Charity registra�on number 1074401
Company registra�on number 3686284 (England and Wales)
CHESTER AID TO THE HOMELESS
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
CHESTER AID TO THE HOMELESS
LEGAL AND ADMINISTRATIVE INFORMATION
Trustees Mr N D Wallace Mr J F C Arnold Dr J Carroll Mr A Melia Miss S Worger Mrs J Webb Mrs J Davies Mrs C Edwards Secretary Mr R D Whi&all Charity number 1074401 Company number 3686284 Registered office The Bluecoat Upper Northgate Street Chester CH1 4EE Independent examiner Mitchell Charlesworth 24 Nicholas Street Chester CH1 2AU Bankers Lloyds Bank plc Na1onal Clubs Chari1es and Socie1es Centre Sedgemoor House Deansgate Avenue Taunton TA1 2UF Solicitors Cullimore Du&on Solicitors Limited 20 White Friars Chester CH1 1XS Investment advisors Ludlow Wealth Management Group Ltd 172 Lord Street Southport Merseyside PR9 0QA
(Appointed 16 July 2021)
CHESTER AID TO THE HOMELESS
CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 5 |
| Statement of trustees' responsibili�es | 6 |
| Independent examiner's report | 7 |
| Statement of fnancial ac�vi�es | 8 |
| Balance sheet | 9 - 10 |
| Notes to the fnancial statements | 11 - 20 |
CHESTER AID TO THE HOMELESS
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)
FOR THE YEAR ENDED 31 MARCH 2022
The trustees present their annual report and financial statements for the year ended 31 March 2022.
The financial statements have been prepared in accordance with the accoun�ng policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accoun�ng and Repor�ng by Chari�es: Statement of Recommended Prac�ce applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102) (effec�ve 1 January 2019)".
Objec�ves and ac�vi�es
Chester Aid to the Homeless (CATH) primarily exists to meet the needs of the homeless community in Chester and the surrounding area. It is a wellestablished service provider of day services and supported accommoda�on, the charity works with other partner agencies to ensure the best available service op�ons for clients.
The charity works with individuals to achieve stability and to gain independent living accommoda�on. CATH structures client support plans that encourage posi�ve outcomes, counter chao�c lifestyles, thereby increasing pathway opportuni�es to success.
Staff engage with clients to increase self – esteem including individual and group sessions which form the basis of development programmes. A recent focus on trauma informed prac�ce also underpins the programmes giving clients an opportunity to begin to deal with their individual circumstances and improve the outcome of achieving a more se8led future.
The trustees have paid due regard to guidance issued by the Charity Commission in deciding the ac�vi�es that should be undertaken as part of the service model.
Achievements and performance
Despite COVID 19 legal restric�ons being li<ed in June 2021 the year con�nued to be challenging. The balance of providing services and maintaining COVID 19 protocols and prac�ces meant that we minimised the disrup�on as much as was possible. Regardless of the COVID 19 disrup�on CATH staff con�nued to provide an inperson service. The work of suppor�ng clients in the shared houses con�nued and work with individuals in crisis remained a priority.
The Harold Tomlins Centre with its day service needed to adapt the most. CATH a8empted to operate the daily open access for the street homeless community at every opportunity. The outreach service was a way of providing access to services when it was not possible to provide full access from the building. This extra provision enabled the charity to con�nue to foster cri�cal client/staff support rela�onships and invite those most in need back to the centre on an individual basis. A<er the remaining legal restric�ons were li<ed the Centre restarted its ‘walkin’ sessions and the outreach sessions also con�nued.
The CATH annual December sleep out took place in person as opposed to a ‘sleep – in at home’ basis the previous year. Despite the event s�ll being held in the shadow of COVID 19 the event was well supported and raised more than £12,000.
Community support con�nued to be shown throughout the year and despite difficult social and economic circumstances dona�ons for the year were £97,255. This signifies generous support that CATH benefits from and will never take for granted. The charity remains indebted to each and every one of them, whether they be community or corporate, CATH salutes them all.
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CHESTER AID TO THE HOMELESS
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Plans for future periods
The unwind of COVID 19 disrup�on s�ll impacts and shapes our plans for our immediate future, but with most of the individuals in temporary accommoda�on we have an opportunity to work with people to reduce the likelihood of returning to the street.
The charity will adapt it services to meet the needs of these �mes to support individuals more effec�vely. The Harold Tomlins Centre will revise its programme of support with a specific Autumn/Winter and Spring/Summer offer. The outreach programme will con�nue to bridge the gap between individuals in crisis and access to services.
The charity will look to develop a new website and reinvigorate its social media so that we can engage with the local community and more widely circulate our support and services.
Street homelessness and its related issues remains a problem for the city and the surrounding area. CATH will work with all the available agencies and partners to be able to promote access to accommoda�on, services and support. In short, it will con�nue to try to make real differences in people’s lives.
Financial review
Financial support for CATH’s work for the homeless con�nued to benefit from public and corporate dona�ons, totaling £97,255 this has reduced from 202021, but considering the economic climate this has been a posi�ve outcome and CATH remains well supported.
The Hampshire Bank bond became payable, amoun�ng to £71,000 this was invested with the bank into oneyear fixed bond at 1.61% maturing May 2022. The Aviva pla7orm holding at the start of the year was £225,437 and at the yearend was £230,852. This con�nues to be held in a por7olio managed by an Aviva Pla7orm, the oversight of it by an investment is with Ludlow Wealth Management. The por7olio held is low risk and has been impacted by the economic instability.
The 202122 financial year resulted in a deficit of £3,884 (201920, surplus £215,062) impac�ng reserves to £742,808. The Board is s�ll exploring plans for using a significant por�on of these reserves to purchase an HMO type property in Chester, when property market condi�ons are more favourable.
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CHESTER AID TO THE HOMELESS
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Reserves policy
The Boards decision regarding the unrestricted reserves policy remains that we should ideally hold a minimum of 75% of an average one year’s opera�ng costs in reserve amoun�ng to £277,500.
The aim is to maintain a suitable level of reserves consistent with the ongoing ac�vi�es of the Charity, such that nega�ve fluctua�ons in funding do not have an immediate adverse impact on clients or staff. In addi�on, reserves are provided to make good any deficits arising from duly authorised projects. The unrestricted reserves of £742,808 as at 31 March 2022 represents approximately two years of current expenditure of the charity.
Designated funds
Care and development fund
This is the principal reserve fund for suppor�ng the ongoing general ac�vi�es of CATH.
IT/IS Fund
A fund to ensure that CATH can obtain and run efficient and effec�ve administra�on processes as required by the regulatory authori�es and to the ul�mate benefit of the client group.
Contents Replacement Reserve
The nature of the CATH services and client groups results in a short life and heavy u�lisa�on of furniture and effects in the hostels, houses and the Harold Tomlins Centre. This reserve facilitates replacement of this equipment to maintain an adequate, if basic, standard of accommoda�on.
Redundancy Reserve
With no guarantee of ongoing funding for some of the ac�vi�es of CATH this reserve is necessary to protect the interests of staff in the event of redundancies.
Development Fund
The fund permits the expansion of CATH ac�vi�es where consistent with the aims of the charity.
Dilapida)ons Reserve
CATH does not own any of the proper�es it uses. This fund is necessary to provide any dilapida�on payments that may arise for which CATH is responsible under the terms of the lease should buildings be returned to the landlords.
There was no spend from this fund during 202122.
Legacies Fund
There is currently one poten�al legacy, which is longstanding and showing no signs of producing further income. The legacy fund is therefore reduced to a more realis�c value and the balance added to the new property purchase fund.
Buildings Reserve
As all of the buildings occupied by CATH are rela�vely old this fund is necessary to provide for any costs that may arise in connec�on with any significant repairs maintenance or upgrading of the buildings or their facili�es for which CATH is responsible under the terms of the lease.
During 202122 all repairs were funded from general reserves.
Con)ngency Reserve
A reserve fund for unexpected events or other adverse financial situa�ons.
New property purchase fund
This fund is being created to enable the Charity to purchase a house designated as a “house in mul�ple occupa�on”. Un�l now all our proper�es have been rented from landlords, which has been a very beneficial model over the years, but the Board believes it would be prudent to have at least one property owned outright when market condi�ons for purchase are more favourable in the future.
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CHESTER AID TO THE HOMELESS
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
Investment policy
Cash reserves are held in in a por�olio with Aviva pla�orm, with another account held with Hampshire Trust Bank that matures in May 2022, plus a current account with Lloyds Bank. The investment funds can be made available within a short lead #me should the need arise.
Risk policy
The trustees have assessed the major risks to which the charity is exposed and are sa#sfied that systems are in place to mi#gate exposure to the major risks.
The year ahead will remain challenging with the likelihood of COVID 19 disrup#on likely to be less of a factor, but s#ll cannot be ruled out. The charity is well placed with sufficient reserves but is working hard to develop strategies that will offset any possible COVID impact and will review any other factors as they arise.
Although temporary accommoda#on is currently being u#lised this model of support is unsustainable in the medium to long term. The need for sustainable supported and emergency accommoda#on is s#ll an issue in the city. CATH will look to increase its bed spaces to provide extra supported capacity in the coming year.
CATH day services and outreach will con#nue to be fundamental to service delivery in Chester and the surrounding area.
Plans for future periods
As COVID 19 disrup#on recedes CATH is le0 with an opportunity to work with a group that in the main is temporarily accommodated. As a result of the public health emergency individuals that we work with have gained improved access to the essen#als of food, clothing and shelter. The challenge is to now offer effec#ve support to reduce the risk of returning to the street. CATH needs to review service delivery, tailor support and improve partnership work for the benefit of those individuals.
CATH pre COVID had benefi1ed greatly from volunteer ac#vity and although we envisaged returning to volunteering once legal restric#ons had been removed; this has not been straightforward. We will con#nue to look for opportuni#es to involve volunteers at every opportunity and review on a regular basis.
As part of the revised strategic plan, we are working to improve our digital pla�orm reaching out to clients, supporters, and funders. A legacy of COVID is that a service needs to be able to respond and change quickly and an improved digital presence would be an effec#ve way to get our message out. We would expect this improvement to further strengthen our rela#onships with local ins#tu#ons and businesses.
Covid 19 restricted the Board in increasing the number of proper#es under management by one, butwe will now set about a plan for refurbishment of exis#ng proper#es and to look to increase proper#es.
The day centre and outreach service will con#nue to offer inperson support and we will look to adjust our programme to fill the gaps in provision as they occur. This individual and responsive approach has its origin in 1972 when CATH was first established and this charity in its 50th year will con#nue to provide a pivotal role in helping people to help themselves.
Structure, governance and management
The charity is a company limited by guarantee, incorporated on the 21 December 1998 and is therefore governed by a Memorandum and Ar#cles of Associa#on.
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CHESTER AID TO THE HOMELESS
TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr R G Rudd (Resigned 31 December 2021) Mr N D Wallace Mr J F C Arnold Dr J Carroll Mr A Melia Miss S Worger Prof E Rees (Resigned 1 September 2021) Dr J Gresham (Resigned 27 August 2021) Mrs J Webb Mrs J Davies Mr O A Jones (Appointed 21 May 2021 and resigned 24 May 2022) Mrs C Edwards (Appointed 16 July 2021)
Most trustees have worked for CATH as volunteers, usually in the Harold Tomlins Centre. Prior to appointment as a trustee, CATH endeavours to ensure that the board has a wide range of skills and experience such as Finance, Human Resources, Fundraising etc.
The trustees are collec6vely responsible for the governance of the organisa6on. The CEO reports directly to the Chair at monthly supervision sessions and to the full Board at quarterly mee6ngs. Addi6onally, the Board hold strategic planning away days which all trustees a9end. A strong commitment prevails in respect of the Trustee development programme which manifests itself through training in areas such as trustee responsibili6es, internal audit, informa6on security and any other topical areas of governance.
The CEO works with one opera6ons manager to deliver services and accommoda6on with support. Con6nuous improvement of service delivery remains key to CATH’s success. The opera6onal teams work to outcome measures to ensure the economy, efficiency and effec6veness of service. Performance indicators, client feedback mechanisms and peertopeer review ensure true client engagement remains a priority.
Qualifying third party indemnity provisions
None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.
The remunera6on of key management personnel is determined annually by the Trustees. Tradi6onally the level of remunera6on has been determined by reference to the annually revised pay scales of the union Unison for workers in similar posi6ons to CATH's employees. For the last few years the Trustees has considered key economic indicators such as performance of RPI and average level of pay increases in the previous 12 months.
The trustees' report was approved by the Board of Trustees.
Mr R D Whi9all Company Secretary
2 September 2022
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CHESTER AID TO THE HOMELESS
STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 31 MARCH 2022
The trustees, who are also the directors of Chester Aid To The Homeless for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accoun ng Standards (United Kingdom Generally Accepted Accoun ng Prac ce).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and applica on of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
select suitable accoun ng policies and then apply them consistently;
observe the methods and principles in the Chari es SORP;
make judgements and es mates that are reasonable and prudent;
state whether applicable UK Accoun ng Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will con nue in opera on.
The trustees are responsible for keeping adequate accoun ng records that disclose with reasonable accuracy at any me the financial posi on of the charity 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 charity and hence for taking reasonable steps for the preven on and detec on of fraud and other irregulari es.
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CHESTER AID TO THE HOMELESS
INDEPENDENT EXAMINER'S REPORT
TO THE TRUSTEES OF CHESTER AID TO THE HOMELESS
I report to the trustees on my examina�on of the financial statements of Chester Aid To The Homeless (the charity) for the year ended 31 March 2022.
Responsibili�es and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the prepara�on of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having sa�sfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examina�on, I report in respect of my examina�on of the charity’s financial statements carried out under sec�on 145 of the Chari�es Act 2011 (the 2011 Act). In carrying out my examina�on I have followed all the applicable Direc�ons given by the Charity Commission under sec�on 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in sec�on 145 of the 2011 Act. I confirm that I am qualified to undertake the examina�on because I am a member of Ins�tute of Chartered Accountants in England and Wales (ICAEW), which is one of the listed bodies.
I have completed my examina�on. I confirm that no ma4ers have come to my a4en�on in connec�on with the examina�on giving me cause to believe that in any material respect:
-
1 accoun�ng records were not kept in respect of the charity as required by sec�on 386 of the 2006 Act; or
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2 the financial statements do not accord with those records; or
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3 the financial statements do not comply with the accoun�ng requirements of sec�on 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a ma4er considered as part of an independent examina�on; or
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4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Prac�ce for accoun�ng and repor�ng by chari�es applicable to chari�es preparing their accounts in accordance with the Financial Repor�ng Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other ma4ers in connec�on with the examina�on to which a4en�on should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Mitchell Charlesworth
24 Nicholas Street Chester CH1 2AU
Dated: 8 December 2022
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CHESTER AID TO THE HOMELESS
STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
| Unrestricted | Unrestricted | Unrestricted | Restricted | Total | ||||
|---|---|---|---|---|---|---|---|---|
| funds | funds | funds | ||||||
| 2022 | 2021 | 2021 | 2021 | |||||
| Notes | £ | £ | £ | £ | ||||
| Income from: | ||||||||
| Dona�ons and legacies | 3 | 97,255 | 298,645 | | 298,645 | |||
| Charitable ac� | vi� | es | 4 | 256,703 | 234,120 | | 234,120 | |
| Investments | 5 | 15 | 3,102 | | 3,102 | |||
| Total income | 353,973 | 535,867 | | 535,867 | ||||
| Expenditure on: | ||||||||
| Charitable ac� | vi� | es | 6 | 365,762 | 347,361 | 4,100 | 351,461 | |
| Net gains/(losses) on investments | 11 | 7,905 | 30,656 | | 30,656 | |||
| Net movement in funds | (3,884) | 219,162 | (4,100) | 215,062 | ||||
| Fund balances | at | 1 April 2021 | 746,692 | 527,530 | 4,100 | 531,630 | ||
| Fund balances at 31 March 2022 | 742,808 | 746,692 | | 746,692 |
The statement of financial ac�vi�es includes all gains and losses recognised in the year.
All income and expenditure derive from con�nuing ac�vi�es.
The statement of financial ac�vi�es also complies with the requirements for an income and expenditure account under the Companies Act 2006.
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CHESTER AID TO THE HOMELESS
BALANCE SHEET
AS AT 31 MARCH 2022
| 2022 | 2021 | |||||
|---|---|---|---|---|---|---|
| Notes | £ | £ | £ | £ | ||
| Fixed assets | ||||||
| Tangible assets | 12 | 7,278 | 12,723 | |||
| Investments | 13 | 230,852 | 225,437 | |||
| 238,130 | 238,160 | |||||
| Current assets | ||||||
| Debtors | 15 | 89,610 | 82,332 | |||
| Cash at bank and in hand | 425,801 | 448,220 | ||||
| 515,411 | 530,552 | |||||
| Creditors: amounts falling due within one | ||||||
| year | 16 | (10,733) | (22,020) | |||
| Net current assets | 504,678 | 508,532 | ||||
| Total assets less current liabili-es | 742,808 | 746,692 | ||||
| Income funds | ||||||
| Unrestricted funds | ||||||
| Designated funds | 18 | 481,400 | 481,400 | |||
| General unrestricted funds | 261,408 | 265,292 | ||||
| 742,808 | 746,692 | |||||
| 742,808 | 746,692 |
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CHESTER AID TO THE HOMELESS
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2022
The company is en�tled to the exemp�on from the audit requirement contained in sec�on 477 of the Companies Act 2006, for the year ended 31 March 2022.
The directors acknowledge their responsibili�es for complying with the requirements of the Companies Act 2006 with respect to accoun�ng records and the prepara�on of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in ques�on in accordance with sec�on 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Trustees on 2 September 2022
Mrs C Edwards
Trustee
Company registra on number 3686284
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CHESTER AID TO THE HOMELESS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
1 Accoun�ng policies
Charity informa�on
Chester Aid To The Homeless is a private company limited by guarantee incorporated in England and Wales. The registered office is The Bluecoat, Upper Northgate Street, Chester, CH1 4EE.
1.1 Accoun�ng conven�on
The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accoun+ng and Repor+ng by Chari+es: Statement of Recommended Prac+ce applicable to chari+es preparing their accounts in accordance with the Financial Repor+ng Standard applicable in the UK and Republic of Ireland (FRS 102) (effec+ve 1 January 2019)". The charity is a Public Benefit En+ty as defined by FRS 102.
The charity has taken advantage of the provisions in the SORP for chari+es applying FRS 102 Update Bulle+n 1 not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the func+onal currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared on the historical cost conven+on, modified to include certain financial instruments at fair value. The principal accoun+ng policies adopted are set out below.
1.2 Going concern
At the +me of approving the financial statements, the trustees have a reasonable expecta+on that the charity has adequate resources to con+nue in opera+onal existence for the foreseeable future. Thus the trustees con+nue to adopt the going concern basis of accoun+ng in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discre+on of the trustees in furtherance of their charitable objec+ves.
Restricted funds are subject to specific condi+ons by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.
Endowment funds are subject to specific condi+ons by donors that the capital must be maintained by the charity.
1.4 Income
Income is recognised when the charity is legally en+tled to it a?er any performance condi+ons have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash dona+ons are recognised on receipt. Other dona+ons are recognised once the charity has been no+fied of the dona+on, unless performance condi+ons require deferral of the amount. Income tax recoverable in rela+on to dona+ons received under Gi? Aid or deeds of covenant is recognised at the +me of the dona+on.
Legacies are recognised on receipt or otherwise if the charity has been no+fied of an impending distribu+on, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a con+ngent asset.
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CHESTER AID TO THE HOMELESS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1 Accoun�ng policies
(Con�nued)
1.5 Expenditure
Expenditure is recognised when a liability is incurred.
Charitable ac�vi�es include expenditure associated with the opera�on and managed residen�al accommoda�on and welfare support services.
Governance costs include those incurred in the governance of the charity and its assets and are primarily associated with cons�tu�onal and statutory requirements.
Support costs include central func�ons and have been allocated to ac�vity cost categories on a basis consistent with the use of resources.
1.6 Tangible fixed assets
Tangible fixed assets are ini�ally measured at cost and subsequently measured at cost or valua�on, net of deprecia�on and any impairment losses.
Deprecia�on is recognised so as to write off the cost or valua�on of assets less their residual values over their useful lives on the following bases:
| Leasehold land and buildings | None |
|---|---|
| Fixtures and f(ngs | 33% Straight line |
| Computers | 33% Straight line |
| Motor vehicles | 25% Straight line |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial ac�vi�es.
Capital expenditure that does not in reality produce a saleable asset or an increase in value of an exis�ng asset will be wri.en off totally in the year the expenditure is incurred.
1.7 Fixed asset investments
Fixed asset investments are ini�ally measured at transac�on price excluding transac�on costs, and are subsequently measured at fair value at each repor�ng date. Changes in fair value are recognised in net income/(expenditure) for the year. Transac�on costs are expensed as incurred.
1.8 Impairment of fixed assets
At each repor�ng end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indica�on that those assets have suffered an impairment loss. If any such indica�on exists, the recoverable amount of the asset is es�mated in order to determine the extent of the impairment loss (if any).
1.9 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturi�es of three months or less, and bank overdra6s. Bank overdra6s are shown within borrowings in current liabili�es.
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CHESTER AID TO THE HOMELESS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
1 Accoun�ng policies
(Con�nued)
1.10 Financial instruments
The charity has elected to apply the provisions of Sec�on 11 ‘Basic Financial Instruments’ and Sec�on 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabili�es are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an inten�on to se)le on a net basis or to realise the asset and se)le the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are ini�ally measured at transac�on price including transac�on costs and are subsequently carried at amor�sed cost using the effec�ve interest method unless the arrangement cons�tutes a financing transac�on, where the transac�on is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amor�sed.
Basic financial liabili�es
Basic financial liabili�es, including creditors and bank loans are ini�ally recognised at transac�on price unless the arrangement cons�tutes a financing transac�on, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabili�es classified as payable within one year are not amor�sed.
Debt instruments are subsequently carried at amor�sed cost, using the effec�ve interest rate method.
Trade creditors are obliga�ons to pay for goods or services that have been acquired in the ordinary course of opera�ons from suppliers. Amounts payable are classified as current liabili�es if payment is due within one year or less. If not, they are presented as noncurrent liabili�es. Trade creditors are recognised ini�ally at transac�on price and subsequently measured at amor�sed cost using the effec�ve interest method.
Derecogni�on of financial liabili�es
Financial liabili�es are derecognised when the charity’s contractual obliga�ons expire or are discharged or cancelled.
1.11 Employee benefits
The cost of any unused holiday en�tlement is recognised in the period in which the employee’s services are received.
Termina�on benefits are recognised immediately as an expense when the charity is demonstrably commi)ed to terminate the employment of an employee or to provide termina�on benefits.
1.12 Re�rement benefits
Payments to defined contribu�on re�rement benefit schemes are charged as an expense as they fall due.
1.13 Defined contribu�on pension scheme
Payments to defined contribu�on re�rement benefit schemes are charged as an expense as they fall due.
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CHESTER AID TO THE HOMELESS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
2 Cri�cal accoun�ng es�mates and judgements
In the applica�on of the charity’s accoun�ng policies, the trustees are required to make judgements, es�mates and assump�ons about the carrying amount of assets and liabili�es that are not readily apparent from other sources. The es�mates and associated assump�ons are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these es�mates.
The es�mates and underlying assump�ons are reviewed on an ongoing basis. Revisions to accoun�ng es�mates are recognised in the period in which the es�mate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Dona�ons and legacies
| Unrestricted | Unrestricted | Unrestricted | Unrestricted | |
|---|---|---|---|---|
| funds | funds | |||
| 2022 | 2021 | |||
| £ | £ | |||
| Dona�ons and gi*s | 97,255 | 288,158 | ||
| Grants | | 10,487 | ||
| 97,255 | 298,645 | |||
| Dona�ons and gi(s | ||||
| Dona�ons | 85,255 | 100,724 | ||
| Corporate dona�on | 12,000 | 12,000 | ||
| Legacies | | 175,434 | ||
| 97,255 | 288,158 |
4 Charitable ac�vi�es
| Homeless | Homeless | |
|---|---|---|
| support | support | |
| 2022 | 2021 | |
| £ | £ | |
| Sales within charitable ac�vi�es | 256,703 | 234,120 |
- 14 -
CHESTER AID TO THE HOMELESS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
| 5 | Investments | |||
|---|---|---|---|---|
| Unrestricted | Unrestricted | |||
| funds | funds | |||
| 2022 | 2021 | |||
| £ | £ | |||
| Interest receivable | 15 | 3,102 | ||
| 6 | Charitable ac(vi(es | |||
| Homeless | Homeless |
|||
| support | support | |||
| 2022 | 2021 | |||
| £ | £ | |||
| Staf costs | 165,024 | 164,676 | ||
| Food and household goods | 11,423 | 8,019 | ||
| Rent | 91,871 | 80,924 | ||
| Rates and water | 11,962 | 10,396 | ||
| Light and heat | 20,337 | 22,184 | ||
| Repairs and maintenance | 13,008 | 21,961 | ||
| TV and recrea+on | 3,038 | 4,211 | ||
| Client educa+on and training | 448 | 786 | ||
| Travel and motor expenses | 5,804 | 4,369 | ||
| Other staf costs | | 350 | ||
| 322,915 | 317,876 | |||
| Share of support costs (see note 8) | 33,210 | 27,082 | ||
| Share of governance costs (see note 8) | 9,637 | 6,503 | ||
| 365,762 | 351,461 | |||
| Analysis by fund | ||||
| Unrestricted funds | 365,762 | 347,361 | ||
| Restricted funds | | 4,100 | ||
| 7 | Net movement in funds | 2022 | 2021 | |
| £ | £ | |||
| Net movement in funds is stated a3er charging/(credi+ng) | ||||
| Deprecia+on of owned tangible fxed assets | 6,321 | 6,102 |
- 15 -
CHESTER AID TO THE HOMELESS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
8 Support costs
| Support costs | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Support costs | Governance | **2022 ** | Support costs | Governance | 2021 | |||||||
| costs | costs | |||||||||||
| £ | £ | £ | £ | £ | £ | |||||||
| Deprecia�on | 6,321 | | 6,321 | 6,102 | | 6,102 | ||||||
| IT equipment | 1,801 | | 1,801 | 3,604 | | 3,604 | ||||||
| Health and Safety | 3,292 | | 3,292 | 2,215 | | 2,215 | ||||||
| Insurance | 7,484 | | 7,484 | 7,054 | | 7,054 | ||||||
| Hospitality | 307 | | 307 | 78 | | 78 | ||||||
| Ofce costs | 13,560 | | 13,560 | 7,885 | | 7,885 | ||||||
| Support costs heading 7 | 120 | | 120 | 144 | | 144 | ||||||
| Support costs heading 8 | 325 | | 325 | | | | ||||||
| Accountancy | | 3,000 | 3,000 | | 2,880 | 2,880 | ||||||
| Legal and professional | | 4,097 | 4,097 | | 3,573 | 3,573 | ||||||
| Bank charges | | 2,540 | 2,540 | | 50 | 50 | ||||||
| 33,210 | 9,637 | 42,847 | 27,082 | 6,503 | 33,585 | |||||||
| Analysed between | ||||||||||||
| Charitable ac�vi�es | 33,210 | 9,637 | 42,847 | 27,082 | 6,503 | 33,585 |
Governance costs includes payments to the auditors of £nil (2021 £nil) for audit fees.
9 Trustees
None of the trustees (or any persons connected with them) received any remunera�on or benefits from the charity during the year.
- 16 -
CHESTER AID TO THE HOMELESS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
10 Employees
Number of employees
The average monthly number of employees during the year was:
| The average monthly number of employees during the year was: | |||
|---|---|---|---|
| 2022 | 2021 | ||
| Number | Number | ||
| Management | 2 | 2 | |
| Charitable staf | 5 | 4 | |
| 7 | 6 | ||
| Employment costs | 2022 | 2021 | |
| £ | £ | ||
| Wages and salaries | 146,727 | 148,503 | |
| Social security costs | 9,111 | 9,228 | |
| Other pension costs | 9,186 | 6,945 | |
| 165,024 | 164,676 |
There were no employees whose annual remunera*on was £60,000 or more.
11 Net gains/(losses) on investments
| Unrestricted | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2022 | 2021 | |
| £ | £ | |
| Revalua*on of investments | 7,905 | 30,656 |
- 17 -
CHESTER AID TO THE HOMELESS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
| 12 | Tangible fxed assets | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Leasehold land | Fixtures and |
Computers |
Motor vehicles | Total | ||||||
| and buildings | f%ngs | |||||||||
| £ | £ | £ | £ | £ | ||||||
| Cost | ||||||||||
| At 1 April 2021 | 139,000 | 2,628 | 6,959 | 12,594 | 161,181 | |||||
| Addi�ons | | 876 | | | 876 | |||||
| At 31 March 2022 | 139,000 | 3,504 | 6,959 | 12,594 | 162,057 | |||||
| Deprecia+on and impairment | ||||||||||
| At 1 April 2021 | 138,999 | 657 | 2,504 | 6,298 | 148,458 | |||||
| Deprecia�on charged in the year | | 876 | 2,296 | 3,149 | 6,321 | |||||
| At 31 March 2022 | 138,999 | 1,533 | 4,800 | 9,447 | 154,779 | |||||
| Carrying amount | ||||||||||
| At 31 March 2022 | 1 | 1,971 | 2,159 | 3,147 | 7,278 | |||||
| At 31 March 2021 | 1 | 1,971 | 4,455 | 6,296 | 12,723 |
The leasehold property recognised at £1 in the accounts relates to Crispin House, 56 Nicholas Street, Chester was bought and refurbished with the help of a grant of £139,000 from the Rese-lement Agency. Certain covenants and restric�ons were imposed and in par�cular, the grant will be repayable should the usage of the building be other than for the exis�ng rese-lement ac�vi�es. In addi�on, the Rese-lement Agency has a first charge over the property.
13 Fixed asset investments
| Listed investments | Listed investments | |
|---|---|---|
| £ | ||
| Cost or valua+on | ||
| At 1 April 2021 | 225,437 | |
| Valua�on changes | 7,905 | |
| Fees and charges | (2,490) | |
| At 31 March 2022 | 230,852 | |
| Carrying amount | ||
| At 31 March 2022 | 230,852 | |
| At 31 March 2021 | 225,437 |
Fixed asset investments revalued
The historical cost of the investments was £199,000 (2021 £199,000) and all investments are valued at the traded market value at the year end.
- 18 -
CHESTER AID TO THE HOMELESS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
| 14 | Financial instruments | 2022 | 2021 | |
|---|---|---|---|---|
| £ | £ | |||
| Carrying amount of fnancial assets | ||||
| Instruments measured at fair value through proft or loss | 230,852 | 225,437 | ||
| 15 | Debtors | |||
| 2022 | 2021 | |||
| Amounts falling due within one year: | £ | £ | ||
| Trade debtors | 302 | 458 | ||
| Other debtors | 72,158 | 72,143 | ||
| Prepayments and accrued income | 17,150 | 9,731 | ||
| 89,610 | 82,332 | |||
| 16 | Creditors: amounts falling due within one year | |||
| 2022 | 2021 | |||
| £ | £ | |||
| Other taxa'on and social security | 862 | 16,575 | ||
| Trade creditors | 4,865 | 1,433 | ||
| Other creditors | 1,891 | 962 | ||
| Accruals and deferred income | 3,115 | 3,050 | ||
| 10,733 | 22,020 |
17 Restricted funds
The income funds of the charity include restricted funds comprising the following unexpended balances of dona'ons and grants held on trust for specific purposes:
| Movement in | ||||||
|---|---|---|---|---|---|---|
| funds | ||||||
| Balance at | Resources | Balance at | Incoming | Balance at | ||
| 1 | April 2020 | expended | 1 April 2021 | resources | 31 March 2022 | |
| £ | £ | £ | £ | £ | ||
| Dona'ons | 4,100 | (4,100) | | | |
The restricted dona'on of £15,600 was reduced to £Nil by the end of the previous year and there were no further movements in the current year, following expenditure on several proper'es upgraded with CCTV and further upda'ng of our property in Bouverie Street in the pervious year.
- 19 -
CHESTER AID TO THE HOMELESS
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2022
18 Designated funds
The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:
| Movement in funds | Movement in funds | |||
|---|---|---|---|---|
| Balance at 1 | Incoming |
Resources |
Balance at 31 |
|
| April 2021 | resources | expended | March 2022 | |
| £ | £ | £ | £ | |
| IT/IS reserve | 15,000 | | | 15,000 |
| Contents replacement | 50,000 | | | 50,000 |
| Redundancy | 20,000 | | | 20,000 |
| Development | 30,000 | | | 30,000 |
| Dilapida'ons | 15,000 | | | 15,000 |
| Buildings | 47,811 | | | 47,811 |
| Legacies fund | 9,557 | | | 9,557 |
| Con'ngency | 84,032 | | | 84,032 |
| New property fund | 210,000 | | | 210,000 |
| 481,400 | | | 481,400 |
Legacies
The charity is a cobeneficiary of some land in Cheshire. This has not been included in the financial statements as no no'fica'on of further distribu'on has been received. The charity does not yet have a reliable es'mate of the value of the legacy. Costs associated with bringing the legacy income to frui'on are allocated to a designated fund (see note 18) as they fall due.
19 Related party transac/ons
Remunera/on of key management personnel
The remunera'on of key management personnel is as follows.
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Aggregate compensa'on | 70,325 | 75,273 |
- 20 -