Company number'.03399617 Charity Number: 1064698 d SUPPory* BACKUP NORTH WEST BACKUP North West For Ihe year LndLd 31 Mai'LlI 2024
Backup North West Flnancial Statements For the Year Ended 31 March 2024 Contents Page Key Organisational Information Annual Report of Trustees 2-15 Independent Auditors Report 16-19 Statement of Financial Activities 20 Balance Sheet 21 Statement of Cashflows 22 Notes to the Financial Statements 23-40
Backup North West Key Organisational Information For the Year Ended 31 March 2024 Company number 03399617 Charity number 1064698 Registered offiee and operational address Bridgeman Hous¢, 77 Bridgeinan Street, Bolton, BL3 6BY Charity Trustees and Company Directors (as at 31" March 2024) Dr Steve Sharples Lisa Tulip (was CELarles) Joan Wyatt Paul Pritchard Gail Hoiinslea lan Bell Maggie Bruce David Morgan Victoria Mail. (I'esigned 28 February 2024) Mark Tui'nbull Maura Jackson (resigned 15 December 202i) Gabriell¢ Tuiton McBride (i'esigiied l May 2024) Resma Patel (appointed l May 2024) Cl)air Vice Chair Treasui'er Seci'elary Councillor E Mort is a Bolton MBC representatlve nominated to slt on the Board of Trustees. No Trustees have held title to property belonging to the charity during the reporting period or at the date of approval. Key management Personnel Maura Jackson - Chief Executive James Haigh- Director of Services Paulette Campbell- Director of Business Laura Pendlebury - Director of Income and Partnerships Bankers Co-operative Bank plc, l Balloon Street, Manchester Solicitors Aspinall & Co, 15 Wood Street, Bolton Auditors Barlow Andrews 78 Chorley New Road, Bolton
Backup North West Annual Report of The Board of Trustees For the Year Ended 31 March 2024 The Trustees present their report and the audited financial statements for the year ended 31st March 2024. Included wlthln the Trustees, report Is the dlrectors, report as required by company law. Reference and adminlstratlve Informatlon set out on page I forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of associatlon and the Statement of Recommended Practlce Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance wlth FRS 102. The Board of Trustees and Backup colleagues reviewed the long term buslness plan this year 2023 - 2026 and have 4 key areas identified as priority.." l. Place 2. People 3, Partnershlps 4. Proflle The overall alm of the organisatlon remains the same however we see our primary functlon to support young people. We do this by addresslng Issues caused by homelessness and work to stop repeat homelessness for young people by Intervening and supporting them into a positive alternative. The objects of the charlty are to "relieve poverty and the distress causes therebyi and in particular to provide single young people without settled housing accommodation ("the client group") with short term accommodation and the help educate and counsel such young people." The main activltles Include:. Provision and management of accommodation that is furnished and decorated, Needs and risk assessment of all referrals received for supported accommodation. Support planning and revlews. Thls Is also now for young people who are looked after but may not be living In BACKUP services or be homeless. Provlslon of slgnposting, advice, training and educatlon, group work, counselling, sport and lelsure activities on a variety of matters. Risk management. Housing Management. Coordinating and Ilalslng wlth other agencies across all sectors for the benefit of young people. Crlsls Interventlon, prevention and management. Safeguardlng. The new Business Plan 2023-2026 was launched in April 2023 and revised in Aprll 2024.
uppoeT ENDING YOUTH HOMELESSNESS BACKUP NORTH WEST STRATEGY 2023- 2025 BACKUP n. OUR &51N ymryiio XPxIIN¢E IT. JUPPORIIID AND ' J•tt OUR VISION OUR VA4UtS W •BT
BACKUP belleves no young person should experlence homelessness. For the young people that do, we alm to be an outstanding provider of high quality, holistic housing and support servlces. BACKUP alms to prevent homelessness among 16 25 years olds by provlding supported housing conslsting of furnished accommodation and tailored packages of support which Include emotlonal and practlcal help with all areas of Independent Ilving. Aims To empower young people to live ind¢pendently in theAr community To prevent repeat liomelessness and siistain tenan¢i¢s To respond to emergiiig needs of young people To enable young people to improve their social and economic welfare Values Respect Honesty Commilment Empowerment Empatliy Resilience Support kA"- The Trustees review the alms, objectlves and activltles of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The Trustees report the success of each key actlvity and the benefits the charity has brought to those groups of people that it Is set up to help. The review also helps the Trustees ensure the charity's aims, objectives and actlvities remalned focused on its stated purposes. The Trustees have referred to the guldance contalned in the Charity Commission's general guidance on public benefit when reviewlng the charlty's aims and objettlves and in planning its future actlvlties. In partlcular, the Trustees conslder how planned actlvltles will contribute to the alms and objectives that have been set. ni Bolton Young Persons Housing Scheme was established In 1992 and changed its, name to BACKUP North West In 2018. BACKUP Is a company Ilmited by guarantee and a registered charity. The Memorandum and Artlcles of Association were signed on 24 June 1997 and the company was incorporated on 7 th July 1997. These were amended on 8 March 2018 to reflect the new charity name and artlcles.
All the Trustees slt as members of BACKUP Board. Bolton MBC nomlnates a Trustee to the Board and currently this is Councillor Emily Mort. The Trustees meet every other month plus 2 to administer the charity (8 meetings per year). The CEO is appointed by the Board and is responslble for the day to day operation of the charity. In 2015116 a sub group was established to support financial matters and reports back to the Board quarterly. 3 board members attend this along with the CEO and Director of Buslness. In 2023 an additional sub group for people was established. They meet twice a year. We recruit new Trustees who live, study or work In Boston, who share our aims and support the work of the charity. Prospective Trustees go through a formal safer recrultment process and provide references before a formal invitation is made for them to become a Trustee. The prospective trustee attends 3 meetlngs before formally joinlng the Board and then this Is confirmed at the next AGM. Induction training is avallable for all new Trustees and other training Is available to all Trustees as required. In 2023 4 Trustees completed accredited Health and Safety for Leaders trainlng. 6 Trustees and the CEO also competed accredited Safeguarding for Leaders training. 4 Trustees also attended Trustee training through CVS. The company was established under a memorandum of associatlon whlch established the objects and powers of the charitable company and is governed under its articles of association. Members of the charlty guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 3113/24 was 11. The Trustees are members of the charity but thls entitles them only to voting rights, The Trustees have no beneficial Interest In the charlty. All Trustees glve their time voluntarily and recelve no benefits from the charity, unless otherwise noted per note 12. Any expenses reclaimed from the charity are set out in note 12 to the accounts. Statement of responsibilities of the Trustees The Trustees (who are also directors of Backup North West for the purposes of company law) are responsible for preparlng the Trustees, annual report and the flnancial statements in accordance with applicable law and Unlted Kingdom Accounting Standards (United Klngdom Generally Accepted Accountlng Practice). Company law requlres the Trustees to prepare flnanclal statements for each flnanclal year whlch glve a true and fair view of the state of affairs of the charltable company and of the incoming resources and application of resources, including the Income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are requlred 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 and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The Trustees are responslble for keeplng proper accounting records that disclose with reasonable accuracy at any time the financial position of the charltable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responslble for safeguarding the assets of the charltable company and hence for taking reasonable steps for the preventlon and detection of fraud and other irregularltles. In so far as the Trustees are aware: There is no relevant audit Informatlon of which the charltable company's audltors are Ljnaware The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audlt Information and to establish that the auditors are aware of that information The Trustees are responsible for the malntenance and integrity of the corporate and flnancial information included on the charltable company's webslte. Legislation in the United Kingdom governing the preparatlon and dissemination of financlal statements may dlffer from legislatlon In other jurisdictions. Related Parties BACKUP has close working relationshlps wlth Bolton MBC across varlous departments. Community Housing Services, Leavlng Care Team, Youth Offendlng Team, Councll Tax and Housing Benefits, Commissioners for Adults, Commissioners for Children, Llcencing and Events and more. Bolton MBC councll nominates an elected member annually as a Trustee to the BACKUP Board. Backup also works in partnershlp with Bolton at Home, Irwell Valley Homes, Mosscare St Vincents, Places for People and Onward. We lease properties for our portfolios through those reglstered providers. In terms of servlce dellvery, we have partnerships spannlng all sectors to benefit young people. These include the NHS, specialist domestic abuse, substance misuse, mental health and gambllng support services. A 32-year track record means we have long establlshed referral protocols with educatlon providers, support services, housing providers and agencies across the reglon. Our operation is supported by a number of local and regional indivlduals, grant givers, trusts, churches and buslnesses. These include National Lottery, Henry Smlth Charity, Bolton at Home, Homeless Link, Greenalghs Craft Bakery, Nandos, Carrs Pasties, Warburtons Bakery Ltd, Tesco and CVS. Bolton Fund. The full lists of funders, sponsors, donors and Guardians are detailed in our annual report. In order to achieve our alms and objectives we work and collaborate strategically with other partners both locally and nationally. BACKUP are active members of the local Interagency Forum worklng wlth local providers of homeless and support servlces to benefit the organlsatlon and our clients and Bolton CVS. Nationally we are members of Homeless Link Charity. We work alongside and are members of Institute of Directors, Greater Manchester Chamber of Commerce and Foyer Federation.
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Review of activities Our objectives for this year were to.. l) Secure the latest BMBC contract for supported accommodation for young people, 2) Work towards the 4 elements of the Business Plan i.e. Profile, Place, Partnerships and People, 3) Flnanclal stabllity for ongoing services includlng Increasing reserves, 4) Successfully complete Ofsted Reglstration and, 5) Continue to deliver high quality servlces to young people and to continuously develop as a flrst class employer. The young people are only defined by age, 16 - 25 years but no other characterlstlc other than they are homeless or at risk of becoming homeless and are in insecure situations or are at risk. In the main the young people require support around domestic abuse, addictions, self-harm, exploitation, neglect, safeguarding, mental ill healthi poverty, lack of employment or education and many more. Key Challenges It has been dlfflcult, but we have closed the gap in staff vacancies High demands for bank workers to cover and overtlme as a result Vacant Dlrector of Services role has left services "feellng" unsupported Demand for servlces at an all-time high Key Achievements Securlng new BMBC contract Great attendance and feedback from fundralslng events and AGM Successful first year for Director of Income and Partnerships and Fundraising lead Delivered excellent outcomes for young people Exceptional year for The Van Some of the maln Issues colleagues have supported young people with thls year have Included'.- Doniestic Violence Sexual exploitatlon D¢btlFinances Substance abuse Relationship issues (familial and partners) Education and (un)Employinent Life skills Emolional and Practical lielp Suicide attempts Self-harm Mental 14ealth Sexuality and gender identity Unemployment, job readiness and mental health continue to be the largest growing areas of work for BACKUP.
Services Available BACKUP SERVICES PrL)Secb.Ffont:D,Ok)r gh l..l and gr,oup support Off Site Actlvitles 10 Accomp.anyl Free.on slte couns•lllng sdp'i)orted"Lti'dgln'gs Unlts- Lowfvedlu ts. Medlu Fr.ee laundry services BL4d9etlng. Servlces Redds Filace Llfeski Ils Tralnln Exercise and Leisure Free l.',iHalrcuts fvèncy Food'parcels,, '.Food Donatlons Access to,Frep,I Volunteerln9 o#portunltl¢s'#h The Van Travel Expenses Extra 8olt On support.from Chances BACKUP- Helplng young people to get back up and stay back up. ETE Support BACKUP North Wegt. hèlplno youhg people got back upond slay back tjp ts14cKV,V io
Impact Referrals have increased slgnlflcantly this year wlth 441 referrals recelved (291 last year) whlch Is a 350/0 increase. We accommodated 116 (163 last year) which is a drop of 290/0. This resulted in unprecedented levels in our waltlng times and lists. BACKUP 2023/24 Helplnu young people 10 9et bfj¢k vp and $toy bock up 441 1811/01_{I,'.I 800h WHITE/BRIT15H Undl$closed . 5916 In 360/0 ¢rg 16 Were 1 h•d/n We conducte 22.100 111. mevl swe 55%: AL 10/0 ough or had n flxed abodo a dellvere food parc YACXVP gg¢kup Northwqlt. B[14g•man The number of those referred that we were unable to asslst grew massively and for the flrst time in hlstory our waiting list hlt 100 in September 2023 and reached 147 in March 2024. Turnover is still slower for 3 reasons. l) Vold work and repairs taking much longer due to difficulties and costs for landlords acquiring materlals and contractors. 2) Automatlc priority status for rehousing on was withdrawn for Backup in 2022. Causing huge delays on throughput. 3) The complexlty of issues faced by young people supported by Backup has continued to increase. Growing numbers of mental health issuesi gender transitions, religious and cultural factors, high risk domestic abuse and sexual exploitation and financial exploitation continue. This means in order to support them effectively it takes longer. Our aim is to increase the numbers of units we can deliver, even temporarily to accommodate more young people. The delays caused by lack of prlority has shlfted slightly in our favour and so we have seen some movement. The same as last year we have had no evictlons, however 11 % were temporarily excluded due to serlous breaches of occupancy conditions. li
We meet our charitable objects by empowering young people, Increasing thelr confidence to Ilve independently and be economically active. To this end we offer a variety of servlces designed to meet the dlverse needs of young homeless people. These are,. L()rt Hoiise Project Froiit Duor Redds Pl.iee Supporte(l Lodgings Outre¥ich Llicigs Project Ch.Inces Outcomes The overall outcome of work with young people has been amazing and the successes of young people continue to be outstandlng and a credit to thelr resilience and strengths. Backup retained a 72 % success rate for young people moving on Into their own stable accommodation. A 150/0 reductlon on last year attributed to the factors listed above. In addltion to this.. The Van has had its best year of trade. We were glfted a legacy of £50,000 from the estate of a Mrs Sheila Halgh from Wlgan. Raised the profile and made money through fundraising activities wlth successful Golf Dayi Gala Ball and Ladles Lunch amongst other things. We completed over 22,000 home visits. We gave out 623 food parcels to prevent young people using food banks. We had numerous positive and uplifting press releases locally. The young people established and regularly attend the SHED, a young persons forum used for decision maklng and consultation about Backup. BACKUP 2023/24 Helplnv yovng people to qot buck up ond stoy back vp 141 18¥0 80%, . Jslslri HITE18RITI ndl$¢lo$od ¢ro 16.& 72% thr 61Oh ¢re 18 ¥1 22,10ts:ijl;, ducte me vl$ nt EM LE ept ovgh or hod n flxod abodo at And ellve AcKup bDckup t4JrThW•lt- Brld4*man IT ll¢idQ•mpn Slrmt. tsolton. ?L540Y T- m204 $301$5 E- Mall0¢v.(0rttV0g.u 12
Financial Review We recelved our annual contract Income of £481,000 from Bolton MBC, other grants from Blo '_ Lottery, Henry Smlth, Garfield Weston as well as Indlvldual and personal donatlons and fundraising. Thls year's fundralslng income has Increased as we have grown the team, resultlng in £55,670 in fundraising. Thls Includes the financlal support from our growing number of Guardians. A Guardlan is a local buslness or Indlvidual who sponsors our organlsatlon for £500 a year to help dlrecily assist young people experlenclng crlsls and hardshlp. The organlsatlon Is monltored agalnst a varlety of contracts or grants with condltlonal targets attached. Formal reports are submltted agalnst these elther quarterly or annually dependlng on the funderlcommlssloner. Wlth the local authorlty contract we meet the contract and monltorlng offlcer quarterly to go through the reports, In all reports thls year we have exceeded contractual targets. .'Due to demand voids have been low so Income across all servlces has been high. Reserves Policy and risk management We ended the year with a surplus of £270,698. This would have been hlgher but for an adjustment in the Penslons deficit. Thls has been transferred into reserves in order to fulfil the organlsatlons reserve policy. Our total reserves now amount to £690,931. Our free reserves amount to £600,979, after accounting for £62,063 held In restricted funds and £27,889 tied up in fixed assets. Please refer to the Reserves Pollcy document, agreed at the board meetlng in January 2024, In full to see a breakdown of winding up parts or all of the charity and what that would cost. This Is based on financial commitments and contractual obllgations to colleagues, properties leased and services delivered. The policy shows amounts required based on IOOO/o shut down or loss of parts of the organisatlon. This policy Is reviewed annually in line with the Rlsk Register. The Trustee Board examines the major financial and other rlsks that face BACKUP each year. The charlty has developed systems to monltor and control these rlsks to mitlgate any Impact that they may have on the Scheme in the future. Risks are managed and monltored at each Board meeting. There Is a risk reglster which is revlewed annually. The Trustees are confident that BACKUP is a golng concern and have future financlal projectlons of at least 36 months. Future Plans In the next 12 months the alms include'.- Acqulre new accommodation to act as Move ON options for yOLsng people who have completed Backup placements. Relocation of the Lucas Project into better premlses. Become Ofsted registered for the servlces we dellver to U18s. Build up our profile and expand partnershlps/networks. Sustain all current service delivery. Revlew and improve all quallty standards. Improve access to services. Recruit and retain the best people. 13
There are no plans to change the charlty objectives but simply to look at options of providing more of the same outside of Bolton with some extras inside Bolton. Move on accommodation is an Issue as stock Is depleted and demand outweighs demand nationally. Backup plan to explore delivery of its own move on stock. Remuneration Policy BACKUP are a living wage employer. We are committed to paying our staff fairly. We had a pay and grade review in 2021 and (re)assessments of all roles were undertaken agreeing skills, knowledge and competencies reqLrlred for each role. The entire staff team are pald within a transparent pay scale framework. This framework was completed by an external consultant and discussed and accepted at Board wlthout the CEO being present. There has been no change to this except a cost of Ilving increase. Llnked to thls Is an appralsal and increment pollcy. Publlc Benefit All our actlvities are undertaken to further our charitable purpose for the public beneflt. We focus on the provislon of accommodation and support for single, homeless young people. We provlde 106 unlts of accommodation across the organisation. There are no rigld exclusions: we conduct a risk assessment to ascertaln whether the service Is best sulted to a young person's needs. There are no fees charged to the reciplents of thls service. Fundraising Pollcy BACKUP has a fundraislng policy whlch highlights the procedures and approaches we will and won't take to raise funds. We are reglstered wlth the Fundlng Regulator. FR FUNDRAISING REGULATOR In 2023 we restructured the fundraising team to create a new Dlrector of Income and Partnerships role who oversees income, grants, events and social enterprise. Alongslde a fundralsing officer they manage charlty events, campaigns, promote the charlty at corporate events and to support other people raising money with Ilterature, marketlng products etc. We are GDPR compliant and only communicate our events and fundraising activities to those who have agreed to remain on the circulation Ilsts and we advertlse on soclal medla. Our policy is a non-aggressive approach. We will never use an outsource fundralslng to an external company or use professional fundralsers, street based collectors or other to approach any members of the public. Our approach also prevents any direct requests for money, the CRM on whlch our supporters are registered sends out flyers and posters for events and newsletters but never direct appeals for cash. When plannlng events, we even conslder timlng so as not to appear to be asking the same people for sponsorship or support. Those involved with fundraising meet monthly and dlscuss previous and planned fundralsing activlty, promotlon and marketing. The reputation of the organlsation is very important to us so we have opted for a lower number of high quality events and ensure people who support those are valued and appreciated. We prlde ourselves on an ethlcal and value based approach to fundralslng, we do not cold call, we do not ask for repeated donations or support and every contact we have is done on a consensual basis. We have never recelved any complaints about our approach to fundralslng. 14
Audltors Barlow Andrews Chartered Accountants were reappointed as the charitable company's audltors during the year and have expressed their wlllingness to contlnue in that capacity. Thls report has been prepared In accordance wlth the provislons applicable to companles subject to the small companies, regime of the Companles Act 2006. The Trustees, annual report has been approved by the Trustees on l October 2024 and slgned on their behalf by Jojn yatt Tr•asur•r and Trustee 15
Independent Auditorfs Report To The Members of Backup North West For the Year Ended 31 March 2024 Oplnlon We have audited the financial statements of Backup North West for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, statement of cash flows and notes to the financial statements, including a summary of signlficant accounting policies. The financial reportins framework that has been applied In their preparation is applicable law and United Klngdom Accountln8 Standards, including Flnanclal Reporting Standard 102, the Financial Reporting Standard appllcable In the UK and Republlc of Ireland {United Kln8dom Generally Accepted Accountlng Practice). In our opSnSon the flnanclal statements: glve a true and falr vlew of the state of the charitable company's affalrs as at 31 March 2024 and of Its incoming resources and application of resources 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 requlrements of Companies Act 2006, Basls of oplnlon We conducted our audit in accordance with International Standards on Auditing (UK} (ISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requlrements that are relevant to our audit of the financial statements In the UK, includin8 the FRC'S Ethical Standard, and we have fulfilled our other ethlcal responsibllities in accordance wlth these requirements. We belleve that the audit evldence we have obtalned is sufficlent and appropriate to provide a basis for our oplnS0n. Concluslons relatlng to golng concern In auditing the financial statements, we have concluded that the trustees, use of the golng concern basls 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 charltable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorlsed for Issue. Our responsibilities and responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. Other informatlon The other informatlon comprises the informatlon included in the annual report, other than tho financlal statements and our auditor's report thereon, The trustees are responsible for the other informatlon contalned wlthin the annual report. Our oplnion 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. 16
Independent Auditorfs Report To the Members of Backup North West (Contlnued) For the Year Ended 31 March 2024 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 cou rse 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 material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinlon on other matter prescribed by the Companies Act 2006 In our opinion based on the work undertaken in the course of our audit: the information given in the tru5tees' report, which includes the directors, report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements, and the directors. report included within the trustees, report has been prepared in accordance with applicable legal requirements. Matters on whlch we are required to report by exception In light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors, report included within the trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept, or return5 adequate for our audit have not been received from branches not visited by us; or the 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. Responsibilities of trustees As explained more fully in the statement of trustees, responsibilities, the trustees (who are also directors of Backup North West 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 trustees 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 charitable 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 charitable company or to cease operations, or have no realistic alternative but to do so. 17
Independent Auditorfs Report To the Members of Backup North West (Continued) For the Year Ended 31 March 2024 Auditor's responsibilities for the audlt 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 orerror, and to issue an auditor'5 reportthat 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. M isstatements can arlse 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 wtth laws and regulations. We design procedu res in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities including fraud. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; we identified the laws and regulations applicable to the charitable com pany through discussions with trustees and other management, and from our commercial knowledge and experience of the charity sector; we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity, including the Companies Act 2006, taxation legislation and employment legislation; we assessed the extent of compliance with the laws and regulations identified abovethrough making enquiries of management; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the charitable company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and consldering the internal controls in place to mitigate risk5 of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: performed analytical procedures to identify any unusual or u nexpected relationships; tested journal entrie5 to identify unusual transactions; and assessed whetherjudgements and assumptions made in determining the accounting estimates were indicative or potential bia5, 18
Independent Auditorfs Report To the Members of Backup North West (Continued) For the Year Ended 31 March 2024 In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: agreeing financial statement disclosures to underlying supporting documentation; reading the minutes of meetings of those charged with governance; and enquiring of management as to actual a nd potential litigation and claims. There are inherent limitations in our audit procedures described above, The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non- compliance. Auditing standards also limit the audit procedures requ ired to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect that those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.or auditorsres onsibillties. 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 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 thanthe charitable company and the members as a body, for ouraudit work, forthis report, orforthe opinion we have formed, David Kay FCA Isenior Statutory Audltor) For and on behalf of Barlow Andrews LLP Chartered Accountants and Statutory Auditors Carlyle House, 78 Chorley New Road, Bolton l October 2024 19
Backup North West Statement of Financlal Activities (Includlng Income and Expenditure Account) For the Year Ended 31 March 2024 Unrestrlrted Restricted funds funds 2024 2024 Total funds 2024 Unrestricted Restrl¢ted funds funds 2023 2023 Total funds 2023 Notes Income from: Donations and legacies Charitable activities.. Homeless young people support 81,004 81,004 76,435 76,435 3,147,058 213,310 3,360.368 2,933,370 186,891 3,120,261 Other trading activities 55.670 55,670 53,084 53,084 Investments 645 645 722 722 Total income 3,284,377 213,310 3,497,687 3,063,611 186,891 3,250,502 Expenditure on: Raising funds Charitable activities: Homeless young people support 29,216 29,216 30,069 30.069 2.968,728 205.668 3,174.396 3,012,184 171.632 3,183.816 Total expendlture 2,997,944 205.668 3,203.612 3,042,253 171,632 3,213,885 Net income before10sses on dellned benefit penslon scheme io 286,433 7,642 294,075 21,358 15,259 36,617 Transfers between funds 11,4771 1,477 Actuarial losses on deflned benefit pension scheme 123,3771 123,3771 121,5371 121,5371 Net movement In funds for the year 261.579 9,119 270,698 {179 15,259 15,080 Fund balances brought forward Fund balances carried forward 367.289 52,944 420,233 367,468 37,685 405,153 628.868 62,063 690,931 367,289 52,944 420,233 20
Backup North West Balance Sheet As at 31 March 2024 Notes 2024 2023 Flxed assets TanBlble asset5 14 27,889 49,456 27,889 49,456 current assets De.btors Cash at bank and in hand Is 16 515,172 376.138 233,038 494,088 Total current assets 891,310 727,126 Credltors.. Amounts falling due within one year 17 1152,2681 1285,3491 Net current assets 739,042 441,777 Credltors: Amount falling due after more than one year Net a55ets ex¢ludlng dellned beneflt penslon Ilablllty 766,931 491,233 Defined benefit pension Ilability 18 176,000) {71,000) Total net assets 690,931 420.233 The funds of the charlty: Restricted funds Unrestricted funds 19 62,063 628,868 52,944 367,289 20 Total charlty funds 690,931 420,233 These accounts have been prepared in accordance wlth the speclal provlsions of Part 15 of the Companles Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and ore for circulatlon to members of the company. The financlal Statements on pages 20 to 40 were approved by the Board of Trustees on l October 2024 and signed on thp.lr bphalf by: Joan yatt (Trustee) 21
Backup North West Statement of Cash Flows For the Year Ended 31 March 2024 Notes 2024 2023 Cash flows fiom operatln8 actlvltles: Net cash lused Inllgenerated by operating activities 23 1112,793) 187,372 Cash flows from Investlng actlvltles: Interest from Investments Purchase of tangible fixed assets 645 15,8021 722 126,866L Cash used In Investlng actlvltles 15,1571 126.1441 IDecreasel/increase In cash and cash equivalents In the year 1117,9501 161,228 Cash and cash equlvalents at the beglnnlng of the year 494,088 332,860 Total eash and cash equlvalents at the end of the year 376,138 494,088 22
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 l. Accounting Policles Charlty Information Backup North West is a charitable company limited by guarantee, incorporated on 7 July 1997 in EnBland and Wales. The registered office is Bridgeman House, 77 Bridgeman Street, Bolton. a) Busls of occountlng 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 the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 leffective l January 20191 and the Companies Act 2006. The charity constitutes a public benefit entity as defined by FRS 102. The account5 are prepared in sterling, which is the functional currency of the charlty. Monetary amounts in these financial statements are rounded to the nearest £. The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows.. b) Preporotion ofAinancialstatements on a going concern bosis At the time of approving the accounts, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The trustees are not aware of any material uncertainties which could impact the charitable company's ability to continue. Thus. the trustees continue to adopt the going concern basis of accounting in preparing the accounts. c) Income Income is recognised when the charlty has entitlement to the funds. any performance conditions attached to the itemls) of income have been met, it 15 probable that the income will be received and the amount can be measure reliably. Accommodation income is recognised in relation to the period of rent. Income that is invoiced in advance or arrears is apportioned so that only that relating to the period of the financial statements is included within income. Income from government and other grants, whether capital gain5 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. Income from fundraising activities is recognised once the event has taken place and the monies have been collected. Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met. dl Interest receivable Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity,. this is normally upon notification of the interest paid or payable by the bank. 23
Backup North West Notes to the Financlal Statements For the Year Ended 31 March 2024 l. Accountlng Polices (contlnued) el Fund accountlng Unrestricted funds are avallable to spend on activities that further any of the purposes of charity. Restricted fund5 are donations which the donor has specified are to be solely used for particular areas of the charity's work or for specific projects being undertaken by the charity. f) Expendlture All expenditure is accounted for on an accruals basi5 and has been classified under headings that aggregate all costs related to that category. Expenditure 15 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 obli8ation can be measured reliably. Charitable expenditure comprises those costs directly incurred by the charity in the delivery to beneficiaries of its core activities and services. including grants administration. The support costs associated with delivery of these activities and services is also included. Governance costs include those costs associated with meetlng the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity. Support costs include those central functions which assist the work of the charity but do not directly undertake charitable activities. They are allocated to the activity cost categories on bases consistent with the use of the resources, as set out in note 9. g) Allocutlon of support costs Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back office costs, finance, personnel, payroll and governance costs which support the charitvs programmes and activities. The charity has only one material activity and therefore these costs are not apportioned. h) Operuting leases Operating leases are leases in which the title to the assets, and the risks and rewards of ownership, remain with the lessor. Rental charges are char8ed on a strai8ht-Ilne basis over the term of the lease. l) Tongiblellxed 0s5ets Individual a55ets which are expected to last more than 12 months are capitalised and included at cost. Depreciation 15 provided to write off each asset over its estimated useful Ilfe, taking into account estimated residual value, as follows.. Plant & machinery Office equipment Motor vehicle5 33% Straight line 33Yo Straight line 25% Reducing balance J) Debtors Trade and other debtors are recognised at the settlement amount due. k) Cosh ot bonk and In hond Cash at bank and in hand include5 cash and short term highly liquid bank deposlts. 24
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 l. Accounting Polices (continued) 11 Creditors undprovlslons Creditors are recognised when the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due. Deferred income is income which 15 included In the year in creditors or has been received into the bank, but which relates to a subsequent period, such as a grant relating specifically to a future period, is recognised in the Statement of Financial Activities of that period. m) Financial Instruments The charity has elected to apply the provisions of Section Il'Basic Financial Instruments, and Section 12'0ther Financial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recogni5ed amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Baslc flnanclal assets Basic financial assets. which include debtors and cash and bank balances, are initially measured at transaction price and subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised. Basic financial liabilitles Basic financial liabilities, which include trade and other creditor5. are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities classified as receivable within one year are not amortised. n) Pensions The Charity participates in the Social Housing Pension Scheme ISHPSI,. which is a multi-employer scheme, which provides benefits to some 500 non-associated employers. It is run by The Pension Trust ITPTI. The disclosures in the accounts follow the requirements of Section 28 of FRS102 in relation to multi-employer funded schemes in which the Charity has a participating interest. The schemes are classified as last man Standing arran8ements. Therefore, each employer is potentially liable for other participating employers, obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participatin8 employers are legally required to meet thelr share of the scheme deficit on an annuity. 25
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 l. Accountlng Polices (continued) o} Employee benefits The costs of short-term employee benefits are recognised as a Ilability and an expense. The cost of any unused hollday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. Key Judgements In the application of the company's accountin8 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 estimate5 and underlying assumptions are reviewed on an ongoing basi5. 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. 3. Income from donations and legacies Unrestrltted 2024 Restricted 2024 Total 2024 Unrestricted 2023 Restrlcted 2023 Total 2023 Donations 31,004 50.000 31,004 50,000 76,435 76,435 Legacies Total 81,004 81,004 76,435 76,435 26
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Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 Investment Income All of the charity's Investment income arises from money held in Interest bearing deposit accounts. All investment income is unrestricted. Income from other tradlng activities 2024 2023 Fundraising events 55,670 53,084 55,670 53.084 All other income Is unrestricted. Cost of ralslng funds 2024 2023 Fundraising costs 29,216 29.216 30,069 30,069 All expenditure on raising funds is unrestricted. 28
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 8. Analysis of expenditure on charitable activities Homeless young people support Total 2024 Total 2023 Costs Staff 1,789,033 3,359 1,789,033 3,359 33,863 10,835 157,084 176,894 124,696 87,461 45,949 1,819,299 2,867 33,596 36,441 Travel & subsistence Training Recruitment 33,863 10,835 157,084 Rent, rates & insurance Housing rents & householder fees Property maintenance Light & heat Resettlements/residents costs 172,013 153,205 107,086 73,064 49,676 176,894 124,696 87,461 45,949 Telephone, postage & stationery Computer & software Office & sundry Professional fees 29,138 30,647 76,812 16,586 27,369 2,575 29,138 30,647 28,216 33,016 80,775 76,812 16,586 27,369 2,575 24,572 24,986 2,355 1,097 1,195 Depreciation Bank charges Social investment interest 1,539 88 1,539 88 Bad debts 2,613,928 2,613,928 2,643,459 Governance costs (see note 9} Support costs (see note 91 92,073 92,073 88,026 452,331 468,395 3,174,396 468,395 3,174.396 3,183,816 2024 2023 Restricted expenditure Unrestricted expenditure 205,668 171,632 2,968,728 3,174,396 3,012,184 3,183.816 29
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 9. Analysis of governance and support costs Basls of allocation Support 2024 Governance 2024 Support 2023 Governance 2023 Staff costs Time spent Staff support Support Audit and accountancy fees Governance Trustee meetings and AGM costs Governance 442,672 25,723 434,644 17,687 82,388 9,685 79,683 8,343 468,395 92,073 452,331 88,026 10. Net income for the year 2024 2023 Net income forthe year is stated after charging: Auditors, remuneration: Audit fee 9,972 3,324 9,504 3,168 24,986 Accountancy Depreciation 27,369 11. Analysls of staff costs, trustee expenses and key management personnel remuneration 2024 2023 Staff costs during the year were as follows: Wages and salaries Social security costs Employer pension costs 1,989,715 2,002,492 187,429 64,022 178,615 63,375 2.231,705 2,253,943 Allocated as follows: Charitable activities 1,789,033 442,672 1,819,299 434,644 Support costs Governance costs 2,231,705 2,253.943 30
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 Staff costs (continued) One employee received emoluments between £80,001 and £90,00012023: 1 between £70,001 and £80,000), The average number of staff employed during the period was 8112023: 821. The key management personnel of the charity in 2024 comprise the trustees and senior management team. The total employee benefits of the key management personnel of the charity were £289,22612023: £225,769). 12. Trustee remuneration and expenses, and related party transactions Maura Jackson was a trustee of Backup North West during the year, and is also the Chief Executive Officer of the organisation under a contract of employment. In her role as CEO, she received total remuneration, including employer pension contributions, in the band between £60,001 and £70,000 up until her resignation as a trustee on 15 December 2023. In the prior year she received total remuneration, including employer pension contributions, in the band between £80,001 and £90,000, No trustees were reimbursed for travel or subsistence expenditure during the year12023: £Nill. Due to the nature of the charity's transactions, there are numerous transactions with other charities and organisations with which some of the trustees have an association. These are undertaken on an arm'5 length basis, which the charity is able to demonstrate. There have been no donations received from related parties which are outside the normal course of business and no restricted donations from related parties. No trustees or other person related to the charity had any personal interest in any contract or transaction entered into by the charity, including guarantees, du ring the year12023' Nill. 13. Government grants The government grants recognised in the accounts were as follows: 2024 2023 YPT local authority contract 481,000 481,000 471,067 471,067 There are no unfulfilled conditions and contingencies attaching to the grants. 31
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 14. Tanglble Flxed Assets Plant & Machinery Motor Vehicles Computer Equipment Total Cost At l April 2023 Additions 111,216 2,791 20,274 69,648 3,011 201,138 5,802 At 31 March 2024 114,007 20,274 72,659 206,940 Depreciation At l April 2023 Charge forthe year 87,926 10,703 13,859 1,604 49,897 15,062 151,682 27,369 At 31 March 2024 98.629 15,463 64,959 179,051 Net book value At 31 March 2024 15,378 4,811 7,700 27,889 At l April 2023 23,290 6,415 19,751 49,456 15. Debtors 2024 2023 Trade debtors 376,747 138,425 104,762 Prepayments and accrued income 128,276 515,172 233,038 32
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 16. Cash at bank and in hand 2024 2023 Cash at bank and in hand 376,138 376,138 494,088 494,088 17. Creditors: amounts falling due wlthln one year 2024 2023 Trade creditors 22,350 77,403 40,746 11,769 21,459 172,431 64,283 16,904 10,272 285,349 Other creditors and accruals Taxation and social security costs Pension Social Investment Loan 152,268 Included in other creditors and accruals is deferred income of £2,30012023 £29,105), being the element of income received in the year for expenditure which wi51 occur in a later period. 33
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 18. Pension fund The charlty provides pensions for employees through a scheme classified as a 'last man standing arrangement,, which is administered by TPT Retirement Solutions. This means that the charity is potentially liable for other participating employers, obligations if those employers are unable to meet their share of the deficit following withdrawal from the scheme, Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase withdrawal from the scheme. The major assumptions used by the actuary were: 2024 .% p.a. 2023 % p.a. Discount rate 4.92 4.84 Inflation (RPII Inflation ICPI} Salary growth Allowance for commutation of pension for cash at retirement 3.11 3.17 2.79 2.79 3.79 3.79 75% of maximum allowance 75% of maximum allowance Changes in the present value of the defined benefit obligation are as follows: 2024 2023 Defined benefit obligation at start of period Expenses 401,000 603,000 2.000 2,000 Interest expense Actuarial losses/lgain51 due to scheme experience Actuarial gains due to changes in demographic assumptions Actuarial gains due to changes in financial assumptions Benefits paid and expenses 19,000 17,000 5.000 Iii,000} 14,0001 11,0001 1198.0001 16,0001 113,0001 Iii,0001 Defined benefit obli8ation at end of period 404,000 401.000 34
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 Pension fund (continued) The fairvalues of the scheme assets and expected rates of return, the present value of the scheme liabilities and the resulting deficit are.. 31 March 2024 31 March 2023 £'ooo £'ooo Global equity 33 Absolute return 13 Distressed opportunities 12 io Credit relative value li 12 Alternative risk premia Emerging markets debt Risk sharin8 Insurance-linked securities io 19 24 Property 13 14 Infrastructure 33 38 Private debt 13 15 Opportunistic illiquid credit 13 14 High yield Cash Long lease property Secured income io io 15 Liability driven investment Currency hedging Net current assets 133 152 Total market value of assets 328 330 Present value of scheme liabilities 14041 14011 Defined benefit liability to be recognised {76) {71} 35
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Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 21. Analysis of net assets between funds Current ear General funds Restricted funds Total Tangible fixed assets Net current assets Defined benefit pension liability 27,889 676,979 {76,0001 27,889 739,042 176,0001 62,063 Total funds 628,868 62,063 690,931 Prevlous ear General funds Restricted funds Total Tangible fixed assets Net current assets Defined benefit pension liability 49,456 388,833 171,000) 49,456 441,777 (71,000) 52,944 Total funds 367,289 52,944 420,233 22. Operating lease commltments At the reporting end date the company had outstanding commitments forfuture minimum lease payments under non-cancellable operating leases, which fall due as follows: 2024 2023 Within one year Between two and five years 63,000 63,000 126,000 63,000 126,000 189,000 39
Backup North West Notes to the Financial Statements For the Year Ended 31 March 2024 23. Reconciliation of net expenditure to net cash flow from operating actlvltles 2024 2023 Net income for the year 270,698 15,080 Depreciation 27,369 24,986 Defined benefit pension adjustment 5,000 4,000 Interest from investments {6451 17221 Ilncrea5el/decrease in debtors {282,134) 60,113 {Decreasel/increase in creditors 1133,0811 83,915 Net cash (used in)/generated by operatlng activities 1112,7931 187,372 24. Analysis of changes in net debt l April 2023 Cash flows 31 March 2024 Cash at bank and in hand Borrowings excluding overdrafts 494,088 110,2721 1117,9501 10,272 376,138 483,816 {107,678) 376,138 40