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← Herring House Trust (Great Yarmouth)

2021-03-31-accounts

HERRING HOUSE TRUST (GREAT YARMOUTH)

AUDITED ACCOUNTS

31 MARCH 2021

Registered Charity No. 1057387

Company No. 03202862

Herring House Trust (Great Yarmouth)

Index to Accounts

For The Year Ended 31 March 2021

Page No.
Report of the Board 1 - 7
Report of the Auditor 8 - 11
Statement of Comprehensive Income 12
Balance Sheet 13
Statement of Changes in Reserves 14
Statement of Cashflows 15
Notes to the Accounts 16 - 29

Herring House Trust (Great Yarmouth)

Report of the Board

For The Year Ended 31 March 2021

The Management Committee has pleasure in presenting its report and accounts for the year ended 31 March 2021.

REFERENCE AND ADMINISTRATION INFORMATION

Charity Name: Herring House Trust (Great Yar
Registered Charity No: 1057387
Registered Company No: 03202862
Homes England registration No: LH4261
Registered Address: Bauleah House
51 St Nicholas Road
Great Yarmouth
Norfolk NR30 1NR
Management Committee (Trustees): C Beales – Chairman
B Robinson – Treasurer
D Cooper
G Doyle
M Drewery
E Pallant
J Shrimpton
Operations Manager: G Collin
Client Services Manager: L Fleming
Auditor: Lovewell Blake LLP
Chartered Accountants
& Statutory Auditor
Bankside 300
Peachman Way
Broadland Business Park
Norwich
Norfolk
NR7 0LB
Bankers: National Westminster Bank Plc
Market Place
Great Yarmouth
Norfolk
NR30 1YT

Herring House Trust (Great Yarmouth)

1

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2021

OBJECTIVES AND ACTIVITIES

The principal objectives are to provide resettlement and outreach support services, together with an open access hostel for the single homeless in the Great Yarmouth area.

In order to fulfil the above objectives, the Trust continues to provide supported housing accommodation at both its hostel and halfway houses.

Mission statement

Our vision is that everyone has a safe and secure place to live, where they can begin to achieve their goals and move out of homelessness.

We achieve this through:

Public benefit

The Management Committee have had due regard to the guidance issued by the Charity Commission on Public Benefit.

The Trust was established to provide emergency accommodation and support to single homeless people in Great Yarmouth.

Through its activities the Trust aims to provide opportunities to those individuals motivated to change and for those who require longer to begin a process of change. It is recognised that for some individuals the long term goal of change may not be realised.

In order to achieve its aims, the Trust endeavours to provide a range of services to support homeless people and through partnership working we are able to provide access to specialist intervention services, with a view to establishing ongoing relationships aimed at addressing all aspects of physical, emotional and mental wellbeing.

2

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2021

ACHIEVEMENTS AND PERFORMANCE

Review of the year

In 2020/2021 the Trust continued to offer our services within our hostel facility, providing 27 units of accommodation and support to single homeless people and 4 units of accommodation in our High Support Unit for people undergoing a community detox programme.

The Halfway House Schemes continued to provide additional move-on accommodation. The Trust operated its Pathway Project, supporting some of the most vulnerable homeless people in our community.

In addition, the Trust has been able to offer an in-house counselling service to complement our support structures. The Trust offers 3 self-contained maisonettes, as a final stage, move-on option for service users. The houses are independent, with low level support offered to tenants.

Redevelopment on the Herring Centre, with move on accommodation and the Pathway House has now been completed. Service users have taken up accommodation in our new properties.

The Trust has continued to fulfil its objective of providing support and accommodation to single homeless people in Great Yarmouth by offering supported housing within the new hostel facility and halfway houses.

As we continued to work through the pandemic, the Trust took a number of measures to prevent the effects of COVID-19 within the Organisation. Rigorous risk assessment was undertaken and health and safety measures were implemented, such as work teams, social distancing and PPE’s. This allowed us to continue to offer a full service across all of our schemes.

All of our accommodation remained occupied and we continued to offer support to our client group, on a daily basis. Our COVID Strategy has been effective and Staff and Clients continue to live and work in a safe environment. We will continue to follow the national guidelines and advice, working in the safest way possible to ensure the Organisation’s ability to continue to offer our services.

VALUE FOR MONEY

The Regulator of Social Housing (RSH) has published a new value for money standard which must be adhered to by registered Providers. This includes the need to publish nine measures in a standard form to enable comparison across the sector, accepting that there will be variances associated with each business’s policies, strategy and focus.

----- Start of picture text -----
VFM Metric 2021 2020
1. Reinvestment % 2.3% 15.1%
2. New supply delivered (social housing units %) - 7%
- - -
3. New supply delivered (non social housing units %)
4. Gearing % (17.2%) (15.6%)
5. EBITA MRI interest cover % 1,089.6% 1,441.5%
6. Headline social housing cost per unit £15,928 £15,059
7. Operating margin (social housing) % 4% 7.8%
8. Operating margin (overall) % 4% 7.8%
9. ROCE % 1.5% 3.0%
----- End of picture text -----

The Board are satisfied value for money is achieved through the full provision of services at a rate which is below that of local providers.

3

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2021

Key performance indicators

The Trust has continued to achieve its objectives for the year, offering ongoing support and accommodation through various stages of its services. We are committed to delivering effective housing solutions to single homeless people in Great Yarmouth.

Throughout the year management have monitored activity levels and key performance indicators identifying areas such as outstanding housing benefit and top payments, client referrals and engagement, occupancy levels and number of clients moving-on and their eventual destination.

CORPORATE GOVERNANCE

The Management Committee are committed to achieving good governance and being an efficient provider of services, meeting both regulatory codes and standards.

The Trust has also considered how it achieves value for money in delivering services to meet the needs of single homeless people in Great Yarmouth; this is assessed over four key areas of operations, being financial measures, cost measures, asset measures and people measures.

FINANCIAL REVIEW

The Trust’s principal funding sources are predominately rent and service charges together with the Housing Related Support grant.

As at 31 March 2021 total reserves amounted to £1,691,119 (2020: £1,601,707) of which £1,690,619 (2020: £1,587,284) related to unrestricted funds and £500 (2020: £14,423) to restricted funds.

The Trust had a net surplus in the year of £89,412 (2020: net surplus £61,880) as shown on page 12 of the accounts.

Reserves

The Management Committee is mindful of the need for sufficient reserves to be maintained to ensure the continued operation of the Trust on a day to day basis. It is the aim of the committee to maintain sufficient reserves to cover 3 months’ cash expenditure. At 31 March 2021 net current assets within the unrestricted funds were £481,574 (2020: £363,411) which represents approximately 6 months’ expenditure. The Trust also had net current assets within the restricted funds of £500 (2020: £14,423).

The Trustees were also aware at the year-end that loan repayments will be made in the following 12 months. This will be met from the Trust’s free reserves.

PLANS FOR THE FUTURE

The Trust will focus on the development of services within the Herring Centre. The Centre will be used to support people who are sleeping on the streets in Great Yarmouth and who are insecurely housed. The Trust will operate a drop-in centre, with a focus on wellbeing and support for those who are experiencing loneliness and isolation.

4

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Herring House Trust operates as a charitable trust, registered with the Charities Commission (Registration Number 1057387) and is approved as a Registered Social Landlord under Section 3 of the Housing and Regeneration Act 2008.

Recruitment and appointment of Management Committee

Management Committee members shall be persons who through residence, occupation, employment or otherwise have special knowledge of the area of benefit or who are otherwise able by virtue of their personal or professional qualifications to make a contribution to the pursuit of the objects or management of the charity.

Induction and training of Management Committee

All Management Committee members are provided with copies of:

In addition, Management Committee members are encouraged to read Charity Commission and other newsletters and to attend courses designed to keep them abreast of their duties and responsibilities.

Organisational structure

A Management Committee meets on a regular basis, administers the Trust and its finances. An operations manager is appointed by the Committee to manage the day to day operations of the Trust.

Key management personnel salary review

There are arrangements for salary review of key staff, which is decided at annual pay reviews by Trustees.

Directors

The members of the Management Committee, who are directors of the company within the meaning of the Companies Act 2006 and held office throughout the year are shown on Page 1.

5

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Risk assessment

The Management Committee have undertaken a review of the risks faced by the Trust and have implemented systems to mitigate these risks. The risk assessment is reviewed on an annual basis.

The Board acknowledges its overall responsibilities for overseeing and reviewing its effectiveness in the delivery of services to homeless people in Great Yarmouth. A system of internal control exists to ensure reliability of financial and operational information with Herring House Trust. Internal systems ensure the safeguarding of the Trust’s assets and interests.

The principal risks identified are:

Responsibilities of the Management Committee

The Management Committee (who are also directors of Herring House Trust (Great Yarmouth) for the purposes of company law) are responsible for preparing the Report of the Board and the financial statements in accordance with applicable law and regulations.

Company law and registered social housing legislation require the Management Committee to prepare financial statements for each financial year. Under that law the Management Committee have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Management Committee 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 organisation and of its income and expenditure for that period.

6

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2021

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Responsibilities of the Management Committee (continued)

In preparing the financial statements, the Management Committee is required to:

The Management Committee is responsible for keeping adequate accounting records that are sufficient to show and explain the organisation’s transactions and disclose with reasonable accuracy at any time the financial position of the organisation and to enable it to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019. They are also responsible for safeguarding the assets of the organisation and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We, the Management Committee of the charity who hold office at the date of approval of these Financial Statements, as set out above, can confirm so far as we are aware that:

Auditor

Lovewell Blake LLP are willing to continue as auditor.

Small company provisions

This report has been prepared in accordance with the special provisions for small companies under Part 415A of the Companies Act 2006.

Signed on behalf of the Management Committee

C BEALES

Date: 17/12/2021

7

Independent Auditor’s Report to the Members of

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2021

We have audited the financial statements of Herring House Trust (Great Yarmouth) for the year ended 31 March 2021 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Reserves, the Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards 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 association 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 Management Committee's 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 association'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 board with respect to going concern are described in the relevant sections of this report.

8

Independent Report of the Auditor to the Members of

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2021

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The Management Committee 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the association and its environment obtained in the course of the audit, we have not identified material misstatements in Report for the Board.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

9

Independent Report of the Auditor to the Members of

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2021

In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:

Responsibilities of the board

As explained more fully in the Management Committee’s Responsibilities Statement set out on pages 6 and 7, the Management Committee (who are also the directors of the organisation 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 board 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 board is responsible for assessing the association’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 board either intends to liquidate the organisation or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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:

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

10

Independent Report of the Auditor to the Members of

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2021

Use of our report

This report is made solely to the housing organisation’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and Section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the organisation’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 organisation and the organisation’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Bankside 300 Peachman Way Mark Proctor FCA DChA (Senior Statutory Auditor) Broadland Business Park For and on behalf of Lovewell Blake LLP Norwich Statutory Auditor Norfolk NR7 0LB Date: 20/12/2021

11

Herring House Trust (Great Yarmouth)

Statement of Comprehensive Income (including Income and Expenditure Account)

For The Year Ended 31 March 2021

Notes
Turnover
3
Operating expenditure
7
Operating surplus
Other income
3
Interest receivable
Interest and financing costs
Total comprehensive income for the year
9
Reserve brought forward
Reserves carried forward		 Total Funds
2021
2020
£
£
931,890
882,209
(860,047)
(813,191)
71,843
69,018
24,122
-
30
146
(6,583)
(7,284)
89,412
61,880
1,601,707
1,539,827
1,691,119
1,601,707		 Total Funds
2021
2020
£
£
931,890
882,209
(860,047)
(813,191)
71,843
69,018
24,122
-
30
146
(6,583)
(7,284)
89,412
61,880
1,601,707
1,539,827
1,691,119
1,601,707

69,018
-
146
(7,284)
61,880
1,539,827
1,601,707

There are no recognised gains or losses during the year other than as stated above.

The statement of comprehensive income reflects the activity during the year which is of a continuing nature.

The accounts were approved by the Management Committee on 17/12/2021.

C BEALES

B ROBINSON

The notes set out on pages 16 to 29 form an integral part of these accounts

12

Herring House Trust (Great Yarmouth)

Balance Sheet

As at 31 March 2021

Company Number: 03202862

Notes

Fixed Assets
Tangible fixed assets
10
Current Assets
Debtors
11
Cash and bank balances
Creditors: Amounts falling due
within one year
12
Net Current Assets
Total Assets less Current Liabilities
Creditors: amounts falling due
after more than one year
13
Total Net Assets
Funds
Unrestricted funds
15
Restricted funds
15
Total Funds		 2021
£
1,922,364
104,373
438,276
542,649
(60,575)
482,074
2,404,438
(713,319)
1,691,119
1,690,619
500
1,691,119		 2020
£
1,923,554
36,352
413,180
449,532
(71,698)
377,834
2,301,388
(699,681)
1,601,707
1,587,284
14,423
1,601,707		 2020
£
1,923,554
36,352
413,180
449,532
(71,698)
377,834
2,301,388
(699,681)
1,601,707
1,587,284
14,423
1,601,707

1,601,707
1,587,284
14,423
1,601,707

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

These accounts were approved by the Management Committee on 17/12/2021. and signed on their behalf by:

C BEALES

B ROBINSON

The notes set out on pages 16 to 29 form an integral part of these accounts

13

Herring House Trust (Great Yarmouth)

Statement of Changes in Reserves

As at 31 March 2021

Unrestricted
Fund
Restricted
Funds
£
£
At 1 April 2019
1,530,729
9,098
Surplus for the year
56,555
5,325
Total comprehensive
income
56,555
5,325
At 31 March 2020 and
1 April 2020
1,587,284
14,423
Surplus for the year
103,335
(13,923)
Total comprehensive
income
103,335
(13,923)
At 31 March 2021
1,690,619
500		 Total
£
1,539,827
61,880
61,880
1,601,707
89,412
89,412
1,691,119

14

Herring House Trust (Great Yarmouth)

Statement of Cashflows

For The Year Ended 31 March 2021

Note
Net cash generated from operating activities
21
Cash flow from investing activities
Payments to acquire fixed assets
Interest received
Net cash flow from investing activities
Cash flow from financing activities
Loan repayments
Interest paid
Net cash flow from financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at 1 April 2020
Cash and cash equivalents at 31 March 2021
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 March 2021		 2021
£
85,804
(48,747)
30

(48,717)
(5,408)
(6,583)
(11,991)
25,096

413,180
438,276
438,276
438,276		 2020
£
146,189
(290,863)
146
(290,717)		 2020
£
146,189
(290,863)
146
(290,717)
(4,310)
(7,284)
(11,594)
(156,122)
569,302
413,180
413,180
413,180		 (4,310)
(7,284)

(11,594)

15

Herring House Trust (Great Yarmouth)

Notes To The Accounts

For The Year Ended 31 March 2021

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

(a) Legal status

Herring House Trust (Great Yarmouth) is a UK registered Company under the Companies Act 2006 and is a registered housing provider. The address of the registered office is given in the reference and administration information on page 1 of these financial statements. The nature of the Housing Trust’s operations and principal activities are to provide resettlement and outreach support services, together with an open access hostel for the single homeless in the Great Yarmouth area.

The Trust constitutes a public benefit entity as defined by FRS 102.

(b) Basis of accounting

These financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice for Social Housing Providers 2018, and with the Accounting Direction for private registered providers of social housing in England 2019. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The financial statements are presented in Sterling and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below.

(c) Funds

Unrestricted funds are available for use at the discretion of the Management Committee in furtherance of the general objectives of the Trust.

Restricted funds are subject to restrictions on their expenditure imposed by the donor or through the terms of an appeal.

(d) Turnover

Turnover is measured at the fair value of the consideration received or receivable. The policies adopted for the recognition of turnover are as follows:

Turnover represents rental and service charges income receivable in the year net of rent and service charge losses from voids and grants.

Donations are included in the year in which they are receivable, which is when the Trust becomes entitled to the resource.

16

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

1 Accounting Policies (continued)

(d) Turnover (continued)

Grants in respect of revenue expenditure are credited to the Income and Expenditure account on a receivable basis. Grants received in advance of the period to which they relate are shown within the Balance Sheet as deferred income and released to the Statement of Comprehensive Income on a receivable basis.

(e) Capital grants

Grants received from non-government sources are recognised using the performance model. A grant which does not impose future performance conditions is recognised as revenue when the grant proceeds are received or receivable. A grant that imposes specified future performance-related conditions on the association is recognised only when these conditions are met. A grant received before the revenue recognition criteria are satisfied is recognised as a liability.

(f) Government grants

Government grants include grants receivable from the Homes and Communities Agency (the HCA), local authorities and other government organisations. Government grants received in respect of housing properties are recognised in income over the useful life of the housing property structure and, where applicable, its individual components (excluding land) under the accruals model.

Grants relating to revenue are recognised in income and expenditure over the same period as the expenditure to which they relate once reasonable assurance has been gained that the entity will comply with the conditions and that the funds have been received.

Grants due from government organisations or received in advance are included as current assets or liabilities.

(g) Expenditure

Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates:

Operating expenditure comprises those costs incurred by the Charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

All costs are allocated between the expenditure categories of the Statement of Comprehensive Income on a basis designed to reflect the use of the resource.

17

Notes To The Accounts (Continued)

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2021

1 Accounting Policies (continued)

(h) Housing properties

Housing properties are principally properties available for rent and are stated at cost less depreciation. Cost includes the cost of acquiring land and buildings, development costs and expenditure incurred in respect of improvements.

Improvements are works which result in an increase in the net rental income, such as a reduction in future maintenance costs, or result in a significant extension of the useful economic life of the property in the business. Only the direct overhead costs associated with new developments or improvements are capitalised.

(i) Depreciation

Fixed assets are included at cost. Depreciation is calculated to write off the cost, less estimated residual value of all tangible fixed assets, with the exception of land and property under development over their estimated useful lives to the Trust. The annual rates and methods used are as follows:

Computer 20% straight line Fixtures and fittings 20% straight line Motor vehicles 20% straight line

Component accounting has been given consideration and the following appropriate percentages have been applied to each component part of the property over there useful economic lives.

Land Nil depreciation
Building envelope 2% straight line
Windows and external doors 3.3% straight line
Kitchens 6.6% straight line
Bathrooms 4% straight line
Mechanical and electrical 2.5% straight line
Boilers 6.6% straight line
Flooring 5-10% straight line

(j) Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.

18

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

1 Accounting Policies (continued)

(k) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured amortised cost using the effective interest method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

(l) Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

(m) Pension costs

The Trust operates a Defined Contribution Pension Scheme for employees. The assets of the scheme are held separately from those of the organisation. The contributions payable are charged to the Income and Expenditure account as they fall due.

(n) Going concern

The financial statements have been prepared on a going concern basis as the Management Committee believe that no material uncertainties exist. The Management Committee 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 Trust to be able to continue as a going concern.

The Covid 19 pandemic has had little affect on the Trust which continued to carry out it’s activities throughout the lockdown restrictions. The Trustees continue to take this into consideration when reviewing the Trust’s going concern status.

2

Turnover 2021 2020
Turnover Operating Operating Turnover Operating Operating
Costs Surplus Costs Surplus
£ £ £ £ £ £
Social housing
Lettings 931,890 (860,047) 71,843 882,209 (813,191) 69,018

All turnover, operating costs and operating deficits have been generated through the Trust’s 54 Supported Housing units (2020: 54 units).

19

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

3
Turnover from lettings
Rents and service charges (note 4)
Donations and grants (note 5)		 2021
£
570,190
361,700
931,890		 2020
£
536,923
345,286
882,209

During the year 2021, £30,000 of turnover from lettings was restricted (2020: £100,747) and £901,890 was unrestricted (2020: £781,462).

4 Rental Income

Rents
Top Ups
Rent (losses) from voids
Hostel
£
356,655
46,748
(36,324)
367,079		 Halfway
Houses
£
229,025
15,600
(41,514)
203,111		 2021
£
585,680
62,348
(77,838)
570,190		 2020
£
570,709
62,348
(96,175)
536,882

The calculation of voids takes into account the maximum theoretical income that could be achieved.

5 Donations and grants

Housing Related Support grant
Pathway Project grant
Government grants - capital
Capital grant
Rough sleeper grants
Covid grants received
Other grants and donations		 2021
£
231,300
30,000
9,251
5,000
47,000
35,744
3,405

361,700		 2020
£
226,850
100,747
8,565
5,000
-
-
4,124
345,286

Of the total income received £914,233 (2020: £796,394) was received from local authorities and £17,251 (2020: £370,441) was received from grant income.

Government grants amounting to £419,015 (2020: £393,987) were deferred at the year end.

20

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

6
Other income
CJRS claims
Court income
Other income		 2021
£
22,922
142
1,058
24,122		 2020
£
-
-
-
-

7 Operating costs – Social Housing Lettings

Provision of services:
Hostel
Halfway Houses and
Resettlement Services
Pathway Project
Other costs
Premises
Maintenance
Food and laundry
Office costs
Equipment rental
Professional fees
Bad debts
Miscellaneous		 Staff
costs Depreciation
£
£
408,783
32,464
136,750
17,473
55,194
-
600,727
49,937		 Other
costs
£
177,213

31,608

562
209,383

 2021
£
618,460
185,831
55,756

860,047
2021
£
63,342
35,169
48,590
25,266
2,881
13,204
15,091
5,840
209,383		 2020
£
558,961
158,808
95,422
813,191
2020
£
66,362
35,564
53,580
26,214
2,815
17,516
2,100
18,886
223,037

21

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

8
Staff costs
Staff costs
Wages and salaries
Social security costs
Pension costs
The average number employees during the year were:
Hostel
Halfway Houses and Resettlement Services
SmartMove
Pathway Project
Administration
Domestic		 2021
£
545,416
45,225

10,086
600,727
2021
£
11
3
1
2
2
3
22		 2020
£
491,796
40,067
8,893
540,756
2020
£
8
4
1
3
2
3
21

Two employees’ emoluments exceeded £60,000 (2020: Nil).

Emoluments of Executive Officers

For the purposes of this note Executive Officers consist of the Operations Manager and the Client Services Manager.

No members of the Management Committee received any remuneration during the year.

The remuneration paid to Executive Officers was as follows:

Total emoluments
Pension contributions
 2021
£
124,660
2,626
127,286		 2020
£
110,217
2,628
112,845

The Executive Officers are members of the defined contribution pension scheme operated by the Trust. No enhances or special terms apply. During the period the total amount contributed to the pension arrangement was £2,626 (2020: £2,628).

22

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

9 Operating Surplus

The operating surplus is stated after charging (inclusive of VAT):
Operating lease rentals
Rent and service charge bad debts
Depreciation
Audit fees (excluding VAT)		 2021
£
1,575
15,091
49,937
5,350		 2020
£
1,575
2,100
49,398
5,195

10 Fixed Assets

Housing
Fixtures,
properties
fittings &
Motor
for lettings
Equipment
vehicles
£
£
£
Cost
At 1 April 2020
2,380,201
384,478
13,875
Additions
44,365
4,382
-
At 31 March 2021
2,424,566
388,860
13,875
Depreciation
At 1 April 2020
466,318
374,807
13,875
Charge for the year
43,940
5,997
-
At 31 March 2021
510,258
380,804
13,875
Net Book Value
At 31 March 2021
1,914,308
8,056
-
At 31 March 2020
1,913,883
9,671
-		 Total
£
2,778,554
48,747
2,827,301
855,000
49,937
904,937
1,922,364
1,923,554

Housing property additions during the year represent works to existing properties which consisted of the replacement of components and improvements.

11 Debtors

Social Housing rent arrears (net of bad debt provision of £Nil
(2020: £1,717))
Prepayments
Other		 2021
£
91,934

12,439

-

104,373
 2020
£
23,372
12,620
360
36,352

23

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

12
Creditors: Amounts Falling Due Within One Year
Bank loans and overdrafts
Tax and social security
Other
Accruals
Trade creditors
Deferred grant income		 2021
£
5,289
14,669
1,279
8,923
16,164
14,251
60,575		 2020
£
4,310
10,759
2,326
9,477
30,576
14,250
71,698

The following liabilities disclosed under creditors falling due within one year are secured by the trust:

Bank loans and overdrafts 5,289 4,310

The bank loan is on a repayment basis repayable over 25 years and is secured on the Halfway House properties. Interest is calculated at a rate of 5% above base, resulting in a rate of 5.1% at the balance sheet date.

13
Creditors: amounts falling due after more than one year
Bank loans and overdrafts
Deferred grant income (note 14)		 2021
£
103,557
609,762
713,319		 2020
£
109,944
589,737
699,681

The following liabilities disclosed under creditors falling due after more than one year are secured by the trust:

Bank loans and overdrafts 103,557 109,944
Included within creditors falling due after more than one year are amounts repayable:
In more than one year but not more than two years 5,289 4,310
In more than two years but not more than five years 21,156 17,240
In more than five years 77,112 88,394

24

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

14
Deferred grant income
Deferred income brought forward
Deferred in the year
Released in the year
Deferred income carried forward
Amounts to be released within one year
Amounts to be released in more than one year		 2021
£
603,987
34,279
(14,253)
624,013
14,251
609,762
624,013		 2020
£
583,273
34,279
(13,565)
603,987
14,250
589,737
603,987

Included within deferred income at the year end are government grants amounting to £419,015 (2020: £393,987).

15 Reconciliation of Movements in Funds

Funds at Income (Expenditure) Funds at 31
1 April 2020 in the year
in the year		 Transfers March 2021
£ £
£		 £ £
Unrestricted Funds
Unrestricted funds 1,587,284 926,042 (810,874) (11,833) 1,690,619
1,587,284 926,042
(810,874)		 (11,833) 1,690,619
Restricted Funds
Norfolk Community
Foundation Grant 500 -
-		 - 500
Pathway Project 13,923 30,000
(55,756)		 11,833 -
14,423 30,000
(55,756)		 11,833 500
Total Funds 1,601,707 956,042
(866,630)		 - 1,691,119

The transfer between the unrestricted reserves and the Pathway Project fund was made to ensure negative reserves were not carried forward after the cessation of the project.

25

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

15 Reconciliation of Movements in Funds (continued)

Funds at Income (Expenditure) Funds at 31
1 April 2019 in the year
in the year		 Transfers March 2020
£ £
£		 £ £
Unrestricted Funds
Unrestricted funds 1,530,729 781,608 (725,053) - 1,587,284
1,530,729 781,608
(725,053)		 - 1,587,284
Restricted Funds
Norfolk Community
Foundation Grant 500 -
-		 - 500
Pathway Project 8,598 100,747
(95,422)		 - 13,923
9,098 100,747
(95,422)		 14,423
Total Funds 1,539,827 882,355
(820,475)		 - 1,601,707

Unrestricted Funds :

Unrestricted funds include income and expenditure to provide emergency accommodation and support to 27 single homeless people, offering 24-hour support and access to services (including a further 4 high support units) in the Hostel and to provide move on accommodation to 20 individuals in semi-independent, shared accommodation. The resettlement scheme offers move-on resettlement support to people moving into the houses and also support to move on to longer term accommodation through their part within the Great Yarmouth Homesupport Consortium. This provides tenancy support to people living independently within the community.

Restricted Funds

Norfolk Community Foundation Grant – Funding from the Police & Crime Commission for Norfolk Substance Misuse and Alcohol Fund to provide a direct pathway from street homelessness to dependency treatment within the High Support Unit.

Pathway Project – Funding towards the salary costs of the Pathway Workers.

26

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

16 Net Analysis of Funds

Each is represented by the following assets and liabilities:

2021

Unrestricted funds
Unrestricted fund
Restricted funds
Norfolk Community
Foundation Grant
Pathway Project

Total funds
2020
Unrestricted funds
Unrestricted fund
Restricted funds
Norfolk Community
Foundation Grant
Pathway Project

Total funds		 Cash
Other
Long
Fixed
and bank
current
Current
term
assets
balances
assets
liabilities liabilities
Total
£
£
£
£
£
£
1,922,364
437,776
104,373
(60,575) (713,319) 1,690,619
1,922,364
437,776
104,373
(60,575) (713,319) 1,690,619
-
500
-
-
-
500
-
-
-
-
-
-
-
500
-
-
-
500
1,922,364
438,276
104,373
(60,575) (713,319) 1,691,119
Cash
Other
Long
Fixed
and bank
current
Current
term
assets
balances
assets
liabilities liabilities
Total
£
£
£
£
£
£
1,923,554
398,757
36,352
(71,698) (699,681) 1,587,284
1,923,554
398,757
36,352
(71,698) (699,681) 1,587,284
-
500
-
-
-
500
-
13,923
-
-
-
13,923
-
14,423
-
-
-
14,423
1,923,554
413,180
36,352
(71,698) (699,681) 1,601,707

27

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

17 Accommodation owned and in management

Accommodation owned and in management
Number of units at
31 March 2021 31 March 2020
£ £
Social housing
Supported housing 54 54

18 Operating lease commitments

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

Plant and Machinery
Not later than 1 year
Later than 1 year and not later than 5 years		 2021
£
1,575
2,363
3,938		 2020
£
1,575
3,938
5,514

19 Related party transactions

During the year the Trust paid £1,771 (2020: £Nil) to a company connected to C Beales in relation to van repairs. No amounts were outstanding at the year end.

20 Company Status

The company is limited by guarantee. Each member of the company undertakes to contribute such amount (not exceeding £10) as may be required in the event of a winding up.

21 Reconciliation of operating surplus to cash flow from operating activities

2021
£
Surplus for the year
89,412
Depreciation on tangible fixed assets
49,937
Increase in trade and other debtors
(68,021)
(Increase)/decrease in trade and other creditors
7,923
Finance charges
6,583
Interest receivable
(30)
85,804		 2020
£
61,880
49,398
(9,797)
37,570
7,284
(146)
146,189

28

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2021

22 Analysis of changes in net debt

Cash at bank and in hand
Loans falling due within
one year
Loans falling due after
more than one year		 At 1 April
2020
Cashflows
Other
non-
cash
changes
413,180
25,096
-
(4,310)
5,408
(6,387)
(109,944)
-
6,387
298,926
30,504
-		 At 31
March
2021
438,276
(5,289)
(103,557)
329,430

23 Pension costs

The Trust operates a defined contribution pension scheme for the benefit of the employees. The assets of the scheme are administered by Trustees in a fund independent from those of the Trust. The total contributions paid in the year amounted to £10,086 (2020: £8,893).

24 Capital funding and commitments

Contractual commitments for the acquisition of tangible fixed assets contracted for but not provided in the financial statements amounts to £Nil (2020: £30,819).

29

Herring House Trust (Great Yarmouth)

Income And Expenditure Account Hostel

For The Year Ended 31 March 2021

2021
£
Income
Rents received
326,455
Top ups
40,622
Donations
405
Other income
44,124
Interest
30
Housing Related Support income
231,300
Grants
79,995
Expenditure
Food and other household costs
29,171
Residents’ welfare
1,624
Laundry and cleaning
11,793
Salaries and national insurance
408,783
Light, heat and water
29,014
Insurances
19,998
Postage and stationery
3,973
Telephone
19,040
Travel and subsistence
167
Professional costs
13,008
General
5,705
TV licence
158
Advertising & subscriptions
808
Training
435
Recruitment costs
700
Repairs & consumables
23,884
Equipment rental
2,881
Motor expenses
2,813
Depreciation - Freehold & leasehold property
29,530
- Fixtures and fittings
2,934
Bad debts/write off
12,041
Bank charges and loan interest
6,583

Excess income over expenditure
722,931
(625,043)
97,888		 2020
£
306,530
49,256
4,124
308
146
226,850
13,564
600,778
40,852
6,454
10,869
331,033
30,578
20,052
5,314
15,522
153
17,411
5,303
151
3,681
3,565
700
30,303
2,815
469
29,530
2,917
1,289
7,284
(508,070)
34,533		 2020
£
306,530
49,256
4,124
308
146
226,850
13,564
600,778
40,852
6,454
10,869
331,033
30,578
20,052
5,314
15,522
153
17,411
5,303
151
3,681
3,565
700
30,303
2,815
469
29,530
2,917
1,289
7,284
(508,070)
34,533		 2020
£
306,530
49,256
4,124
308
146
226,850
13,564
600,778
40,852
6,454
10,869
331,033
30,578
20,052
5,314
15,522
153
17,411
5,303
151
3,681
3,565
700
30,303
2,815
469
29,530
2,917
1,289
7,284
(508,070)
34,533



34,533

30

Herring House Trust (Great Yarmouth)

Income And Expenditure Account Halfway House Scheme & Homelessness Action Programme

For The Year Ended 31 March 2021

Income
Housing benefits
Top ups
Expenditure
Salaries and national insurance
Rates
Light, heat and water
Telephone & postage
Repairs and consumables
Professional costs
General
TV licences
Food and other household costs
Resident welfare
Laundry and cleaning
Depreciation - Freehold property
- Fixtures and fittings
Bad debts/write off
Excess income over expenditure		 2021
£
190,362
12,749
203,111
136,750
3,745
10,586
95
11,285
93
135
788
77
125
1,630
14,410
3,063
3,049

(185,831)
17,280		 2020
£
169,651
11,179
180,830
115,086
4,609
10,203
1,697
5,261
105
255
769
281
1,202
1,578
14,410
2,541
811
(158,808)
22,022

31

Herring House Trust (Great Yarmouth)

Income And Expenditure Account

Pathway Project

For The Year Ended 31 March 2021

Income
Grant income
Expenditure
Salaries and national insurance
Residents welfare
Management costs
Excess (expenditure over income)/
income over expenditure		 2021
£
55,194
459
103
 30,000

(55,756)
(25,756)		 2020
£
100,747
94,637
260
525
(95,422)
5,325		 2020
£
100,747
94,637
260
525
(95,422)
5,325		 2020
£
100,747
94,637
260
525
(95,422)
5,325


5,325

32