.19

£

£

£

£

Unrestricted funds

General fund

87,571

(16,859

)

(19,903

)

50,809

Restricted funds

Other restricted funds

497

3,094

-

3,591

Food Bank

-

4,807

-

4,807

Shed

791

(791

)

-

-

Restore

4,843

(4,843

)

-

-

Energize

5,670

(2,388

)

-

3,282

Furniture

1,338

(21,241

)

19,903

-

Mental health promotion

-

778

-

778

13,139

(20,584

)

19,903

12,458

TOTAL FUNDS

100,710

(37,443

)

-

63,267

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

131,933

(148,792

)

(16,859

)

Restricted funds

Other restricted funds

5,514

(2,420

)

3,094

Food Bank

25,638

(20,831

)

4,807

Shed

373

(1,164

)

(791

)

Restore

14,251

(19,094

)

(4,843

)

Energize

67,460

(69,848

)

(2,388

)

Furniture

20,571

(41,812

)

(21,241

)

Mental health promotion

7,950

(7,172

)

778

141,757

(162,341

)

(20,584

)

TOTAL FUNDS

273,690

(311,133

)

(37,443

)

A current year 12 months and prior year 12 months combined position is as follows:

Net

Transfers

movement

between

At

At 1.9.18

in funds

funds

31.8.20

£

£

£

£

Unrestricted funds

General fund

87,571

79,386

(19,903

)

147,054

Restricted funds

Other restricted funds

497

(197

)

-

300

Food Bank

-

10,715

-

10,715

Shed

791

(791

)

-

-

Restore

4,843

(2,403

)

-

2,440

Energize

5,670

2,619

-

8,289

Furniture

1,338

(21,241

)

19,903

-

Mental health promotion

-

353

-

353

Crisis Cafe

-

12,979

-

12,979

Essentials

-

8,611

-

8,611

13,139

10,645

19,903

43,687

TOTAL FUNDS

100,710

90,031

-

190,741

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

379,157

(299,771

)

79,386

Restricted funds

Other restricted funds

5,514

(5,711

)

(197

)

Food Bank

43,402

(32,687

)

10,715

Shed

373

(1,164

)

(791

)

Restore

24,726

(27,129

)

(2,403

)

Energize

121,336

(118,717

)

2,619

Furniture

20,571

(41,812

)

(21,241

)

Mental health promotion

13,356

(13,003

)

353

NET/Covid funds

9,500

(9,500

)

-

Crisis Cafe

43,438

(30,459

)

12,979

Essentials

10,000

(1,389

)

8,611

292,216

(281,571

)

10,645

TOTAL FUNDS

671,373

(581,342

)

90,031

Included within restricted funds are the following:

The Food Bank- to provide basic provisions to those people in need in the Lincoln area.

Butterflies- to provide respite for women.

Shed- to provide a support group for men in the Lincoln area.

Restore- Grants received towards the Restore project which works with young people 16+ supporting them through tangible aid such as food, clothing and furniture but also provide advice and guidance(such as debt advice).