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← Herring House Trust (Great Yarmouth)

2022-03-31-accounts

HERRING HOUSE TRUST (GREAT YARMOUTH)

AUDITED ACCOUNTS

31 MARCH 2022

Registered Charity No. 1057387

Company No. 03202862

Herring House Trust (Great Yarmouth)

Index to Accounts

For The Year Ended 31 March 2022

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 2022

The Management Committee has pleasure in presenting its report and accounts for the year ended 31 March 2022.

REFERENCE AND ADMINISTRATION INFORMATION

Charity Name: Herring House Trust (Great Yarmouth) 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 (Resigned on 6 April 2022) 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 2022

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 2022

ACHIEVEMENTS AND PERFORMANCE

Review of the year

In 2021/2022 the Trust continues 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 continue to provide additional move- on accommodation.

The Trust operates the Herring Centre, which is a resource centre for our clients. A range of groups operate from the Centre, including the Little Herring Social Club, which is a group for people who have been homeless but have been housed in the community. Other groups, such as training and education take place at the Centre along with groups run by clients in recovery from substance dependency.

During this financial year the Trust continued to offer support to people who were sleeping rough in Great Yarmouth, through our Pathway Scheme. We provided outreach support, access to emergency accommodation and personal hygiene help for people who were living unsheltered. At the end of March 2022, our grant funding received from Great Yarmouth Borough Council (GYBC) for the Scheme ceased. A new funding regime now means the funding is being used by GYBC to take over this Scheme.

The Trust offers 5 self-contained maisonettes and 2 flats as a final stage, move-on option for service users. The houses are independent, with support offered to tenants.

The Trust continues to support approximately 50 people who have experienced homelessness but are now living independently in the community. We provide a range of support services to this client group, delivered at the Herring Centre.

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 2022 2021
1. Reinvestment % - 2.3%
- -
2. New supply delivered (social housing units %)
- - -
3. New supply delivered (non social housing units %)
4. Gearing % (28.8%) (17.2%)
5. EBITA MRI interest cover % 2,219.9% 1,089.6%
6. Headline social housing cost per unit £15,121 £15,928
7. Operating margin (social housing) % 9.8% 4%
8. Operating margin (overall) % 9.8% 4%
9. ROCE % 3.8% 1.5%
----- 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 2022

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 2022 total reserves amounted to £1,786,299 (2021: £1,691,119) of which £1,778,702 (2021: £1,690,619) related to unrestricted funds and £7,597 (2021: £500) to restricted funds.

The Trust had a net surplus in the year of £95,180 (2021: net surplus £89,412) 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 2022 net current assets within the unrestricted funds were £610,968 (2021: £481,574) which represents approximately 8 months’ expenditure. The Trust also had net current assets within the restricted funds of £7,597 (2021: £500).

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

This coming year will continue the development of the Herring Centre to offer a fully supportive resource centre to our clients housed in the community. The Trust has been in discussion to look at increasing our housing stock to include, small, bedsit type of accommodation for people who are struggling to live independently, but for who the traditional style of hostel accommodation is not suitable.

Since the year end the Trust has been through a review of its Norfolk County Council Joint Commissioning Grant (previously known as Housing Related Support grant) which has resulted in the Trust being granted funding for the next five years.

4

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2022

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 2022

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 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 2022

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 disclose with reasonable accuracy at any time the financial position of the organisation and 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 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: 19 October 2022

7

Independent Auditor’s Report to the Members of

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2022

We have audited the financial statements of Herring House Trust (Great Yarmouth) for the year ended 31 March 2022 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 2022

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 2022

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 2022

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: 19 December 2022

11

Herring House Trust (Great Yarmouth)

Statement of Comprehensive Income (including Income and Expenditure Account)

For The Year Ended 31 March 2022

Notes
Turnover
3
Operating expenditure
7
Operating surplus
Other income
6
Interest receivable
Interest and financing costs
Total comprehensive income for the year
9
Reserve brought forward
Reserves carried forward		 Total Funds
2022
2021
£
£
955,992
931,890
(861,892)
(860,047)
94,100
71,843
7,516
24,122
7
30
(6,443)
(6,583)
95,180
89,412
1,691,119
1,601,707
1,786,299
1,691,119

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 19 October 2022.

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 2022

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		 2022
£
1,860,493
34,557
638,470
673,027
(54,462)
618,565
2,479,058
(692,759)
1,786,299
1,778,702
7,597
1,786,299		 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

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 19 October 2022 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 2022

Unrestricted
Fund
Restricted
Funds
£
£
At 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 and
1 April 2021
1,690,619
500
Surplus for the year
88,083
7,097
Total comprehensive
income
88,083
7,097
At 31 March 2022
1,778,702
7,597		 Total
£
1,601,707
89,412
89,412
1,691,119		 Total
£
1,601,707
89,412
89,412
1,691,119

95,180
95,180
1,786,299
95,180
95,180

14

Herring House Trust (Great Yarmouth)

Statement of Cashflows

For The Year Ended 31 March 2022

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 2021
Cash and cash equivalents at 31 March 2022
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 March 2022		 2022
£
214,202
(1,987)
7
(1,980)
(5,585)
(6,443)
(12,028)
200,194
438,276

638,470

638,470
638,470
 2021
£
85,804
(48,747)
30
(48,717)
(5,408)
(6,583)
(11,991)
25,096
413,180
438,276
438,276
438,276

15

Herring House Trust (Great Yarmouth)

Notes To The Accounts

For The Year Ended 31 March 2022

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) General information

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 2022

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 2022

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 2022

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 2022 2021
Turnover Operating Operating Turnover Operating Operating
Costs Surplus Costs Surplus
£ £ £ £ £ £
Social housing
Lettings 955,992 (861,892) 94,100 931,890 (860,047) 71,843

All turnover, operating costs and operating deficits have been generated through the Trust’s 57 Supported Housing units (2021: 54 units).

19

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2022

3
Turnover from lettings
Rents and service charges (note 4)
Donations and grants (note 5)		 2022
£
612,265
343,727
955,992		 2021
£
570,190
361,700
931,890

During the year 2022, £29,148 of turnover from lettings was restricted (2021: £30,000) and £926,844 was unrestricted (2021: £901,890).

4 Rental Income

Rents
Top Ups
Rent (losses) from voids
Hostel
£
361,878
48,360
(43,668)
366,570		 Halfway
Houses
£
261,580
17,836
(33,721)
245,695		 2022
£
623,458
66,196
(77,389)
612,265		 2021
£
585,680
62,348
(77,838)
570,190

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

5 Donations and grants

Housing Related Support grant
Lloyds Bank Foundation grant
Pathway Project grant
Norfolk Community Foundation
Government grants - capital
Capital grant
Rough sleeper grants
Covid grants received
Other grants and donations		 2022
£
235,837
48,058
21,997
12,231
9,935
5,000
-
-
10,669

343,727		 2021
£
231,300
-
30,000
-
9,251
5,000
47,000
35,744
3,405
361,700

Of the total income received £875,741 (2021: £914,234) was received from local authorities.

Government grants amounting to £409,080 (2021: £419,015) were deferred at the year end.

20

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2022

6
Other income
CJRS claims
Court income
Other income
7
Operating costs – Social Housing Lettings
Staff
costs Depreciation
£
£
Provision of services:
Hostel
561,756
63,858
Pathway Project
31,198
-
592,954
63,858
Other costs
Premises
Maintenance
Food and laundry
Office costs
Equipment rental
Professional fees
Bad debts
Miscellaneous		 Other
costs
£
204,647
433
205,080		 2022
£
7,098
184
234
7,516
2022
£
830,261

31,631

861,892

2022
£
73,132
31,443
49,744
23,514
2,331
14,194
4,937
5,785
205,080		 2021
£
22,922
142
1,058
24,122
2021
£
618,460
55,756
860,047
2021
£
63,342
35,169
48,950
25,266
2,881
13,204
15,091
5,840
209,383

21

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2022

8 Staff costs
2022 2021
£ £
Staff costs
Wages and salaries 527,232 545,416
Social security costs 48,454 45,225
Pension costs 9,538 10,086
Redundancy costs
 7,730 -
592,954 600,727
The average number employees during the year were: 2022 2021
£ £
Hostel 12 11
Halfway Houses and Resettlement Services 3 3
SmartMove 1 1
Pathway Project 2 2
Administration 2 2
Domestic 3 3
Higher paid staff 23 22
The number of employees whose employee benefits (excluding employer pension costs)
exceeded £60,000 was:
2022 2021
£60,001 - £70,000 2 2

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		 2022
£
127,360
2,642
130,002		 2021
£
124,660
2,626
127,286

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 £2,642 (2021: £2,626).

22

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2022

9
Operating Surplus
2022
£
The operating surplus is stated after charging (inclusive of VAT):
Operating lease rentals
1,575
Rent and service charge bad debts
4,937
Depreciation
63,858
Audit fees (excluding VAT)
5,650
10
Fixed Assets
Housing
Fixtures,
properties
fittings &
Motor
for lettings
Equipment
vehicles
£
£
£
Cost
At 1 April 2021
2,424,566
388,860
13,875
Additions
-
1.987
-
At 31 March 2022
2,424,566
390,847
13,875
Depreciation
At 1 April 2021
510,258
380,804
13,875
Charge for the year
58,675
5,183
-
At 31 March 2022
568,933
385,987
13,875
Net Book Value
At 31 March 2022
1,855,633
4,860
-
At 31 March 2021
1,914,308
8,056
-
11
Debtors
2022
£
Social Housing rent arrears (net of bad debt provision of £Nil
(2021: £1,717))
21,197
Prepayments
13,360

34,557		 2021
£
1,575
15,091
49,937
5,350
Total
£
2,827,301
1.987
2,829,288
904,937
63,858
968,795
1,860,493
1,922,364
2021
£
91,934
12,439
104,373		 2021
£
1,575
15,091
49,937
5,350
Total
£
2,827,301
1.987		 2021
£
1,575
15,091
49,937
5,350
Total
£
2,827,301
1.987
2,829,288
904,937
63,858
968,795
1,860,493		 904,937
63,858
968,795
1,922,364

23

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2022

12
Creditors: Amounts Falling Due Within One Year
Bank loans and overdrafts
Tax and social security
Other
Accruals
Trade creditors
Deferred grant income		 2022
£
4,644
13,616
1,911
11,356
7,998
14,937
54,462		 2021
£
5,289
14,669
1,279
8,923
16,164
14,251
60,575

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

Bank loans and overdrafts 4,644 5,289

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 6% at the balance sheet date.

13
Creditors: amounts falling due after more than one year
Bank loans and overdrafts
Deferred grant income (note 14)		 2022
£
98,617
594,142
692,759		 2021
£
103,557
609,762
713,319

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

Bank loans and overdrafts
Included within creditors falling due after more than one year are
In more than one year but not more than two years
In more than two years but not more than five years
In more than five years		 98,617
103,557
amounts repayable:
4,644
5,289
18,576
21,156
75,397
77,112

24

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2022

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		 2022
£
624,013
-
(14,934)
609,079
14,937
594,142
609,079		 2021
£
603,987
34,279
(14,253)
624,013
14,251
609,762
624,013

Included within deferred income at the year end are government grants amounting to £409,080 (2021: £419,015).

15 Reconciliation of Movements in Funds

Funds at Income (Expenditure) Funds at 31
1 April 2021 in the year
in the year		 Transfers March 2022
£ £
£		 £ £
Unrestricted Fund
Unrestricted funds 1,690,619 934,367
(836,650)		 (9,634)
1,778,702
1,690,619 934,367
(836,650)		 (9,634)
1,778,702
Restricted Funds
Pathway Project - 21,997
(31,631)		 9,634 -
Norfolk Community Foundation
Police crime 500 -
-		 - 500
Connecting Older People - 5,651
(54)		 - 5,597
Surviving Winter Appeal - 1,500
-		 - 1,500
500 29,148
(31,685)		 - 7,597
Total Funds 1,691,119 963,515
(868,335)		 - 1,786,299

25

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2022

15 Reconciliation of Movements in Funds (continued)

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.

Unrestricted Funds :

Unrestricted funds include income and expenditure to provide emergency accommodation and support to 31 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 26 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

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

Norfolk Community Foundation – 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.

Norfolk Community Foundation – To provide a weekly community brunch for people over the age of 55 run by Herring House user.

Norfolk Community Foundation – Surviving Winter Appeal

26

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2022

16 Net Analysis of Funds

Each is represented by the following assets and liabilities:

2022

2022
Cash Other Long
Fixed and bank current Current term
assets balances assets liabilities liabilities
Total
£ £ £ £ £ £
Unrestricted funds
Unrestricted fund 1,860,493 630,873 34,557 (54,462) (692,759) 1,778,702
1,860,493 630,873 34,557 (54,462) (692,759) 1,778,702
Restricted funds
Pathway Project - - - - - -
Norfolk Community Foundation
Police Crime - 500 - - - 500
Connecting Older People - 5,597 - - - 5,597
Surviving Winter Appeal - 1,500 - - - 1,500
- 7,597 - - - 7,597
Total funds 1,860,493 638,470 34,557 (54,462) (692,759) 1,786,29
2021
Cash Other Long
Fixed and bank current Current term
assets balances assets liabilities liabilities
Total
£ £ £ £ £ £
Unrestricted funds
Unrestricted fund 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
Restricted funds
Pathway Project - - - - - -
Norfolk Community Foundation
Police Crime - 500 - - - 500
- 500 - - - 500
Total funds 1,922,364 438,276 104,373 (60,575) (713,319) 1,691,119

27

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2022

17 Accommodation owned and in management

Accommodation owned and in management
Number of units at
31 March 2022 31 March 2021
£ £
Social housing
Supported housing 57 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		 2022
£
1,575
788
2,363		 2021
£
1,575
2,363
3,938

19 Related party transactions

The Trust paid £Nil (2021: £1,771) to a company connected to C Beales in relation to van repairs. No amounts were outstanding at the year end.

Unrestricted donations were received from the Trustees amounting to £250 (2021: £nil).

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

Surplus for the year
Depreciation on tangible fixed assets
Decrease / (increase) in trade and other debtors

(Decrease) / increase in trade and other creditors
Finance charges
Interest receivable		 2022
£
95,180
63,858
69,816

(21,088)

6,443
(7)
214,202		 2021
£
89,412
49,937
(68,021)
7,923
6,583
(30)
85,804

28

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2022

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
2021
Cashflows
Other
non-
cash
changes
438,276
200,194
-
(5,289)
5,585
(4,940)
(103,557)
-
4,940
329,430
205,779
-		 At 31
March
2022
638,470
(4,644)
(98,617)
535,209

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 £9,538 (2021: £10,086).

29