The trustees present their annual report and financial statements for the year ended 31 December 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
To support and serve its surrounding community and other organisations in the United Kingdom and around the world by accessing, evaluating and meeting the needs of those communities and thereby making a positive difference in the lives of others.
To enhance the living experience of individuals, families and "communities" both locally and globally by addressing issues of exclusion, poverty, marginalisation, lack of education and degeneration.
To align itself with socially marginalised and disconnected people such as the very young, the elderly, those whose nationality may not be of United Kingdom origin, and those who have been set apart from society because of lifestyle choices and behaviours.
The Foundation will seek to provide opportunities for acceptance, connection and/or integration back into a meaningful contribution to society and identify opportunities where involvement and integration could bring.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
During this period, The King’s Community Foundation has received donations and grant funding from multiple external benefactors to support and facilitate the operation of Aberdeen North Food Bank. This service helps tackle food poverty and hunger in the local community.
With the impact of the cost of living crisis forcing many in the city to seek further support, our Foodbank was a vital service to many people. 4,659 parcels were distributed throughout 2023, which fed 11,758 people in need. Donations of food to the foodbank from the general public increased which allowed us to meet this need.
Two of our centres we support closed in 2023 due to our partner’s capacity to run them, which allowed us to consolidate and focus on the remaining centres, to make their foodbank experience as positive as possible. Our Financial Inclusion Project, developed and delivered in partnership with Aberdeen South Foodbank and Aberdeen Citizens’ Advice Bureau, has allowed 417 people to access Citizens Advice Bureau aid through our foodbanks in a time where this support can be difficult to access. We employed a foodbank coordinator to support the work we’re doing.
In 2023 we put over 154 children in 4 schools through The Flourish Project and hired an administrator to organise the project. We have also began hosting lunch clubs in schools and exploring the other ways we can support them.
The main renovation works in The Bridge Centre were completed in 2023, which has allowed the community to start to make use of the building. Since it opened, the Bridge Centre has seen several new and existing initiatives use the building, providing crucial support and opportunities to the local community and we have opened a café, which opened 1 day a week in February 2023 and which we changed to being open 3 days a week in November and we hired 2 staff to run the café.
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The total unrestricted funds held at the year end were £56,358 (2022 - £108,921).
The total restricted funds held at the year end were £181,603 (2022 - £139,969).
The total funds held at year end were £237,961 (2022 - £248,890).
The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Registered company number
SC365682 (Scotland)
Registered charity number
SC041380
Registered office
King's Church Aberdeen
King's Way
Bridge of Don
Aberdeen
AB23 8BL
Independent examiner
Azets Audit Services
Chartered Accountants
Matthew Allan CA
37 Albyn Place
Aberdeen
AB10 1JB
The Trustees report was approved by the Board of Trustees.
I report on the financial statements of the charity for the year ended 31 December 2023, which are set out on pages 5 to 18.
My examination is carried out in accordance with Regulation 11 of the 2006 Accounts Regulations. An examination includes a review of the accounting records kept by the charity and a comparison of the financial statements presented with those records. It also includes consideration of any unusual items or disclosures in the financial statements, and seeks explanations from the trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently I do not express an audit opinion on the view given by the financial statements.
In connection with my examination, no matter has come to my attention:
to keep accounting records in accordance with section 44(1) (a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; and
to prepare financial statements which accord with the accounting records and comply with Regulation 8 of the 2006 Accounts Regulations;
to which, in my opinion, attention should be drawn in order to enable a proper understanding of the financial statements to be reached.
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The King's Community Foundation is a private company limited by guarantee incorporated in Scotland. The registered office is King's Church Aberdeen, King's Way, Bridge of Don, Aberdeen, AB23 8BL.
The financial statements have been prepared in accordance with the charity's governing document, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for charities applying FRS 102 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
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 are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.
At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
The charity is exempt from corporation tax on its charitable activities.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Grant income
Donated goods
Cafe
Cafe
Repairs
Subscriptions
Rent, rates and water
Insurance
Light and heat
Postage and stationery
Sundries
IT software and consumables
Accountancy
Motor expenses
Flourish project costs
Foundation running costs
Financial inclusion costs
Service charges
The average monthly number of employees during the year was:
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
258 North Balnagask Project
This fund relates to the rennovation of the Torry Community Centre.
Flourish Project
This fund relates to the Flourish Project which aims to equip young people to develop a healthy self-esteem, mental and emotional well-being.
Place Based Investment Fund
This fund relates to the continued rennovation of the Torry Community Centre.
COVID Recovery Fund
This fund relates to income to be used to provide food for the foodbank only.
Financial Inclusion Grant
This fund was received to allow the charity to provide support in the community for those experiencing the worst impact of the cost of living crisis.
Winter Hardship Fund
This fund was received to maintain the charity's ability to provide its service the during winter and the cost of living crisis.
Foodbank Fund
This fund relates to income to be used to provide food for the foodbank only.
The income funds of the charity include the unrestricted funds comprising the following unexpended balances of donations and grants held without specific purposes:
At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
T Seal is a trustee and was reimbursed a total of £24 (2022: £106) for the following expenses;
• Fuel: £Nil (2022: £106)
• Travel: £24 (2022: £Nil)
I Monument is a trustee and was reimbursed a total of £160 (2022: £2) for the following expenses;
• Postage: £Nil (2022: £2)
• Sundry: £160 (2022: £Nil)
I Duthie is a trustee and was reimbursed a total of £182 (2022: £Nil) for the following expenses;
• Cafe: £182 (2022: £Nil)
L Seal is a connected person through marriage and was reimbursed a total of £67 (2022: £67) for the following expenses;
• Fuel: £67 (2022: £40)
• Flourish project: £Nil (2022: £27)
During the period funds of £22,950 (2022: £26,000) were received from King's Church Aberdeen, a charity with trustees in common. Additionally, transactions amounting to £1,253 (2022: £724) was received from King's Church Aberdeen. The King's Community foundation paid a total amount of £17,651 (2022: £9,114) to King's Church Aberdeen in the year.
The company is controlled by the trustees.