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2023-03-31-accounts

Registered number: 03495233 Charity number: 1073231

Direct Help & Advice Ltd.

Trustees' Report and Financial Statements

For the Year Ended 31 March 2023

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 - 8
Trustees' Responsibilities Statement 9
Independent Auditors' Report on the Financial Statements 10 - 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes to the Financial Statements 17 - 34

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 2023

Trustees

N J Williams, Chair

J E Seaman

S Bravery

P S Davies

K T Mcgrath

R J Crisp (appointed 22 December 2022)

A W Deighton (resigned 8 September 2022) A W J Cartwright (resigned 12 September 2022) U Cameron (appointed 6 June 2023)

Company registered number

03495233

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 2023

The Trustees present their annual report together with the audited financial statements of the Company for the year 1 April 2022 to 31 March 2023. 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. Purpose and objectives

DHA is a charity that provides direct support to the people of Derbyshire and Nottinghamshire, as well as nationally through the Civil Legal Advice telephone advice helpline, to help them towards a positive future. DHA helps people to have a home, a job and be financially stable through expert legal advice, training and support with essential skills for life.

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved, the outcomes of its work and the benefits to the people and communities it is set up to serve in the year ending 31 March 2023.

The review also helps ensure the charity’s aims, objectives and activities remain focused on its stated purpose.

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)'.

Page 2

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

Objectives and activities (continued)

b. Strategies for achieving objectives

DHA protects and preserves legal rights, provides equal access to justice and seeks fairness and dignity for all our clients.

Our legal advice team offer a free, confidential specialist advice, advocacy and representation service, including the provision of immediate intervention, support and advice, for the most vulnerable and disadvantaged people within our communities.

We resolve legal issues and actively provide advice and assistance to prevent individuals and families losing their accommodation, including undertaking all necessary follow up work, negotiations with third parties and representation at Court.

DHA also offers accessible training and skills development to help reduce unemployment and promote social and financial inclusion. Including provision of accredited and non-accredited programmes from Community Learning, Sector training, soft skills development and volunteering opportunities to enable beneficiaries to increase their skills, knowledge and employability.

DHA proactively seeks opportunities 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. During the year we managed and ran 10 of Derby City Libraries as Community Managed Libraries. Sadly, due to insufficient funding, DHA withdrew from this service on 31 March 2023.

DHA remains open to opportunities that increase accessibility and widen support its services, including Community Managed Library services.

c. Activities undertaken to achieve objectives

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 - Assisting unemployed people into jobs Volunteers engaging on activities

Achievements and performance

a. Main achievements of the Company

The amount of people using DHA legal advice and training services was 10,888, an increase of 67% (4,380 people) on the previous year, with 81% (8,819 people) having a positive outcome.

We achieved a 98% customer satisfaction rating for people using our legal aid services and 53% of people attending our Employment programmes gained employment.

The support from DHA’s amazing volunteers remains as strong as ever with over 110 people giving their time, passion, skills and experience to helping DHA deliver its services.

The Charity's key financial performance indicators are the amount of income received from fundraising, grants and investments which remained in line with objectives.

Page 3

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

Achievements and performance (continued)

b. Overview of activities

During the year DHA received over 16,347 enquiries and supported 10,888 people. Sadly funding limitations meant we were unable to support 5,459 people.

Of the 10,888 people helped, 9,752 used our Advice services with 1,136 using our Training and Community services.

To provide an insight of the impact of DHA’s work, our Derby Office directly assisted approximately 1,000 vulnerable individuals/families who were at direct risk of losing their homes within the Derby City region alone.

c. Factors relevant to achieve objectives

We are in the process of reviewing DHA’s strategy to provide a clear direction and plan for the period April 2024 to March 2027 to ensure the charity remains relevant and valued by the communities it serves. One of the main priorities of the review is to develop and adapt our funding strategy to ensure it remains appropriate, effective and efficient in an increasingly competitive and complex market.

In addition, the recent Legal Aid Reforms saw the withdrawal of funding to provide early intervention advice and assistance to vulnerable people. This currently prevents us from assisting people with housing benefit issues, general disrepair, tenancy matters, and also those with mortgage or rent arrears before a landlord or lender has initiated possession action.

Many of our services are dependent on Local Authority grants or funding. The current economic climate and financial status of the public sector presents a risk to current and future work funded by local authorities. This greatly restricts the number of people we can help. Our strategic funding review will look to address this issue by exploring alternative funding options to provide early intervention support and advice for these vulnerable people.

d. Fundraising activities and income generation

A huge thank you to all our funders. Your support enabled DHA to support 10,888 people throughout the last year, thank you.

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 reviewed annually by the trustees. DHA has an aspiration to hold sufficient liquid reserves to meet the annual core expenditure costs, currently c£1m, to enable the charity to absorb any adverse fluctuations in funding income or unexpected outgoings. DHA continues to make good progress towards this objective.

Page 4

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

c. Principal risks and uncertainties

The Board of Trustees routinely reviews the major risks to which the charity is exposed. DHA has a risk register is in place and reviewed annually by trustees to ensure any emerging risks are captured and to monitor progress to mitigate existing identified risks.

Financial sustainability is the major risk for the Charity and is reviewed regularly. The review of our Funding strategy seeks to mitigate this risk by ensuring DHA has a balanced income stream rather than a large dependency on a small number of funding sources.

Relationships with key funding sources are positive and closely managed and the charity operates an active financial management of trade debtors and creditors.

d. Financial risk management objectives and policies

Trustees are required to ensure that, while giving regard to the overall efficiency and continuity of operations to deliver the charitable objectives, the charitable funds and assets are:

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

There is an annual financial planning cycle to ensure the Trustees have adequate information and time to review the budget and make recommendations for its approval. This is a key part of the trustees ability to satisfy themselves that they can discharge their governance duties, statutory responsibilities and ensure the solvency of the Charity.

There is a Business Continuity Plan in place in case of a major event affecting the day-today operations and resultant financial impact, alongside the Risk register which is reviewed annually.

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.

During the year Alan Cartwright retired from the Board, with Richard Crisp appointed in January 2023.

Page 5

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

Structure, governance and management (continued)

c. Organisational structure and decision-making policies

The Board of Trustees administers the Charity. The board meets regularly, with additional sub-group meetings held if needed.

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 as well as ensuring departments continue to develop their skills and working practices in line with our mission.

d. Policies adopted for the induction and training of Trustees

The Charity, as of 31 March 2023 has a board of Trustees of 6 members, with the appointment of seventh Trustee underway, plus the CEO, Director of Finance and Services and Head of HR, Leisure & Partnerships (who is also Company Secretary). The Board meets regularly and is 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 over the year.

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, Trustees are currently elected to serve until the next Annual General Meeting, after which they must be re-elected. This is under review with the intention of extending the Trustee service term to provide greater stability and consistency. 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. The ‘Trustees skills and Experience matrix’ is reviewed annually to ensure the Board remains appropriate and relevant for the needs of the charity.

To ensure each trustee remains familiar with the work of the charity, the impact it makes and the challenges to delivery, a Trustee engagement plan is in place and reviewed regularly. All Trustees are also encouraged to become involved in the services DHA provides 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

Remuneration for all personnel is reviewed annually for market conditions, cost of living and staff retention. The approach is to pay a fair salary to attract and retain skilled staff and leadership team. Trustees approve the total salary budget whilst the Senior Management Team agree the salaries for individual staff members with the exception of the CEO.

The remuneration package for the Chief Executive is assessed independently and is approved by the Trustees.

All members of staff have an annual appraisal to review their performance, agree objectives for the year ahead and review their personal development plans to support them with the achievement of their individual career ambitions.

Page 6

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

Structure, governance and management (continued)

f. Related party relationships

There are no related party transactions during the reporting period.

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

g. Financial risk management

DHA has 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.

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. The trustees are satisfied that systems and procedures are in place to mitigate our exposure to the major risks but are not complacent and continually seek to further develop the robustness of DHAs governance processes.

Plans for future periods

DHA are committed to continue providing specialist Housing Support Advice and training programmes to help reduce unemployment, promote social and financial inclusion.

In the coming year we will complete our strategic review that will inform our strategic direction for the next threeyears. In particular the review seeks:

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.

Page 7

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Trustees' Report (continued) For the Year Ended 31 March 2023

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

Page 8

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Statement of Trustees' responsibilities For the Year Ended 31 March 2023

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:

P Davies Vice Chair

Page 9

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 2023 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 10

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 11

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 12

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 13

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Statement of financial activities (incorporating income and expenditure account) For the Year Ended 31 March 2023

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
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward
Unrestricted
funds
2023
£
51,588
1,452,852
34,467
1,538,907
1,366,230
1,366,230
172,677
1,029,902
172,677
1,202,579
Restricted
funds
2023
£
-
6,432
-
6,432
6,432
6,432
-
-
-
-
Total
funds
2023
£
51,588
1,459,284
34,467
1,545,339
1,372,662
1,372,662
172,677
1,029,902
172,677
1,202,579
Total
funds
2022
£
17,904
1,254,703
41,281
1,313,888
1,113,582
1,113,582
200,306
829,596
200,306
1,029,902

Page 14

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Balance Sheet As at 31 March 2023

Note
Fixed assets
Tangible assets
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: amounts falling due within one
year
14
Net current assets / liabilities
Total assets less current liabilities
Creditors: amounts falling due after more
than one year
15
Total net assets
Charity funds
Restricted funds
17
Unrestricted funds
17
Total funds
327,374
504,494
831,868
(179,768)
2023
£
1,035,000
1,035,000
652,100
1,687,100
(484,521)
1,202,579
-
1,202,579
1,202,579
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

The Trustees acknowledge their responsibilities for complying with the requirements of the Act 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 Chair Date:

P Davies Vice Chair

Registered Number: 03495233C

The notes on pages 17 to 34 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 2023

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Net cash provided by 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 34 form part of these financial statements
2023
£
98,230
34,467
34,467
(58,886)
(58,886)
73,811
430,683
504,494
2022
£
37,581
37,844
37,844
(50,227)
(50,227)
25,198
405,485
430,683

Page 16

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

Notes to the Financial Statements For the Year Ended 31 March 2023

1. General information

Direct Help & Advice Ltd 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 2023

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.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs.

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 14 and 15. 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 2023

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 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.

2.8 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.

2.9 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.

2.10 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.

2.11 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 2023

2. Accounting policies (continued)

2.12 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.

2.13 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.

2.14 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 2023

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 12.

Page 21

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

4. Income from donations and legacies

Unrestricted
funds
2023
£
Donations
51,588
Unrestricted
funds
2022
£
Donations
(600)
Government grants
-
(600)
Restricted
funds
2023
£
-
Restricted
funds
2022
£
-
18,504
18,504
Total
funds
2023
£
51,588
Total
funds
2022
£
(600)
18,504
17,904

The company was eligible to claim additional funding in the prior year from government in relation to the coronavirus job retention scheme. The funding received is shown above under 'government grants'.

5. Income from charitable activities

Unrestricted
funds
2023
£
Legal Aid Agency
506,451
DCC Libraries
333,558
St Annes
59,377
Help Through Crisis
-
Enable
25,559
Nottingham City Council
2,812
National Careers Service
-
Ground Works
373,298
Derby City Council
66,002
Inspire
85,795
1,452,852
Restricted
funds
2023
£
-
-
-
6,432
-
-
-
-
-
-
6,432
Total
funds
2023
£
506,451
333,558
59,377
6,432
25,559
2,812
-
373,298
66,002
85,795
1,459,284

Page 22

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

5. Income from charitable activities (continued)

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
Ground Works
154,742
Derby City Council
137,000
1,245,735
Restricted
funds
2022
£
-
-
-
8,968
-
-
-
-
-
8,968
Total
funds
2022
£
457,121
277,272
100,085
8,968
58,936
51,789
8,790
154,742
137,000
1,254,703

6. Investment income

Unrestricted
funds
2023
£
Rental income
32,856
Investment income
1,611
34,467
Unrestricted
funds
2022
£
Rental income
41,248
Investment income
33
41,281
Total
funds
2023
£
32,856
1,611
34,467
Total
funds
2022
£
41,248
33
41,281

Page 23

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

7. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2023
£
Charitable Activities
1,366,230
Unrestricted
funds
2022
£
Charitable Activities
1,086,110
Analysis of expenditure by activities
Activities
undertaken
directly
2023
£
Charitable activities
1,144,119
Activities
undertaken
directly
2022
£
Charitable activities
917,456
Restricted
funds
2023
£
6,432
Restricted
funds
2022
£
27,472
Support
costs
2023
£
228,543
Support
costs
2022
£
196,126
Total
2023
£
1,372,662
Total
2022
£
1,113,582
Total
funds
2023
£
1,372,662
Total
funds
2022
£
1,113,582

8. Analysis of expenditure by activities

Page 24

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

8. Analysis of expenditure by activities (continued)

Analysis of direct costs

Staff costs
Office premises
Training delivery costs
Administrative expenses
Travel
Total
funds
2023
£
1,016,638
14,891
34,714
77,544
332
1,144,119
Total
funds
2022
£
837,989
7,156
6,411
65,514
386
917,456

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
2023
£
44,766
64,558
8,955
-
31,976
16,620
25,060
18,848
(3,906)
15,291
6,375
228,543
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

Page 25

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

9. Auditors' remuneration

2023 2022
£ £
Fees payable to the Group's auditor for the audit of the Group's annual
accounts 5,250 4,650
Fees payable to the Group's auditor in respect of:
All non-audit services not included above 400 360

10. Staff costs

Wages and salaries
Social security costs
Contribution to defined contribution pension schemes
2023
£
943,572
73,066
44,766
1,061,404
2022
£
780,474
57,592
46,473
884,539

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

Advisors and administration
Central Management
2023
No.
43
3
46
2022
No.
38
3
41

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 £149,322 (2022 - £133,149). 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 (2022 - £NIL).

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

Page 26

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

12. Tangible fixed assets

Cost or valuation
At 1 April 2022
At 31 March 2023
Depreciation
At 1 April 2022
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
Freehold
property
£
1,035,000
1,035,000
-
-
1,035,000
1,035,000
Computer
equipment
£
144,332
144,332
144,332
144,332
-
-
Total
£
1,179,332
1,179,332
144,332
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:

Freehold property
13.
Debtors
Due within one year
Trade debtors
Other debtors
Prepayments and accrued income
2023
£
944,034
2023
£
81,224
17,359
228,791
327,374
2022
£
972,884
2022
£
8,434
19,200
236,526
264,160

Page 27

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

14. Creditors: Amounts falling due within one year

Bank loans
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 April
Resources deferred during the year
Amounts released from previous periods
2023
£
46,681
46,944
29,618
101
56,424
179,768
2023
£
14,835
34,724
(14,835)
34,724
2022
£
45,496
27,211
42,615
8,086
48,563
171,971
2022
£
76,501
14,835
(76,501)
14,835

As at the balance sheet date the charitable company was holding funds relating to income received in advance of the 2023/24 financial year.

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

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

2023 2022
£ £
Bank loans 484,521 527,970

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

Repayable by instalments 2023
£
277,963
277,963
2022
£
340,950
340,950

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 28

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

16. Financial instruments

Financial assets
Financial assets measured at amortised cost
Financial liabilities
Financial liabilities measured at amortised cost
2023
£
320,614
2023
£
610,410
2022
£
248,111
2022
£
638,496

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 29

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

17. Statement of funds

Statement of funds - current year

Unrestricted funds
Designated funds
Land and Buildings
General funds
General Funds
DCC Libararies
Total Unrestricted funds
Restricted funds
Help through crisis
Total of funds
Balance at 1
April 2022
£
461,534
568,368
-
568,368
1,029,902
-
1,029,902
Income
£
-
1,205,349
333,558
1,538,907
1,538,907
6,432
1,545,339
Expenditure
£
-
(1,032,672)
(333,558)
(1,366,230)
(1,366,230)
(6,432)
(1,372,662)
Transfers
in/out
£
42,264
(42,264)
-
(42,264)
-
-
-
Balance at
31 March
2023
£
503,798
698,781
-
698,781
1,202,579
-
1,202,579

Page 30

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

17. Statement of funds (continued)

Statement of funds - prior year

Unrestricted funds
Designated funds
Land and Buildings
General funds
General 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 31

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

17. 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.

Coronavirus Job Retention Scheme

Funds received under the government's job support scheme.

18. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2023
£
Tangible fixed assets
1,035,000
Current assets
831,868
Creditors due within one year
(179,768)
Creditors due in more than one year
(484,521)
Total
1,202,579
Total
funds
2023
£
1,035,000
831,868
(179,768)
(484,521)
1,202,579

Analysis of net assets between funds - prior 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

Page 32

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

19. 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:
Interest
Dividends, interests and rents from investments
(Increase)/decrease in debtors
(Decrease)/Increase in creditors
Net cash provided by operating activities
20.
Analysis of cash and cash equivalents
2023
£
172,677
16,620
(34,467)
(63,214)
6,614
98,230
2022
£
200,306
4,710
(37,841)
(58,566)
(71,028)
37,581
Cash in hand
Total cash and cash equivalents
2023
£
504,494
504,494
2022
£
430,683
430,683

21. Analysis of changes in net debt

Other non-
At 1 April cash At 31 March
2022 Cash flows changes 2023
£ £ £ £
Cash at bank and in hand 430,683 73,811 - 504,494
Debt due within 1 year (45,496) 58,884 (60,069) (46,681)
Debt due after 1 year (527,970) - 43,449 (484,521)

22. 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 £44,766 (2022 - £46,473). Contributions totalling £Nil (2022 - £7,817) were payable to the fund at the balance seet date and are included in creditors.

Page 33

Direct Help & Advice Ltd.

(A Company Limited by Guarantee)

Notes to the Financial Statements For the Year Ended 31 March 2023

23. Operating lease commitments

At 31 March 2023 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
2023
£
7,561
4,237
11,798
2022
£
13,662
5,081
18,743

24. Related party transactions

The Company has not entered into any related party transaction during the year, nor are there any outstanding balances owing between related parties and the Company at 31 March 2023.

Page 34