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2022-03-31-accounts

Registered number: 3495233 Charity number: 1073231

Direct Help & Advice Ltd.

Trustees' Report and Financial Statements

For the Year Ended 31 March 2022

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Contents

Page
Reference and Administrative Details of the Company, its Trustees and Advisers 1
Trustees' Report 2 - 7
Trustees' Responsibilities Statement 8
Independent Auditors' Report on the Financial Statements 9 - 12
Statement of Financial Activities 13
Balance Sheet 14 - 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 - 37

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Reference and Administrative Details of the Company, its Trustees and Advisers For the Year Ended 31 March 2022

Trustees

A W J Cartwright

J E Seaman S Bravery, Chair from 12 January 2021 until 15 March 2022 P S Davies A W Deighton

G J Freeman (resigned 27 September 2021)

K T Mcgrath (appointed 25 May 2021)

N J Williams, Chair from 15 March 2022 (appointed 15 July 2021)

Company registered number

3495233

Charity registered number

1073231

Registered office

Phoenix Street Derby Derbyshire DE1 2ER

Company secretary

S G Walker

Chief executive officer

K Cook

Independent auditors

Dains Audit Limited Statutory Auditor Suite 2, Albion House 2 Etruria Office Village Forge Lane Stoke on Trent ST1 5RQ

Bankers

National Westminster Bank Plc 58 St Peters Street Derby DE1 1XL

Page 1

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report For the Year Ended 31 March 2022

The Trustees present their annual report together with the audited financial statements of the Company for the year 1 April 2021 to 31 March 2022. The Annual Report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual Report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Since the Company qualifies as small under section 382 of the Companies Act 2006, the Strategic Report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.

Objectives and activities

a. Policies and objectives

In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.

b. Strategies for achieving objectives

Resolve legal issues and actively provide support to prevent individuals and families losing their accommodation, provide debt advice services and improve social inclusion and financial stability through local community activities and services, provide training programmes and volunteering opportunities to enable beneficiaries to increase their skills, knowledge and employability.

c. Activities undertaken to achieve objectives

To provide free, independent, specialist housing and debt advice - and training programs — both accredited and non-accredited - and volunteering opportunities and assist in securing employment for beneficiaries to prevent the causes of homelessness and provide them and their families with a sustainable future in Derby, Derbyshire, East Staffordshire, Nottingham and Nottinghamshire as well as nationally through the Civil Legal Advice telephone helpline.

d. Main activities undertaken to further the Company's purposes for the public benefit

Preventing and resolving legal issues through specialist housing advice including face to face casework and through court representation, provide telephone support, drop in sessions and outreach provisions within the larger area to prevent families losing their accommodation, resolve landlord disputes and challenge unfair decisions.

Our Community Training department provides work related training, advice and support together with volunteering opportunities to improve confidence and skills leading to sustainable work together with associated improvements in health and wellbeing.

Page 2

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

Objectives and activities (continued)

Direct Help Advice is keen to work in partnership to protect local community services that support/enable the provision of DHA’s advice and training within its core operating areas. We are currently managing and running 10 of Derby City Libraries as Community Managed Libraries. DHA are committed to supporting the existing good work that the libraries provide, but also protecting popular, traditional library services such as book lending and free Internet access. Managing library services supports our commitment to provide easy, free and safe access to DHA services, they also provide volunteering opportunities to help people experience a work environment, providing them with a sense of purpose and greater self-esteem. Libraries are recognised as go to places for people looking for help and advice so these partnerships are aligned to our core objectives.

Achievements and performance

a. Main achievements of the Company

The Charity's key financial performance indicators are the amount of income received from fund raising, grants and investments which remained in line with objectives at £1,313,888 (2021 - £1,550,695).

Another key performance indicator is the number of people volunteering locally and beneficiaries that the Charity can advise to help tackle debt and housing problems, together with the number of learners in our training and communities department, and of these learners the number that gain accredited qualifications or employment.

b. Review of activities

Face to Face - Clients coming into our service centres needing help and advice Telephone Advice - Clients assisted by DHA via the National Telephone Advice service Training into Employment - Training programmes delivered to clients Employment Assisted unemployed people into jobs Volunteers engaging on activities

c. Factors relevant to achieve objectives

Following the Legal Aid Reforms, we are now no longer funded to provide early intervention advice and assistance to vulnerable people. This prevents us from assisting people with housing benefit issues, general disrepair, tenancy matters, and with mortgage or rent arrears before a landlord or lender has initiated possession action which greatly restricts the number of clients we can help.

Funding is becoming increasingly difficult to obtain in the current financial climate with increasing requirements of reporting and outcomes and competition with other charities and organisations which impacts on the range and scope of the services we are able to offer particularly to the most vulnerable clients.

Page 3

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

Achievements and performance (continued)

d. Fundraising activities and income generation

Specialist Housing advice work is undertaken against Legal Aid Agency contracts including casework and court representation, participation in a National Helpline and Duty Solicitor representation at Housing Repossession sessions. Payment is received on a case-by-case basis in accordance with contracted rates.

Training (both certified and non-certified) is delivered against specific requirements and contracts with specified payment against certified outcomes.

Projects are provided against specific funding in accordance with the requirements of the Grant — currently The Big Lottery, Ground Works, St Ann’s Advice, Derby City Council, Derbyshire County Council and several employment contracts and smaller donations.

Funding requests and bid submissions are made as appropriate on an on-going basis to further the charitable aims and maintain financial stability.

Financial review

a. Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the accounting policies.

b. Reserves policy

The reserves policy is an aspiration to hold liquid reserves of £1,000,000 being 12 months' forecast expenditure in order to absorb any adverse fluctuations in funding income or unexpected outgoings and to achieve this by diversification of the funding base. The total amount of funds held at 31 March 2022 was £1,029,902 (2021 - £829,596) of which £nil (2021 - £nil) was restricted funds.

c. Principal risks and uncertainties

Financial sustainability is the major risk for the Charity. The risk is regularly reviewed to ensure funds are available to settle debts as they fall due together with active Financial Management of trade debtors and creditors.

The on-going availability of charitable funds is uncertain and is kept under constant review and operations will be managed in accordance.

Page 4

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

d. Financial risk management objectives and policies

Trustees are required to ensure that the charitable funds and assets are used reasonably and only in furtherance of the Charity's objects, and to avoid undertaking activities that might place the Charity's funds, assets or reputation at undue risk while giving regard to the overall efficiency and continuity of operations to deliver the charitable objectives.

Risk associated with specific activities must be considered & reviewed, where possible mitigated and if deemed to be excessive the activity not undertaken.

There will be an annual financial planning cycle with the Trustees who will have adequate information to review the budget and make recommendations for its approval and to satisfy themselves that they can adequately discharge their statutory responsibilities and ensure the solvency of the Charity.

There will be a Business Continuity Plan in place in case of a major event affecting the day-today operations and resultant financial impact and a Risk Strategy will be in place.

e. Principal funding

The primary income is derived from delivery against the Legal Aid Agency contracts together with D2N2 contract funding from the European Social Fund/Big Lottery Fund via several partner organisations.

Structure, governance and management

a. Constitution

Direct Help & Advice Ltd. is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.

b. Methods of appointment or election of Trustees

The management of the Company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.

c. Organisational structure and decision-making policies

The Board of Trustees administers the Charity. The board meets regularly, with additional sub-group committee meetings covering operational programs, financial and business functions.

The CEO has responsibility for ensuring that the Charity delivers the services specified and that key performance indicators are met. The CEO, with support from the Senior Management Team, has overall responsibility for the day to day operational and support management of the Charity and also for ensuring the departments continue to develop their skills and working practices in line with our mission.

Page 5

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

Structure, governance and management (continued)

d. Policies adopted for the induction and training of Trustees

The Charity, as of 31 January 2021 has a board of Trustees of 7 members, plus the CEO, FD and 1 Head of Services (who is company secretary) who meet regularly and are responsible for the strategic direction and policies of the charity. The Trustees are from a variety of professional backgrounds relevant to the work of the Charity.

Full Trustee meetings were held bi-monthly from the 2020 year end, with sub-group committee meetings in the following areas on a monthly basis: Finance; Advice Services; Training & Communities; Human Resources and Health & Safety.

A scheme of delegation is in place and day to day responsibility for advising Trustees and assisting in compliance with all legal obligations and the provision of services rests with the CEO.

Under the requirements of the Memorandum and Articles of Association, the Trustees are elected to serve until the next Annual General Meeting, after which they must be re-elected. All Trustees give their time voluntarily and receive no benefits from the Charity. Any expenses reclaimed from the Charity will be declared in the notes to the accounts.

Due to the nature of the Charity's work, the Trustees seek to ensure that the needs of the service users are appropriately reflected through the diversity of the Trustee body. The Board of Trustees is a well-established team of committed individuals who possess wide ranging and highly specialised business skills and expertise relevant to the Charity's needs.

All Trustees are familiar with the practical work of the Charity having been encouraged to become involved in the services across the organisation and attend meetings and events throughout the year.

Newly elected Trustees are invited and encouraged to attend meetings and events to familiarise themselves with the Charity and the context within which it operates. An induction pack is provided which details their role and responsibilities, and new Trustees are also initially mentored by existing board members.

e. Pay policy for key management personnel

The approach is to pay a fair salary to attract and retain skilled senior leaders with an expertise. Salaries and benefits need to be competitive within the Charity sector and proportionate to the complexity of each role.

To achieve this our Pay Policy aims to:

f. Related party relationships

There are no related party transactions during the reporting period.

Trustees do not receive remuneration or other benefit by virtue of being a Trustee of the Charity.

At the start of every Trustee meeting all Trustees are required to disclose any conflicts of interest.

Page 6

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2022

Structure, governance and management (continued)

g. Financial risk management

The Trustees have a risk management strategy which comprises:

This process offers a crucial opportunity to evaluate potential problems, and to establish appropriate systems or procedures to mitigate the risk as necessary.

This work has identified that financial sustainability is the major risk for the Charity. A key element in the management of the financial risk is a regular review of available funds to settle debts, regular liaison with the banking relationship managers, and active management of trade debtors and work in progress to ensure sufficient working capital for the Charity.

The Trustees have assessed the major risks to which the Company is exposed, in particular those related to the operations and finances of the Company, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks.

Plans for future periods

DHA are committed to continue providing specialist Housing Support Advice and Training programs whilst extending the services whenever additional funding sources make it possible.

Any opportunities that arise that will assist in the furtherance of the charitable aims will be maximised and potential opportunities kept under review.

Fundraising

DHA undertook no fundraising activity during the year and does not employ a fundraiser. We do on occasion make application for grants but these are formal applications from Constituted Awarding bodies

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' Report is approved has confirmed that:

Approved by order of the members of the board of Trustees and signed on their behalf by:

N Williams

Chair Date:

P Davies Vice Chair

31.10.22

Page 7

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Statement of Trustees' responsibilities For the Year Ended 31 March 2022

The Trustees (who are also the directors of the Company for the purposes of company law) are responsible for preparing the Trustees' 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. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Approved by order of the members of the board of Trustees and signed on its behalf by:

N Williams Chair Date:

31.10.22

P Davies Vice Chair

Page 8

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Independent Auditors' Report to the Members of Direct Help & Advice Ltd.

Opinion

We have audited the financial statements of Direct Help & Advice Ltd. (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 charitable 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.

Page 9

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Independent Auditors' Report to the Members of Direct Help & Advice Ltd. (continued)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the charitable 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 in relation to which Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees' Responsibilities Statement, the Trustees (who are also the directors of the charitable company 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.

Page 10

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Independent Auditors' Report to the Members of Direct Help & Advice Ltd. (continued)

Auditors' 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 Auditors' 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:

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:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

Page 11

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Independent Auditors' Report to the Members of Direct Help & Advice Ltd. (continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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 its members, as a body, for our audit work, for this report, or for the opinions we have formed.

Simon Hawkins (Senior Statutory Auditor) for and on behalf of Dains Audit Limited

Statutory Auditor Chartered Accountants

Suite 2, Albion House 2 Etruria Office Village Forge Lane Stoke on Trent ST1 5RQ

Date:

Page 12

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 March 2022

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
6
Total income
Expenditure on:
Charitable activities
7
Total expenditure
Net movement in funds before other
recognised gains
Other recognised gains:
Gains on revaluation of fixed assets
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward
Unrestricted
funds
2022
£
(600)
1,245,735
41,281
1,286,416
1,086,110
1,086,110
200,306
-
200,306
829,596
200,306
1,029,902
Restricted
funds
2022
£
18,504
8,968
-
27,472
27,472
27,472
-
-
-
-
-
-
Total
funds
2022
£
17,904
1,254,703
41,281
1,313,888
1,113,582
1,113,582
200,306
-
200,306
829,596
200,306
1,029,902
Total
funds
2021
£
269,504
1,281,164
27
1,550,695
1,180,306
1,180,306
370,389
40,000
410,389
419,207
410,389
829,596

Page 13

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Balance Sheet As at 31 March 2022

Note
Fixed assets
Tangible assets
12
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within one
year
15
Net current assets / liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
16
Total net assets
Charity funds
Restricted funds
18
Unrestricted funds
18
Total funds
264,160
430,683
694,843
(171,971)
2022
£
1,035,000
-
1,035,000
522,872
1,557,872
(527,970)
1,029,902
-
1,029,902
1,029,902
205,494
405,485
610,979
(242,252)
2021
£
1,035,000
100
1,035,100
368,727
1,403,827
(574,231)
829,596
-
829,596
829,596

Page 14

Registered number: 3495233

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Balance Sheet (continued) As at 31 March 2022

The Trustees acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and preparation of financial statements.

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

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

N Williams P Davies Chair Vice Chair Date: 31.10.22

The notes on pages 17 to 37 form part of these financial statements.

Page 15

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Statement of Cash Flows For the Year Ended 31 March 2022

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Purchase of tangible fixed assets
Net cash provided by/(used in) investing activities
Cash flows from financing activities
Repayments of borrowing
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The notes on pages 17 to 37 form part of these financial statements
2022
£
37,581
37,844
-
37,844
(50,227)
(50,227)
25,198
405,485
430,683
2021
£
491,767
27
(1,450)
(1,423)
(34,966)
(34,966)
455,378
(49,893)
405,485

Page 16

Direct Help & Advice Ltd. (A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

1. General information

Direct Help & Advice Limited is a charity registered in England and Wales and a private company limited by guarantee incorporated in England and Wales. The members of the Company are the Trustees named on Page 1. In the event of the Company being wound up, the liability in respect of the guarantee is limited to £5 per member of the Company.

The Company's registered office is Pheonix Street, Derby, DE1 2ER.

The principal activity of the Company was prevent and alleviate homelessness, poverty, financial and housing difficulty and associated issues to ensure everyone has a decent, safe home, be financially stable, be healthy and participate in the local community.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - 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), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Direct Help & Advice Ltd. meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

2.2 Income

All income is recognised once the Company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

The recognition of income from legacies is dependent on establishing entitlement, the probability of receipt and the ability to estimate with sufficient accuracy the amount receivable. Evidence of entitlement to a legacy exists when the Company has sufficient evidence that a gift has been left to them (through knowledge of the existence of a valid will and the death of the benefactor) and the executor is satisfied that the property in question will not be required to satisfy claims in the estate. Receipt of a legacy must be recognised when it is probable that it will be received and the fair value of the amount receivable, which will generally be the expected cash amount to be distributed to the Company, can be reliably measured.

Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Income tax recoverable in relation to investment income is recognised at the time the investment income is receivable.

Page 17

Direct Help & Advice Ltd. (A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.3 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Costs of generating funds are costs incurred in attracting voluntary income, and those incurred in trading activities that raise funds.

2.4 Going concern

The Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. For long term finance they rely on bank loans, as disclosed in notes 15 and 16. In assessing going concern they have assumed that these loans will be renewed as required for the foreseeable future and, on that basis, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

2.5 Tangible fixed assets and depreciation

Tangible fixed assets costing £5,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfall is between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

Depreciation is provided on the following bases:

Freehold property - Not depreciated
Motor vehicles - 4 years straight line
Fixtures and fittings - 5 years straight line
Computer equipment - 3 years straight line

Page 18

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.6 Revaluation of tangible fixed assets

The Company has adopted the revaluation model to revalue items of property, plant and equipment whose fair value can be measured reliably. The revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

The fair value of land and buildings is usually determined from market-based evidence by appraisal that is normally undertaken by professionally qualified valuers.

2.7 Investments

Investments in subsidiaries are valued at cost less provision for impairment.

2.8 Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Company; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.10 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.11 Liabilities and provisions

Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.12 Financial instruments

The Company only has financial assets and financial 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 with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

Page 19

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

2. Accounting policies (continued)

2.13 Taxation

The Company is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

2.14 Pensions

The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fund in respect of the year.

2.15 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Company and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 20

Direct Help & Advice Ltd. (A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

3. Critical accounting estimates and areas of judgment

In the application of the Company's accounting policies, which are described in note 2, the Directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

Critical accounting estimates and assumptions:

Accrued Income

Accrued income is an amount that has been earned, there is a right to receive the amount, and it has not been recorded within the financial statements. Due to the nature of the revenue within the Company, work completed during the period will not yet have been received and therefore the Trustees are required to make assumptions regarding the recognition of this revenue and its recoverability.

Deferred Income

Deferred income is an amount that has been received and recorded within the financial statements but the conditions of the income have not yet been met. The Trustees are required to assess if the conditions of receipt of grant income have been met before revenue can be recognised within the financial statements.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful life taking into account, where appropriate, residual values. Assessments of useful lives and residual values are performed annually, taking into account factors such as technological innovation, maintenance programmes, market information and management considerations. In assessing the residual values, the remaining life of the asset, its projected disposal value and future market conditions are taken into account. Detail on tangible fixed assets can be found in note 17.

Page 21

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

4. Income from donations and legacies

Unrestricted
funds
2022
£
Donations
(600)
Government grants
-
(600)
Unrestricted
funds
2021
£
Donations
61,900
Government grants
-
61,900
Restricted
funds
2022
£
-
18,504
18,504
Restricted
funds
2021
£
-
207,604
207,604
Total
funds
2022
£
(600)
18,504
17,904
Total
funds
2021
£
61,900
207,604
269,504

The group has been eligible to claim additional funding in year from government in relation to the coronavirus job retention scheme. The funding receivied is shown above under 'government grants'.

Page 22

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

5. Income from charitable activities

Unrestricted
funds
2022
£
Legal Aid Agency
457,121
DCC Libraries
277,272
St Annes
100,085
Help Through Crisis
-
Enable
58,936
Nottingham City Council
51,789
National Careers Service
8,790
Severn Trent
-
Ground Works
154,742
Derby City Council
137,000
Big Lottery Fund
-
Other income
-
1,245,735
Unrestricted
funds
2021
£
Legal Aid Agency
344,555
DCC Libraries
226,427
St Annes
95,106
Help Through Crisis
-
Ground Works
116,127
Enable
55,880
Nottingham City Council
13,169
National Careers Service
53,956
Severn Trent
-
Big Lottery Fund
-
Other Income
174,000
1,079,220
Restricted
funds
2022
£
-
-
-
8,968
-
-
-
-
-
-
-
-
8,968
Restricted
funds
2021
£
-
-
-
107,099
-
-
-
-
2,000
92,845
-
201,944
Total
funds
2022
£
457,121
277,272
100,085
8,968
58,936
51,789
8,790
-
154,742
137,000
-
-
1,254,703
Total
funds
2021
£
344,555
226,427
95,106
107,099
116,127
55,880
13,169
53,956
2,000
92,845
174,000
1,281,164

Page 23

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

6. Investment income

Unrestricted
funds
2022
£
Rental income
41,248
Investment income
33
41,281
Unrestricted
funds
2021
£
Investment income
27
Total
funds
2022
£
41,248
33
41,281
Total
funds
2021
£
27

7. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2022
£
Charitable Activities
1,086,110
Unrestricted
funds
2021
£
Charitable Activities
978,362
Restricted
funds
2022
£
27,472
Restricted
funds
2021
£
201,944
Total
funds
2022
£
1,113,582
Total
funds
2021
£
1,180,306

Page 24

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

7. Analysis of expenditure on charitable activities (continued)

Summary by expenditure type

Staff costs
2022
£
Charitable Activities
884,539
Staff costs
2021
Depreciation
2021
£
£
Charitable Activities
797,168
11,522
Other costs
2022
£
229,043
Other costs
2021
£
371,616
Total
funds
2022
£
1,113,582
Total
funds
2021
£
1,180,306

8. Analysis of expenditure by activities

Charitable activities
Charitable activities
Activities
undertaken
directly
2022
£
917,456
Activities
undertaken
directly
2021
£
783,165
Support
costs
2022
£
196,126
Support
costs
2021
£
397,141
Total
funds
2022
£
1,113,582
Total
funds
2021
£
1,180,306

Page 25

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

8. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Depreciation
Office premises
Training delivery costs
Administrative expenses
Travel
Total
funds
2022
£
837,989
-
7,156
6,411
65,514
386
917,456
Total
funds
2021
£
644,992
11,522
22,048
28,030
76,480
93
783,165

Analysis of support costs

Staff costs
Office premises
Insurance
Training delivery costs
IT Support
Loan Interest
Communications
Administrative expenses
Central library costs
Travel
Governance costs
Total
funds
2022
£
46,550
35,209
7,243
5,000
33,285
4,710
24,538
13,274
15,999
4,633
5,685
196,126
Total
funds
2021
£
152,176
59,024
15,072
65,787
26,728
9,566
22,354
26,101
13,288
1,745
5,300
397,141

Page 26

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

9. Auditors' remuneration

2022 2021
£ £
Fees payable to the Group's auditor for the audit of the Group's annual
accounts 4,650 4,650
Fees payable to the Group's auditor in respect of:
All non-audit services not included above 300 360

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
2022
£
780,474
57,592
46,473
884,539
2021
£
703,407
48,482
45,279
797,168

The average number of persons employed by the Company during the year was as follows:

Advisors and administration
Central Management
2022
No.
38
3
41
2021
No.
34
3
37

No employee received remuneration amounting to more than £60,000 in either year.

The total amount of employee benefits (including employee pension contributions) received by key management personnel for their services was £133,149 (2021 - £127,113). The key management personnel of the Charity consists of the Trustees and senior management team.

11. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL).

During the year ended 31 March 2022, no Trustee expenses have been incurred (2021 - £NIL).

Page 27

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

12. Tangible fixed assets

Cost or valuation
At 1 April 2021
Disposals
At 31 March 2022
Depreciation
At 1 April 2021
On disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
Freehold
property
£
1,035,000
-
1,035,000
-
-
-
1,035,000
1,035,000
Fixtures and
fittings
£
2,803
(2,803)
-
2,803
(2,803)
-
-
-
Computer
equipment
£
144,332
-
144,332
144,332
-
144,332
-
-
Total
£
1,182,135
(2,803)
1,179,332
147,135
(2,803)
144,332
1,035,000
1,035,000

A valuation of freehold land and buildings was carried out on 11 February 2021 and 28 May 2021 by an external valuer, David Brown. These were valued at £1,035,000 on the basis of existing use. The Trustees believe that this valuation remains reasonable.

The Company has adopted a policy of revaluation for tangible fixed assets. Had these assets been measured at historic cost, the carrying values would have been as follows:

2022 2021
£ £
Freehold property 972,884 1,001,734

Page 28

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

13. Fixed asset investments

At 1 April 2021
Disposals
At 31 March 2022
Net book value
At 31 March 2022
At 31 March 2021
14.
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income
15.
Creditors: Amounts falling due within one year
Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
2022
£
8,434
19,200
236,526
264,160
2022
£
45,496
27,211
42,615
8,086
48,563
171,971
Investments
in
subsidiary
companies
£
100
(100)
-
-
100
2021
£
4,150
16,079
185,265
205,494
2021
£
44,752
32,175
19,774
6,199
139,352
242,252

Page 29

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

Deferred income at 1 April
Resources deferred during the year
Amounts released from previous periods
2022
£
76,501
14,835
(76,501)
14,835
2021
£
17,784
68,169
(9,452)
76,501

As at the balance sheet date the charitable company was holding funds relating to income received in advance of the 2022/23 financial year.

The mortgages are secured on the freehol property owned by the Charity.

16. Creditors: Amounts falling due after more than one year

2022 2021
£ £
Bank loans 527,970 574,231

The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:

Repayable by instalments 2022
£
527,970
527,970
2021
£
388,473
388,473

The Charity has 2 loans in place with the bank with rates of interest at 1% p.a. over base rate and they expire on 13 September 2031 and 22 January 2034.

The mortgages are secured on the freehold property owned by the Charity.

Page 30

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

17. Financial instruments

Financial assets
Financial assets measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost
2022
£
248,111
2022
£
638,496
2021
£
194,201
2021
£
714,459

Financial assets measured at amortised cost comprise trade debtors, other debtors and accrued income.

Financial liabilities measured at amortised cost comprise bank loans, trade creditors, other creditors and accruals.

Page 31

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

18. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Land and Buildings
General funds
General Funds - all funds
DCC Libraries
Total Unrestricted funds
Restricted funds
Help through crisis
Coronavirus Job Retention
Scheme
Total of funds
Balance at 1
April 2021
£
416,017
413,579
-
413,579
829,596
-
-
-
829,596
Income
£
-
1,009,144
277,272
1,286,416
1,286,416
8,968
18,504
27,472
1,313,888
Expenditure
£
-
(808,838)
(277,272)
(1,086,110)
(1,086,110)
(8,968)
(18,504)
(27,472)
(1,113,582)
Transfers
in/out
£
45,517
(45,517)
-
(45,517)
-
-
-
-
-
Balance at
31 March
2022
£
461,534
568,368
-
568,368
1,029,902
-
-
-
1,029,902

Page 32

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

18. Statement of funds (continued)

Designated Funds

The designated fund relates to the net book value of the premises less the mortgage outstanding. This sum has been designated as the buildings are required to enable the Charity to meet its aims and objectives.

Restricted Funds

Help through Crisis

To support people whose first language is not English who are experiencing a hardship crisis in areas such as homelessness, financial hardship, family breakdown and employment issues.

Severn Trent

To support and advise people who have debt issues predominately starting with water debts.

Coronavirus Job Retention Scheme

Funds received under the government's job support scheme.

Covid Emergency Response Line

A Covid Response Line was operated to assist people with any problems they faced due to the pandemic- they were advised which specific agencies were able to help them with any issues arising covering any matters from shopping & education to social & entertainment opportunities.

Page 33

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

18. Statement of funds (continued)

Statement of funds - prior year

Unrestricted
funds
Designated
funds
Land and
Buildings
General funds
DCC Libraries
General
reserves
Total
Unrestricted
funds
Restricted
funds
Help through
crisis
Coronavirus Job
Retention
Scheme
Severn Trent
Covid
Emergency
Response Line
Total of funds
Balance at
1 April 2020
£
316,414
-
102,793
102,793
419,207
-
-
-
-
-
419,207
Income
£
-
226,427
914,720
1,141,147
1,141,147
107,099
207,604
2,000
92,845
409,548
1,550,695
Expenditure
£
-
(226,427)
(751,935)
(978,362)
(978,362)
(107,099)
-
(2,000)
(92,845)
(201,944)
(1,180,306)
Transfers
in/out
£
59,603
-
148,001
148,001
207,604
-
(207,604)
-
-
(207,604)
-
Gains/
(Losses)
£
40,000
-
-
-
40,000
-
-
-
-
-
40,000
Balance at
31 March
2021
£
416,017
-
413,579
413,579
829,596
-
-
-
-
-
829,596

Page 34

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

19. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2022
£
Tangible fixed assets
1,035,000
Current assets
694,843
Creditors due within one year
(171,971)
Creditors due in more than one year
(527,970)
Total
1,029,902
Total
funds
2022
£
1,035,000
694,843
(171,971)
(527,970)
1,029,902

Analysis of net assets between funds - prior year

Unrestricted
funds
2021
£
Tangible fixed assets
1,035,000
Fixed asset investments
100
Current assets
610,979
Creditors due within one year
(242,252)
Creditors due in more than one year
(574,231)
Total
829,596
Total
funds
2021
£
1,035,000
100
610,979
(242,252)
(574,231)
829,596

Page 35

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

20. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Interest
Dividends, interests and rents from investments
(Increase)/decrease in debtors
(Decrease)/Increase in creditors
Net cash provided by operating activities
21.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
22.
Analysis of changes in net debt
2022
£
200,306
-
4,710
(37,841)
(58,566)
(71,028)
37,581
2022
£
430,683
430,683
2021
£
370,389
11,522
9,566
(27)
77,669
22,648
491,767
2021
£
405,485
405,485
Other non-
At 1 April cash At 31 March
2021 Cash flows changes 2022
£ £ £ £
Cash at bank and in hand 405,485 25,198 - 430,683
Debt due within 1 year (44,752) 50,227 (50,971) (45,496)
Debt due after 1 year (574,231) - 46,261 (527,970)

23. Pension commitments

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £46,473 (2021 - £45,279). Contributions totalling £7,817 (2021 - £6,199) were payable to the fund at the balance seet date and are included in creditors.

Page 36

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2022

24. Operating lease commitments

At 31 March 2022 the Company had commitments to make future minimum lease payments under noncancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
2022
£
13,662
5,081
18,743
2021
£
14,362
15,243
29,605

25. Related party transactions

As at 31 March 2022, the Group owes £nil (2021 - £nil) to the St James' Centre, a company which is connected due to G Freeman, being a director in both. During the year, the company spent £nil (2021 - £10,561) with the St James' Centre.

Page 37