**THE ASHLEY FOUNDATION (A Company Limited by Guarantee)** 

## **CONSOLIDATED FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 30 MAY 2021** 

**Company Number: 3366712 Registered Charity Number: 1063208** 



## **THE ASHLEY FOUNDATION** 

## **Financial Statements** 

## **For the year ended 30 May 2021** 

|**Contents**|**Page**|
|---|---|
|Reference and Administrative Details|1|
|Trustees’ Annual Report|2 - 6|
|Independent Auditor’s Report|7 - 10|
|Consolidated Statement of Financial Activities|11|
|Consolidated Balance Sheet|12|
|Statement of Cash Flows|13|
|Notes to the Financial Statements|14 - 33|





## **THE ASHLEY FOUNDATION** 

## **Reference and Administrative Details** 

## **For the year ended 30 May 2021** 

|**Registered Charity Name:**|The Ashley Foundation|
|---|---|
|**Charity Registration Number:**|1063208|
|**Company Registration Number:**|3366712|
|**Principal Office:**|81 Abingdon Street|
||Blackpool|
||Lancashire|
||FY1 1PP|
|**Registered Office:**|81 Abingdon Street|
||Blackpool|
||Lancashire|
||FY1 1PP|
|**Trustees:**|Mrs L Edwards - Chair|
||Dr M O’Donnell|
||Mr A Oldfield|
||Mr S Robinson|
||Mrs E Warren|
|**Solicitors:**|Napthens|
||Libra House, Cropper Close|
||Whitehills Business Park|
||Blackpool|
||Lancashire|
||FY4 5PU|
|**Bankers:**|Lloyds Bank|
||25-27 Birley Street|
||Blackpool|
||Lancashire|
||FY1 1EG|
|**Auditor:**|Mitchell Charlesworth LLP|
||3rd Floor|
||44 Peter Street|
||Manchester|
||M2 5GP|



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## **THE ASHLEY FOUNDATION** 

## **Trustees’ Annual Report** 

## **For the year ended 30 May 2021** 

The Trustees are pleased to present their annual directors’ report together with the financial statements of the charity for the year ended 30 May 2021, which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes. 

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). 

## **Objectives and activities** 

The principal objective of the charity throughout the year was the relief of poverty by the provision of accommodation to persons in need and providing support to clients to assist them with the wider issues of homelessness. This was achieved by the operation of 201 hostel rooms spread across 7 sites in Blackpool, Sunderland, and Blackburn, and 88 self-contained Move On flats across 20 sites in Blackpool and Sunderland. The properties are occupied under differing arrangements including owned and operated, leased and operated and operated on behalf of other parties via management agreements. 

In the hostels, daily support is provided to the clients assisting them with daily living skills. The clients in the flats are supported to live independently 

In addition, from March 2020, a further 23 rooms were provided in Blackpool to support the Government initiative to eliminate rough sleeping during the COVID-19 pandemic. This was provided by utilising a hotel that was unable to operate due to the COVID-19 restrictions. This provision ended in April 2021. Additional accommodation was also provided in Sunderland via creative use of existing accommodation, and this is on-going. 

In September 2019 the Charity opened a Community Café & Hub in Blackpool to provide opportunities for clients to experience practical work experience. Unfortunately, due to the COVID-19 restrictions this was only able to operate fully until March 2020. The Café re-opened with limited opening hours from June 2020 to October 2020, before closing again until the end of May 2021 when it fully re-opened. 

The Trustees are clear that the objectives and activities of The Ashley Foundation are carried out for public benefit. They have referred to the guidance contained in the Charity Commission general guidance on public benefit when reviewing the purpose and objectives and when planning the future activities. In particular, the Trustees will consider how planned activities will contribute to the aims and objectives they have set. 

## **Achievements and performance** 

**Provision of accommodation -** During the year accommodation was provided for a total of 850 (2020 763) homeless individuals, 395 in Blackpool (2020 287), 231 in Sunderland (2020 183) and 224 in Blackburn (2020 293). There was a very high demand for accommodation from the local authorities and high occupancy levels were achieved. At any one time the charity will have 289 (2020 289) residents staying in one of its properties. 

**Partnership working** - we have developed excellent relationships with our local authority partners in Blackpool, Sunderland and Blackburn. 

**Move on** - review of all residents in hostels and flats is undertaken regularly to facilitate moving residents, wherever possible, to the most appropriate accommodation. This involves independent flats, move on flats or other hostel accommodation. 

**Supporting People** - the Ashley Foundation has co-operated fully with both Blackpool and Blackburn Councils on the Supporting People Review national pilots. 

**COVID-19 –** we have continued to play a major part in supporting our local authorities in addressing homelessness during the pandemic, supporting additional facilities and by providing COVID-19 secure isolation facilities. 

2 | P a g e 



## **THE ASHLEY FOUNDATION** 

## **Trustees’ Annual Report (Continued)** 

## **For the year ended 30 May 2021** 

## **Financial review** 

The statements of financial activities are set out on page 10 of the financial statements. 

Consolidated income for the year was £3,962,086 (2020: £4,081,470), and consolidated expenditure for the year was £4,204,878 (2020: £4,250,694). 

The overall consolidated deficit for the year was £242,792, (2020: deficit of £169,224). The 2020 deficit includes an accounting estimate of £769,533 in respect of amounts agreed as being due from Sunderland Council. This is as a result of extensive discussions with the council (on behalf of Falcon Housing Association C.I.C), held between July 2020 and February 2021 which resulted in the agreement of final rents for the period 21st December 2017 to date, in respect of the 10 properties providing accommodation in move on flats in Sunderland, and for the period 31st January 2018 to date, in respect of the hostel accommodation, also in Sunderland. The 2020 accounts included an accounting estimate of £870,509 in respect of this matter. Based on amounts received this has been revised to £769,533, i.e., a reduction of £100,976. See note 30 for the impact of this. 

## **Reserves/Reserves policy** 

Total reserves as at 30 May 2021 are £2,936,329 (2020: £3,179,121), of which £2,890,193 (2020: £3,152,285) are held in general unrestricted reserves and £46,136 (2020: £26,836) are held in restricted reserves. Within the unrestricted reserved are designated funds totally £37,303(2020 nil). See note 24 for further details. 

Reserves are defined as unrestricted funds that are freely available to spend on charitable purposes. Reserves should be held to service an unexpected need for funds, covering unforeseen day-to-day operational costs, a shortfall in income or to fulfil our obligations. Our reserves policy is designed to reflect the underlying risks facing the charity and to ensure that we have appropriate level of reserves to safeguard our operations and services to homeless people, in particular the opening and initial operating of new buildings. Accordingly, we aim as far as reasonably practicable, to maintain reserve funds of up to six months operational running costs. This policy is reviewed annually. Six months operational running costs equate to £2.085 million, therefore, based on the general reserves of £2.18 million (net of funds represented by property and associated borrowing), adequate reserves are in place. 

## **Going concern** 

Following a review of the financial position at the date of signing these accounts and projections for the following 12 months the Trustees consider that the charity is a going concern. 

## **Trading subsidiary** 

The charity’s wholly owned subsidiary, Homeless Action C.I.C. ceased operating its charity shop in March 2020 as a result of the Covid-19 pandemic, and subsequent to that it has been decided not to re-open the shop. This coincides with the lease on the shop terminating in August 2021 and it will not be renewed. The Trustees consider that the recovery of the outstanding inter-company loan balance as at 30 May 2020 of £76,955 is unlikely and therefore this was written off in the accounts for the period ending 31[st] May 2020. The Trustees have decided to retain the company in a dormant state pending a review of future strategy. 

## **Structure, governance, and management** 

## **Governing document** 

The charity was incorporated in May 1997. The Ashley Foundation is a company limited by guarantee governed by its Memorandum and Articles of Association dated 7 May 1997, as amended by special resolutions dated 4 September 1997, 4 January 2000, 5 January 2012, and 11 June 2021. 

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## **THE ASHLEY FOUNDATION** 

## **Trustees’ Annual Report (Continued) For the year ended 30 May 2021** 

## **Governance** 

## **Introduction** 

On 20 March 2020, the Charity Commission opened a statutory inquiry into the affairs of the charity - full details can be found on The Charity Commission website. The Trustees at the time the inquiry was launched were Mr David Kam, who was suspended as a Trustee by the Charity Commission on 9 July 2020 and subsequently resigned on 14 July 2020, Mr Ashley Dribben who was suspended by the Charity Commission on 6 October 2020 and was removed on 18 December 2020, Mr Goran Cemerikic, who subsequently resigned on 25 March 2020 and Mrs Lisa Edwards. On 8 October 2020 the Charity Commission authorised Mrs Edwards, as the only trustee able to act, to appoint new trustees in line with the provisions in the charity’s Articles of Association in respect of the minimum and maximum numbers and quorum provisions. On 30 October 2020, in accordance with The Charity Commissions authority, Mrs Edwards appointed Dr Mark O’Donnell, Mr Alan Oldfield, Mr Simon Robinson and Mrs Elizabeth Warren as Trustees of the charity. 

## **Appointment of trustees** 

Other than in the exceptional circumstances outlined above, when new Trustees are required, positions will be advertised locally, and a formal selection process will take place. This will also involve the potential new trustee(s) visiting local hostels and flats and also attending a trustee meeting to gain an appreciation of the workings of the charity. 

## **Trustee induction and training** 

Trustee induction involves visits to see the premises and to meet the management and staff teams, together with time spent with the Chief Executive and Senior Managers to better and more fully understand the activities of the charity. Due to the COVID-19 restrictions this was not possible for the new Trustees until June 2021. 

## **Related parties** 

In addition to the trustees who served during the year, the Trustees consider the following individuals and organisations to be related parties for the purposes of disclosure of related party transactions: Mr L Dribben, Mrs W Swift, Homeless Action C.I.C., A Gordon Electrical Services Ltd and Mistle Ltd. 

Details of related party transactions required to be disclosed in accordance with the relevant legislation and guidance can be found in Note 23 on Page 27. 

## **Fundraising standards** 

The charity does not carry out significant fundraising activities. 

## **Reference and administrative details** 

Reference and administrative details are shown in the schedule of members of the board and professional advisers on page 1 of the financial statements. 

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## **THE ASHLEY FOUNDATION** 

## **Trustees’ Annual Report (Continued)** 

## **For the year ended 30 May 2021** 

## **Directors and Trustees** 

The directors of the charitable company (the charity) are its trustees for the purpose of charity law and throughout this report are collectively referred to as the trustees. The trustees who served the company during the period of the report were as follows: 

## **Key management personnel: Trustees** 

Chair: Ms L Edwards (appointed chair 30/10/20) 

- Dr M O’Donnell (appointed 30/10/20) 

- Mr A Oldfield (appointed 30/10/20) 

- Mr S Robinson (appointed 30/10/20) 

- Mrs E Warren (appointed 30/10/20) 

Mr D Kam (suspended by the Charity Commission on 09/07/20, resigned 14/07/20) Mr A Dribben (suspended by the Charity Commission on 06/10/20, removed 18/12/20) 

## **Key management personnel: Principal staff** 

Chief Executive Officer:   Mrs W Swift 

5 | P a g e 



## **THE ASHLEY FOUNDATION** 

## **Trustees’ Annual Report (Continued) For the year ended 30 May 2021** 

## **Trustees’ responsibilities** 

The trustees (who are also directors of The Ashley Foundation for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period.  In preparing these financial statements, the trustees are required to: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP; 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable UK accounting standards have been followed, subject to any material departure disclosed and explained in the financial statements; and 

- prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charitable company will continue in business. 

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006.  They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Insofar as the current trustees are aware, and subject to the findings of the Charity Commission investigation which commenced on 20 March 2020 into events and transactions during this and previous financial years: 

- there is no relevant audit information of which the charitable company’s auditors is unaware; and 

- the trustees have taken all steps they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. 

## 13/12/2021 

## **Approved by the Board on ________________ and signed on its behalf by:** 


**Mrs L Edwards - Chair Trustee** 

6 | P a g e 



## **THE ASHLEY FOUNDATION** 

## **Independent Auditor’s Report to the Members of The Ashley Foundation For the year ended 30 May 2021** 

## **Opinion** 

We have audited the financial statements of The Ashley Foundation for the year ended 30 May 2021 which comprise the Group Statement of Financial Activities, the Group and Parent Company Statement of Financial Position, the Cash Flow Statement and the 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 (United Kingdom Generally Accepted Accounting Practice), including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice). 

In our opinion the financial statements: 

- give a true and fair view of the state of the group’s and the charitable company’s affairs as at 30 May 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; 

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

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

## **Basis for opinion** 

We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)). 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 group and charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements.  We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 

## **Conclusions relating to going concern** 

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report. 

7 | P a g e 



## **THE ASHLEY FOUNDATION** 

## **Independent Auditor’s Report to the Members of The Ashley Foundation [Continued] For the year ended 30 May 2021** 

## **Other information** 

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Trustees’ Report has been prepared in accordance with applicable legal requirements. 

## **Matters on which we are required to report by exception** 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Report. 

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: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us, or 

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

- certain disclosures of Trustees’ remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the Trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions in preparing the Trustees’ Report and from the requirement to prepare a Strategic Report. 

8 | P a g e 



## **THE ASHLEY FOUNDATION** 

## **Independent Auditor’s Report to the Members of The Ashley Foundation [Continued] For the year ended 30 May 2021** 

## **Responsibilities of Trustees** 

As explained more fully in the Trustees’ responsibilities statement, the Trustees 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 directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the company or to cease operations, or have 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. 

## **Extent to which the audit was considered capable of detecting irregularities, including fraud** 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. 

## **Identifying and assessing potential risks related to irregularities** 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following: 

- the nature of the sector, control environment and business performance; 

- the organisation's own assessment of the risks that irregularities may occur either as a result of fraud or error; 

- the results of our enquiries of management and members of the Board of Trustees of their own identification and assessment of the risks of irregularities; 

- any matters we identified having obtained and reviewed the organisation's documentation of their policies and procedures relating to: 

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; 

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; 

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and 

- • the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. 

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## **THE ASHLEY FOUNDATION** 

## **Independent Auditor’s Report to the Members of The Ashley Foundation [Continued] For the year ended 30 May 2021** 

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in the following area: 

The estimation of the housing benefit accrual, the process for authorising expenditure and cash control which have been updated part way through the year. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. 

We also obtained an understanding of the legal and regulatory framework that the organisation operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the House in Multiple Occupation regulations, and the Selective Licensing schemes. 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included Data Protection Regulations. 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Report Council’s website at: www.frc.org.uk/auditorsresponsibilities.  This description forms part of our Auditor’s Report. 

## **Use of our Report** 

This Report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.  Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditor’s Report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this Report, or for the opinions we have formed. 


**Jamielee Johnston (Senior Statutory Auditor) For and on behalf of Mitchell Charlesworth LLP Chartered Accountants and Statutory Auditors 3rd Floor 44 Peter Street Manchester M2 5GP** 

13 December **________________ 2021** 

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## **THE ASHLEY FOUNDATION** 

## **Consolidated Statement of Financial Activities (Including Consolidated Income and Expenditure Account) For the year ended 30 May 2021** 

||||||||**Total Funds**|
|---|---|---|---|---|---|---|---|
||**Notes**|**Restricted**|**Unrestricted**|**Total Funds**|**Restricted**|**Unrestricted**|**2020**|
|||**Funds**|**Funds**|**2021**|**Funds**|**Funds**|**(Restated)**|
|||**£**|**£**|**£**|**£**|**£**|**£**|
|**Income**||||||||
|Donations and legacies|5|24,816|45,713|70,529|24,816|28,502|53,318|
|**Income from charitable**||||||||
|**activities:**||||||||
|Operation of accommodation||||||||
|and café|6|-|3,867,630|3,867,630|-|3,967,133|3,967,133|
|**Income from other trading**||||||||
|**activities**||||||||
|Commercial trading operation|7|-|14,538|14,538|-|40,635|40,635|
|Investment income - bank||||||||
|interest|8|-|1,073|1,073|-|11,255|11,255|
|Rental income||-|8,316|8,316|-|9,129|9,129|
|**Total incoming resources**||24,816|3,937,270|3,962,086|24,816|4,056,654|4,081,470|
|**Expenditure**||||||||
|**Cost of raising funds:**||||||||
|Commercial trading operation|7|-|(14,150)|(14,150)|-|(22,811)|(22,811)|
|**Expenditure on charitable**||||||||
|**activities:**||||||||
|Operation of accommodation||||||||
|and café|9|(5,516)|(4,185,212)|(4,190,728)|(79,123)|(4,148,760)|(4,227,883)|
|**Total expenditure**||(5,516)|(4,199,362)|(4,204,878)|(79,123)|(4,171,571)|(4,250,694)|
|**Net incoming resources for**||||||||
|**the year**||19,300|(262,092)|(242,792)|(54,307)|(114,917)|(169,224)|
|Total funds brought forward||26,836|3,152,285|3,179,121|81,143|3,267,202|3,348,345|
|**Total funds carried forward**||46,136|2,890,193|2,936,329|26,836|3,152,285|3,179,121|



The Statement of Financial Activities includes all gains and losses in the year and therefore a Statement of Total Recognised Gains and Losses has not been prepared. 

**The notes on pages 14 to 33 form part of these financial statements** 

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## **THE ASHLEY FOUNDATION** 

## **Consolidated Balance Sheet** 

## **As at 30 May 2021** 

|**Notes**<br>**Fixed assets**<br>Tangible assets<br>17<br>Investments<br>18<br>**Total fixed assets**<br>**Current assets**<br>Debtors<br>19<br>Cash at bank and in hand<br>**Total current assets**<br>**Creditors: Amounts falling due within one**<br>**year**<br>20<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Creditors: Amounts falling due after more**<br>**than one year**<br>21<br>**Net assets**<br>**The funds of the charity**<br>Restricted income funds<br>25<br>Unrestricted income funds<br>24<br>**Total funds**|**Group**<br>**2021**<br>**Group**<br>**2020**<br>**(Restated)**<br>**£**<br>**£**<br>1,347,226<br>1,379,852<br>-<br>-<br>1,347,226<br>1,379,852<br>197,878<br>934,972<br>2,318,925<br>1,882,647<br>2,516,803<br>2,817,619<br>(290,062)<br>(345,244)<br>2,226,741<br>2,472,375<br>3,573,967<br>3,852,227<br>(637,638)<br>(673,106)<br>2,936,329<br>3,179,121<br>46,136<br>26,836<br>2,890,193<br>3,152,285<br>2,936,329<br>3,179,121|**Charity**<br>**2021**<br>**Charity**<br>**2020**<br>**(Restated)**<br>**£**<br>**£**<br>1,347,226<br>1,379,852<br>1<br>1<br>1,347,227<br>1,379,853<br>197,878<br>934,722<br>2,318,908<br>1,878,647<br>2,516,786<br>2,813,369<br>(293,484)<br>(344,044)<br>2,223,302<br>2,469,325<br>3,570,529<br>3,849,178<br>(637,638)<br>(673,106)<br>2,932,891<br>3,176,072<br>46,136<br>26,836<br>2,886,755<br>3,149,236<br>2,932,891<br>3,176,072|
|---|---|---|



The trustees have prepared group accounts in accordance with Section 398 of the Companies Act 2006 and Section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company. 

**The financial statements were approved by the Board of Trustees on ________________ 2021 and are signed on their** 13 December **behalf by:** 

**Mrs L Edwards Chair of Trustees** 

**Charity Number: 1063208 Company Number: 3366712** 

**The notes on pages 14 to 33 form part of these financial statements** 

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## **THE ASHLEY FOUNDATION** 

## **Statement of Cash Flows** 

## **For the year ended 30 May 2021** 

|**Notes**<br>Cash generated from/(used in) operating<br>activities<br>28<br>**Cash flow from investing activities**<br>Interest income<br>Sale/purchase of tangible fixed assets<br>**Cash flow from investing activities**<br>**Cash flow from financing activities**<br>Decrease in Loan<br>**Cash used in financing activities**<br>**Increase/(decrease) in cash and cash**<br>**equivalents in the year**<br>Cash and cash equivalent at the beginning<br>of the year<br>**Total cash and cash equivalents at the end**<br>**of the year**|**Group**<br>**2021**<br>**£**<br>470,563<br>1,073<br>-<br>1,073<br>(35,359)<br>(35,539)<br>436,278<br>1,882,647<br>2,318,925|**Group**<br>**2020**<br>**£**<br>(803,001)<br>11,255<br>(4,378)<br>6,877<br>(31,788)<br>(31,788)<br>(827,912)<br>2,710,559<br>1,882,647|**Charity**<br>**2021**<br>**£**<br>474,546<br>1,073<br>-<br>1,073<br>(35,539)<br>(35,539)<br>440,261<br>1,878,647<br>2,318,908|**Charity**<br>**2020**<br>**£**<br>(804,294)<br>11,255<br>(4,378)<br>6,877<br>(31,788)<br>(31,788)<br>(829,205)<br>2,707,852<br>1,878,647|
|---|---|---|---|---|



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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements For the year ended 30 May 2021** 

## **1. Company information** 

The Ashley Foundation is a  private company limited by guarantee, domiciled and incorporated in England and Wales. The registered office is 81 Abingdon Street, Blackpool, Lancashire, FY1 1PP. 

## **2. 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) Basis of preparation** 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 October 2019) - (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006. 

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. 

The Ashley Foundation meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant Accounting Policy note(s). 

## **(b) Group financial statements** 

The financial statements consolidate the results of the charity and its wholly owned subsidiary Homeless Action CIC on a line by line basis.  A separate statement of financial activities and Income and Expenditure Account for the charity has not been presented because the charity has taken advantage of the exemption afforded by Section 408 of the Companies Act 2006. 

## **(c) Going Concern** 

At the time of approving the financial statements and having due regard to the impact of Covid-19, as referred to in the Trustees’ Report, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus, the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 

## **(d)** 

## **Funds structure** 

- General funds are unrestricted funds, which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity. 

- Restricted funds are funds subject to specific restrictive conditions imposed by the donor or by the purpose of the contract / monies received. The purpose and use of restricted funds is set out in note 24 to the financial statements. 

- Designated funds are funds which have been allocated or designated for specific purposes by the charity out of unrestricted funds. 

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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements For the year ended 30 May 2021** 

## **2. Accounting policies [Continued]** 

## **(e) Income recognition** 

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably. 

Income from donations and grants that provide core funding or are of a general nature is recognised where there is entitlement, certainty of receipt and the amount can be measured with sufficient reliability. 

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred. Grants are deferred to future periods only when this is specified by the funder or other preconditions of the fund are not yet met. 

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably, and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material. 

Investment income is recognised on a receivable basis. 

## **(f) Service agreements and management agreements** 

The charity has service agreements in place with other similar organisations. The income from these agreements is shown on a gross basis with expenditure included in Expenditure on Charitable Activities. 

The charity has management agreements in place with Falcon Housing Association CIC to manage the provision of accommodation for the homeless, in properties in Blackpool and Sunderland. Falcon is the leaseholder of these properties. The terms of the agreements result in the charity receiving income from Falcon equal to the amounts that Falcon receive as housing benefit from the respective local councils. This income is included in Income from Charitable Activities. Expenditure incurred in providing the service required under the terms of the agreements is included in Expenditure on Charitable Activities. 

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**THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements For the year ended 30 May 2021** 

## **2. Accounting policies [Continued]** 

## **(g) Expenditure** 

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings: 

- Costs of raising funds are the direct and indirect costs of raising funds for charitable purposes, including applying for grants. 

- Charitable 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. 

- Support costs include costs of the preparation and examination of the statutory financial statements, the costs of Trustee meetings and the cost of any legal advice to Trustees on governance or constitutional matters. 

- Other expenditure represents those items not falling into any other heading. 

## **(h) Fixed assets** 

Individual fixed assets costing £1,000 or more are initially recorded at cost. 

Depreciation is provided on all tangible fixed assets at the rates listed below so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life: 

Freehold land and buildings 2% per annum on cost Plant and machinery 10% per annum on cost Office equipment 33.3% per annum on cost 

## **(i) Investments** 

Fixed asset investments are included at market value at the Balance Sheet date. 

Realised gains and losses on investments are calculated as the difference between sales proceeds, and their market value at the start of the year, or their subsequent cost, and are charged or credited to the Statement of Financial Activities in the period of disposal. 

Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year end. 

## **(j) Operating leases** 

Rentals payable under operating leases are charged in the Statement of Financial Activities on a straight-line basis over the lease term. 

## **(k) Pensions** 

The charity operates an auto enrolment defined contribution scheme for all eligible employees in line with the current legislation. 

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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

## **2. Accounting policies [Continued]** 

## **(l) Debtors** 

Other debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid after taking any discount due. 

## **(m) Cash at bank and in hand** 

Cash at bank and in hand includes cash and short-term highly liquid investments. 

## **(n) Creditors and provisions** 

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in a transfer of funds to a third party at the amount due to settle the obligation and can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discount due. 

## **(o) Financial instruments** 

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 

## **3. Legal status of the charity** 

The charity is a private company limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the charity in the event of liquidation. The number of members at the year-end was three (2020 - six). 

## **4. Judgements and key sources of estimation uncertainty** 

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. 

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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

|**5.**|**Grants, donations, and**||||||**Total Funds**|
|---|---|---|---|---|---|---|---|
||**legacies**|**Restricted**|**Unrestricted**|**Total Funds**|**Restricted**|**Unrestricted**|**2020**|
|||**Funds**|**Funds**|**2021**|**Funds**|**Funds**|**(Restated)**|
|||**£**|**£**|**£**|**£**|**£**|**£**|
||**Donations and legacies**|||||||
||Appeals and donations|-|2,651|2,651|-|3,502|3,502|
||**Grants**|24,816|43,062|67,878|24,816|25,000|49,816|
||**Total per statement of funds**|24,816|45,713|70,529|24,816|28,502|53,318|



The income from grants, donations and legacies was £70,529 (2020 - £53,318) of which £45,713 was unrestricted (2020 - £28,502) and £24,816 restricted (2020 - £24,816). 

|**6.**<br>**Incoming resources from**<br>**charitable activities**<br> <br>**Charitable activities**<br>Housing benefit - hostels and<br>flats<br>Housing benefit - exceptional<br>arrears (below)<br>Income from hostels and flats<br>Residents’ contributions -<br>hostels and flats<br>Emergency Beds Scheme<br>Community Café & Hub takings<br>Other income<br>**Total income from charitable**<br>**activities**|**Restricted**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>**Total Funds**<br>**2021**<br>**£**<br>**£**<br>**£**<br>-<br>1,967,046<br>1,967,046<br>-<br>-<br>1,596,207<br>1,596,207<br>-<br>119,015<br>119,015<br>-<br>172,949<br>172,949<br>-<br>9,302<br>9,302<br>-<br>3,111<br>3,111<br>-<br>3,867,630<br>3,867,630|**Restricted**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>**Total Funds**<br>**2020**<br>**£**<br>**£**<br>**£**<br>-<br>1,968,190<br>1,968,190<br>-<br>769,533<br>769,533<br>-<br>1,073,406<br>1,073,406<br>-<br>102,929<br>102,929<br>-<br>44,642<br>44,642<br>-<br>8,433<br>8,433<br>-<br>-<br>-<br>-<br>3,967,133<br>3,967,133|
|---|---|---|



## **Housing benefit exceptional arrears** 

The Income from operation of hostels and flats - exceptional arrears is the amount agreed and due from Sunderland Council in respect of Housing Benefit payable to Falcon Housing Association CIC and then due to the charity under the terms of the management agreements in place for the operation of the Sunderland hostel and flats. 

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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

## **7. Income earned from commercial trading activities** 

The wholly owned trading subsidiary Homeless Action CIC (Company Number: 08044728, registered office: 81 Abingdon Street, Blackpool, Lancashire, FY1 1PP) operated a charity shop providing clothing and furniture to those in need and to raise funds for The Ashley Foundation. 

||The summary financial results of the subsidiary were:|The summary financial results of the subsidiary were:|The summary financial results of the subsidiary were:|||**2021**|**2020**|
|---|---|---|---|---|---|---|---|
|||||||**£**|**£**|
||Shop takings|||||-|15,635|
||Grant income|||||14,538|25,000|
|||||||14,538|40,635|
||Group balance write off|||||-|76,955|
|||||||14,358|117,590|
||Cost of sales and administration costs|||||(14,150)|(22,811)|
||**Operating profit**|||||388|94,779|
||The assets and liabilities of|the subsidiary company were:||||||
||Current assets|||||4,638|4,250|
||Creditors: amounts falling due within one year|||||(1,201)|(1,200)|
||**Net assets**|||||3,438|3,050|
||**Aggregate share capital and reserves**|||||3,438|3,050|
|**8.**|**Investment income**|**Restricted**|**Unrestricted**|**Total Funds**|**Restricted**|**Unrestricted**|**Total Funds**|
|||**Funds**|**Funds**|**2021**|**Funds**|**Funds**|**2020**|
|||**£**|**£**|**£**|**£**|**£**|**£**|
||Bank interest|-|1,073|1,073|-|11,255|11,255|
||**Total investment income**|-|1,073|1,073|-|11,255|11,255|



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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

|**9.**<br>**Expenditure on charitable activities - Current year**<br>**Community**<br>**Café & Hub**<br>**£**<br>Wages and salaries costs<br>6,718<br>Staffing costs<br>-<br>Premises costs<br>2,076<br>Service charges - Blackburn Hostels<br>Office costs<br>65<br>Food costs<br>4,048<br>Other costs<br>1,150<br>Laundry and cleaning costs<br>620<br>Motor and travel costs<br>33<br>Legal costs<br>-<br>Loan interest<br>-<br>Depreciation<br>-<br>Governance costs<br>-<br>Support costs<br>-<br>**Total**<br>14,710<br>**Expenditure on charitable activities - Prior year**<br>**Community**<br>**Café & Hub**<br>**£**<br>Wages and salaries costs<br>40,489<br>Staffing costs<br>101<br>Premises costs<br>46,526<br>Service charges - Blackburn Hostels<br>-<br>Office costs<br>2,064<br>Food costs<br>5,351<br>Other costs<br>1,827<br>Laundry and cleaning costs<br>871<br>Motor and travel costs<br>366<br>Legal costs<br>1,834<br>Loan interest<br>-<br>Depreciation<br>-<br>Governance costs<br>-<br>Support costs<br>-<br>**Total**<br>99,429|**Accom**<br>**Provision**<br>**Total Funds**<br>**2021**<br>**£**<br>**£**<br>1,058,549<br>1,065,267<br>250<br>250<br>1,601,388<br>1,603,464<br>946,955<br>946,955<br>16,571<br>16,636<br>79,436<br>83,484<br>9,735<br>10,885<br>16,814<br>17,434<br>5,252<br>5,285<br>(5,750)<br>(5,750)<br>19,086<br>19,086<br>27,702<br>27,702<br>6,250<br>6,250<br>393,780<br>393,780<br>4,176,018<br>4,190,728<br>**Accom**<br>**Provision**<br>**Total Funds**<br>**2020**<br>**£**<br>**£**<br>866,279<br>906,768<br>-<br>101<br>1,449,101<br>1,495,627<br>1,030,890<br>1,030,890<br>23,834<br>25,898<br>90,954<br>96,305<br>17,485<br>19,312<br>22,872<br>23,743<br>3,455<br>3,821<br>1,829<br>3,663<br>23,578<br>23,578<br>27,596<br>27,596<br>102,810<br>102,810<br>467,771<br>467,771<br>4,128,454<br>4,227,883|
|---|---|



Expenditure on charitable activities was £4,190,728 (2020 - £4,227,883) of which £4,150,639 was unrestricted (2020 - £4,148,760) and £5,516 restricted (2020 - £79,123). 

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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

|**10.**<br>**Summary of analysis of expenditure and related**<br>**income for charitable activities – Current year**<br>**Community**<br>**Café & Hub**<br>**£**<br>Costs (note 9)<br>14,710<br>Grant support (note 5)<br>(24,816)<br>**Net cost - other income**<br>(10,106)<br>**Summary of analysis of expenditure and related**<br>**income for charitable activities – Prior year**<br>**Community**<br>**Café & Hub**<br>**£**<br>Costs (note 9)<br>99,429<br>Grant support - restated (note 5)<br>(24,816)<br>**Net cost - other income**<br>74,613|**Accom**<br>**Provision**<br>**Total Funds**<br>**2021**<br>**£**<br>**£**<br>4,176,018<br>4,190,728<br>(43,062)<br>(67,878)<br>4,132,956<br>4,122,850<br>**Accom**<br>**Provision**<br>**Total Funds**<br>**2020**<br>**£**<br>**£**<br>4,218,454<br>4,227,883<br>(25,000)<br>(49,816)<br>4,193,454<br>4,178,267|**Accom**<br>**Provision**<br>**Total Funds**<br>**2021**<br>**£**<br>**£**<br>4,176,018<br>4,190,728<br>(43,062)<br>(67,878)<br>4,132,956<br>4,122,850<br>**Accom**<br>**Provision**<br>**Total Funds**<br>**2020**<br>**£**<br>**£**<br>4,218,454<br>4,227,883<br>(25,000)<br>(49,816)<br>4,193,454<br>4,178,267|
|---|---|---|
|||4,178,267|



**11. Analysis of governance and support costs - Current year** The charity allocates its support costs as shown in the table below and then further apportions those costs to the charitable activities undertaken (see note 10). Unless stated otherwise, support costs are directly attributed to the activity. 

|**Support cost**<br>Wages and salaries costs<br>Staffing costs<br>Premises costs<br>Office costs<br>Food costs<br>Other costs<br>Laundry and cleaning costs<br>Motor and travel costs<br>Accountancy costs<br>Audit costs<br>Legal costs<br>Trustees’ expenses<br>Loan interest<br>Depreciation|**General**<br>**Support**<br>**Governance**<br>**£**<br>**£**<br>156,190<br>-<br>36,527<br>-<br>33,336<br>-<br>21,207<br>-<br>134<br>-<br>5,027<br>-<br>2,213<br>-<br>2,758<br>-<br>62,271<br>-<br>-<br>6,250<br>66,678<br>-<br>-<br>-<br>2,514<br>-<br>4,925<br>-<br>393,780<br>6,250|**Total**<br>**2021**<br>**£**<br>156,190<br>36,527<br>33,336<br>21,207<br>134<br>5,027<br>2,213<br>2,758<br>62,271<br>6,250<br>66,678<br>-<br>2,514<br>4,925|
|---|---|---|
|||400,030|



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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

## **11. Analysis of governance and support costs - Prior year** 

The charity allocates its support costs as shown in the table below and then further apportions those costs to the charitable activities undertaken (see note 10). Unless stated otherwise, support costs are directly attributed to the activity. 

|**Support cost**<br>Wages and salaries costs<br>Staffing costs<br>Premises costs<br>Office costs<br>Food costs<br>Other costs<br>Laundry and cleaning costs<br>Motor and travel costs<br>Accountancy costs<br>Audit costs<br>Legal costs<br>Trustees’ expenses<br>Loan interest<br>Depreciation|**General**<br>**Support**<br>**Governance**<br>**£**<br>**£**<br>335,307<br>-<br>1,809<br>-<br>41,091<br>-<br>29,242<br>-<br>400<br>-<br>12,348<br>-<br>2,148<br>-<br>8,024<br>-<br>29,438<br>-<br>-<br>5,250<br>-<br>96,350<br>-<br>1,210<br>3,058<br>-<br>4,906<br>-<br>467,771<br>102,810|**Total**<br>**2020**<br>**£**<br>335,307<br>1,809<br>41,091<br>29,242<br>400<br>12,348<br>2,148<br>8,024<br>29,438<br>5,250<br>96,350<br>1,210<br>3,058<br>4,906|
|---|---|---|
|||570,581|



## **12. Trustees’ remuneration and expenses** 

The Trustees were not paid nor did they receive any other benefits from employment with the charity or its subsidiary in the year (2020 - £Nil). 

Expenses totalling £273 (2020 - £742) were paid to one (2020 - one) Trustee(s) in the year to 30 May 2021 in respect of motor and travel costs. 

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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

|**13.**<br>**Net income/(expenditure)**<br>Net income/(expenditure) is stated after charging:<br>Operating leases<br>Management agreements<br>Service charges - Blackburn Hostels<br>Auditor’s remuneration - statutory audit<br>Bank interest payable<br>Depreciation<br>**14.**<br>**Analysis of staff costs and remuneration of key management personnel**<br>Wages and salaries<br>National insurance contributions<br>Employers’ pension contributions<br>**Total staff costs**|**2021**<br>**£**<br>216,636<br>886,454<br>946,955<br>6,250<br>21,600<br>32,626<br>**2021**<br>**£**<br>1,107,843<br>94,713<br>18,901<br>1,221,457|**2020**<br>**£**<br>216,636<br>863,995<br>1,030,890<br>5,250<br>28,800<br>32,502|
|---|---|---|
|||**2020**<br>**£**<br>1,116,893<br>107,174<br>18,009|
|||1,242,076|



The average number of employees during the year was 41 (2020 - 43) with all employees’ time involved in providing either support to the governance of the charity or support services to charitable activities. The charity considers its key management personnel comprise the Trustees, the Chief Executive Officer, and in the prior year the Special Project Manager. The total employment benefits including employer’s pension contributions of the key management personnel was £115,084 (2020 - £165,130). One employee (2020 – one) had employee benefits (excluding pension contributions) in excess of £60,000. This employee received remuneration in the banding £110,000 - £120,000 (2020 - £100,000 - £110,000). 

During the year payments totalling £41,121 (2020 - £Nil) were made in respect of termination payments to employees/former employees. 

## **15. Pension costs** 

The charity operates an auto enrolment defined contribution scheme for all eligible employees in line with current legislation. It is a defined contribution scheme and contributions are charged in the statement of financial activities as they accrue. The employer’s charge for the year for the charity was £18,901 (2020 - £18,009). 

## **16. Corporation tax** 

The company is a registered charity and is, therefore, exempt from taxation. 

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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

|**17.**<br>**Tangible fixed assets - Group**<br>**Freehold**<br>**Interest in**<br>**Land and**<br>**Buildings**<br>**Fixtures,**<br>**Fittings and**<br>**Equipment**<br>**Plant and**<br>**Machinery**<br>**including**<br>**Motor**<br>**Vehicles**<br>**£**<br>**£**<br>**£**<br>**Cost**<br>As at 30 May 2020<br>1,453,005<br>18,187<br>48,998<br>Additions<br>-<br>-<br>-<br>Disposals<br>-<br>-<br>-<br>**As at 30 May 2021**<br>1,453,005<br>18,187<br>48,998<br>**Depreciation**<br>As at 30 May 2020<br>87,180<br>4,160<br>48,998<br>Charge for the year<br>29,061<br>3,565<br>-<br>Disposals<br>**As at 30 May 2021**<br>116,241<br>7,725<br>48,998<br>**Net book value**<br>As at 30 May 2021<br>1,336,764<br>10,462<br>-<br>As at 30 May 2020<br>1,365,825<br>14,027<br>-|**Total**<br>**£**<br>1,520,190<br>-<br>-<br>1,520,190<br>140,338<br>32,626<br>172,964<br>1,347,226<br>1,379,852|
|---|---|



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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

|**17.**<br>**Tangible fixed assets - Charity**<br>**Cost**<br>As at 30 May 2020<br>Additions<br>Disposals<br>**As at 30 May 2021**<br>**Depreciation**<br>As at 30 May 2020<br>Charge for the year<br>Disposals<br>**As at 30 May 2021**<br>**Net book value**<br>As at 30 May 2021<br>As at 30 May 2020|**Freehold**<br>**Interest in**<br>**Land and**<br>**Buildings**<br>**Fixtures,**<br>**Fittings and**<br>**Equipment**<br>**Plant and**<br>**Machinery**<br>**including**<br>**Motor**<br>**Vehicles**<br>**£**<br>**£**<br>**£**<br>1,453,005<br>18,187<br>48,998<br>-<br>-<br>-<br>-<br>-<br>-<br>1,453,005<br>18,187<br>48,998<br>87,180<br>4,160<br>48,998<br>29,061<br>3,565<br>-<br>116,241<br>7,725<br>48,998<br>1,336,764<br>10,462<br>-<br>1,365,825<br>14,027<br>-|**Total**<br>**£**<br>1,520,190<br>-<br>-|
|---|---|---|
|||1,520,190|
|||140,338<br>32,626|
|||172,964|
|||1,347,226|
|||1,379,852|



## **18. Investments held as fixed assets** 

The charity holds one ordinary share of £1 in its wholly owned trading subsidiary company Homeless Action CIC which is incorporated in the United Kingdom. The activities and results of this company are summarised in note 7. 

|**Debtors**<br>Housing benefit receivable<br>Other debtors<br>Prepayments and accrued income|**Group**<br>**2021**<br>**Group**<br>**2020**<br>**(Restated)**<br>**£**<br>**£**<br>163,984<br>913,803<br>14,013<br>16,868<br>19,881<br>4,301<br>197,878<br>934,972|**Charity**<br>**2021**<br>**Charity**<br>**2020**<br>**(Restated)**<br>**£**<br>**£**<br>163,984<br>913,803<br>14,013<br>16,618<br>19,881<br>4,301<br>197,878<br>934,722|**Charity**<br>**2021**<br>**Charity**<br>**2020**<br>**(Restated)**<br>**£**<br>**£**<br>163,984<br>913,803<br>14,013<br>16,618<br>19,881<br>4,301<br>197,878<br>934,722|
|---|---|---|---|
||||934,722|



## **19. Debtors** 

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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

## **20.** 

|**Creditors: Amounts falling due within one year**<br>Bank loans and overdrafts<br>Amounts due to suppliers<br>Taxation and national insurance<br>Other creditors<br>Accruals and deferred income|**Group**<br>**2021**<br>**£**<br>35,863<br>10,812<br>29,077<br>51,173<br>163,137<br>290,062|**Group**<br>**2020**<br>**£**<br>35,754<br>20,194<br>28,004<br>52,161<br>209,131<br>345,244|**Charity**<br>**2021**<br>**£**<br>35,863<br>10,812<br>29,077<br>51,173<br>166,559<br>293,484|**Charity**<br>**2020**<br>**£**<br>35,754<br>20,194<br>28,004<br>52,161<br>207,931|
|---|---|---|---|---|
|||||344,044|



Creditors: Amounts falling due within one year includes the following liabilities, on which security has been given by the charity and group: 

|given by the charity and group:|||
|---|---|---|
||**Group &**|**Group &**|
||**Charity**|**Charity**|
||**2021**|**2020**|
||**£**|**£**|
|Bank loans|35,863|35,754|



The bank loans are secured by a first legal charge over 81-83 Abingdon Street, 254 Hornby Road, 38 and 45 Bairstow Street, 1 Woverton Avenue, 176/178 Watson Road, 10 Knowle Avenue, The Warehouse back Cocker Street, 23 Cocker Street and 264-266 Dickson Road; all of which are situated in Blackpool. 

There is further security provided by a fixed and floating charge over the other assets of the charity. 

|**21.**|**Creditors: Amounts falling due after more than**|**Group &**|**Group &**|
|---|---|---|---|
||**one year**|**Charity**|**Charity**|
|||**2021**|**2020**|
|||**£**|**£**|
||Bank loans|637,638|673,106|



Included in the creditors are the following amounts due after more than five years: 

||**Group &**|**Group &**|
|---|---|---|
||**Charity**|**Charity**|
||**2021**|**2020**|
||**£**|**£**|
|After more than five years by instalments|481,925|519,658|



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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements For the year ended 30 May 2021** 

## **22. Operating lease commitments and management agreements** 

As at 30 May 2021 the charity had total commitments under non-cancellable operating leases and management agreements as follows: 

|management agreements as follows:|||
|---|---|---|
|**Agreements which expire:**<br>Less than one year<br>Within two to five years<br>Over five years<br>**Total**|**Group &**<br>**Charity**<br>**2021**<br>**£**<br>1,053,692<br>3,552,474<br>10,282,271<br>14,888,437|**Group &**<br>**Charity**<br>**2020**<br>**£**<br>1,092,754<br>3,718,048<br>11,170,390|
|||15,981,192|



## **23. Related parties** 

## **Controlling entity** 

The charity is controlled by the Trustees who are all directors of the company. 

During the current year Mrs Janet Kam, wife of the former trustee Mr David Kam, received reimbursement of expenses in respect of her mobile phone totalling £273 (2020 - £468). There were no other related party transactions in the current year. 

Previous year related party transactions were: 

Mr David Kam, former Trustee and chair, received reimbursement of expenses totalling £Nil (2020 - £742).. Mr Kam was a director of the company until 14 July 2020. 

During the current year Mrs Janet Kam, wife of the former trustee Mr David Kam, received reimbursement of expenses in respect of her mobile phone totalling £273 (2020 - £468). There were no other related party transactions in the current year. 

Mr Ashley Dribben, former Trustee, received a reimbursement of legal costs totalling £Nil (2020 - £15,876). In 2020, a balance of £425 from Mistle Limited was written off during the year. Mr Dribben was a director of this company until 30 October 2018. 

Mr Goran Cemerikic, former Trustee, is the sole director of A Gordon Electrical Services Limited which provides electrical contracting services to the charity, and during the year A Gordon Electrical Services Limited invoiced the charity for services totalling £Nil (2020 - £6,706). 

Mrs Lisa Edwards, Trustee and chair, took legal action on behalf of the charity and costs totalling £Nil (2020 - £35,570) were paid directly to the lawyers in relation to this action. 

Transactions between the charity and Mr Lee Dribben, the former CEO and latterly Business Development and Special Projects Manager, were as follows: 

Reimbursement of expenses in respect of staff barbecue totalling £Nil (2020 - £3,000). 

Cash withdrawals made by Mr Dribben totalling £Nil (2020 - £1,200). 

Provision of cash for use as petty cash by the charity in exchange for cheques - £Nil (2020 - £21,500). 

Reimbursement for use of personal credit card for payment of charity supplies, services, and hospitality £Nil (2020 - £45,762). An expense claim of £2,750 has remained unpaid. 

27 | P a g e 



## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

The charity’s wholly owned subsidiary, Homeless Action CIC ceased operating its charity shop in March 2020 as a result of the Covid-19 pandemic, and subsequent to that it was decided not to re-open the shop. This coincides with the lease on the shop terminating in August 2021 and it was not renewed. There is a balance owed to the subsidiary of £4,621 (2020 – £Nil) at the year-end. 

|**24.**<br>**Analysis of charitable funds – Group -**<br>**unrestricted current year**<br>**At 30 May**<br>**2020**<br>**(Restated)**<br>**Incoming**<br>**Resources**<br>**Resources**<br>**Expended**<br>**£**<br>**£**<br>**£**<br>General funds<br>3,152,285<br>3,884,640<br>(4,184,035)<br>Designated Fund – Poplar House<br>-<br>25,383<br>(14,898)<br>Designated Fund – Sunderland Flats<br>-<br>24,287<br>-<br>Designated Fund – 1,000 Voices<br>-<br>2,960<br>(429)<br>**Total funds**<br>3,152,285<br>3,937,270<br>(4,199,362)<br>**Analysis of charitable funds – Group -**<br>**unrestricted prior year**<br>**At 30 May**<br>**2019**<br>**Incoming**<br>**Resources**<br>**(Restated)**<br>**Resources**<br>**Expended**<br>**£**<br>**£**<br>**£**<br>General funds<br>3,267,202<br>4,056,654<br>(4,171,571)<br>**Total funds**<br>3,267,202<br>4,056,654<br>(4,171,571)<br>**Analysis of charitable funds – Charity -**<br>**unrestricted current year**<br>**At 30 May**<br>**2020**<br>**(Restated)**<br>**Incoming**<br>**Resources**<br>**Resources**<br>**Expended**<br>**£**<br>**£**<br>**£**<br>General funds<br>3,149,236<br>3,922,552<br>(4,190,729)<br>**Total funds**<br>3,149,236<br>3,922,552<br>(4,190,729)<br>**Analysis of charitable funds – Charity -**<br>**unrestricted prior year**<br>**At 30 May**<br>**2019**<br>**Incoming**<br>**Resources**<br>**(Restated)**<br>**Resources**<br>**Expended**<br>**£**<br>**£**<br>**£**<br>General funds<br>3,281,977<br>4,016,019<br>(4,148,760)<br>**Total funds**<br>3,281,977<br>4,016,019<br>(4,148,760)|**At 30 May**<br>**2021**<br>**£**<br>2,852,890<br>10,485<br>24,287<br>2,531<br>2,890,193<br>**At 30 May**<br>**2020**<br>**(Restated)**<br>**£**<br>3,152,285<br>3,152,285<br>**At 30 May**<br>**2021**<br>**£**<br>2,881,239<br>2,881,239<br>**At 30 May**<br>**2020**<br>**(Restated)**<br>**£**<br>3,149,236<br>3,149,236|
|---|---|



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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements For the year ended 30 May 2021** 

|**25.**<br>**Analysis of charitable funds – Group & charity –**<br>**restricted - Current**<br>**At 31 May**<br>**2020**<br>**Incoming**<br>**Resources**<br>**Resources**<br>**Expended**<br>**£**<br>**£**<br>**£**<br>Mental Health Support<br>22,700<br>-<br>-<br>The National Lottery Community Fund - The<br>Ashley Foundation Community Café and Hub<br>4,136<br>24,816<br>(5,516)<br>**Total funds**<br>26,836<br>24,816<br>(5,516)|**At 30 May**<br>**2021**<br>**£**<br>22,700<br>23,436<br>46,136|
|---|---|



## **Name of fund** 

## **Description, nature, and purposes of the fund** 

Community Café & Hub Set up 

Contributions towards the redevelopment of a new property acquired in Blackpool for the Community Café and Hub. 

Bute Avenue Refurbishment 

Contributions towards the redevelopment of a new property acquired to expand the provision of move on flats in Blackpool. 

Mental Health Support 

Support for the provision of mental health of our residents in Blackpool. 

The National Lottery Community Fund - The Ashley Foundation Community Café & Hub 

Support for running costs of the Community Café & Hub during the first three years of operation. 

|**Analysis of charitable funds – Group & Charity –**<br>**restricted – prior year**<br>**At 31 May**<br>**2019**<br>**Incoming**<br>**Resources**<br>**(Restated)**<br>**Resources**<br>**Expended**<br>**£**<br>**£**<br>**£**<br>Community Cafe & Hub set Up<br>35,128<br>-<br>(35,128)<br>Bute Avenue refurbishment<br>21,015<br>-<br>(21,015)<br>Mental Health Support<br>25,000<br>-<br>(2,300)<br>The National Lottery Community Fund - The<br>Ashley Foundation Community Café & Hub<br>-<br>24,816<br>(20,680)<br>**Total funds**<br>81,143<br>24,816<br>(79,123)|**At 30 May**<br>**2020**<br>**£**<br>-<br>-<br>22,700<br>4,136<br>26,836|
|---|---|



## **26. Transfers** 

As stated above, any surplus expenditure arising on any of the restricted funds is met from general (unrestricted) funds. 

Where applicable and where not prohibited under any terms specified by the donor, any restricted funds where it is deemed that the associated activity or purpose has ceased are likewise transferred to general funds at the discretion of the Trustees. 

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## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

|**27.**<br>**Net assets by fund – Group - Current year**<br>Tangible fixed assets<br>Cash at bank and in hand<br>Other net current assets / (liabilities)<br>Creditors of more than one year<br>**Net assets**<br>**Net assets by fund – Group - Prior year**<br>Tangible fixed assets<br>Cash at bank and in hand<br>Other net current assets / (liabilities)<br>Creditors of more than one year<br>**Net assets**<br>**Net assets by fund – Charity - Current year**<br>Tangible fixed assets<br>Cash at bank and in hand<br>Other net current assets / (liabilities)<br>Creditors of more than one year<br>**Net assets**<br>**Net assets by fund – Charity - Prior year**<br>Tangible fixed assets<br>Cash at bank and in hand<br>Other net current assets / (liabilities)<br>Creditors of more than one year<br>**Net assets**|**Restricted**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>**Total Funds**<br>**2021**<br>**£**<br>**£**<br>**£**<br>-<br>1,347,226<br>1,347,226<br>-<br>2,318,925<br>2,318,925<br>46,136<br>(138,320)<br>(92,184)<br>-<br>(637,638)<br>(637,638)<br>46,136<br>2,890,193<br>2,936,329<br>**Restricted**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>**(Restated)**<br>**Total Funds**<br>**2020**<br>**(Restated)**<br>**£**<br>**£**<br>**£**<br>-<br>1,379,852<br>1,379,852<br>-<br>1,882,647<br>1,882,647<br>26,836<br>562,892<br>589,728<br>-<br>(673,106)<br>(673,106)<br>26,836<br>3,152,285<br>3,179,121<br>**Restricted**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>**Total Funds**<br>**2021**<br>**£**<br>**£**<br>**£**<br>-<br>1,347,227<br>1,347,226<br>-<br>2,318,908<br>2,318,908<br>46,136<br>(90,090)<br>(43,954)<br>-<br>(637,638)<br>(637,638)<br>46,136<br>2,886,755<br>2,932,891<br>**Restricted**<br>**Funds**<br>**Unrestricted**<br>**Funds**<br>**(Restated)**<br>**Total Funds**<br>**2020**<br>**(Restated)**<br>**£**<br>**£**<br>**£**<br>-<br>1,379,853<br>1,379,853<br>-<br>1,878,647<br>1,878,647<br>26,836<br>563,842<br>590,678<br>-<br>(673,106)<br>(673,106)<br>26,836<br>3,149,236<br>3,176,072|
|---|---|



30 | P a g e 



## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

## **28. Reconciliation of net movement in funds to net cash flow from operating activities** 

|Net movement in funds<br>Add: Depreciation<br>Deduct interest income shown in investing<br>activities<br>Decrease/(increase) in debtors<br>(Decrease)/increase in creditors<br>**Net cash used in operating activities**<br>**29.**<br>**Net debt reconciliation – Group - Current year**<br>Cash<br>Loans falling due within one year<br>Loans falling due after one year<br>**Net assets**<br>**Net debt reconciliation – Group - Prior year**<br>Cash<br>Loans falling due within one year<br>Loans falling due after one year<br>**Net assets**|**Group**<br>**2021**<br>**Group**<br>**2020**<br>**(Restated)**<br>**Charity**<br>**2021**<br>**Charity**<br>**2020**<br>**(Restated)**<br>**£**<br>**£**<br>**£**<br>**£**<br>(242,792)<br>(68,248)<br>(242,404)<br>(163,027)<br>32,626<br>32,502<br>32,626<br>32,502<br>(1,073)<br>(11,255)<br>(1,073)<br>(11,255)<br>737,094<br>(947,484)<br>737,094<br>(853,352)<br>(55,291<br>191,484<br>(51,696)<br>190,838<br>470,563<br>(803,001)<br>474,546<br>(804,294)<br>**30 May 2020**<br>**Cash flows**<br>**30 May 2021**<br>**£**<br>**£**<br>**£**<br>1,882,647<br>436,278<br>2,318,925<br>(35,754)<br>(109)<br>(35,863)<br>(673,106)<br>35,468<br>(637,638)<br>1,173,787<br>471,636<br>1,645,423<br>**30 May 2019**<br>**Cash flows**<br>**30 May 2020**<br>**£**<br>**£**<br>**£**<br>2,710,559<br>(827,912)<br>1,882,647<br>(31,381)<br>(4,373)<br>(35,754)<br>(709,266)<br>36,160<br>(673,106)<br>1,969,912<br>(796,125)<br>1,173,787|
|---|---|



31 | P a g e 



## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

|**29.**|**Net debt reconciliation continued  – Charity -**||||
|---|---|---|---|---|
||**Current year**|**30 May 2020**|**Cash flows**|**30 May 2021**|
|||**£**|**£**|**£**|
||Cash|1,878,647|440,261|2,318,908|
||Loans falling due within one year|(35,754)|(109)|(35,863)|
||Loans falling due after one year|(673,106)|35,468|(637,638)|
||**Net assets**|1,169,787|475,619|1,645,406|
||**Net debt reconciliation – Charity - Prior year**|**30 May 2019**|**Cash flows**|**30 May 2020**|
|||**£**|**£**|**£**|
||Cash|2,707,852|(829,205)|1,878,647|
||Loans falling due within one year|(31,381)|(4,373)|(35,754)|
||Loans falling due after one year|(709,266)|36,160|(673,106)|
||**Net assets**|1,967,205|(797,418)|1,169,787|
|**30.**|**Prior period adjustments and restatements - Group**|||**2021**|
|||||**£**|
||**Reconciliation of changes in unrestricted funds**||||
||As previously reported|||3,253,261|
||Correction to estimated housing benefit accrual|||(100,976)|
||**As adjusted**|||3,152,285|
||**Restatements of changes in income for the previous period**||||
||As previously reported|||(68,248)|
||Correction to estimated housing benefit accrual|||(100,976)|
||**As restated**|||(169,224)|



32 | P a g e 



## **THE ASHLEY FOUNDATION** 

## **Notes to the Financial Statements** 

## **For the year ended 30 May 2021** 

|**30.**<br>**Prior period adjustments and restatements - Charity**<br>**Reconciliation of changes in unrestricted funds**<br>As previously reported<br>Correction to estimated housing benefit accrual<br>**As adjusted**<br>**Restatements of changes in income for the previous period**<br>As previously reported<br>Correction to estimated housing benefit accrual<br>**As restated**|**2021**<br>**£**<br>3,250,212<br>(100,976)<br>3,149,236<br>(163,027)<br>(100,976)<br>(264,003)|
|---|---|



The prior period adjustment is due to the adjustment of the estimate of the housing benefit accrual made in the prior year, whose value is now known exactly. 

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