2022-03-31-accounts

St Paul’s Hostel

(A company limited by guarantee)

Report and Financial Statements Year ended: 31 March 2022 Charity no: 1043921 Company no: 03009035

St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

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

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Legal and administrative information

Company number:	03009035 (England and Wales)	03009035 (England and Wales)
Charity number:	1043921
Trustees:	D J Morris
	P M Kinsella
	P A Fowler
	C Bridges
	H N Watts	resigned 02/01/2022
	K D Archer
	M A Rothwell
	S Turner
	F Martin
	D Glover
	D De Saulles
Chief Executive:	Mr J Sutton
Company Secretary
& Finance Manager:	D A Collins
Registered Office:	Hillborough
	Tallow Hill
	Worcester
	Worcestershire
	WR5 1DB
Independent
Auditors:	RD Accounting	Limited (Statutory Auditors)
	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 2022

Chair’s Report for the year ended 31 March 2022

This year, our 45[th,] started where the last ended; still amongst the unforeseen challenges, disruptions and delays brought about by the Covid-19 pandemic and national response to it.

All of our services continued to operate throughout the pandemic with only very limited restrictions to protect staff and beneficiaries. Covid pandemic mitigation measures – mask wearing, routine testing, hand washing etc – remained in place.

The uptake of the vaccine offer was strong. There were a few beneficiaries who were vaccine hesitant, but with the use of modest incentives the vast majority took the offer. For those vaccine hesitant we worked with local Public Health and Healthwatch Worcestershire to understand how attitudes could be changed. Attitudes were stubborn and there was only limited success in changing minds.

In early December 2021 six residents in the hostel tested positive and some staff also caught the infection. The outbreak lasted 3 weeks.

We are proud that covid infections did not occur in the hostel for 623 days after the first lockdown in 2020. There were no deaths in the beneficiary or staff community and no cases of hospitalisation. Regretfully, in November 2021, the husband of a member of the hostel staff, died as a result of Covid infection.

There are two important County strategies that are expected to be consulted upon before publication later this year. Both strategies are important to the beneficiaries of St Paul’s.

• a) Worcestershire County Council Health and Well Being Board decided to consult the public, on the revised direction of travel for the 2022-25 Health and Well Being strategy. The consultation will seek public feedback on a proposal that the strategy has more of an ‘upstream’ focus, including the wider social and economic determinants of health. The public consultation begins in April 2022.

• b) The district councils are reviewing the county homelessness strategy that is due for review by the end of 2022. In the autumn of 2021, the CEO was invited to contribute to initial phase of the strategic review. This included the agreement of a unifying purpose, strategic objectives and strategic principles. A consultation of this strategy is anticipated in the late summer 2022.

The Health and Care Bill is expected to achieve Royal Assent in the summer. The main purpose of the legislation is to establish a legislative framework that supports collaboration and partnership-working to integrate services for patients. Locally, St Paul’s is working within the Voluntary and Community Sector (VCS) to understand the implications of the new arrangement and to develop a VCS - ICS Alliance.

St Paul’s Hostel has joined an alliance innovative in Worcester, called the Worcester Grass Roots Alliance (WGA). The other members are Transition Worcester, Duckworth Trust, Worcester Community Trust, Worcester Environmental Group and Tolladine Mission. The WGA is a Community Benefit Society (CBS) and is registered with the Financial Conduct Authority. It combines the benefits of charitable status (taxation concessions) with some of the characteristics of a share company. It has limited liability and the ability to issue share capital and potentially return interest on capital invested. The WGA has a number of projects it wishes to jointly pursue including a new City base ‘hub’, but also to pursue decarbonisation, new housing and improvements to the local environment.

Recruitment and retention of staff has become more difficult. Trustees took the decision to adopt the Real Living Wage rather than the legally mandated National Living Wage. In their considerations they took into account the cost-of-living crisis that emerged in the spring of 2022. Adopting the Real Living Wage is good for society because it helps to reduce poverty, a key causation of homelessness.

Towards the end of the year, Worcester City Council asked us to help them with the Rough Sleeper Accommodation Programme (RSAP). The RSAP programme was born out of the Department for Levelling Up, Housing and Communities capital investment funding from the 2020 pandemic and is delegated to Local Authorities with capital grants administered through Homes England. In Worcester there will be 8 new selfcontained accommodation units, purchased and renovated from the open market by Citizen Housing. These units will be ring fenced for people who experience long-term or recurrent homelessness, and the capital will support the units for 30-years. The ‘Housing-Led’ approach, a close cousin to the Housing First philosophy, is to be used and our expertise made St Paul’s a natural partner.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Chair’s Report for the year ended 31 March 2022 (Continued…)

Fundraising

• a) We were very fortunate to receive continued support from Grants, Donations and Legacies this year, which has allowed us to fund our in-house Counselling, refurbishment of the front-garden and staff and resident well-being sessions. We are very grateful for the ongoing support we have received during these difficult times. Further analysis is included in the notes to the accounts.

• b) Cycle project: We launched our first Crowdfunding appeal to secure funding towards the launch of our Bike Maintenance project. The appeal successfully raised £12K.

• c) Big Sleep Out 2021 took place at the Sixways Stadium in Oct 21. Numbers were down on the previous year, as a result of the continuing impact of COVID-19. The event raised over £18K and was split between Maggs Day Centre, Warriors Foundation and ourselves. We look forward to the 2022 event.

Hostel and Resettlement

Together the hostel and our resettlement Houses of Multiple Occupation (HMO) use the ‘Housing Ready’ approach. Inflow into the hostel and outflow into the HMOs has slowed as a result of Covid-19 and the lock down. This year transitions remained quite static. Over the year a minor restructuring was undertaken to create two Housing Officer positions, working for the Housing Manager. Over the period 1 April 2021 to 31 March 2022:

• a) Number of referrals accepted was 50

• b) Number of referrals declined was 95

• c) Number of counselling hours delivered was 583

• d) Number who abandoned their placement was 8

• e) Number who moved out of St Paul’s to Social Housing 6

• f) Number moved out of St Paul’s to PRS 4

• g) Number who move from Resettlement to Social Housing 1

• h) Number who moved from Resettlement to PRS 1

2021 – 2022 has been positive in many ways. The mini restructure has been successful in enabling us to focus on key areas such as support to residents and staff, referrals, occupancy and rent payments. Overall, the atmosphere within the Hostel is positive, with residents feeling settled and secure.

In the early spring new hard-wearing flooring was fitted in the majority of the hostel corridors to replace the tired looking linoleum flooring that became difficult to keep clean. Corridor walls were also given a fresh coat of paint and together this has brightened up the hostel. The TV room also received a make-over.

Residents of the hostel can take part in boxing, run by a volunteer and in the summer, yoga has been added to evening activities.

Renovation of the enclosed courtyard that is used to enter the hostel main entrance took place in December 2021. The space now has wooden planters, trellis work, wooden cladding around the hostel entrance and a small water feature. This front garden will be re-named the Robin Sykes Memorial Garden after one of the founding trustees who sadly died in 2019.

Three Peer Mentor roles have been created. The purpose of these roles is to give opportunities for growth and development for residents by assigning additional responsibilities and roles. One role is responsible for maintaining the gardens, another for cycle maintenance and the third has wider responsibilities including chaperoning Residents to appointments and harvesting feedback from Residents about their experiences of health services. The role has a dual function as the first ‘ Community Link ’ for Healthwatch Worcestershire. In this Community Link role the Peer Mentor provides feedback from residents about Health and Social Care services and Drug and Alcohol services to Healthwatch Worcestershire, who in turn use it towards their statutory role to represent patient voices in state-funded health and social care services. Our close relationship with Healthwatch provided an opportunity to host a focus group to examine the experiences of residents with the pharmaceutical services. Pharmaceutical services are an important service to people who experience homelessness and this was the first time they had been consulted on what they needed from the pharmaceutical services.

Worcestershire Housing First pilot. The service has now completed two years and will be extended for a third year. The service capacity expanded in Redditch Borough and Malvern Hills District Councils this year by an additional Case Manager in each, albeit the funding is only for 12 months. The service has nearly 40 Participants and to date none have returned to rough sleeping. It is important to remember the limits of Housing First; it is not a panacea for the consequences of many years of social depravation, health disparity or addiction, but it does (and the international evidence supports this) end recurrent homelessness for about 80% of people who

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

use it. The Year 3 evaluation will focus upon those Participants who are still struggling with tenancy sustainment who may in due course be unable to retain their homes resulting from eviction or surrender.

Chair’s Report for the year ended 31 March 2022 (Continued…)

The strategic challenge for the next five years will emerge from the consequences of the geo-political backdrop in Europe and the consequent domestic policies government decide to mitigate the economic impact. We envisage fundraising and leveraging a fair share of any additional state funding to become more difficult at a time when demand, and complexity of the problems people face, are increasing. The operational challenges for 2022-23 are likely to be influencing the continuation of funding for Housing First and retaining high quality staff.

Our priorities for 2022-23 are:

• a) Sustain existing service and existing capacity.

• b) Collaborate within the informal or formal alliances to develop additional or improved services to support our mission.

• c) Influence County strategies so they work towards making homelessness in Worcestershire, rare, brief and non-recurrent.

• d) Confirm/deliver the City Hub project with WGA partners which will provide a single point of contact for those in need comprising day/night community cafe, wrap around advice/support/counselling to get people off the streets; food/clothes bank, urgent and “stepping stone” residential accommodation

• e) Long term plan for modernised hostel with wrap around support services, enhanced kitchen project, communal garden and fruit/vegetable garden, cycle workshop and allied independent “stepping stone” residential accommodation

Claire Bridges – Chair and Trustee

Date 14[th] November 2022

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Trustees’ Annual Report for the year ended 31 March 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st March 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 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. The Council (the term ‘Board’ is used) of Trustees met four times in 2021/22. In addition to the members of the Council of Trustees, the Chief Executive and Finance Manager along with the 3 Service Managers and Fundraising Manager (together this is called Leadership and Management Team) attend Trustee Board meetings.

A General Purposes and Finance Sub-Committee was established in October 2012 in view of the expansion of services being offered and to enable more detailed discussion on the financial figures outside of the full Trustees meetings. There were four meetings in this period. The Chief Executive and Finance Manager also attend these meetings.

The Trustees delegate the responsibility for the day-to-day operation of the charity to Management staff led by the Chief Executive with delegated powers. In addition to the full and part time staff, the charity also uses volunteer workers whose value cannot be precisely measured in terms of cost. The volunteers are under the supervision and coordination of each Service Manager. Volunteers have numerous roles but the majority provide daily kitchen serving duties.

At the present time, the staff consists of:

• 1 Chief Executive

• 1 Finance Manager/ Company Secretary (part time)

• 1 Housing Manager

• 2 Housing Officers

• 1 Housing Services Manager

• 9 Project Workers (full and p/time)

• 2 Housekeepers (part time)

• Up to 2 Relief Workers (part time)

• 1 Fund Raising Manager

• 1 Finance Officer (part time)

• 1 Chef and Catering Manager

• 2 part time Kitchen Assistants (residents or former residents)

The Worcestershire Housing First Pilot service began in mid-March 2020 and continues to be funded until March 2023. This currently employs;

• 1 Housing First Service Manager

• 7 Housing First Case Managers

• 2 Peer Support Workers

In addition, the staff are supported by up to 30 volunteers.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Trustees’ Annual Report for the year ended 31 March 2022 (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 previous page together with the legal details of the charity.

While the first Point of Contact for potential trustees is the CEO, the Chair of Trustees 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. Trustees understand their duties as charity trustees and company directors and training is offered with external national providers. They meet the Chair, Chief Executive and Finance Manager and visit the Hostel and various Projects to understand the culture and ethos of St Paul’s. 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 Board level (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 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:

• a) Respect for others. We will always treat people in the way we would want to be treated ourselves.

• b) People can change. With encouragement, perseverance and through appropriate relationships, people can change.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Trustees’ Annual Report for the year ended 31 March 2022 (continued…)

• c) Fairness. We will treat everyone in our services fairly. This means we will do our very best to get everyone what they need. Being fair does not mean everyone will always get the same things, as it depends on a person’s assessed need.

• d) Self-help. Individual responsibility for change is important, if change is to occur.

• e) Knowing our limits. We know what we are good at and what we are not. There are limits to the help we can offer and where we cannot help, we always explain why.

• f) The Community. The individual is important but we have a bias towards the well-being of the community.

• g) A strength-based approach. In helping people, we take into account what a person has and what they can do, rather than what they do not have and what they cannot do.

Achievements and Performance

Summary of main achievements:

• a) Hostel occupancy levels have remained high at 93.4% this year and the hostel accommodation has helped over 60 people this year.

• b) Provision of the Cognitive Behavioural Therapy (CBT) counselling service to over 70 people. The waiting time is less than 2 days with compares very favourably to national NHS guidance under the IAPT programme[*] .

• c) Four residents have taken part in our kitchen assistant scheme.

• d) St Paul’s supports the Worcester Cares Homeless Forum. The membership expanded to include all Worcester Street kitchens (soup kitchens), the co-design of an approach to support the use of Public Space Protection Orders and a pilot to reduce the amount of discarded sleeping bags in the city centre.

How our activities deliver public benefit

The main areas of activity and who 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.

The CEO co-opted to the Board of Healthwatch Worcestershire, with specific responsibilities for homelessness health services.

St Paul's Hostel

St Paul's hostel is central to our service. It has facilities for 42 people plus two self-contained resettlement flats on the same site. The hostel provides accommodation, now all single rooms, nutritious food and tenancy support. The Project Workers (often called Support 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

St Paul's own 2 properties and rent 2 Houses of Multiple Occupation (HMO) that are known as resettlement properties. These 18 beds provide the next step from the hostel, using the Housing Ready philosophy. From

• 75% finish course of treatment within 6 weeks or 95% within 18 weeks.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

this stage, staff offer Housing Management services to help a person retain the tenancy, building resilience and self- efficacy.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Trustees’ Annual Report for the year ended 31 March 2022 (continued…)

St Paul’s Counselling Service

The in-house CBT counselling service provides almost immediate access to an accredited counsellor for crisis intervention or therapy. Service utilization is above 93% and we have further reduced the waiting time for appointments.

Housing First Project

The Worcestershire Housing First Pilot, funded by the Business Rates Retention funding from Worcestershire County Council and 4 district councils, continues in its second year. To date it has rehomed over 50 people, who had previously been deemed very difficult to house by Local Authorities. Unfortunately, 3 people in this service have died this year. One had returned to rough sleeping. The University of Worcester will evaluate the pilot using similar framework to the national Housing First pilots in Manchester, Liverpool and Birmingham.

Financial Review

High levels of occupancy and a higher level of grants, legacies and donations have helped substantially to reduce the budgeted deficit for this financial year, which was welcome news. The key financial risk for the coming year, continues to be the funding of those services not funded by Housing Benefit Income, namely Counselling Services and the Kitchen Service Project. However, we have been fortunate in already securing some part funding for these activities for the next financial year.

Plans for future periods

Our future plans will focus on:

• Creating a work force of people who have the right skills, competencies and attitude of mind to work in a Trauma Informed way.

• Deliver Trauma-Informed services that meet the needs of the homeless person and prevent the need to re-access homeless services in the future.

• Change public attitudes towards homelessness at the local and regional level, so that the public want change and homelessness is less likely.

• Have sustainable income and a capital investment programme, so we can help homeless people until homelessness is ended.

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 £837,844 (£779,521). There is currently a funding gap which may need to be partly funded by reserves, until a permanent solution has been found.

On this basis, The Trustees consider that the 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 or 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).

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Trustees’ Annual Report for the year ended 31 March 2022 (continued…)

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:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP 2015 (FRS 102)

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.

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 14[th] November 2022.

Claire Bridges – Chair and Trustee

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

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 2022 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:

• give a true and fair view of the state of the charitable company’s affairs as at 31 March 2022, and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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:

• the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or

• the charitable company has not kept adequate accounting records; or

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

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:

• Identifying laws and regulations that could reasonably give rise to a material misstatement in the financial statements

• Enquiring with management and office holders on their own considerations on fraud

• Considering financial pressures, incentives, opportunity, and motivations that may lead to fraud

• Reviewing areas where management is required to make significant subjective judgements (the key areas identified here include fixed asset valuation/depreciation and allocation of restricted fund expenditure)

• Ensuring expenditure is within the scope of the charities aims, objectives and in line with funding requirements.

• Reviewing manual journal entries to ensure they are appropriate and no subject to any bias, thus reducing the risk of misstatement due to management override of controls

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.

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 2022

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: 14[th] November 2022

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Statement of Financial Activities (including summary income and expenditure account) for the year ended 31 March 2022

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Company registration number: 03009035

Balance Sheet as at 31 March 2022

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 14[th] November 2022 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 2022

Statement of Cash Flows for the year ended 31 March 2022

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022

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.

• (b) Fund accounting

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.

• (c)

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.

• (d) Resources expended

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.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022 (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.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022 (continued…)

2 Income from donations and legacies

3 Investment income

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022 (continued…)

• 4 Incoming Resources from Charitable Activities

5 Direct expenditure on charitable activities

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022 (continued…)

6 Central overhead / support costs

7 Net Incoming/(outgoing) resources

8 Trustees remuneration and expenses

There were no trustees' remuneration or other benefits for the year ended 31st March 2022 nor for the year ended 31st March 2021.

There were no trustees’ expenses paid for the year ended 31 March 2022 (2021: NIL).

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022 (continued…)

• 9 Staff costs

The average monthly number of employees during the year was 31 (2021: 27). The average number of full-time equivalent employee was estimated to be 22 (2021: 19)

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 £95,323 (2021: £88,129) 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.

10 Tangible Fixed Assets

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022 (continued…)

11 Social Investments – programme related

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

13 Current asset investments

The movement in the year of £40,649 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

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022 (continued…)

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.

16 Creditors due over 1 year

Amounts due over 5 years is £6,000 (2021: £45,000).

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.

17 Operating lease commitments

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

18 Related parties

There were no related party transactions in the year (2021: None).

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022 (continued…)

19 Movement in funds

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022 (continued…)

Prior year movement in funds

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

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.

Bike Project Fund

Funding was secured through a Crowdfunding Campaign.

St Paul's Bike Maintenance project was established with the aim to provide residents with the skills and resources to repair and maintain their bikes as well as provide a safe storage area. We have partnered with an experienced bike mechanic who will provide training for our appointed Resident Bike Maintenance Mentor, who in-turn will support and teach other residents the skills they require. The mentor oversees the day to day running of the project.

WCF Fund - Trauma Informed Manager

A grant was awarded to fund the position of the TI Hostel Manager for the period of September 2021 - March 2022.

B&Q Foundation

A grant for the refurbishment of 4 hostel rooms.

Platform KA Salary

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

Archer Trust

This grant enabled residents to earn points which could be converted into reward vouchers, for doing jobs around the hostel such as gardening and cleaning.

WCC - PHE Trauma Grant

To provide weekly on-site counselling to the residents of St Paul’s.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

21 Material transfers between funds

The funds transfers in the year are as follows: -

• Eveson Trust Support Worker – to cover shortfall in funding for Trauma Informed Practice Manager

• Bike Project Fund – expenditure has been capitalised but the expenditure has been incurred, therefore the balance has been cleared to NIL.

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St Paul’s Hostel – Annual Report and Financial Statements Year ended 31 March 2022

Notes forming part of the financial statements for the year ended 31 March 2022 (continued…)

• 22 Donations and gifts

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