REGISTERED CHARITY NUMBER: 1017599 THRESHOLD HOUSING LINK REPORT OF THE TRUSTEES AND FINANCIAL STATEMEKrs FOR THE YEAR ENDED 31 MARCH 2024 Haines Watts Chartered Accouniants & Statutory Auditors Old Station House Station Approach Swndon Y￿ltShIre SN13DU THRESHOLD HOUSING LINK CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Page Report of Ihe Trustees Report of the Independent Audltors 10 to 12 Statement of Flnanclal Actfvftles 13 Statement of Flnanclal Posltion 14 Statement of Cash Flows 15 Notes to the Statement of Cash Flows 16 Notes to the Financial Statements 17 to 25 THRESHOLD HOUSING LINK REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 The trustees present their report w¢th the financial statements of the charlty for the year ended 31 March 2024. The trustees have adopted the pn)visions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019}. Page 1 THRESHOLD HOUSING LINK REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 OBJECTIVES AND ACTIVITIES The Iruslees review the aims, objectives, and activits'es of Threshold each year. This report looks at what Threshold has achieved and the outcomes of its work in the reporting period. The trustees report the success of ea¢h key activity and the benefits the charity has brought to those groups of people that il is set up to help. The review also helps the trustees ensure the charity's aims, obiectives and activities remained focused on its stated purposes. The trustees have referred to the guidance contained in the Charity Commission's general guidan￿ on public benefit when reviewing the charity's aims and objectives and in planning its fvture activities. In particular, the trustees Consider how planned acttvities will contribute to the aims and objectives that have been sel. Our objects Threshold's objects. as set out in its constitution are. Ihe relief of poverty, hardship, slckness and old age in particular of persons who- (a) by reason of mental or physical infirmity are unable to fulfil their duties as citizens or their obligations to their ernployers- or are (b) homeless, ex-offenders and those wth substance misuse issues an(Vor addictions." Our misslon To end homelessness for people in Swindon by providing a safe place to Irve. personalised support and a pathway to Independence. Ourvalues Our values guide interactions and decisionamaking throughout Threshokl Collaboration.. Working together to achieve the best outcomes Integrity.. Acting wlh honesty, transparency and accountability Compassion.. Listening to people's needs and acting Viith empathy Qualty: Striving for excellen￿ In all we do Actlvltles Threshold's charitable activttses frKus on the people we supp¢)rt and are undertaken to further our charitable purposes for the public benefft. The impact of becoming homeless is profound arKI devastatiThJ. Not having a home Can make it harder to find a job, stay healthy and maintain relationships. People who experience homelessness often feel isolated, increasing their chances of misusing drugs or alcohol. or experiencing mental health problems. Evidence show5 that the longer someone is homeless. the more cornplex their Problems become and the more difficult It can be to rebuild their lives. People who are homeless dle younger. On average, men who are homeless dle 30 years younger and WKKnen who are 1￿meleSS die 38 years younger than the general population. Mfith over 50 years of experience, we know that with the right support at the right tlme, people can overcome homelessness and work towards a positive fiJture. INe strive to end homelessness in Swincton by providing.. A safe place to live A personalised support plan to V￿rk towards a posit'ive future A pathway to Independence Every nlght, We provide a safe place to live for nearty one hundred people in &wndon who othewse would be homeless. As well as a safe place to live. provide a support plan, based on the Homelessness OLrtcomes Star, that is tailored to individual needs. We work in partnershlp with Swindon Borough Council and others to secure a successful move on to independent accommodation, however we know that this is a big slep and therefore we provid8 ongoing support for up to 6 monlhs, as needed. Page 2 THRESHOLD HOUSING LINK REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 IMRCH 2024 Achievements and perforniance We increased the number of properties dedicated to supporting people who are homeless from thirteen to I￿enty-one during the year We continued to work in partnership with a range of Statutory and voluntary organisalions to ensure there is high quality and effective support for people vtho are hom&less in Swindon Supported seTvice users lo access mental health support, engage with drug and alcohol t￿atMent, connect wth their community and take part in positive activlties, and develop independent living skllls Several people were able to move on to their own independent accommodation and sustain their new tenancy for al least 6 months Our renewed focus on data driven oul¢omes V•ill mean we can report qualitative arKI quantitative impa¢t in the future Slgnlflcant progress slnce the reportlng perlod We have established iwo subcomrnittees of the Board. a Finance and Fundraising Committee and Performance and Quality Committee. These subcommittees help the Board fvlfil their responsibilities 8nd provide support to the CEO and Senior Management Team {SMTI We have refreshed our mission, purpose and values so they are fit for purpose and engaging We are developing a new >year strategy that V•ill start in 2025 arKI build strong foundations critical lo our future success W8 are developing Key Performance Indicators (KPI'S) that will enable us to report our performance against our new strategy Renewed focus on outcomes and impact by embedding the homeless outcomes star in practice Cornmisstoned a Stock Condition Survey to infomi our long-tem repairs, investment, and refurblshment of properties Monltorlng and evaluatlon We use Ir￿FOrM, the leading client relationship and servlce management system for the homeless sector, to track outcomes, measure impact and manage our services, from the Inltial referral. through thelr personallsed support plan and into independent living. In-Fomi comes with the Homelessness OutC¢)mes Star built in and the outcomes slar is emb8dded in our practice vthen supporting service users. We wll be investing in In-Form and Homelessness Outcomes Stsr training for the Threshold team to enable us to use this system to Its full potential. Access to our servlces We are committed to Creating a wel¢omlng and accepting culture where people feel included, experience sense of belonging and feel safe to be themselves. We respect arKI ￿lebrate differences and ensure that everyone has the resources they n88d to achieve their goals. Page 3 THRESHOLD HOUSING LINK REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 FINANCIAL REVIEW Flnanclal position The financial posttion of the Charity at the year end is set out on page 14. Income Threshold's total income increased by £695,613 (95Y•l this year from £727.990 in 2022123 to £1,423,603. Driving this increase is additional Income re￿Ved from the expansion in properties from 13 to 21 and service users from 55 to 86 people. A detailed analysis of income is shown in Ihe Statement of FInar￿la1 Activtiies (SOFA) and Notes 2- 5 of the Financial Statements. Expenditure Total spending on charitable activities for the year of £1,257,848 represents 8 108% increase in expenditure from 2022123 (£603,525). The increase in expenditure reflects the increased income for new services. Further analysis of charitable activity expenditure. showing the operational activlties undertaken by Threshold are given in the SOFA and in note 7 of the Flnancial Statements. Fund Anatysls The Board can confirm that the Charity's assets are avallable and adequate to fulfil the obligations of the Charity on a fund-by-fund basis. Incoming resources for the year of£1,423,603 (2023.. £727,990) induded £nil of restricted funds (2023.. £45,000). Of the £1,716,450 funds retained at year end (2023.. £1.308.6541, £60,000 were designated (2023: £60,000). £730,352 held in a revaluation reserve {2023= £472,757) and £4,826 were restricted (2023.. £55,611). Further analysis of designated and restricted lunds is shown in the SOFA and Notes 18 of the Financlal Statements. Investment policy and objectives Threshold is committed to maintaining fijnds in instant access accounts lo meet all day to day needs for working capital. Any frjnds beyorKI this, and not required for development of the Charity's activities in the short term, will be invested in low-risk deposit accounts, reviewed and recommended by the Finance and Fundraising committee and approved by the Board. Reserves pollcy The Board has examined the Charity's requirements for reserves in the lighl of the main financial risks to the organisation. wthin Threshold's Reserves & Investments Policy, to ensur8 the finan¢lal vlability ofthe Charity and its ability to meet its on-going commitments, the Board have determined that Reserves should be maintalned at three to six months organisational Operational Costs. For 2024125. budgeted monthly operating costs are £116,000. The organisation holds £206.132 {2023: £3.891) in free reserves, equating to 1.8 months. In addition, the Trustees require thet Free Reserves remain In surplus. This wa% the case on 31 March 2024. The Board are confident Threshold can continue the CO￿ activities of the Chaiity in the event of a significant drop in funding, whilst considering how any such loss in funding could be replaced or activities changed. The Board is committed lo investing additional resources for the purposes of developing services to our beneficiaries. Several opportunitie5 a￿ being reviewed and weighed agalnst the need to maintain our reserves in the volatile funding environment, which we and other similar organisations face. Page 4 THRESHOLD HOUSING UNK REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 FUTURE PLANS In 2024 we appointed a new CEO, refreshed our Kfjsion, Mission and Values and developed a new strategy in consultation with stakeholders. Our strategy is to Build Strong Foundations so we ¢an play a leading role in the 5UPPOrt of people who are homeless in Swindon now and in the future. Strong foundations are critical to future success and being able to demonslfate that we are a high-quality provider that is compliant with national supported housing standards. We ￿11 build strong foundations by doing the rigm thing in the right vrdy. every day. We will be the best we can by having the right training and development and line management support. We wlll be organlsed, plan well. do whal we say we ￿￿11, and work in partnership with others. Our strategy has five key priorities. all essential to maintsining Threshold's success lo date whllst glving us Ihe best possible chance of success, in a future that will continue to be challenging. The five key priorities are= 1. Delivering quality housing and support= We are focussed on quality in everything we do. We want lo be held up as an example of an organisalion that delivers high qualty supp¢)rt and enables lasting change. We want to continuously improve our performance $0 that we can end homelessness for people in Swindon. 2. Estates management, safety & compliance.. We know that providing good qualty supported accommodation plays a critical role in enabling people who are homel8SS to have a safe place to live and receive the support they need to be able to move on and live independently. We will ensure our assets support our strategi¢ goals. 3. Our people: Our people strategy will refiect the role all crtjr people play in achieving Threshold's outcomes. It wll support our focus on qualty. continuous improvement, safety and wellbeing. The people working for Threshold will be well-equipped to do a greatjob. and they ￿111 have the resources to deliver against ourvalues and objectives. We will embrace the opportunities offered by technology and use it to support everyone to work more efficiently. 4. Being a resilient and sUstsinal￿e charity here for the long-tem- We will develop financial operations. management and strategic thinking throughout Threshold. We will have good governance which is appropriate and supports service delivery wth assurance to stakeholders. We will develop fundraising that is sustainable and secure. We will think long-lerm so we can supp¢Jrt people who are homeless now and In the future. 5. Our engagement.. We will develop our stskeholder relationships in a way that adds value to our social purpose. We know Ihat by vnrking together with other organisalions we achieve the besl outcomes for the people of Swindon. We will celebrate the achteveM￿ts of the pecyle W￿ 5UPPOrt and the people we employ. Our Building Strong Foundations strategy paves the way to deliver a new model in our next strategy from 2028. The new model may include unlocking the potential of our assets, developing new services particularty around early inteNention and preventlon and establlshing strategic partnerships. We will take an iteptive approach lo the new model during the Building Strong Foundalions strategy and anticipate delivering parts of the new model before 2028. STRUCTURE, GOVERNANCE AND MANAGEMEKr Governlng document The charity is controlled ty its goveming document. a deed of trust and constitutes a charttsble Incorporated organisation. The organlsation was fomied in June 1972 and was known as The Swindon Cyrenlans (AGAPE) when first registered as a charty The charity is now branded as Threshold Housing Link. a Charitable Incorporaled Organisation (CIO) 1017599. The Organisalion is govemed by its Constitution. The Trustees have no beneficial interest in the CIO. Page 5 THRESHOLD HOUSING LINK REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE. GOVERNANCE AND MANAGEMEfrrr The Board of Trustees The 8oard of Trustees comprtses up to ten members, whith is the maximum pemiitted in the Constitution. Full details of the trustees who held office during the peri¢xl are set out in the Reference and Administration section at the start of this report. Trustees can serve lor a period of three years. after whl¢h they must be reelected with a maximum Servi￿ of 9 years before stepping down for at least one year. All new trustees undertake an induction programme including a structured introduction lo Threshold and an opportunity to visit supported accommodation projects. The focus is on ensuring we recruit a diverse Board that have a range of skills and expèrience aligned to our strategic direction and purpose. Trainlng and development sessions in key areas are facilttated annuatly and include safeguarding. heatth and safety and govemance training. All tnjstees are recruited through a robust and transparent process, involving a detailed application, formal interview and DBS checks completed. Some of our board members have personal or professional knowledge of housing or homelessness, others have senior executive and financial experienGe. They give their time voluntarily and re¢eive no benefit from the charity in respect of Iheii duties as trustees. Any expenses reclaimed from the TTUSt are set out in note 9 of the Financlal Statements. Our Board of Trustees Is supported by Ihe foll0v￿ng committees-. Flnance and Fundralslng Commlttee The finance and fundraising ¢ommlttee monitors the financial health of Threshold arvj assists the Board in its r8sponsibililies for the finanrial statements. Ensuring our assets are managed responsibly, managing financial risk, budgeting and COmp￿.ng with financial and attounttng requI￿rnents. Performance and Quality Commlttee The performance and quality committee provides assurance lo the Board on significant operational and compliance nsks, including health. safety. security and safeguarding events faced by the charity so that they are identified. assessed, managed and monitored. Trustee dutles The trustees undertake the duties laid dovm in the charivs goveming documents. As trustees, they fulty acknowledge they are ullimateFy responsible for the governance of the charity and the protection of its assets. The board takes ultimate responsibility for the implementation of equal opportuniiies and health and safety within Threshold. To discharge these responsibilities, the formal board meets regularly durlng the year. Meetings of the various board committees and other advisory groups in which Iru5tees lead and participate were held regularly throughout the year. Long temi plans I key decisions that will have an impacl on the long-term future of Threshold are discussed at the relevant subcommittee and board. For major and long running projects, the board receives regular updates to ensure that there is approprlate oversight, and that appropriate action is taken where necessary Declslon maklng The overall responslbility for Ihe charity rests wrth the Board of Trustees. vtho are appointed as Trustees of the Charitable Incorporated Organlsation. The Trustees who served or were appointed during the year and up to the date of this report are listed in the 'REFERENCE AND ADMINISTRATION DETAILS, section of thls report. Trustees provide leadership and oversight of the organisation's charitable objectives. The Board of Trustee5 have overview of senior management pay and terms and conditions and ￿Muneration is set by the Trustees after considering the remuneration of equivalent staff at similar charitable organisations. Authority from the Trustees for the day to day running of the charity is delegated to the Chief Executive Officer. Page 6 THRESHOLD HOUSING LINK REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 ￿ARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT External Relatlonshlps The chartty maintains close collaborative and slrategic links with other homelessness and health and soclal care organisations both within Swindon and nationally. Rlsk management The social care and charitable sectors in which Threshold operates continue to be under significant scrutiny with increasing demand and significant dommiard pressure on funding streams. Key issues and change that create a range of uncertainties for us include: The Supported Housing (Regulalory Oversight) Act 2023 became law In August 2023 and is still subject to consultation on how it wtll be implemented. The Act aims to introduce new regulations to tackle poor-quality supported housing and protect residents Impact of the above on commissioning direction, unGertainty about what the natlonal standards will be, potential focus on economical and less personontred support models Limrted funding leads to an inGrease in referrals for people with complex needs without the required funding or support packages to adequately house and support them The demands and relattve low pay within social care whlch furlher challenges recruitmart and retention of quality staff Inllationary pressu￿$ including large increases in the ¢osts of utililles The principal rlsks identified as significant a￿.. Rtsks Long tem7 flnanclal sustalnability- greater darity on long-term financial sustainabrfity and Value for Money C+lFM). Mltl atlons Annual budget and regular reporling of managem8nl accounts Establishment of a Finance and Fundraising Commtttee >year Financial Plan Development of a Fundraising Strategy Ongoing assessment and rewew of the target operating model H&S policy under review. Strengthening of oversight of H&S from October 2024. Operations Manager taking lead responsibilty for H&S. Health and Safety (H&S) - failure to have in place robusl H&S policies and ways of working, along wtth a fallure to demonstrate a positive safety culture, can lead to death or injury and with it, serlous financial and re utational rtsk. Safeguardlng - the potential of service failure and harm to individuals should the Safeguarding ethos, ways of vnrking, training and overall approach be unclear or ill mana ed across Threshold. Rec￿ltMent and Retentlon - significant challenges In recruitment and ￿tention within the sector and locally. Failure to attract. recruit. and retaln high quality people puts service quality and an ability to deliver strate I lans at risk. Fundralslng - core servlces are funded adequately however new sustainable voluntary income is required to deliver new services. Establishment of a Performance and Quality Committee Review of our safeguarding policy and practice Saftguarding a standing agenda item at meetings We completed a salary benchmarking exercise People is one of our five strategic priorities with key outcomes and tasks to drtve thls important area of work. Vve will create a fundraising strategy and invest In a donor database so we have the foundation lo successfully establish new sustainable sources of incc4ne. Page 7 THRESHOLD HOUSING LINK REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management and Internal controls We continue lo carry out and monitor a comprehensive risk-management assessment process. This has identified and addressed the major financial. operats'onal, governarKe, reputational and regulatory risks which might affect our ability to meet our objecttves. The risk register records Threshold's exposure to malor risks and uses a s¢oring mechanism based on impact and likelihood. tt considers existing controls and the steps taken to mitigate the risks. It then identifies the residual risk to understand whether it is within the acceptable risk framework. ￿lch underpins the process, based on clearly defined appetite to rtsk protocols. agreed by Iruslees. Vvhere risks appear to be outside the agreed comfort zone there is a clear focus on actions needed lo ensure il ts within the risk appetite. The senior management team (SMT) arKJ Board ofTnJstees have kept the risks under review during the period. The Board of Trustees has overall responsibilty for assessing the risks faced and ensuring it has appropriate systems of internal control in place. The charity undertakes mitigating actions on all the major identified risks. The trustees are of the oplnion that they lake reasonable steps to ensure that they identify the major risks to which the charity is exposed. They also try to ensure they have put in place systems to mitigate them. REFERENCE AND ADMINISTRATIVE DEfAILS Reglstered Charlty number 1017599 Prlnclpal address 2M Floor 1 John Street Swindon SN1 1RT Trustees Richard Clowes.. Chair (until 20 May 2023) Bryan Saunders.. Chalr Iwice Chair until 23 May 2023. Chair from 23 May 2023} Ross Peters: Vice Chair {from 30 August 2023. until 15 November 2024) Ash Zuberi (until 2 September 2024) Mike O'shea (from 21 June 2023. until 25 March 2024) Andrew Hollingsworth Leah Oyewo (until 19 November 2024) Penny Davies (from 17 January 2024. and Chair of the Performance and Quality Committee from 23 Juty 2024) Lin Cattelaln (from 14 May 2024, Chair of the Finance and Fundraising Committee from 23 July 2024. and Vice Chair of the Board from 19 November 2024) Andy Brackenbury (from 14 May 2024) Jen Hall (from 19 November 2024) Key Management Personnel Michael Keenan Chief Development Officer (until 2 Febnjary 2024) Ben Haman Chief Executive (from 7 May 2024> Kevin Parry Operations Manager Helen Edwards Setvice Manager (from 18 November 2024) Audltors Haines Watts Chartered Accountants & Statuiory Auditors Old Station House Station Approach Swindon Ilshlre SN13DU Page 8 THRESHOLD HOUSING LINK REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2024 Sollcitors Menzies Law St Brandon's House 29 Great George Street Bristol BS15QT Principal Banke Co-operative Bank PO Box 250 Skelmer5dale VVN8 61 STATEMENT OF TRUSTEES, RESPONSIBILITIES The trustees are responsible for preparing the Report of the Trustees and the financial slatements in accordance with applicable law and United Kingdom Accounting Standards (United lQngdom Generalty Accepted Ac¢ounting Practice) induding Financial Rep¢Nting Standard 102"The Financial Reporting Standard applicable in the UK and Republic of Irelan￿. The law applicable to charitles In England and Wales, the Chartties Act 2011, Charity {A¢¢ounts and Reports) Regulations 2008 and the provisions of the trust deed requires the trustees lo prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the Incoming resources and application of resources. Induding the income and expenditure, of the charity for that period. In p￿parIng those financial statwnents, the trustees ￿ required to select suitable accounting policies and then apply them consistenty: obseNe the methods and principles in the Charity SORP; make judgements and estimates that are reasonable and prudent: state whether applicable accounting standards have been followed. subject to any materfal departures disclosed and explained in the financial statements; prepare the financial statements on the going concem basts unless it is Inappropriate to presume that the charity will continue in business. The trustees are responsible for keeping proper accounting records vthich disclose with reasonable accuracy at any time the financial position of the charity and to enablè them to ensure that the financial slatements comply vrith the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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. Approved by order f the board of trust*$ on ..... Mr Saunders- Trustee Page 9 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THRESHOLD HOUSING LINK Qualified Oplnlon We have auditsd the financial statements of Threshdd Housing Link (the 'charity') for the year ended 31 March 2024 which comprise the Statement of Financial Activilies, the Statement of Financial Position. the Statement of Cash Flows 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 Practi¢el, including Financial Reporting Standard 102 The Financial Reporbng Standard applicable in the UK and Republi¢ of Ireland,. In our opinion. except for the possible effects of the matter described In the basis for qualified opinion section of our report. the financial statements.. - give a true and fair view of the slate of the charity's affairs as at 31 March 2024 and of its Incoming resources and application of resources. for the year then ended.. - have been properly prepared in accordance with United Kingdom Generalty Accepted Accounllng Practice, including Financial Reporting Stsndard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland,; and - have been prepared in accordan¢e the requirements ofthe Charities Act 2011. Basls for quallfied oplnlon We conducted our audit in attordan￿ wtth International Standards on Auditi'ng (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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, includin9 the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in &cordan¢e with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provid8 a basis frjr our qualified opinion. The four freehold properties owned by the charity are held at open market value with valuations being carried out by independent qualified valuers. No such valuations were however carried out al 31 March 2023 and therefore we are unable to satisfy ourselves over the carying value of the properties of £1,179,986 Included in the Balance Sheet at that date. Valuation5 have been carried out at 31 March 2024. our opinion is therefore not qualffied in respect of the carrying value of the propertles of £1,412,500 at that date. ¢oncluslons relating to going concern In auditing the financial statements, have conduded that the trustees, use of the going concem basis of accounting in the preparation of Ihe financial statements is appropriate. Based on the work we have performed, we have not Identified ary material uncertainties relatlng to events or conditions that. individually or collectively, may cast significant doubt on the charity's ability to continue as going concern for a period of at least bie5ve months from when the financial stalements are authorised for issue. Our responsibilities and the responsibilities of the trustees ￿1th respect to going concern are described in the relevant sections of this rep¢yL Other infonnation The trUSt￿S are responsible for the other information. The other infomiation ¢omprtses the information included in the Annual Report. other than the financial Statements and our Report of the Independent Auditors thereon. Our oplnion on the financid slatements does not cover the oltrw infonnation and. except to the exlent othelwise explicitly stated in our report, we do not express any forffl of assurance conclusion thereon. In connection wtth our audit of the financial statements, our responslbility is to read the other informatlon and, In doing so, Consider whether Ihe other infomalion is materially inconsistent with the financial statements or our knowledge obtained in the audit or olherwise appears to be malerially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rfse to a material misststement in the financial statements themselves. If, based on th8 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. Comparatlve Figures The comparative figures for 2023 are unaudited. Page 10 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THRESHOLD HOUSING LINK Matters on whlch we are required to report by exception We have nothing to report in respect of the following matters vthere the Charities (Accounts and Reports) Regulations 2008 requires us lo report to you if. in our opinion.. the information given in the Report of the Trustees is inconsistent in any material respect wth the financial statements., or sufficient accounting records have not been kept", tx the financial statements are not in agreement wth the accounting records and returns., or we have not received all the information and expfanations require for our audit. Responsibilities of trustees As explained more fully in the Statement of Trustees. Responsibilities, the trustees are responsible for the preparation of the financial statements vthich give a tnje and fair view. and for such intemal control as the trustees detemiine is necessary to enable the preparation of financial statements that a￿ free from material misstatement, whether due to fraud or error. In preparing the financial staiements. the trustees are responsible for assessing the charity's abiltty to continue as a going concern, disclosing, as applicable. matters related to golng concem and using the going concern basis of accounting unless the trustees either intend to liquidate the charty or to cease operations. or have no realistic aliernative but to do so. Our responslbllities for the audtt of the financlal ststements We have been appointed as auditors under Section 144 of the Charities Act 2011 armd report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assuran￿ about vtheth8r 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 nol a guarantee that an audit conducted in accordan￿ 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 Itnancial statements. The extent to which our procedures are capable of detecting irregularitie5. including fraud is detailed below.. We obtained an understanding of Ihe legal and regulatory framework applicable to both the charity itself and the environment in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience and through discussion with the directors and other management. The most significant were identified as the UK GAAP {FRS102), Charities Act 2011 and relevant tax legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the relaled financial statements. Our audit procedures included.. - making enquires of Irustees and management as to where they consider there to be a susceptiblllty to fraud and whether they have any knowledge or susptcion of fraud: obtaining an understanding of the internal controls established to mitigate rtsks related to fraud or r￿n- compliance with laws and regulations., - assessing the risk of management override induding identifying and testing joumal entries,. - challenging the assumptions and judgements made by management in its significant accountlng estimates. A further description of our responsibilities for the audit of the financlal statements is located on the Financlal Reporting Council's website at ￿.frc.0rg.ukJaudltolsfeSponsibIlitie$. This description forms part of our Report of the Independent Auditors. Page 11 REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THRESHOLD HOUSING LINK Use of our report This report is made solety to the charity's trustees, as a body, in accordance wth Part 4 of the Charittes {Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might stale to the charity'5 trustees 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 harity and the charity's trustees as a body, for our audit work. for this report, or for the opinions we have formed. kl S Haines Watts Chartered Accountants & Statutory Auditors Old Station House Station Approach Swindon Willshire SN13DU Dale.. E ..Jcr.1.....2.o...z.S Page 12 THRESHOLD HOUSING LINK STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2024 2024 Total fLtnds 2023 Total fvnds Unrestrictsd Restricted funds fijnds Notes INCOME AND ENDOWMENTS FROM Donations and legacies 28,978 28,978 100,448 Charltable activitles Supported accommodation 1,372,922 1,372,922 599.550 Other trading activities Investment income 17.659 4.044 17,659 4.044 26,576 1,418 Total 1.423,603 1.423,603 727,990 EXPENDITURE ON Raising funds 15,554 15,554 14.125 Charftable actlvltles Supported accommodation 1.215.635 42,213 1,257.848 603,525 Total 1.231.189 42.213 1.273.402 617.650 NET INCOMEI{EXPENDITURE) Transfers between funds other recognised galnslllosses) Gains on revaluation of fixed assets 192,414 8.572 (42.213) (8.572) 150,201 110.340 18 257,595 257,595 Net movement in funds 458.581 (50,785) 407.796 110,340 RECONCIUATION OF FUNDS Total funds brought forward 1.253,043 55,611 1.308,654 1,198,314 TOTAL FUNDS CARRIED FORWARD 1,711.624 4.826 1.716.450 1.308,654 notes form part of these ffinancial statemerts Page 13 THRESHOLD HOUSING LINK STATEMENT OF FINANCIAL POSITION 31 MARCH 2024 2024 Total funds 2023 Totsl funds Unrestricted Restricted funds funds Notes FIXED ASSETS Tangible assets 11 1.445.492 1,445,492 1,189,152 CURRENT ASSETS stocks Debtors Cash at bank 12 13 10.000 110,611 506.564 10,000 110,611 511.390 46,533 377.888 4,826 627,175 4,826 632.001 424,421 CREDITORS Amounts falling due within one year 14 (139,919) (139.919) (75.427} NET CURRENT ASSETS 487,256 4.826 492.082 348,994 TOTAL ASSETS LESS CURRENT LIABILITIES 1.932.748 4.826 1.937,574 1.538.146 CREDITORS Amounts falling due after more than one year 15 (221.124) (221,124) (229.492) NEf ASSETS 1.711.624 4.826 1,716,450 1,308,654 FUNDS Unrestricted funds Restricted funds 18 1.711,624 4,826 1,253,043 55,611 TOTAL FUNDS 1,716,450 1,308.654 Thefi ci I statements were approved by the Board of Trustees and authorised for issue on . arKI were signed on its behalf by: SaurKlers - Trustee The notes form part of these financial statements Page 14 THRESHOLD HOUSING LINK STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating actlvities Cash generated from operations Finance costs paid 233,037 21.659 126,854 Net Cash provided by operating activities 211,378 111,722 Cash flows from Investlng activities Purchase of tangible fixed assets Sale of tangible fixed assets Interest received (40.848) 2.492 4,044 (2,492) 1.418 Net cash used in investing activities 1.074} Cash flows from financlng actmtles Loan repayments in year 43,564 18.001 Net cash used in financing activities 43,564 18,001 Change in cash and cash equlvalents In the reporting perfod Cash and cash equivalents at the beglnning of the reporting perlod 133,502 92,647 285 241 Cash and cash equlvalents at the end of the reportlng period 511,390 377,888 The notes form part of these financlal statements Page 15 THRESHOLD HOUSING LINK NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES 2024 2023 Net income for the reportlng perlod (as perthe Statement of Financial Activities) Adjustments for: Depreciation charges Interest received Finance costs Increase in stocks Increase in debtors Increasel(decrease) in c￿dItOrS 150.201 110,340 39,610 (4.044) 21.659 {10,000) {64,078) 99,689 30,436 11,4181 15,132 (11,4791 16.157 Net cash provided by operatlons 233.037 126.854 ANALYSIS OF CHANGES IN NET FUNDS At 114123 Cash flow At 3113124 Net cash Cash at bank 377.888 133.502 511,390 3TI,888 133,502 511.390 Debt Debts falling due vmthin 1 year Debts falling due after 1 year (44,654) 229,492 35.197 8.368 (9,4571 274,146 43,565 230,581 Total 103.742 177.067 280 809 The notes fonTr part of these financial statements Page 16 THRESHOLD HOUSING UNK NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES Basis of Preparing the flnanclal statements The financial staternents of the charity, which is a public benefft 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 aGcounls 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 Charities Act 2011. The financial statements have been prepared under the historica cost convention. as modified by the revaluation of certain assets. The financial statements are prepared in sterling, which Is the functional currency of the entity and is rounded to the nearest £. Golng concern There a￿ no material uncetsintiès regarding the ability of the charity to Continue as a going concern. Income All income is recognised in the Statement of FIn￿CIal Activities On￿ the Charity has enlitlement to the funds. it is probable that the income wll be received, and the amount can be measured reliably. Expenditure Ltabilities are recognssed as expenditure as soon as there is a legal or constructive obligation ¢ommitting the charity to that expenditure, it is probable that a transfer of economic benefit5 will be required in settlement and the amount of the obligation can be rneasured reliably. Expenditure 1$ accounted for an accruals basis and has been classified under headings that aggregate all cost relaled to the category. IAhere costs cannot be diwtly attributed to partl¢ular headlngs, they have been alloGated lo activities on a basis consistent with the use of resources. Allocation and apportionment of costs Support and govemance costs are rfrallo(xted on the following basis. whi¢h is an estimate, based on direct expendiiure, of the amount attributable to each activity Support accommodati¢Jn Fundraising 99% Govemance costs are the costs associated wtth the govemance arrangements of the charlty. These sls are associated with constitutional and statutory requirements and In¢lude any costs associated wEth the strategic management of the charity's activtti'es. Tanglble flxed assets Depreciation is provided at the followlng annual rates in order to vthte off each asset over Its estlmated useful life. Freettold property Hostel equipment Motor vehicles Computer equipment Office equipment 50 years 3 years 3 years 3 years 15% reducing balance Fixed assets are carrled at Cost except for the freehold properties vthiGh are carried at open market valuation. Stocks & work In progress Stocks are staled at the lower of cosl and ests-mated selling price less costs to complete and sell. Page 17 continued... THRESHOLD HOUSING LINK NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 ACCOUNTING POLICIES - continued stocks & work In progress Costs include all costs of purthase. costs of conversion arKI other costs incurred in bringing stock to its present location and condilion. Work in progress is valued on the basis of direct costs plus attributable overheads based on nomal level of activity. Provision is made for any foreseeable losses where appropriate. An element of profit is Included where the outcome of the project may reasonabty be detem)ined. Taxation The charlty is exempt from tax on its charitable acttvibes. Fund accountlng Unrestricted funds can be used In accordance the charitable objectives at the discretion of the trustees. Restricted funds ¢an only be used for particular restricted purposes within the oblects of the charity. Restrictions arise when SpeCffj￿ by the donor ￿ 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 financlal ststements. Hire purchase and leaslng commltments Rentals pai(1 under operatin9 leases are charged to the Statement of Financlal Activities on a straight line basis ov8r the period of the lease. Penslon ¢osts and other post-retirement beneffts The ¢harity operate5 a defined contribution pension scheme. Contributions payable to the charity's pension scheme are charged to the Statement of Financial Activities in the period to vknich they relate. Debtors Trade and other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid. Creditors Creditor5 are recognised where the charity has a p￿ent obligation resulting from a past event that wtii probably ￿su[t in the transfer of funds to a third paty and Ihe amount due to settle the obligation can be measured or estimated rdiably. Creditors are recognised at their setuement amount. DONATIONS AND LEGACIES 2024 Total funds 2023 Total funds Unrestricted Restricted funds fvnd5 Oonations Grants 25.978 3.000 25,978 3.000 55,446 45,000 28.978 28,978 100,446 In 2023, £45.000 of donations and legacy income related to restricted fijnding. Page 18 c¢Jntinued..- THRESHOLD HOUSING LINK NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 DONATIONS AND LEGACIES - conlinued Grants received, included in the above. are as folli)ws: 2024 2023 Nationwide- Night Watch prcyect Community Matters 45,000 3.000 3,000 45.000 OTHER TRADING ACTIVITIES 2024 Total fvnds 2023 Total fvnds Unrestrtcted Restncted funds funds Sleepout Miscellaneous income 505 17,154 505 17.154 4,663 21.913 17,659 17.859 26,576 INVESTMENT INCOME 2024 Total funds 2023 Total funds Unreslricted Restricted fvnds funds Deposit account interest 4,044 1.418 INCOME FROM CHARITABLE ACTMTIES 2024 2023 Activty Supported accommodatir Supported accommodats'on Fees from residents Outreach workers 1,372.922 590,786 8.764 1.372.922 599,550 RAISING FUNDS Ralslng donations and legacies 2024 Total funds 2023 Totsl funds Unrestricted Restricted funds funds Fundraising events 15,554 15,554 14.125 Page 19 continued... THRESHOLD HOUSING LINK NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2024 CHARITABLE ACTIVITIES COSTS Support osts Costs of Supported Rai￿ng fund5 Accommodation 2024 2023 Total Total Staff costs Consultancy eo$ts Rates. Coun¢il lax arNI water ghl and heat Repairs and fvmiture Bad debts Insurance Other premises costs staff recruitment. training etc Depreciation Fundraising cost5 Mortgage inleresl Legal and Pfofessional fee5 Auditors fee In¢Jependenl examir*r3 fee Accountancy and bookkeeping 366,186 46.560 366.186 46.560 28.283 71.105 111,194 46.532 7,852 26.863 11.380 39.610 13.929 21,659 62,618 11.340 201.253 54,314 9.888 32.006 76.492 8.668 4,800 19.004 3,604 30.435 13,664 15.432 1,235 28.283 71,105 111.194 46,532 7.852 26.863 11.380 39,610 13,929 21.6YJ 82.618 11.340 3.400 17,022 21.457 21.457 Rent Telephone Advertising Postage and stationery Computer and website costs Subscriptions 8ank ¢harges Sundry expenses 319,692 3.230 903 1.565 21.809 109 619 99 1,096,967 38.808 358.5 3,230 903 1,565 21.809 109 619 99 1.273,402 107,928 5.123 1.389 1,561 9.539 448 13.929 162.￿ 617,650 Support costs 1,625 160,881 (162,506) Totsl $xpenditure 2024 15.554 1.257 848 1.273 402 Total expenditure 2023 14.125 603.525 617,650 Of the expenditure £42,213 VRS restricted (2023 £5,000) and £1.231.189 was unrestricted (2023 £612,650) SUPPORT COSTS Governance costs Management Totals Supported a¢¢ommodatic 88,548 73,958 162,506 TRUSTEES, REMUNERATION AND BENEFrrs There were no trustees. remuneration or other beneffts for the year ended 31 March 2024 nor for the year ended 31 March 2023. Trustses, expenses There were no trustees, expenses paid for the year ended 31 March 2024 nor for the year ended 31 March 2023. Page 20 continued... THRESHOLD HOUSING LINK NOTES TO THE FINANCIAL STATEMENTS - Continued FOR THE YEAR ENDED 31 MARCH 2024 10. STAFF COSTS 2024 2023 Wages and salaries Social security costs Other pension costs 324,341 19,625 5.235 183,222 14,748 2,543 349.201 200,513 The average monthly number of employees during the year wa5 as follows.. 2024 2023 Total Key management personnel include all persons that have authority and responsiblllty for planning, directing and controlling the a¢tNities of the charity. The total compensation paid to key management personnel for services provided to the charty was £150.350 (2023: £152,739}. No employee eamed more than £60.000 for the year (2023 nil) 11. TANGIBLE FIXED ASSETS Freehold propety Mot vehicles Computer equipment equipment Totals COST OR VALUATION At 1 April 2023 Additlons Disposals Revaluats'ons 1.254.049 31,683 22,665 9,174 8,572 114.398 9,611 (2,492) 1,409,304 40,848 (2.492) 158,451 158.451 At 31 March 2024 1,412,500 17.746 121517 1606,111 DEPRECIATION Al 1 April 2023 Charge for year Revaluation adjustments 74,063 25,081 99.144 28.171 7,221 9,174 1.905 108,744 5,404 220,152 39.611 99,1441 At 31 March 2024 35.392 11.079 114,148 160,619 NET BOOK VALUE At 31 March 2024 1,412,500 18,956 6,667 7.369 1,445,492 At 31 March 2023 1179,986 3.512 5.654 1.189.152 Cost or valuation at 31 March 2024 is represented by: Freehold propety Off￿e equrpment Motor vehicles Computer equipment Totals Cost 1.412,500 54.348 17,746 121.517 1,606,111 Freehold property includes four properties held at valuation on an open market basis of £1.412,500. Valuations were carried out in October 2024 by independenL qualified valuers. Richard James Estate Agents on all four properties. Page 21 continued... THRESHOLD HOUSING LINK NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2024 11. TANGIBLE FIXED ASSETS - ¢ontlnued All of the above are used for charitable pwposes. 12. STOCKS 2024 2023 Stocks 10,000 13. DEBTORS: AMOUNTS FALUNG DUE WITHIN ONE YEAR 2024 2023 Trade debtors other debtors Prepayments and accrued inGome 76.330 2.900 31.381 18,936 3.400 110.611 46,533 14. CREDITORS: AMOUNTS FALUNG DUE ￿THIN ONE YEAR 2024 2023 Bank loans and overdrafts (see note 16) Trade creditors Other creditors 9.457 40,950 89,512 44,654 12,205 18.568 139.919 75,427 15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2024 2023 Bank loans (see note 16) 221,124 229,492 16. LOANS An analysis of the maturity of loans is given below. 2024 2023 Amounts falling due within one year on demarKJ.' Bank loans 9.457 44,654 Amounts falling be￿een one and two years: Bank loans- 1-2 years 9.457 7,128 Amounts falling due be￿leen Iwo an(J five years.. Bank loans - 2-5 years 28,371 21,384 Amounts falling due In more than five years: Repayable by instalments.. Bank loans more 5 yr by instsl 183,296 200,980 Page 22 continued... THRESHOLD HOUSING LINK NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2024 17. SECURED DEBTS The followtng secured debts are induded within creditors.. 2024 2023 Bank loans 230,581 274.146 Bank loans totailing £230.581 (2023 £274.146) are secured against freehold property held by the charity. 18. MOVEMENT IN FUNDS Net movement In frjnds Transfers beknn funds At 3113124 At 114r23 UnrestrlGted funds General funds IT reserve ftjnd Designated major fund Revaluatron reserve 720,286 10,000 50.000 472.757 192,414 8,572 921,272 10,000 50.000 730.352 257.595 1.253,043 450,009 8,572 1,711.624 Restrlcted funds Threadneedle A Chance lo Change Nationwide Night Watch project 6,500 4.111 45.000 (4,500) (4,111) 33,602 2,000 8.572 2,826 55.611 42,213 8,572 4,826 TOTAL FUNDS 1,308.654 407.796 1.716,450 Net movement in funds. Included in the above are as follows". Incoming resources Resour expended Gains and Movement losses in funds Unrestricted funds General funds Revaluation reserve 1,423.603 (1.231,189) 192,414 257,595 257.595 1,423.603 (1,231,189) 257,595 450,009 Restrlcted funds Threadneedle A Chance to Change Nationwide Night Watch project (4,500) {4,111) 33,602 (4,500) (4.111) 33.602) 42,213 42,213 TOTAL FUNDS 1423,603 1273.402 257,595 407,796 Page 23 continued... THRESHOLD HOUSING UNK NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2024 18. MOVEMENT IN FUNDS - contlnued Comparatives for movement In funds Net movement in funds Transfers be￿een funds At 3113123 At 114r22 Unrestricted funds General funds reserve fund Designated major fund Revaluation reserwe 679.946 10.000 20,O¢x) 472.757 70,340 (30,000) 720,286 10,000 50,000 472.757 30.000 1,182.703 70.340 1,253,043 Restricted funds Threadneedle Nationwide A Chance to Change Nationwide Night Watch project 6.500 5.000 4.111 8,500 (5.000) 4,111 45,000 45,000 15.611 40.000 55,611 TOTAL FUNDS 1.198,314 110,340 1.308,654 Comparative net movement in funds, included in the above are as follows: Incoming resources Resources expended Movement in funds Unrestrlcted funds General funds 682,990 (612,650) 70,340 Restrlcted funds Nalionwde Nationwide Night Watch project (5.000) {5,0001 45,000 45.000 40,000 TOTAL FUNDS 727.990 617.650) 110,340 Purpose of restricted funds Threadneedle funds are amounts recetved to support the 'As I See Me, prole¢c which aimed to facilitate exploration of idenb'ty through guided reflections on Se￿-perceptson. character strengths, and allemalive ways of being in its participants, will have aclivety been involved in sex working as a survival strategy. Nationwide funds are amounts receNed to a collaborative wellness promotion project with Sw'tndon Town FC Community Foundation. A Change to Change Fund receives corporate and private donations whlch are restricted for use to support the needs of residenls vAthin, prrmarily. Threshold's SWAP. Page 24 continued... THRESHOLD HOUSING UNK NOTES TO THE FINANCIAL STATEMENTS - contlnued FOR THE YEAR ENDED 31 MARCH 2024 18. MOVEMENT IN FUNDS . continued Nationwide Night Watch project- amounts received to fund the cost ol one FTE post to provide a fully responsive support service for rough sleepers and sex workers during the night. Purpose of Designated Funds Repair fund A major repairs and renewals designated fund of £50,000 is kept to fund all major renewals, refurbishments and repairs to the charity's properties and ensures the agencies obligations of repair to the leased entities. IT replacement fund To hjnd the replacement of the charity's rr systems. R8valuation reserve This represents the difference between the revalued amount of the freehold property and the value under the historic Cost basÉs. 19. LEASING AGREEMENTS Minimum lease payments under non