Registered number: 02884503 Charity number: 1044311
3.13
(A Company Limited by Guarantee)
UNAUDITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
3.13
(A Company Limited by Guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Company, its Trustees and Advisers | 2 |
| Trustees' Report | 3 - 6 |
| Independent Examiner's Report | 7 |
| Statement of Financial Activities | 8 |
| Balance Sheet | 9 |
| Notes to the Financial Statements | 10 - 17 |
3.13
(A Company Limited by Guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 5 APRIL 2021
| Trustees | P J Winstone, Trustee |
|---|---|
| H Wrigglesworth, Trustee | |
| C C Taylor, Trustee | |
| H Bunce, Secretary | |
| Company registered number 02884503 Charity registered number 1044311 Registered office 2 Maria Drive Stockton on Tees TS19 7JL Accountants Armstrong Watson Audit Limited Chartered Accountants York House Northallerton North Yorkshire DL6 2XQ Bankers Yorkshire Bank plc 46 High Street Stockton on Tees TS18 1SE |
Page 2
3.13
(A Company Limited by Guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 5 APRIL 2021
The Trustees present their annual report together with the financial statements of the 3.13 for the period 6 April 2020 to 5 April 2021. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
The Company also trades under the names Turnaround Homes and Harry's Farm.
The objects of the Charity are to provide welfare and charitable services to advance religion in accordance with the tenets of the Christian faith, including the provision of charitable services for the homeless, poor and sick. The Charity seeks to achieve it's objectives by the provision of housing to young people and to assist them to support themselves in society.
Objectives and activities
a. Policies and objectives
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)', and in particular to its suplementary public benefit guidance on integration into the community and on fee charging.
b. Activities undertaken to achieve objectives
The objects of the Charity are to provide welfare and charitable services to advance religion in accordance with the tenets of the Christian faith, including the provision of charitable services for the homeless, poor and sick. The Charity seeks to achieve it's objectives by the provision of housing and compassion to young people and to assist them to support themselves in society.
The Charity meets it's charitable objectives by providing accommodation for homeless young men at four properties in Stockton on Tees, three of which are owned by the Charity. This project is undertaken under the name of Turnaround Homes. The Charity also owns a farm in West Auckland, County Durham, Harry's Farm, which is used to provide further accommodation and to develop the skills of the clients of the Charity. The Charity is principally funded in its work by Supporting People and local authorities. The Charity also receives a small number of charitable gifts. The Charity's principal expenditure is on wages to provide support services for the Charity's clients and to fund and repay loans that were taken out to acquire and develop the houses and farm. The Charity had a deficit in the year of £39,478 (2020: surplus £55,059).
Achievements and performance
a. Key performance indicators
The Charity has achieved it's objectives, as referred to above, during the year, and continues to provide excellent supportive care to its clients. The Charity is well managed and effectively run enabling care and development to be achieved within the cost limits imposed by funding providers.
Page 3
3.13
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
Achievements and performance (continued)
b. Review of activities
Other than meeting our charitable objectives through ongoing activities, the properties at Leybourne and Egglestone Terrace and Harry's Farm were adapted where necessary to be made COVID safe. New boilers, security cameras and fire alarm systems have been installed/upgraded and exterior paintwork refreshed.
Financial review
a. Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.
b. Reserves policy
It is the policy of the Charity to maintain unrestricted income funds at a level which provides sufficient funds to cover any unexpected reduction in income or additional, non-recurring expenditure. The Tustees currently consider that the ideal level of reserves equates to approximately six months recurring unrestricted expenditure.
The Trustees consider the Charity to have free reserves (net current assets) of £174,997 at the balance sheet date. These are significantly less than the total reserves of £813,624 represented in the balance sheet. This is due to the bulk of reserves representing fixed assets as disclosed in note 15.
Free reserves have increased by £48,986 year on year.
Budgets and forecasts have been set with a view to continue to generate surpluses that will help to secure a sustainable future for the Charity.
c. Principal risks and uncertainties
The Trustees have assessed the major risks to which the Charity is exposed and are satisfied that systems are in place to mitigate exposure to those risks.
The Trustees are cognisant to the fact that the COVID 19 pandemic has adversley impacted many charitable organisations. The Trustees have considered this and are satisfied that with continued bank support, core funding support from Stockton Borough Council and appropriate safeguards to protect both staff and service users that the Charity has adequately addressed any related risk that may directly impact them.
d. Financial risk management objectives and policies
The Statement of Financial Activities shows net outgoing resources for the year of £39,478, with reserves at 5 April 2021 of £813,624.
The present level of funding is adequate to support the continuation of the operation of the Charity for the medium term and the Trustees consider the financial position of the Charity to be satisfactory.
Page 4
3.13
(A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
e. Principal funding
The funding of the Charity's current activity is totally dependent upon the continuation of a contract with Stockton Borough Council and the Accommodation based Housing Related Support Service for Homeless Complex Individuals who are the Charity's primary funding body. Subject to continuation of sufficient funding from Stockton Borough Council and Supporting People, the Charity will continue to provide services, including provision of residential accommodation, in pursuit of it's objectives.
Structure, governance and management
a. Constitution
3.13 is registered as a charitable company limited by guarantee and was set up by a Memorandum of Understanding and Articles of Association. It's registered charity number is 1044311.
b. Methods of appointment or election of Trustees
The management of the Company is the responsibility of the Trustees who are elected and co-opted under the terms of the Trust deed.
c. Organisational structure and decision-making policies
The Charity is organised so that the Trustees meet regularly and are responsible for the stategic direction and policy of the Charity. The day to day administration of the Charity is carried out by the Managing Director who is also a Trustee. Other staff members are employed as appropriate so that the Charity may satisfy its objectives.
d. Policies adopted for the induction and training of Trustees
There is no formal induction or training process, however new Trustees will have been shown the facilities provided and been introduced to the staff and residents as appropriate. New trustees are encouraged to read the various Charity Commission publications directed to new trustees and to ask any questions that they might have regarding the operations of the Charity, it's funding and their responsibilities as directors and charity trustees.
Page 5
3.13 (A Company Limited by Guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 5 APRIL 2021
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' 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 . Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, 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 of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) 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 Company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees and signed on their behalf by:
P J Winstone H Wrigglesworth
Date:
Page 6
3.13
(A Company Limited by Guarantee)
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 5 APRIL 2021
Independent Examiner's Report to the Trustees of 3.13 ('the Company')
I report to the charity Trustees on my examination of the accounts of the Company for the year ended 5 April 2021.
Responsibilities and Basis of Report
As the Trustees of the Company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent Examiner's Statement
Since the Company's gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
This report is made solely to the Company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the Company's Trustees those matters I am required to state to them in an Independent Examiner's Report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Company and the Company's Trustees as a body, for my work or for this report.
Signed: Dated: Simon Turner ACCA Armstrong Watson Audit Limited Chartered Accountants Northallerton
Page 7
3.13
(A Company Limited by Guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 5 APRIL 2021
| Note Income from: Charitable activities 3 Total income Expenditure on: Charitable activities 4 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Unrestricted funds 2021 £ 334,258 334,258 373,736 373,736 (39,478) 853,102 (39,478) 813,624 |
Total funds 2021 £ 334,258 334,258 373,736 373,736 (39,478) 853,102 (39,478) 813,624 |
Total funds 2020 £ 380,550 |
|---|---|---|---|
| 380,550 | |||
| 325,491 | |||
| 325,491 | |||
| 55,059 | |||
| 798,043 55,059 |
|||
| 853,102 |
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 10 to 17 form part of these financial statements.
Page 8
3.13
(A Company Limited by Guarantee) REGISTERED NUMBER: 02884503
BALANCE SHEET AS AT 5 APRIL 2021
| Note Fixed assets Tangible assets 8 Current assets Stocks 9 Debtors 10 Cash at bank and in hand Creditors: amounts falling due within one year 11 Net current assets Total assets less current liabilities Creditors: amounts falling due after more than one year 12 Total net assets Charity funds Unrestricted funds 13 Total funds |
2,000 9,445 202,887 214,332 (39,335) |
2021 £ 753,904 753,904 174,997 928,901 (115,277) 813,624 813,624 813,624 |
2,000 14,381 144,194 160,575 (34,564) |
2020 £ 727,091 |
|---|---|---|---|---|
| 727,091 126,011 |
||||
| 853,102 - |
||||
| 853,102 | ||||
| 853,102 | ||||
| 853,102 |
The Company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
P J Winstone
Date:
The notes on pages 10 to 17 form part of these financial statements.
Page 9
3.13
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
1. General information
3.13 is a private company limited by guarantee incorporated in England and Wales with use of 'Limited' exemption. The registered office is 2 Maria Drive, Stockton on Tees, TS19 7JL. The members of the company are the Trustees named on page 2. In the event of the company being wound up, the liability in respect of the guarantee is limited to £1 per member of the company.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
3.13 meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
2.2 Going concern
The Trustees are satisfied that the reserves are sufficient to meet the obligations of the Charity, for the period of twelve months from the date of their approval, as they fall due. As such the accounts have been prepared on a going concern basis.
2.3 Income
All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.
All expenditure is inclusive of irrecoverable VAT.
2.5 Tangible fixed assets and depreciation
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Page 10
3.13
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
2. Accounting policies (continued)
2.5 Tangible fixed assets and depreciation (continued)
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, .
Depreciation is provided on the following basis:
- Freehold property Depreciation is not provided on land & property Plant and machinery - 50% Straight line Motor vehicles - 25% Straight line
2.6 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
2.7 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.8 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.9 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.
2.10 Financial instruments
The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
2.11 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 Company and which have not been designated for other purposes.
Page 11
3.13 (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
3. Income from charitable activities
| Rental income and support services Sale of plants grown by client Total 2021 |
Unrestricted funds 2021 £ 332,048 2,210 334,258 |
Total funds 2021 £ 332,048 2,210 334,258 |
Total funds 2020 £ 375,425 5,125 |
|---|---|---|---|
| 380,550 |
4. Analysis of expenditure on charitable activities
Summary by fund type
| Wages and salaries Depreciation Accountancy Other costs |
Unrestricted funds 2021 £ 249,519 7,336 4,661 112,220 373,736 |
Total funds 2021 £ 249,519 7,336 4,661 112,220 373,736 |
Total funds 2020 £ 217,970 6,445 4,721 96,355 |
|---|---|---|---|
| 325,491 |
Other costs include costs of running the farm, transport and costs relating to staff and service users and premises costs.
5. Independent examiner's remuneration
| 2021 | 2020 | |
|---|---|---|
| £ | £ | |
| Fees payable to the Company's independent examiner for the independent | ||
| examination of the Company's annual accounts | 4,200 | 4,140 |
Page 12
3.13 (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
6. Staff costs
| Wages and salaries | 2021 £ 249,519 249,519 |
2020 £ 217,970 |
|---|---|---|
| 217,970 |
The average number of persons employed by the Company during the year was as follows:
| Charitable work Administration |
2021 No. 13 1 14 |
2020 No. 14 1 |
|---|---|---|
| 15 |
No employee received remuneration amounting to more than £60,000 in either year.
7. Trustees' remuneration and expenses
During the year, one or more Trustees has been paid remuneration or has received other benefits from an employment with the Company. Harry Wrigglesworth received a salary for his role as manager. The remuneration was less than £60,000 and approved by the Trustees.
During the year ended 5 April 2021, expenses totalling £3,627 were reimbursed or paid directly to 1 Trustee (2020 - £5,295 to 1 Trustee).
Page 13
3.13 (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
8. Tangible fixed assets
| Cost or valuation At 6 April 2020 Additions At 5 April 2021 Depreciation At 6 April 2020 Charge for the year At 5 April 2021 Net book value At 5 April 2021 At 5 April 2020 9. Stocks Finished goods and goods for resale 10. Debtors |
Freehold property £ 724,826 - 724,826 - - - 724,826 724,826 |
Plant and machinery £ 40,444 25,649 66,093 38,179 6,471 44,650 21,443 2,265 |
Motor vehicles £ 29,356 8,500 37,856 29,356 865 30,221 7,635 - 2021 £ 2,000 |
Total £ 794,626 34,149 828,775 67,535 7,336 74,871 753,904 727,091 2020 £ 2,000 |
||
|---|---|---|---|---|---|---|
| Due within one year Trade debtors Other debtors |
2021 £ 4,883 4,562 9,445 |
2020 £ 12,972 1,409 |
|---|---|---|
| 14,381 |
Page 14
3.13 (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
11. Creditors: Amounts falling due within one year
| Bank loans Trade creditors Other taxation and social security Pension fund loan payable Other creditors Accruals and deferred income |
2021 £ 6,388 1,249 2,513 708 24,266 4,211 39,335 |
2020 £ 2,729 1,029 2,046 132 24,489 4,139 |
|---|---|---|
| 34,564 |
A new bank loan of £125,000 was advanced in October 2020, the loan is secured with a fixed and floating charge against the property in note 8. This is due for repayment in installments by 2035.
12. Creditors: Amounts falling due after more than one year
| Bank loans Included within the above are amounts falling due as follows: Between one and two years Bank loans Between two and five years Bank loans Over five years Bank loans |
2021 £ 115,277 2021 £ 6,642 21,518 87,117 |
2020 £ - |
||
|---|---|---|---|---|
| 2020 £ - - |
||||
| - |
Page 15
3.13
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
13. Statement of funds
| Statement of funds - current year Unrestricted funds General funds Statement of funds - prior year Unrestricted funds General funds Summary of funds Summary of funds - current year General funds Summary of funds - prior year General funds |
Balance at 6 April 2020 £ 853,102 Balance at 1 April 2019 £ 798,042 Balance at 6 April 2020 £ 853,102 Balance at 1 April 2019 £ 798,042 |
Income £ 334,258 Income £ 380,850 Income £ 334,258 Income £ 380,850 |
Expenditure £ (373,736) Expenditure £ (325,790) Expenditure £ (373,736) Expenditure £ (325,790) |
Balance at 5 April 2021 £ 813,624 |
|---|---|---|---|---|
| Balance at 5 April 2020 £ 853,102 |
||||
| Balance at 5 April 2021 £ 813,624 |
||||
| Balance at 5 April 2020 £ 853,102 |
14. Summary of funds Summary of funds - current year
Page 16
3.13 (A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 5 APRIL 2021
15. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total |
Unrestricted funds 2021 £ 753,904 214,332 (39,335) (115,277) 813,624 |
Total funds 2021 £ 753,904 214,332 (39,335) (115,277) 813,624 |
|---|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Total |
Unrestricted funds 2020 £ 727,091 160,574 (34,564) 853,101 |
Total funds 2020 £ 727,091 160,574 (34,564) 853,101 |
|---|---|---|
Page 17