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← Herring House Trust (Great Yarmouth)

2023-03-31-accounts

HERRING HOUSE TRUST (GREAT YARMOUTH)

AUDITED ACCOUNTS

31 MARCH 2023

Registered Charity No. 1057387

Company No. 03202862 Regulator of Social Housing No. LH4261

Herring House Trust (Great Yarmouth)

Index to Accounts

For The Year Ended 31 March 2023

Page No.
Report of the Board 1 - 8
Report of the Auditor 9 - 12
Statement of Comprehensive Income 13
Balance Sheet 14
Statement of Changes in Reserves 15
Statement of Cashflows 16
Notes to the Accounts 17 - 30

Herring House Trust (Great Yarmouth)

Report of the Board

For The Year Ended 31 March 2023

The Management Committee, who are also directors for the purposes of company law and trustees for the purposes of charity law, has pleasure in presenting its report and accounts for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the organisation’s governing document, the Companies Act 2006, the Statement of Recommended Practice for registered housing providers: Housing SORP 2018, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 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

1

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2023

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

Through its activities the organisation 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 organisation 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 2023

ACHIEVEMENTS AND PERFORMANCE

Review of the year

In 2022/2023 the organisation 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 organisation has been able to offer an in-house counselling service to complement our support structures.

The organisation offers self-contained accommodation, as a final stage, move-on option for service users. The houses are independent, with support offered to tenants.

The Herring Centre is used as a successful resource for community clients, running a range of workshops and drop-in facilities. There is an active community social club running at the centre, as well as writing workshops, lunch groups and recovery community groups.

This year has seen the significant development of the Herring House Trust Lived Experience Community Group. Membership of this group is from our existing service users and their aim is take the message of recovery out into the community, engaging with a range of local groups and partners.

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

The organisation was successful in gaining the following:

3

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2023

VALUE FOR MONEY

The Regulator of Social Housing (RSH) has published a 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 2023 2022
1. Reinvestment % - -
- -
2. New supply delivered (social housing units %)
- - -
3. New supply delivered (non social housing units %)
4. Gearing % (36.8%) (28.8%)
5. EBITA MRI interest cover % 1,691.9% 2,219.9%
6. Headline social housing cost per unit £14,972 £15,121
7. Operating margin (social housing) % 9.4% 9.8%
8. Operating margin (overall) % 9.4% 9.8%
9. ROCE % 3.5% 3.8%
----- End of picture text -----

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

The Management Committee 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.

KEY PERFORMANCE INDICATORS

The organisation 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 Management Committee apply the Charity Commission Code of Governance.

FINANCIAL REVIEW

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

As at 31 March 2023 total reserves amounted to £1,873,885 (2022: £1,786,299) of which £1,873,885 (2022: £1,778,702) related to unrestricted funds and £nil (2022: £7,597) to restricted funds.

The organisation had a net surplus in the year of £87,586 (2022: net surplus £95,180) as shown on page 13 of the accounts.

4

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2023

Reserves policy

The Management Committee is mindful of the need for sufficient reserves to be maintained to ensure the continued operation of the organisation 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 2023 net current assets within the unrestricted funds were £744,833 (2022: £610,968) which represents approximately 10 months’ expenditure. The organisation also had net current assets within the restricted funds of £nil (2022: £7,597).

The Management Committee were also aware at the year-end that loan repayments will be made in the following 12 months. This will be met from the organisation’s free reserve together with future property purchases as detailed below and in note 23.

PLANS FOR THE FUTURE

Herring House Trust is looking to increase its housing stock, by providing an additional four units of accommodation — this will enable move-on from existing first stage accommodation. The development of the Lived Experience Community Group will continue as the service becomes a critical friend to the Norfolk County Council Rough Sleeping Drug and Alcohol Treatment Grant. In addition, the organisation is working with two consultants to develop a bespoke service user management system, which will automate our existing internal systems.

Following the year end, the organisation has committed to purchase two additional properties at a cost of £130,000 and £150,000 each. The properties will be funded from unrestricted reserves with no additional borrowing required.

5

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

Herring House Trust operates as a charitable company registered with the Charities Commission (Registration Number 1057387) and is approved as a Registered Social Housing Provider 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 organisation.

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 organisation and its finances. An operations manager is appointed by the Committee to manage the day to day operations of the organisation.

Key management personnel salary review

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

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.

Fundraising standards

The Management Committee have chosen for the organisation to be regulated by the Fundraising Regulator and listed on the Fundraising Preference Service.

The organisation does not use any third party organisations to act on its behalf in making direct unsolicited appeals.

Since joining the Fundraising Regulator, the organisation has received no complaints via their preference service, or directly from any organisation or individual.

All donations to the organisation are voluntary and the organisation does not solicit donations from its clients or beneficiaries directly or conduct any contact practice that may place an individual under pressure or obligation.

6

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Risk assessment

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

The Management Committee 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 organisation’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 the incoming resources and application of resources, including income and expenditure, of the organisation for that period.

7

Herring House Trust (Great Yarmouth)

Report of the Board (Continued)

For The Year Ended 31 March 2023

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 and proper accounting records that disclose with reasonable accuracy at any time the financial position of the organisation and to enable them 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 2022. 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: 21 November 2023

8

Independent Auditor’s Report to the Members of

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2023

We have audited the financial statements of Herring House Trust (Great Yarmouth) for the year ended 31 March 2023 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 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 organisation 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 organisation'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 Management Committee with respect to going concern are described in the relevant sections of this report.

9

Independent Report of the Auditor to the Members of

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2023

Other information

The other information comprises the information included in the Report of the Board, 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 organisation 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:

10

Independent Report of the Auditor to the Members of

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2023

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 Management Committee

As explained more fully in the Management Committee’s Responsibilities Statement set out on pages 7 and 8, 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 Management Committee 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 Management Committee is responsible for assessing the organisation’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 Management Committee 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 is available on the Financial Reporting Council’s website at: www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-foraudit.aspx. This description forms part of our auditor’s report.

11

Independent Report of the Auditor to the Members of

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2023

Use of our report

This report is made solely to the 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:21 December 2023

12

Herring House Trust (Great Yarmouth)

Statement of Comprehensive Income (including Income and Expenditure Account)

For The Year Ended 31 March 2023

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
2023
2022
£
£
946,498
955,992
(853,394)
(861,892)
93,104
94,100
2,102
7,516
321
7
(7,941)
(6,443)
87,586
95,180
1,786,299
1,691,119
1,873,885
1,786,299

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 13 November 2023.

C BEALES

B ROBINSON

The notes set out on pages 17 to 30 form an integral part of these accounts

13

Herring House Trust (Great Yarmouth)

Balance Sheet

As at 31 March 2023

Company Number: 03202862

Notes

Fixed Asset
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		 2023
£
1,801,744
39,380
759,366
798,746
(53,913)
744,833
2,546,577
(672,692)
1,873,885
1,873,885
-
1,873,885		 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

These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of Companies Act 2006.

These accounts were approved and authorised for issue by the Management Committee on 13 November 2023 and signed on their behalf by:

C BEALES

B ROBINSON

The notes set out on pages 17 to 30 form an integral part of these accounts

14

Herring House Trust (Great Yarmouth)

Statement of Changes in Reserves

As at 31 March 2023

Unrestricted
Fund
Restricted
Funds
£
£
At 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 and
1 April 2022
1,778,702
7,597
Surplus for the year
95,183
(7,597)
Total comprehensive
income
95,183
(7,597)
At 31 March 2023
1,873,885
-		 Total
£
1,691,119
95,180
95,180
1,786,299

87,586
87,586
1,873,885

The notes set out on pages 17 to 30 form an integral part of these accounts

15

Herring House Trust (Great Yarmouth)

Statement of Cashflows

For The Year Ended 31 March 2023

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 increase in cash and cash equivalents
Cash and cash equivalents at 1 April 2022

Cash and cash equivalents at 31 March 2023

Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 March 2023
 2023
£
135,682
(1,901)
321
(1,580)
(5,265)
(7,941)
(13,206)
120,896
638,470
759,366
759,366
759,366		 2022
£
214,202
(1,987)
7
(1,980)
(5,585)
(6,443)
(12,028)
200,194
438,276
638,470
638,470
638,470

The notes set out on pages 17 to 30 form an integral part of these accounts

16

Herring House Trust (Great Yarmouth)

Notes To The Accounts

For The Year Ended 31 March 2023

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 and statement of compliance

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 2022. 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.

(c) Funds

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

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 organisation becomes entitled to the resource.

17

Notes To The Accounts (Continued)

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2023

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 organisation 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 England, local authorities and other government organisations. Government grants received in respect of housing properties are recognised as 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 as 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 organisation 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.

18

Notes To The Accounts (Continued)

Herring House Trust (Great Yarmouth)

For The Year Ended 31 March 2023

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 organisation. 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 organisation. 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.

19

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

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 organisation 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 organisation to be able to continue as a going concern.

2

Turnover 2023 2022
Turnover Operating Operating Turnover Operating Operating
Costs Surplus Costs Surplus
£ £ £ £ £ £
Supported housing
lettings 941,710 (853,394) 88,316 955,992 (861,892) 94,100

All turnover, operating costs and operating surpluses have been generated through the organisation’s 57 Supported Housing units (2022: 57 units).

20

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

3
Turnover from lettings
Rents and service charges (note 4)
Donations and grants (note 5)		 2023
£
669,582
276,916
946,498		 2022
£
612,265
343,727
955,992

During the year ended 31 March 2023, £12,728 of turnover from lettings was restricted (2022: £29,148) and £933,770 was unrestricted (2022: £926,844).

4
Rental Income
Rents
Top Ups
Rent (losses) from voids
Hostel
£
376,456
48,360
(21,307)
403,509		 Halfway
Houses
£
272,216
17,836
(23,979)
266,073		 2023
£
648,672
66,196
(45,286)
669,582		 2022
£
623,458
66,196
(77,389)
612,265

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
Other grants and donations		 2023
£
245,093
-
-
7,940
9,937
5,000
8,946
276,916		 2022
£
235,837
48,058
21,997
12,231
9,935
5,000
10,669
343,727

Of the total income received £867,397 (2022: £875,741) was received from local authorities.

Government grants amounting to £399,145 (2022: £409,080) were deferred at the year end.

21

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

6
Other income
CJRS claims
Court income
Other income		 2023
£
-
117
1,985
2,102		 2022
£
7,098
184
234
7,516

7 Operating costs – Social Housing Lettings

Provision of services:
Hostel
Pathway Project
Other costs
Premises
Maintenance
Food and laundry
Office costs
Equipment rental
Professional fees
Bad debts
Miscellaneous		 Staff
costs Depreciation
£
£
579,451
60,650
-
-
579,451
60,650		 Other
costs
£
213,293
-
213,293		 2023
£
853,394
-

853,394
2023
£
88,739
16,389
38,217
32,702
2,600
21,021
1,424
12,201
213,293		 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

During the year ended 31 March 2023, £20,325 of operating costs was restricted (2022: £31,685) and £833,069 was unrestricted (2022: £830,207).

22

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

8 Staff costs
2023 2022
£ £
Staff costs
Wages and salaries 523,494 527,232
Social security costs 46,302 48,454
Pension costs 9,655 9,538
Redundancy costs
 - 7,730
579,451 592,954
The average number employees during the year were: 2023 2022
£ £
Hostel 17 12
Halfway Houses and Resettlement Services 2 3
SmartMove - 1
Pathway Project - 2
Administration - 2
Domestic - 3
Higher paid staff 19 23
The number of employees whose employee benefits (excluding employer pension costs)
exceeded £60,000 was:
2023 2022
£60,001 - £70,000 2 2

Key management personnel remuneration amounted to £132,816 (2022: £130,002) in respect of two employee (2022: two employees).

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		 2023
£
130,174
2,642
132,816		 2022
£
127,360
2,642
130,002

The Executive Officers are members of the defined contribution pension scheme operated by the organisation. No enhances or special terms apply. During the period the total amount contributed to the pension arrangement was £2,642 (2022: £2,642).

23

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

9
Operating Surplus
2023
£
The operating surplus is stated after charging (inclusive of VAT):
Operating lease rentals
788
Rent and service charge bad debts
1,424
Depreciation
60,650
Audit fees (excluding VAT)
7,565
10
Fixed Assets
Housing
Fixtures,
properties
fittings &
Motor
for lettings
Equipment
vehicles
£
£
£
Cost
At 1 April 2022
2,424,566
390,847
13,875
Additions
-
1.901
-
At 31 March 2023
2,424,566
392,748
13,875
Depreciation
At 1 April 2022
568,933
385,987
13,875
Charge for the year
58,675
1,975
-
At 31 March 2023
627,608
387,962
13,875
Net Book Value
At 31 March 2023
1,796,958
4,786
-
At 31 March 2022
1,855,633
4,860
-
11
Debtors
2023
£
Social Housing rent arrears (net of bad debt provision of £Nil
(2022: £Nil))
25,289
Prepayments
14,091

39,380		 1 2022
£
1,575
4,937
63,858
5,650
Total
£
2,829,288
1.901
2,831,189
968,795
60,650
1,029,445
1,801,744
1,860,493
2022
£
21,197
3,360
34,557

24

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

12
Creditors: Amounts Falling Due Within One Year
Bank loans and overdrafts
Tax and social security
Other
Accruals
Trade creditors
Deferred grant income		 2023
£
4,509
12,405
1,880
14,232
5,950
14,937
53,913		 2022
£
4,644
13,616
1,911
11,356
7,998
14,937
54,462

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

Bank loans and overdrafts 2023
£
4,509		 2022
£
4,644

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 9.25% at the balance sheet date.

13
Creditors: amounts falling due after more than one year
Bank loans and overdrafts
Deferred grant income (note 14)		 2023
£
93,487
579,205
672,692		 2022
£
98,617
594,142
692,759

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

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		 2023
2022
£
£
93,487
98,617
amounts repayable:
4,509
4,644
18,036
18,576
70,942
75,397

25

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

14
Deferred grant income
Deferred income brought forward
Released in the year
Deferred income carried forward
Amounts to be released within one year
Amounts to be released in more than one year		 2023
£
609,079
(14,937)
594,142
14,937
579,205
594,142		 2022
£
624,013
(14,934)
609,079
14,937
594,142
609,079

Included within deferred income at the year end are government grants amounting to £399,145 (2022: £409,080).

15 Reconciliation of Movements in Funds

Funds at Income (Expenditure) Funds at 31
1 April 2022 in the year
in the year		 Transfers March 2023
£ £
£		 £ £
Unrestricted Fund
Unrestricted funds 1,778,702 936,193
(841,010)		 - 1,873,885
1,778,702 936,193
(841,010)		 - 1,873,885
Restricted Funds
Norfolk Community Foundation
Police crime 500 -
(500)		 - -
Connecting Older People
5,597		 -
(5,597)		 - -
Surviving Winter Appeal 1,500 -
(1,500)		 - -
Protect and Vaccine - 4,788
(4,788)		 - -
Herring Centre - 7,940
(7,940)		 - -
7,597 12,728
(20,325)		 - -
Total Funds 1,786,299 948,921
(861,335)		 - 1,873,885

26

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

15 Reconciliation of Movements in Funds (continued)

Funds at Income (Expenditure) Funds at 31
1 April 2021 in the year
in the year		 Transfers March 2022
£ £
£		 £ £
Unrestricted Funds
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

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.

Surviving Winter Appeal – Funding from Norfolk Community Foundation towards expenditure for clients to survive winter.

Protect and Vaccine – Funding from Great Yarmouth Borough Council towards Covid 19 management.

Herring Centre – Funding from Great Yarmouth Borough Council towards running costs of the Herring Centre.

27

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

16 Net Analysis of Funds

Each is represented by the following assets and liabilities:

2023

2023
Cash Other Long
Fixed and bank current Current term
assets balances assets liabilities liabilities Total
£ £ £ £ £ £
Unrestricted funds
Unrestricted fund 1,801,744 759,366 39,380 (53,913) (672,692) 1,873,885
1,801,744 759,366 39,380 (53,913) (672,692) 1,873,885
Restricted funds
Norfolk Community Foundation
Police Crime - - - - - -
Connecting Older People - - - - - -
Surviving Winter Appeal - - - - - -
Protect and Vaccine - - - - - -
Herring Centre - - - - - -
- - - - - -
Total funds 1,801,744 759,366 39,380 (53,913) (672,692) 1,873,885
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
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) 1,786,299

28

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

17 Accommodation owned and in management

Accommodation owned and in management
Number of units at
31 March 2023 31 March 2022
£ £
Social housing
Supported housing 57 57

18 Operating lease commitments

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

2023
£
Plant and Machinery
Not later than 1 year
788
Later than 1 year and not later than 5 years
-
788		 2022
£
1,575
788
2,363

19 Related party transactions

Unrestricted donations were received from the Management Committee amounting to £100 (2022: £250).

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
(Increase) / decrease in trade and other debtors
(Decrease) / increase in trade and other creditors
Finance charges
Interest receivable		 2023
£
87,586
60,650
(4,823)
(15,351)

7,941
(321)
135,682		 2022
£
95,180
63,858
69,816
(21,088)
6,443
(7)
214,202

29

Herring House Trust (Great Yarmouth)

Notes To The Accounts (Continued)

For The Year Ended 31 March 2023

22 Analysis of changes in net debt

At 1 April
2022
Cashflows
Other
non-
cash
changes
Cash at bank and in hand
638,470
120,896
-
Loans falling due within
one year
(4,644)
5,265
(5,130)
Loans falling due after
more than one year
(98,617)
-
5,130
535,209
126,161
-		 At 31
March
2023
759,366
(4,509)
(93,487)
661,370

23 Pension costs

The organisation 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 organisation. The total contributions paid in the year amounted to £9,655 (2022: £9,538). At the year end there is an amount included within creditors of £1,871 (2022: £1,902) owing to the scheme.

24 Subsequent events

Following the year end, the organisation has committed to purchase two additional properties at a cost of £130,000 and £150,000 each. The properties will be funded from unrestricted reserves with no additional borrowing required.

30

Herring House Trust (Great Yarmouth)

Income And Expenditure Account Hostel and Halfway House Scheme

For The Year Ended 31 March 2023

Income
Rents received
Housing benefits
Top ups
Donations
Other income
Interest
Housing Related Support income
Grants
Expenditure
Food and other household costs
Rates
Residents’ welfare
Laundry and cleaning
Salaries and national insurance
Light, heat and water
Insurances
Postage and stationery
Telephone
Travel and subsistence
Professional costs
General
TV licence
Advertising & subscriptions
Training
Recruitment costs
Repairs & consumables
Equipment rental
Motor expenses
Depreciation - Freehold & leasehold property
- Fixtures and fittings
Bad debts/write off
Bank charges and loan interest
Excess income over expenditure		 2023
£
358,149
249,622
61,811
3,623
6,890
321
245,093
23,412
19,412
(1,688)
3,293
16,717
579,451
66,639
22,100
3,611
21,458
8
21,021
10,182
1,272
2,584
3,170
2,230
16,540
2,452
868
58,675
1,975
1,424
7,941
948,921
(861,335)
87,586		 2022
£
324,072
217,655
70,538
5,027
7,516
7
235,837
80,866
941,518
31,321
2,142
3,308
12,973
561,756
50,918
20,072
3,258
18,534
15
13,761
5,786
1,272
120
577
890
31,443
2,331
989
58,675
5,183
4,937
6,443
(836,704)
104,814

31

Herring House Trust (Great Yarmouth)

Income And Expenditure Account

Pathway Project

For The Year Ended 31 March 2023

2023
£
Income
Grant income
-
Expenditure
Salaries and national insurance
-
Residents welfare
-
Management costs
-
-
Excess (expenditure over income)
-		 2022
£
21,997
31,198
-
433
(31,631)
(9,634)		 2022
£
21,997
31,198
-
433
(31,631)
(9,634)		 2022
£
21,997
31,198
-
433
(31,631)
(9,634)


(9,634)

32