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2021-03-31-accounts

St Paul’s Hostel

(A company limited by guarantee)

Report and Financial Statements

Year ended: 31 March 2021

Charity no: 1043921 Company no: 03009035

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Contents

Legal and Administrative Information 2
Chair’s Report 3
Trustees’ Annual Report 6
Independent Auditor’s Report 11
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes forming part of the financial statements 17

1

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Legal and administrative information

Company number: 03009035 (England and Wales)
Charity number: 1043921
Trustees: D J Morris
P M Kinsella
P A Fowler
C Bridges
H N Watts
K D Archer
M A Rothwell
S Turner
F Martin
D Glover
D Saulles
Chief Executive: Mr J Sutton
Company Secretary
& Finance Manager: D A Collins
Registered Office: Hillborough
Tallow Hill
Worcester
Worcestershire
WR5 1DB
Independent
Examiners: RD Accounting Limited
Chartered Certified Accountants
12C Two Locks
Hurst Business Park
Brierley Hill
DY5 1UU
Bankers: CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
HR Advisor: June Mills HR Solutions

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Chair’s Report for the year ended 31 March 2021

This year, our 44[th,] started where the last ended, amongst the unforeseen challenges brought about by the Covid19 pandemic and national response. The year ended with a gradual emergence from the measures and the roll out of vaccines for staff and residents.

The Government’s ‘Everyone In’ directive in response to the Covid-19 pandemic, was unlike anything seen before. The lessons are emerging and will be captured by Lord Kerslake’s Commission in the autumn of 2021. The National Audit Office report in January of this year, cited over 33,000 people rough sleeping or at risk of rough sleeping. In Worcestershire the numbers peaked at 154. These facts have shown, what we have always known, the scale of the homeless problem in England is much larger than the rough sleeping counts show.

The Worcestershire response to Covid-19 spawned ad-hoc structures between state and the VCS. These remained in place throughout 20/21 but meeting frequency and content has varied. Notably the CEO chaired the County Homeless Recovery Group.

In Worcester City our efforts over the past 4 years to nurture collaboration within the Worcester Cares Homeless and Vulnerable People Forum have paid off. It became the principle conduit to communicate information to street kitchens as well as coordinating Street Outreach and Emergency Accommodation capacity. The clutch of street kitchens joined the alliance, tentatively, in late 2019, but quickly became part of the alliance and assimilated into collaborative working. Notably at the request of West Mercia Police, all street kitchens agreed to relocate to one site, The Cross, in the early summer. As lockdown restrictions were eased, they relocated to Copenhagen Street before some re-located to the former Worcester Arts workshop on Sansome Street before Christmas.

Day to day operations focussed on reducing the likelihood of Covid-19 infections across all services and mitigating the impact should they occur. Following analysis of the government intent, we sought to protect the NHS by;

Contingency plans were written last year well ahead of the government lock down. CONPLAN RESILIENT PLACE and RESILIENT SENTINAL stipulated responses for the Housing Services and Housing First. They worked. There were no Covid-19 infections in any of our residents, Housing First Participants, or St Paul’s staff. These contingency plans were refined in September with a County Council Public Health ‘Table top’ exercise whereby collective procedures were rehearsed should there be an outbreak at the hostel, or if the hostel were to be closed. Staff protective measures were further increased in September in response to rising local infections. All residents were issued with a face cloth and staff were required to wear face masks (rather than face cloths) at all times.

The Worcestershire Housing First Pilot began in March 2020. A Service Manager and four Case Managers were recruited by the early summer and the University of Worcester will provide a robust evaluation and this is supported by a Senior Lecturer in Health and Social Care. The transfer of Participants into the service was adjourned by district councils after the first intake in March. The team were re-deployed to the new Emergency Accommodation at 79 Ombersley Road, where they provided an intensive support to those accommodated. At the end of June, the City Council re-rolled 79 Ombersley Road as the new location for Safe Base to Stay and No Second Night Out Emergency Accommodation settings (previously at the Salvation Army) following Government guidance, only to use congregate sleeping as a last resort. This allowed the Housing First team to revert back to their primary role after a 12 week sojourn. Housing First has taken 33 people across the County, who were experiencing long-term rough sleeping, or for who alternative services had not worked. To date none of the participants have returned to rough sleeping and over 55% are now in permanent tenancy.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

The housing operations in both the hostel and Resettlement Houses of Multiple Occupation (HMO) slowed down as a result of Covid-19. Over the period 1 April 2020 to 31 March 2021:

Kitchen Assistant training statistics;

Face to face counselling had to be suspended, but Zoom was used over the summer before the service resumed on site in the autumn. The counselling service statistics were:

The Worcestershire Adult Safeguarding Board directed that a Thematic Review into the death of four rough sleepers be undertaken, rather than a Safeguarding Adult Review (SAR). The review considered the deaths of 4 rough sleepers in Worcestershire, one ‘near-miss’, as well as the circumstances around the death of transient rough sleeper Cardon Banfield in 2016. The report was published in September 2020 and its recommendations are being taken forward by Worcestershire Adult Safeguarding Board, overseen by the County Health and Well Being Board. The review is informative. It recognises the wicked problems around rough sleeping, addiction, self-neglect and individual liberty. The Terms of Reference precluded any consideration of the political decisions to decommission some homeless services and the scrutiny of those decisions.

Starting in late 2019 the hostel upgrade programme slowed during the pandemic, but was almost complete by the end of the year. The electrical wiring has been overhauled, a new fire detection and alarm system, new CCTV, upgraded fire doors and bedroom doors with a new door locking and management system installed. The investment of some £330,000 has improved the safety and the look and feel of the hostel.

The decision to recruit a Fundraising Manager in the autumn of 2019 was astute. Covid 19 brought financial challenges namely additional staffing costs, expenditure on additional hygiene and cleaning. There were new sources of grants and donations as a result of the Covid 19 pandemic. We are grateful for the ongoing support we have received during these difficult times, and the extent of the grants and donations are analysed in the notes to the accounts.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Our priorities for 2021-22 are:

Claire Bridges – Chair and Trustee

Date 17 November 2021

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Trustees’ Annual Report for the year ended 31 March 2021

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 31st March 2021. 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 2015).

Structure

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 organisation is a charitable company limited by guarantee incorporated on 12 January 1995. The company was established under a Memorandum of Association which defines the company's objects and is governed under its Articles of Association. In the event of the company being wound up the members are required to contribute an amount not exceeding £1.

St Paul's Hostel was an unincorporated charity prior to incorporation, whose activities began in 1977. The objects of the unincorporated body were broadly similar to the current charity.

Governance and Management

St Paul's Hostel has a Council of Trustees which meets on a regular basis. In 2020/21 it met five times via Zoom due to Covid 19. In addition to the members of the Council of Trustees, the Chief Executive, Finance Manager and other members of the Leadership Team attend Council meetings. A General Purposes and Finance SubCommittee was established in October 2012 in view of the expansion of services being offered and to enable more detailed discussion on strategy and the financial figures, outside of the full Trustees meetings. There were four meetings via zoom in the period.

The Trustees delegate the responsibility for the day to day operation of the charity to Management staff led by the Chief Executive. In addition to the full and part time staff, the charity also uses volunteer workers whose value cannot be measured in terms of cost. The volunteers are under the supervision of the Trauma Informed Practice Manager but the decision was taken to suspend the support of volunteers during 20/21, due to the additional risks to them posed by Covid 19.

At the present time, the staff consists of:

Projects and additional services

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Trustees’ Annual Report for the year ended 31 March 2021 (continued…)

Recruitment and appointment of new trustees

The directors of the company are also the charity trustees for the purposes of charity law and under the company's Articles are known as "Trustees". The Board of directors is referred to as the "Council of Trustees".

Every member currently contributes £1 and from the membership is elected the Council of Trustees who in their turn may appoint a Management Committee to organise the day to day running of the charity. The Council of Trustees in office during the year is shown on the page 2, together with the legal details of the charity.

Whilst the first point of contact for potential trustees is the CEO, the Chair coordinates selection of Trustees, thereby preserving the necessary separation between governance and operations.

The term of office for the Chair and Vice Chair shall be as near as possible to three years. However, a retiring officer may, if the Trustees think fit and he/she is willing to continue in office, be re-elected. The maximum term of office is ten years. The secretary and one third of other Council members must retire at each Annual General Meeting but may offer themselves for re-election.

The Management Team is supported by the Finance and General Purposes sub-committee of Trustees who make recommendations to the Board of Trustees on finance, property, strategic planning and human resources matters and execute any delegated matter set by Trustees.

The Council of Trustees is aware of the specific needs of the charity's client group and the balance of expertise of existing trustees. Potential new Trustees are identified by the Trustees, often from the large pool of volunteers and are invited to offer themselves for election to the Council.

Induction and training of new trustees

Most Trustees are already aware of the charity's work prior to their appointment and indeed the profile of the charity and its work is the primary motivation to volunteer. The Trustees have adopted a Trustee induction policy, which includes ensuring new Trustees are aware of their duties as charity trustees and company directors as well as giving them an opportunity to get to know the charity, its projects and finances, by meetings with the Chair, Chief Executive and Finance Manager and by visits to the various projects. They have available up to date guidance on responsibilities for being a Trustee published by the Charity Commission.

Risk management

There is an up to date Risk Management Policy. Risks are identified, assessed and controlled with some High Probability and/or High Impact risks being elevated from the Leadership and Management Team to the Finance Sub-Committee, or the Board of Trustees. Monitoring procedures have been put in place to evaluate on a continuing basis, levels of risk exposure and to review at a Board (strategic) and Leadership and Management (operational) level.

Objectives and aims

The principal activity of the company, in the year under review, was that of providing direct access accommodation for the single homeless. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our objectives and activities and in planning our future activities. In particular the trustees consider how planned activities will contribute to the objectives and aims they have set.

The main objective of the charity is as follows: "to provide relief either generally or individually of persons in the Midlands who are suffering from homelessness, poverty or are in conditions of need, hardship or distress particularly but not exclusively by the provision of accommodation and related support services." From this we have crafted our vision “that everyone has a place where they belong” and our mission is “to help people live through homelessness”.

Our values are:

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Trustees’ Annual Report for the year ended 31 March 2021 (continued…)

Achievements and Performance

Summary of main achievements:

How our activities deliver public benefit

The main areas of activity and whom we try to help are described below. Also, we aid people who find themselves needing help to alleviate drug or alcohol addiction, often closely related to rough sleeping or homelessness.

The capabilities we have to meet these objectives include safe and secure accommodation, individual and group counselling, life skills training, job coaching and training.

St Paul's Hostel

St Paul's hostel is central to our service. It has facilities for 42 people. Double rooms are now single-occupied in line with Covid guidance. There are two self-contained resettlement flats on the same site. The Hostel is open 24 hours a day and provides accommodation, with single rooms, nutritious food and tenancy support. The Project Workers undertake tasks to help people manage their accommodation and build self-efficacy, in order to establish themselves as able to live an inter-dependent life.

St Paul's Resettlement Service

The in-house CBT counselling service provides almost immediate access to an accredited counsellor for crisis intervention or therapy. Service utilization is above 92% and we have further reduced the waiting time for appointments. Money awarded from the Eveson Trust for this service, has allowed us to offer counselling services to Housing First participants and supervision sessions for staff.

Housing First Project

In March 20 we were asked to lead the Worcestershire Housing First Pilot, funded by the Business rate Retention funding from Worcestershire County council and 4 district councils. The University of Worcester will evaluate the pilot using similar framework to the national housing First pilots in Manchester, Liverpool and Birmingham. The staff recruited were used in an interim capacity to support the “Everyone In” efforts during the Covid-19 emergency. After a 12 week sojourn, the Housing First Team reverted back to their primary role and has taken on 33 people across the County. To date, none of the participants have returned to rough sleeping and over 55% are now in permanent tenancy.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Trustees’ Annual Report for the year ended 31 March 2021 (continued…)

Financial Review

Increased occupancy and a higher level of grants and donations have helped to substantially reduce the budgeted deficit for this financial year, which has been welcome news. The key financial risk for the next financial year is to secure funding for those services not funded by Housing Benefit Income, namely Counselling Services and the Kitchen Service Project. The extent of the emergency Covid-19 pandemic is not yet known, but brings with it as yet, unknown financial risks.

Plans for future periods

Our future plans will focus on:

Reserves policy

The Trustees have reviewed the charity's needs for reserves in accordance with the guidance issued by the Charity Commission and have taken into account the desirability of holding sufficient funds to meet unexpected disruption of the income flow. The level of 'free reserves' (excluding designated funds and revaluation reserves) is £779,251 (£715,882). We are paying back the £330K interest free loan to Platform Housing for the hostel capital refurbishment/investment programme over the next 7 years. There is also currently a continuing funding gap which may need to be partly funded by reserves, until a permanent funding solution has been found.

On this basis, the Trustees consider that these reserves are at a realistic level to ensure the effective and efficient running of the charity.

Related Parties

None of our trustees receive remuneration or any benefit from their work with the charity. Any connection between a trustee and senior management of the charity with any grant providers, customers, suppliers or beneficiaries must be disclosed to the board of trustees.

The trustees and management also aim to maintain and develop sustainable relationships with local authorities and other charities/organisations as required.

Trustees' responsibilities

The trustees (who are also directors of St Paul’s Hostel for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year, 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 these financial statements, the trustees are required to:

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Trustees’ Annual Report for the year ended 31 March 2021 (continued…)

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time, the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the 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 Board of Trustees on 17 November 2021

Claire Bridges – Chair and Trustee

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Independent Auditor’s Report

Opinion

We have audited the financial statements of St Paul’s Hostel (the ‘charitable company’) for the year ended 31 March 2021 which comprise the statement of financial activities, balance sheet, cash flow statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Responsibilities of trustees

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

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

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

Our audit process involves determining a suitable materiality level and assessing the overall risk of material misstatement, including how fraud may occur. Our core procedures in relation to fraud and error include:

Our procedures are tailored to the specific risks we have identified for St Paul’s Hostel and are based on our detailed knowledge and understanding of the entity and its environment.

For 2020/21 the risk of irregularities and fraud has increased due to the COVID-19 pandemic which has created additional income streams (e.g. Lottery Grant and increased support/donations) it has also changed some operational aspects, such as increased working from home for management staff. These changes have been factored into our audit risk.

There is an inherent risk that our audit will not detect all irregularities, including those resulting in material misstatement in the financial statements or non-compliance with regulation. This risk is greater in respect of fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-foraudit.aspx. This description forms part of our auditor’s report.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Other matter – prior year comparatives

The prior period financial statements were not audited, therefore we do not express an opinion on the prior year statement of financial activities (SOFA). However, we have obtained sufficient, appropriate audit evidence that the opening balance do not contain misstatements that materially affect the current period’s financial statements.

Use of our report

This report is made solely to the charitable company’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Dunkley (Senior Statutory Auditor) RD Accounting Limited (Statutory Auditor) Chartered Certified Accountants 12C Two Locks Hurst Business Park Brierley Hill DY5 1UU

Date: 17 November 2021

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Statement of Financial Activities (including summary income and expenditure account) for the year ended 31 March 2021

Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
172,371
Charitable activities
4
682,784
Investment income
3
14,419
Total income
869,574
EXPENDITURE ON
Direct charitable activities
5
551,293
Central overhead costs
6
254,642
Total expenditure
805,935
Net income/(expenditure)
63,639
Transfers between funds
21
-
Net incoming/(outgoing) for the year before
other recognised gains and losses
63,639
Gains/(losses) on revaluation of investments
13
80,663
Net movement in funds
144,302
RECONCILIATION OF FUNDS
19
Total funds brought forward
915,347
TOTAL FUNDS CARRIED FORWARD
1,059,649		 2021
Restricted
funds
Total funds
£
£
83,000
255,371
346,507
1,029,291
-
14,419
429,507
1,299,081
341,118
892,411
46,010
300,652
387,128
1,193,063
42,379
106,018
-
-
42,379
106,018
-
80,663
42,379
186,681
11,363
926,710
53,742
1,113,391		 2020
Total funds
£
103,439
813,584
14,278
931,301
721,874
219,188
941,062
(9,761)
-
(9,761)
(12,764)
(22,525)
949,235
926,710

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Company registration number: 03009035

Balance Sheet as at 31 March 2021

Unrestricted
funds
Notes
£
FIXED ASSETS
Tangible assets
10
349,352
Social investments
11
290,000
639,352
CURRENT ASSETS
Debtors
12
11,018
Investments
13
471,008
Cash at bank and in hand
191,849
673,875
CREDITORS
Amounts falling due within one year
14
(64,578)
NET CURRENT ASSETS
609,297
TOTAL ASSETS LESS CURRENT LIABILITIES
1,248,649
CREDITORS
Amounts falling due after more than one year
16
(189,000)
NET ASSETS
1,059,649
FUNDS
19
Unrestricted funds
Revaluation reserve
Restricted funds
TOTAL FUNDS		 2021
Restricted
funds
Total funds
£
£
-
349,352
-
290,000
639,352
-
11,018
-
471,008
293,173
485,022
293,173
967,048
(239,431)
(304,009)
53,742
663,039
53,742
1,302,391
-
(189,000)
53,742
1,113,391
779,521
280,128
53,742
1,113,391		 2020
Total funds
£
327,339
290,000
617,339
16,542
390,345
444,512
851,399
(317,028)
543,371
1,151,710
(225,000)
926,710
715,882
199,465
11,363
926,710

These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies.

The financial statements were approved by the Board of Trustees on 17 November 2021 and were signed on its behalf by:

C Bridges - Chair

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Statement of Cash Flows for the year ended 31 March 2021

tatement of Cash Flows for the year ended 31 March 2021
Net income / (expenditure) for year
Dividends receivable
Interest receivable
Depreciation and impairment of tangible fixed assets
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Net cash flow from operating activities
Cash flow from investing activities
Payments to acquire tangible fixed assets
Proceeds from sale of tangible fixed assets
Interest received
Dividends received
Net cash flow from investing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the beginning of the reporting period		 2021
£
106,018
(14,258)
(161)
68,487
5,524
(49,019)
116,591
(91,001)
500
161
14,258
(76,082)
40,509
444,512
485,022		 2020
£
(9,761)
(14,044)
(234)
55,403
2,453
463,674
497,491
(344,777)
234
14,044
(330,499)
166,992
277,520
444,512

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021

1 Accounting policies

(a) Basis of preparation

The financial statements of the charitable private company (incorporated in England and Wales), 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 2015)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling which is the functional currency of the charity and rounded to the nearest £1.

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

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

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

The charity does not currently have any endowment funds.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SoFA) when the charity is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received.

Rental income in respect of the hostel and resettlement housing is included on an accruals basis in the period to which it relates.

For donations to be recognised the charity will have been notified of the amounts and the settlement date in writing.

For legacies, entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the charity however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed.

Income from government and other grants are recognised at fair value, when the charity has entitlement after any performance conditions have been met, it is probable that the income will be received and the amount can be measured reliably. If entitlement is not met, then these amounts are deferred.

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably. Where costs cannot be directly attributed to particular headings they are included in central overhead (support) costs. These include project management, finance, administration and general office overheads.

17

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021 (continued…)

Investments

Investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year. Current asset investments are short term highly liquid investments and are held at fair value. These include cash on deposit and cash equivalents with a maturity of less than one year.

(e) Pension costs

The charitable company operates a defined contribution scheme for the benefit of its employees. The costs of contributions are recognised as an expense in the period to which they relate.

(f) Tangible fixed assets and depreciation

Tangible fixed assets costing more than £1,000 are capitalised and included at cost including any incidental expenses of acquisition.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straightline basis over their expected useful economic lives as follows:

Freehold property nil Fixtures and fittings over 4 to 5 years Motor vehicles 25% on reducing balance Capital works programme over 7 to 8 years

(g) Finance and operating leases

Rentals applicable to operating leases are charged to the SOFA over the period in which the cost is incurred. No assets are currently held under finance leases.

(h) Going Concern

The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.

(i)

Tax

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

(j)

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(k) Programme related social investments

St Paul’s owns two freehold properties, which are used as resettlement housing and thus specifically contribute to the charity’s charitable purposes. These properties are held at market value provided this amount can be measured reliably otherwise they are measured at cost less any provision for diminution in value.

(l) Donated Goods, Services and Facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), the general volunteer time is not recognised (refer to the trustees’ annual report for more information about their contribution).

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

The charity currently pays a management charge to Fortis Living for the use of the hostel which amounts to £43,063 per annum. Given the unique nature of the property and it purposes a market rental can not be measured accurately and therefore there are no donated facilities transactions recognised in respect of this facility.

18

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021 (continued…)

2 Income from donations and legacies

Gifts and donations (see note 22)
Grants
Grants received, included in the above, are as follows:
Eveson Trust
Rowlands Trust
Street Café Grant – Worcester City Council
The Kildare Trust
Homeless Link – Personalisation for Housing First
Worcester City Council
Kildare Trust Bequest
Antonio Carluccio Foundation
Worcestershire Community Trust
CSHS (re Andy Howarth)
Morrisons
Worcester Community Funding
Worcester County Council
Albert Hunt Trust
3
Investment income
Dividends received
Deposit account interest
4
Incoming Resources from Charitable Activities
Housing Benefit Rent
Private Rent
Big Lottery Fund Grants
National Lottery Community Fund
Vestia Community Trust (Fusion)
Worcester City Council - Housing First
Sundry Income		 2021
£
78,431
176,940
255,371
2021
£
55,200
9,800
20,000
25,000
10,500
10,000
10,000
10,000
8,500
5,900
5,040
5,000
2,000
-
176,940
2021
£
14,258
161
14,419
2021
£
591,891
88,733
108,690
-
237,817
2,160
1,029,291		 2021
£
78,431
176,940
255,371
2021
£
55,200
9,800
20,000
25,000
10,500
10,000
10,000
10,000
8,500
5,900
5,040
5,000
2,000
-
76,940
2021
£
14,258
161
14,419		 2020
£
77,439
26,000
103,439
2020
£
21,000
-
-
-
-
-
-
-
-
-
-
-
-
5,000
26,000
2020
£
14,044
234
14,278
2020
£
565,454
98,639
102,782
37,873
-
6,676
2,160
813,584

19

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021 (continued…)

5 Direct expenditure on charitable activities

Hostel, Housing First & Resettlement costs
Salaries, NI & Pension
Rents
Utilities
Repairs & Renewals
Insurances
Telephone
Food Costs
Client Welfare
Counselling Costs
Cleaning Consumables
Other Costs
Bad Debt Provision
Project costs
Fundraising Costs
Lottery Community Fund – Hereford Vennture grant share
Direct Project Costs (2021: Street Kitchen)
Client Welfare
Staff Training
Total direct expenditure on charitable activities
6
Central overhead / support costs
Salaries, NI & Pension
Office Costs
IT Costs
Legal, Consultancy & Professional fees
Subscriptions
Accountancy & Audit Fees
Staff Training/Welfare
Staff Recruitment
Bank Charges
Depreciation & (profit)/loss on disposal of assets		 2021
£
551,869
64,740
44,280
14,636
11,177
8,370
53,071
20,825
45,589
19,666
7,818
10,152
852,193
2021
£
3,252
-
13,124
20,543
3,299
40,218
892,411
2021
£
148,414
9,572
17,320
17,084
4,815
7,149
26,421
-
1,390
68,487
300,652		 2020
£
399,034
64,963
41,558
15,876
9,585
6,851
51,882
9,585
40,070
14,914
1,456
11,809
667,583
2020
£
14,308
25,370
2,820
6,241
5,552
54,291
721,874
2020
£
107,141
8,783
8,988
16,253
4,375
3,613
12,136
1,012
1,484
55,403
219,188

20

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021 (continued…)

7 Net Incoming/(outgoing) resources

Net resources are stated after charging/(crediting):

Independent Examiner’s fee
Independent Auditor’s fee
Fees for Accountancy Services
Depreciation - owned assets
Operating leases for property
Operating leases for equipment		 2021
£
-
3,000
1,820
68,487
64,740
6,757		 2020
£
600
-
754
55,403
64,963
6,769

8 Trustees remuneration and expenses

There were no trustees' remuneration or other benefits for the year ended 31st March 2021 nor for the year ended 31st March 2020.

There were no trustees’ expenses paid for the year ended 31 March 2021 (2020: NIL).

9 Staff costs

Wages and salaries
Employers National Insurance
Defined contribution pension costs		 2021
£
634,485
52,480
12,553
699,518		 2020
£
461,875
35,119
9,184
506,178

The average monthly number of employees during the year was 27 (2020: 24). The average number of full-time equivalent employee was estimated to be 16 (2020: 15)

No employees received emoluments in excess of £60,000 during the year (excluding employer’s pension contributions).

Total remuneration paid to key management personnel was £88,129 (2020: £84,300) during the year (excluding employers pension contributions).

The charity contributes to individual pension schemes, which are defined contribution pension schemes, and the amounts charged to the income and expenditure accounts for the year are as stated above.

21

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021 (continued…)

10 Tangible Fixed Assets

Fixtures and
fittings
Motor
vehicles
£
£
COST
At 1st April 2020
477,218
15,250
Additions
91,001
-
Disposals
(13,257)
(11,750)
At 31st March 2021
554,962
3,500
DEPRECIATION
At 1st April 2020
152,877
12,252
Charge for year
67,958
656
Eliminated on disposal
(13,257)
(11,377)
At 31st March 2021
207,578
1,531
NET BOOK VALUE
At 31st March 2020
324,341
2,998
At 31st March 2021
347,384
1,969
11
Social Investments – programme related
Freehold
Property
£
COST OR VALUATION
At 1st April 2020
290,000
Additions
-
Revaluations
-
Disposals
-
At 31st March 2021
290,000		 Totals
£
492468
91,001
(25,007)
558,462
165,129
68,614
(24,634)
209,109
327,339
349,352
Totals
£
290,000
-
-
-
290,000

A freehold property with an original cost of £40,880 was revalued to £150,000 on 31 March 2013 by the trustees following an offer from a third party to purchase the property.

12 Debtors: Amounts falling due within one year

Trade debtors
Prepayments and accrued income		 2021
£
116
10,902
11,018		 2020
£
12,024
4,518
16,542

22

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021 (continued…)

13 Current asset investments

COIF Charities Investment Fund 2021
£
471,008		 2020
£
390,345

The movement in the year of £80,663 is in relation to changes in market value, there were no disposals in the year. The original cost of the investment was £300,000.

14 Creditors: amounts falling due within one year

Trade Creditors
Accruals
Deferred Income (see following note)
Social Security & other taxes
Other creditors
Concessionary loan – Platform Housing		 2021
£
9,408
12,818
239,431
-
6,352
36,000
304,009		 2020
£
6,736
10,381
250,736
11,395
1,780
36,000
317,028

15 Deferred incoming resources

Incoming resources are deferred in accordance with section 5.24 of the Statement of Recommended Practice (FRS102) whereby income is subject to performance-related condition.

Eveson Charitable Trust – Support Worker
Big Sleep Out
National Lottery Community Funding
Worcester City Council - Housing First
Platform Housing – Salary from April 2021		 1.4.20
£
Received
during
the
year
£
Released
to
revenue
£
31.3.21
£
55,200
-
(55,200)
-
2,419
1,354
-
3,773
4,127
-
(4,127)
-
188,990
280,486
(237,817)
231,659
-
4,000
-
4,000
250,736
285,840
(297,144)
239,432
16
Creditors due over 1 year
Concessionary loan – Platform Housing		 2021
£
189,000
189,000		 2020
£
225,000
225,000

Amounts due over 5 years is £45,000 (2020: £81,000).

An interest free loan from Platform Housing was taken out in December 2019 to cover extensive capital works undertaken at the Hostel (as represented within fixed assets). The loan is deemed to be a ‘Concessionary Loan’ in accordance with paragraph PBE34.88 of FRS102 and therefore has not been discounted.

23

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021 (continued…)

17 Operating lease commitments

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one and not later than five years
Later than five years		 2021
£
28,069
14,636
-
42,705		 2020
£
28,655
42,705
-
71,360

18 Related parties

There were no related party transactions in the year (2020: None).

24

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021 (continued…)

19
Movement in funds
Unrestricted funds
General fund
Infrastructure fund
Revaluation reserve
Restricted funds
Eveson Trust – Support Worker
Albert Hunt Trust
Worcester City Council – Housing First
National Lottery Community Fund – Wyre Severn Project
Rowlands Trust – Hostel Rooms Upgrade
Worcester City Council – Street Café
The National Lottery Community Fund (COVID Recovery)
Total funds		 At 1.4.21
715,882
199,465		 Incoming
resources
869,574
-		 Resources
expenses
(805,935)
-		 Gains and
losses
80,663		 Gains and
losses
80,663		 Transfers
-
-		 At 31.3.21
779,521
280,128
915,347
-
5,000
1,240
5,123
-
-
-		 869,574
55,200
-
240,817
4,127
4,800
20,000
104,563		 (805,935)
(36,084)
(5,000)
(219,107)
(9,250)
-
(13,124)
(104,563)		 80,663
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-		 1,059,649
19,116
-
22,950
-
4,800
6,876
-
11,363 429,507 (387,128) - -
-		 53,742
1,113,391
926,710 1,299,081 1,193,063 80,663

25

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021 (continued…)

Prior year movement in funds

Unrestricted funds
General fund
Infrastructure fund
Revaluation reserve
Restricted funds
Personalisation fund
Big Lottery Fund
Eveson Trust – Support Worker
Albert Hunt Trust
Worcester City Council – Housing First
National Lottery Community Fund – Wyre Severn Project
Total funds		 At 1.4.20
667,219
45,000
212,229		 Incoming
resources
757,970
-
-		 Resources
expenses
(754,294)
-
-		 Gains and
losses
-
-
(12,764)		 Gains and
losses
-
-
(12,764)		 Transfers
44,987
(45,000)
-		 At 31.3.21
715,882
-
199,465
924,448
6,228
18,559
-
-
-
-		 757,970
-
102,782
21,000
5,000
6,676
37,873		 (754,294)
(6,241)
(121,341)
(21,000)
-
(5,436)
(32,750)		 (12,764)
-
-
-
-
-
-		 (13)
13
-
-
-
-
-		 915,347
-
-
-
5,000
1,240
5,123
24,787 173,331 (186,768) - 13
-		 11,363
926,710
949,235 931,301 (941,062) (12,764)

26

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

20 Purpose of funds

Eveson Trust – Support Worker

A grant was received from Eveson Trust to finance the role of Trauma Informed Practice Manager for 12 months, to better reflect our shift towards a trauma informed ethos.

Albert Hunt Trust

A grant was awarded to help pay salary costs for residents employed through our Kitchen Assistant Training Programme.

– Worcester City Council Housing First

A pilot scheme commenced mid-March 20, funded by Worcester City Council. Housing First is an internationally recognised and evidence-based model of housing and support for those with chronic housing, health and social care needs. The aim of Housing First is to end repeat and chronic homelessness for a group of people for whom other services are ineffective. The overall philosophy of Housing First is to provide a stable, independent home and intensive personalised support and case management, to homeless people with multiple and complex needs. Housing First is a different model because it provides housing ‘first’, as a matter of right, rather than ‘last’ or as a reward.

– National Lottery Community Fund Wyre Severn Project

A joint venture with Hereford based Vennture Charity, to examine how homelessness services can improve, by putting the people who have lived experiences, in the lead.

Rowlands Trust

A grant for an essential upgrade and maintenance program; specifically, towards to cost of refurbishing 3 hostel rooms.

Worcester City Council – Street Café

Worcester City Council provided a grant to the Street Feeding Stations [AKA Soup Kitchens] during the summer. This was to support their Homeless Prevention work. St Paul's acted as the bank and undertook a very simple contract with the City Council, subsequently distributing the allocation equitably to each SFS. This approach was taken because one of the SFS is not a charity and picking one from 5 would have created tension between them.

– The National Lottery Community Fund COVID Recovery

This grant was awarded as part of the National Lottery Reaching Communities, COVID Response Funding. The money was awarded to cover increased staffing costs and lost revenue. In addition, the funding enabled us to provide emergency resettlement support for 26 weeks, upgrading counselling room and kitchen garden.

21 Material transfers between funds

There are no transfer between funds during the year.

27

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Notes forming part of the financial statements for the year ended 31 March 2021 (continued…)

22 Donations and gifts

Amount
Details £
AIM Foundation 5,000
Alan Flockhart 900
Alpkit Foundation 250
ASDA Foundation 300
Belinda Morgan 490
Bromyard Methodist Church 300
C Glossop 500
C4 Ltd 3,300
Clothworkers Fund 2,630
Earlby Property Investment & Consultancy 5,000
Estate of Grace Fuller 11,111
Estate of Robin Sykes 3,000
Felix Borchardt 609
Groundwork UK 500
J & B Mills 500
K Greenfield 600
Keith Judson 834
Little Malvern Priory 250
M & S Dawson 250
M E Ward 250
Masonic Charitable Foundation 250
Paul Hudson 570
Pauline & David Thorpe 500
Rock Kitchen Harris 500
Sean Wrafter - Worcester Haulage Ltd 1,200
Six Masters Charity 3,000
Springmasters Ltd 1,000
St Barnabas Church 250
St Martins with St Peters PCC 937
St Peter's Baptist Church 1,043
Tesco 'Bags of Help' 500
The Rodway Family Charitable Trust 500
WCC Xmas Quiz 720
WCF Grant - High Sheriff 3,000
Worcester Baptist Church 5,000
Worcester Cathedral 3,000
Worcester City Parish Relief 400
Worcs Lottery Fund 381
Total Donations £250 and above 59,325

28

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2021

Anonymous Donations over £250
Anonymous, sundry smaller & personal donations
Gift Aid
Total Donations		 294
12,281
6,531
78,431

29