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2022-03-31-accounts

REGISTERED COMPANY NUMBER: 01946544 (England and Wales) REGISTERED CHARITY NUMBER: 1075118

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

FOR

SHAP LIMITED

C A Hunter Limited Statutory Auditors Britannia Chambers 26 George Street St Helens Merseyside WA10 1BZ

SHAP LIMITED

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Page
Report of the Trustees 1 to 6
Report of the Independent Auditors 7 to 10
Statement of Financial Activities 11
Balance Sheet 12
Cash Flow Statement 13
Notes to the Cash Flow Statement 14
Notes to the Financial Statements 15 to 22
Detailed Statement of Financial Activities 23 to 24

SHAP LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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).

Page 1

SHAP LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

OBJECTIVES AND ACTIVITIES

Aims and objectives for the public benefit

SHAP's principle activities continue to be the provision of accommodation with support and community well-being services. The focus of our work is young, single, homeless people, looked after children and care leavers. However, we also provide services for people of all ages or for those with specific needs such as those related to alcohol, drug mis-use or offending behaviour. Over the past three years we have also developed a service offer for asylum seekers, refugees and displaced Ukrainian families.

Our values as defined by our staff and service users are:

Approachable: being open, friendly and welcoming

Trustworthy, honest and dependable: being respectful and honest, doing the right thing, focussing on our service users and being committed to the organisation and our colleagues

Safe: making people feel safe and at home, giving them a sense of belonging, making SHAP a place where they feel able to return

Creative: delivering a diverse range of services, being dynamic and flexible in our approach and responsive to people's needs

Positive: looking for solutions, not problems, being helpful and confident, empowering people to take up opportunities

Supportive: listening, understanding, supporting people to achieve their goals, supporting each other

Determined: being persistent, going the extra mile, challenging poor attitudes and practices

Respectful: being generous in spirit, making people feel they matter, not judging and not discriminating

Achievement and performance

SHAP's services continue to be extremely busy and many of our accommodation services have a waiting list. SHAP's Board and Chief Executive continue to make sure that the charity's activities are in line with our core objective and values. In 2021/22 we provided services for nearly 2,000 people. As well as our core beneficiaries, young homeless people, we also provided new services for asylum seekers and refugees including people displaced from Afghanistan.

Quality Assurance

SHAP holds the ISO 9001:2015 quality mark and following re-inspection in 2021 we were re-accredited for a further three years. We have reviewed and revised our approach to internal audit against the ISO 9001 standard with the aim of assessing all services against key elements of the standard during the three-year cycle. This re-accreditation is a real achievement for the Quality Group and the person who has assumed part time responsibility for ISO:9001 management and oversight. The organisation's resources in this regard have reduced significantly since we initially achieved the quality mark and considerable work was required to ensure that we retained it.

Succession planning

SHAP's Board and Chief Executive have continued to focus on succession planning. The strategy for appointing a Chair Designate was successful and the new Chair of Trustees will take up her appointment in January 2023. The Board has also agreed a succession strategy for the Chief Executive as part of a plan to secure longer term stability for the charity. This plan is commercially sensitive and therefore remains confidential to the Board.

Financial review

In 2021/2022 the charity again produced a slight surplus but although this is encouraging, maintaining a positive financial performance poses an increasing financial challenge. We continue to operate a nursery setting whilst plans to transfer it out of the charity are reviewed. It is now likely that this transfer will take place in the first half of 2023. As a result of extremely tight operating margins, our treasury rules will not have any further review until March 2023 when extending some delegations will be considered.

SHAP continues to look for opportunities to work collaboratively with other agencies and organisations and is always open to discussions around mutually beneficial strategic partnerships.

Page 2

SHAP LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

It is for these reasons that SHAP's Trustees believe that the charity remains a going concern for a period of at least the next 12 months.

STRATEGIC REPORT

Financial risk

We continue to review the viability of our services and their business plans in the context of national, regional and local politics and decision making. This has been and remains extremely challenging. The current cost of living crisis and a sector wide workforce shortage have combined to produce an exceptionally difficult financial landscape for the charity. The need to make a meaningful pay award to our staff meant that some planned developments and a senior management appointment had to be abandoned. Increasing pressure on local authority budgets following on from 12 years of austerity, mean that the gap between the fees we receive for delivering services and the cost of those services is growing rapidly.

We will continue to look for ways to generate additional income which can support our core funds and to ensure that our services are as cost effective and efficient as they can be. We plan to commission an external assessment of the impact that our services have, both in terms of outcomes for our service users and cost benefits for our Commissioners. We believe that our services for young people in particular, present outstanding value for money to Children and Young People's Services and that a cost benefit analysis will demonstrate this. SHAP maintains a risk register which identifies all the key risks that the charity faces at any given time. The risk register identifies a number of financial risks that face the charity and grades them in terms of the likelihood of them happening. We then describe how we manage or mitigate these risks. The risk register is reviewed regularly by the Chief Executive, Finance Officer and senior managers and is discussed by the Board at least twice a year. During the financial year we regularly review the significant risk of failing to deliver against our cost controls and recovery targets. Increasing pressure costs, particularly around energy and building materials, lead to this risk being increased. With risks associated with Covid still significant, we also face short to medium term uncertainty as a result of high inflation, political instability and escalating workforce challenges.

Transactions and financial position

The current financial climate is reflected in SHAP's financial position as it manages to sustain increasing services with decreasing resources. The pattern of funds is changing between restricted and unrestricted income as some of our funders are increasingly aware of the need for us to be more flexible with our resources.

The statement of financial activities shows a surplus of £95,877 (2021 surplus of £163,307). Total reserves carried forward as at 31 March 2022 stand at £624,894 (2021: £529,017) with unrestricted funds of £624,894 (2021: £529,017) and restricted funds of £nil (2021: £nil).

The charity continues to hold restricted and unrestricted funds and to maintain reserves in line with its Reserves Policy. The aim of the policy is to maintain a reserve of unrestricted funds at a level that will enable the charity to operate for an optimum period of 6 months and a minimum period of 3 months. The Board of Trustees regularly review the amount of reserves that are required to ensure that this financial stability is maintained and that the charity is able to continue to fulfil its obligations. This policy has been reviewed in light of the increased use of core funds during financial years 2017-18 and 2018-19. This resulted in a diminished reserve but one which still meets our minimum requirement of 3 months' running costs. The Trustees and our Auditors are satisfied that our provision and our process for monitoring are prudent and appropriate. They will continue to review this situation every 6 months.

Page 3

SHAP LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

STRATEGIC REPORT Future plans Future plans - Our strategy for the future

The Trustees and executive management of the organisation will continue to refresh our strategic business development plans. We want to ensure that the organisation is able to meet the challenges of the far-reaching changes which will be affecting the public and third sectors over the coming months and years.

We remain committed to the following objectives:

  1. Contributing to the creation of sustainable communities in the area where we work and to the prevention of homelessness.

  2. Communicating brilliantly.

  3. Promoting diversity, anti-racism and social justice.

  4. Achieving a structure that ensures maximum stability for our existing services and provides best opportunities for growth; a clear, strong, effective and flexible management structure.

  5. Having skilled and motivated staff empowering service users who have access to a wide range of opportunities.

  6. Enabling people's views about their own situations to be heard.

  7. Enabling children and young people to make a positive impact on the world around them.

In pursuit of these objectives the Board has agreed an important strategic development: SHAP's primary offer has always been providing young people with good standard accommodation and structured support around life skills and independent living. Over recent years we have seen a marked increase in young people who also have significant care needs. These needs must be met in order for them to confidently move towards independence. SHAP will therefore look to realign some of its service offers and develop new ones which will enable us to develop models of care and support. Initially this will be through the development of models of semi-independent living for children and young people who are looked after by local authorities or preparing to leave their care. We are confident that our values and core expertise provide a good foundation for such a service development and will ensure that suitably experienced and qualified managers are brought into the organisation to ensure their effective delivery.

We believe that the pandemic has shown the importance of public/private collaboration at a national and local level and as an organisation we are keen to work in the space. Many local authorities will be making service changes because of financial pressures but this will create a need for innovation. Health and social care services will be commissioned and delivered differently over the next few years and a focus on population health measures delivered at a local level will again provide opportunities for imaginative collaborative responses from public and third sector organisations. SHAP intends to become a leading provider/enabler of these community well-being services.

Following a protracted negotiation around the management of a housing scheme at Octavia Court in Huyton, Knowsley SHAP made an offer to buy. The Housing Association that owned the properties accepted and SHAP completed the purchase in July 2022. This 24 flat scheme is a long term investment which is planned to support the purchase of further properties in the future.

Page 4

SHAP LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document

SHAP Limited is a charitable company, limited by guarantee, incorporated in September 1985 and registered as a charity. The company was established under its Memorandum and Articles of Association that set out the objects and powers of the charitable company. In the event of the company being wound up, members are required to contribute an amount not exceeding £1.

Trustees

The directors of the charitable company are also Trustees for the purpose of charity law. Trustees are known as members of the management Board of Trustees and are elected to serve for a period of three years, after which they may be re-elected at the next annual general meeting.

Our aim to recruit new Trustees in 2020 was delayed as a direct result of the Covid-19 pandemic. In the Autumn of 2021 we recruited a new Trustee who will join the Board in 2022. We have also successfully recruited a Chair Designate who will replace our current Chair in January 2023.

Induction and training of new trustees

New trustees are invited to attend meetings with the chief executive and the senior management team to familiarise themselves with the charitable company's activities and the context within which it operates. Areas covered would include the obligations and responsibilities of becoming a trustee, a review of the governing document and the current financial position.

Organisational structure

The Board of Trustees, of which there is no maximum number but a minimum number of two, meets quarterly to administer activities and set the policy and strategic direction of the charity. The Board elects the Chair every three years who is responsible for organising Board meetings and meeting regularly with the Chief Executive. A published scheme of delegation sets out the responsibilities which the Board keeps to itself and those which it delegates to the Chief Executive and managers. The day to day responsibility of the provision of services and overall management of the charity rests with the Chief Executive who also acts as the Company Secretary.

Related parties

SHAP delivers three services in partnership with other agencies - a homeless families centre and a harm reduction residential service in Liverpool in partnership with The Whitechapel Centre and a floating support service in Halton in partnership with Plus Dane Housing.

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

01946544 (England and Wales)

Registered Charity number

1075118

Registered office

Lakeside Building Prescot Road St Helens Merseyside WA10 3TT

Trustees

M Milton S Cotter-Burgess P J Barron D Williams (appointed 6.5.22)

Page 5

SHAP LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022

REFERENCE AND ADMINISTRATIVE DETAILS

Company Secretary

M C Weights

Auditors

C A Hunter Limited Statutory Auditors Britannia Chambers 26 George Street St Helens Merseyside WA10 1BZ

STATEMENT OF TRUSTEES' RESPONSIBILITIES

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

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

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

In so far as the trustees are aware:

AUDITORS

The auditors, C A Hunter Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Report of the trustees, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 15 December 2022 and signed on the board's behalf by:

M C Weights - Secretary

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SHAP LIMITED

Opinion

We have audited the financial statements of SHAP Limited (the 'charitable company') for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Page 7

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SHAP LIMITED

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, 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 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SHAP LIMITED

Our 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 a Report of the Independent Auditors 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.

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 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF SHAP LIMITED

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

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 the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Keith Rotheram (Senior Statutory Auditor) for and on behalf of C A Hunter Limited Statutory Auditors Britannia Chambers 26 George Street St Helens Merseyside WA10 1BZ

19 December 2022

Page 10

SHAP LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
Accommodation & support services
Advocacy services
Community development
Children's nursery
Big Lottery help through crisis
Total
EXPENDITURE ON
Charitable activities
4
Accommodation & support services
Advocacy services
Community development
Children's nursery
Big Lottery help through crisis
Total
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
1,965
3,195,035
7,546
49,017
480,443
-
3,734,006
3,064,489
25,221
67,976
480,443
-
3,638,129
95,877
529,017
624,894		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 31.3.22
Total
funds
£
1,965
3,195,035
7,546
49,017
480,443
-
3,734,006
3,064,489
25,221
67,976
480,443
-
3,638,129
95,877
529,017
624,894		 31.3.21
Total
funds
£
2,342
3,178,701
-
58,000
589,131
50,938
3,879,112
3,086,995
24,302
62,884
454,253
87,371
3,715,805
163,307
365,710
529,017

The notes form part of these financial statements

Page 11

SHAP LIMITED

BALANCE SHEET 31 MARCH 2022

Notes
FIXED ASSETS
Tangible assets
11
CURRENT ASSETS
Debtors
12
Cash at bank
CREDITORS
Amounts falling due within one year
13
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
14
Unrestricted funds:
General fund
Designated unrestricted funds
TOTAL FUNDS		 Unrestricted
funds
£
211,113
357,943
582,443
940,386
(526,605)
413,781
624,894
624,894		 Restricted
funds
£
-
-
-
-
-
-
-
-		 31.3.22
Total
funds
£
211,113
357,943
582,443
940,386
(526,605)
413,781
624,894
624,894
349,894
275,000
624,894
624,894		 31.3.21
Total
funds
£
217,988
243,680
552,875
796,555
(485,526)
311,029
529,017
529,017
254,017
275,000
529,017
529,017

The financial statements were approved by the Board of Trustees and authorised for issue on 15 December 2022 and were signed on its behalf by:

M Milton - Trustee

P J Barron - Trustee

The notes form part of these financial statements

Page 12

SHAP LIMITED

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Change in cash and cash equivalents in
the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end of
the reporting period		 31.3.22
£
29,568
29,568
29,568
552,875
582,443		 31.3.21
£
310,680
310,680
310,680
242,195
552,875

The notes form part of these financial statements

Page 13

SHAP LIMITED

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2022

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial
Activities)
Adjustments for:
Depreciation charges
(Increase)/decrease in debtors
Increase in creditors
Net cash provided by operations		 31.3.22
£
95,877
6,874
(114,262)
41,079
29,568		 31.3.21
£
163,307
9,858
36,074
101,441
310,680

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash At 1.4.21
£		 Cash flow
£		 At 31.3.22
£
Cash at bank 552,875 29,568 582,443
552,875 29,568 582,443
Total 552,875 29,568 582,443

The notes form part of these financial statements

Page 14

SHAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, 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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

As outlined in the Trustees' Report, the board continues to monitor the financial performance of the charity and undertake appropriate steps to maintain its ongoing financial stability.The Trustees are satisfied that the charity has sufficient reserves to enable it to continue to implement the steps outlined, and improve its financial performance.

Having considered these factors outlined above the trustees consider it appropriate to prepare the financial statements on the going concern basis.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery - 20% - 33% on cost Fixtures and fittings - 20% - 33% on cost Motor vehicles - 25% on reducing balance

Taxation

The charity is exempt from corporation tax on its charitable activities.

Irrecoverable VAT is charged against the category of resources expended for which it was incurred.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Designated funds are unrestricted funds earmarked by management for particular purposes.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

continued...

Page 15

SHAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

2. DONATIONS AND LEGACIES

Donations
3.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Rental income
Accommodation & support services
Grants & contracts
Accommodation & support services
Other fees earned
Accommodation & support services
Grants & contracts
Advocacy services
Grants & contracts
Community development
Nursery income
Children's nursery
Grants & contracts
Big Lottery help through crisis
Grants received, included in the above, are as follows:
Supporting People - St Helens
Supporting People - Knowsley
Supporting people - Halton
Supporting People - Liverpool
Liverpool Advocacy Services
Community Development
BIG Lottery help through crisis
Temporary Accomodation Management
Parental Assessment Unit
Homeless Link
4.
CHARITABLE ACTIVITIES COSTS
Direct
Costs
£
Accommodation & support services
2,687,303
Advocacy services
25,221
Community development
60,224
Children's nursery
480,443
3,253,191		 31.3.22
£
1,965
31.3.22
£
1,071,518
2,076,224
47,293
7,546
49,017
480,443
-
3,732,041
31.3.22
£
694,837
222,551
237,551
717,342
7,546
49,017
-
95,499
108,444
-
2,132,787
Support
costs (see
note 5)
£
377,186
-
7,752
-
384,938		 31.3.21
£
2,342
31.3.21
£
1,061,150
2,089,371
28,180
-
58,000
589,131
50,938
3,876,770
31.3.21
£
671,845
208,684
237,551
741,664
-
58,000
50,938
81,527
97,894
50,206
2,198,309
Totals
£
3,064,489
25,221
67,976
480,443
3,638,129

continued...

Page 16

SHAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

5. SUPPORT COSTS

Governance
Management
costs
£
£
Accommodation & support services
375,865
1,321
Community development
7,752
-
383,617
1,321		 Totals
£
377,186
7,752
384,938

6. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Depreciation - owned assets
Other operating leases		 31.3.22
£
14,000
6,875
548,205		 31.3.21
£
14,000
9,857
575,250

7. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 March 2022 nor for the year ended 31 March 2021.

8. STAFF COSTS

Wages and salaries

Furlough grants received
Social security costs
Pension costs		 31.3.22
£
2,202,955
(2,824)
131,905
40,604
2,372,640		 31.3.21
£
2,271,340
(57,774)
136,153
40,074
2,389,793

Included within wages this year are invoiced costs totalling £267,695 (2021 £280,744) paid to The Whitechapel Centre for staffing costs they have incurred in relation to the Belvidere Family Hostel and £79,146 (2021 £9,866) of agency staff.

Number of employees with emoluments exceeding £60,000:

£60,001 - £70,000 31.3.22
Number
1		 31.3.21
Number
1

The average number of full-time equivalent employees during the year was as follows:

31.3.22 31.3.21
£ £

continued...

Page 17

SHAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

8. STAFF COSTS - continued

Central services
Housing and residential services
9.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
2,342
Charitable activities
Accommodation & support services
3,178,701
Community development
58,000
Children's nursery
589,131
Big Lottery help through crisis
50,938
Total
3,879,112
EXPENDITURE ON
Charitable activities
Accommodation & support services
3,086,995
Advocacy services
24,302
Community development
62,884
Children's nursery
454,253
Big Lottery help through crisis
87,371
Total
3,715,805
NET INCOME
163,307
Transfers between funds
1,229
Net movement in funds
164,536
RECONCILIATION OF FUNDS
Total funds brought forward
364,481
TOTAL FUNDS CARRIED FORWARD
529,017		 7
90
97		 7
102
109

Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
-
(1,229)
(1,229)
1,229
-		 Total
funds
£
2,342
3,178,701
58,000
589,131
50,938
3,879,112
3,086,995
24,302
62,884
454,253
87,371
3,715,805
163,307
-
163,307
365,710
529,017

continued...

Page 18

SHAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

10. INTANGIBLE FIXED ASSETS

COST
At 1 April 2021 and 31 March 2022
AMORTISATION
At 1 April 2021 and 31 March 2022
NET BOOK VALUE
At 31 March 2022
At 31 March 2021
11.
TANGIBLE FIXED ASSETS
Fixtures
Long
Plant and
and
leasehold
machinery
fittings
£
£
£
COST
At 1 April 2021 and
31 March 2022
219,622
134,917
73,875
DEPRECIATION
At 1 April 2021
4,392
133,583
73,875
Charge for year
4,392
1,334
-
At 31 March 2022
8,784
134,917
73,875
NET BOOK VALUE
At 31 March 2022
210,838
-
-
At 31 March 2021
215,230
1,334
-
12.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors		 Motor
vehicles
£
40,635
39,211
1,149
40,360
275
1,424
31.3.22
£
272,692
85,251
357,943		 Goodwill
£
4,000
4,000
-
-
Totals
£
469,049
251,061
6,875
257,936
211,113
217,988
31.3.21
£
210,772
32,908
243,680

continued...

Page 19

SHAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Accruals and deferred income
MOVEMENT IN FUNDS
Unrestricted funds
General fund
Designated unrestricted funds
TOTAL FUNDS
Net movement in funds, included in the above are a
Unrestricted funds
General fund
TOTAL FUNDS
Comparatives for movement in funds
Unrestricted funds
General fund
Designated unrestricted funds
Restricted funds
Moonhill activities
St Helens provider forum
TOTAL FUNDS		 s follows:
At 1.4.20
£
89,481
275,000
364,481
729
500
1,229
365,710		 At 1.4.21
£
254,017
275,000
529,017
529,017
Incoming
resources
£
3,734,006
3,734,006
Net
movement
in funds
£
163,307
-
163,307
-
-
-
163,307		 31.3.22
£
151,222
36,256
339,127
526,605
Net
movement
in funds
£
95,877
-
95,877
95,877
Resources
expended
£
(3,638,129)
(3,638,129)
Transfers
between
funds
£
1,229
-
1,229
(729)
(500)
(1,229)
-		 31.3.21
£
55,814
32,565
397,147
485,526
At
31.3.22
£
349,894
275,000
624,894
624,894
Movement
in funds
£
95,877
95,877
At
31.3.21
£
254,017
275,000
529,017
-
-
-
529,017

14. MOVEMENT IN FUNDS

continued...

Page 20

SHAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

14. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
3,879,112
3,879,112		 Resources
expended
£
(3,715,805)
(3,715,805)		 Movement
in funds
£
163,307
163,307

A current year 12 months and prior year 12 months combined position is as follows:

Unrestricted funds
General fund
Designated unrestricted funds
Restricted funds
Moonhill activities
St Helens provider forum
TOTAL FUNDS		 At 1.4.20
£
89,481
275,000
364,481
729
500
1,229
365,710		 Net
movement
in funds
£
259,184
-
259,184
-
-
-
259,184		 Transfers
between
funds
£
1,229
-
1,229
(729)
(500)
(1,229)
-		 At
31.3.22
£
349,894
275,000
624,894
-
-
-
624,894

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
7,613,118
7,613,118		 Resources
expended
£
(7,353,934)
(7,353,934)		 Movement
in funds
£
259,184
259,184

continued...

Page 21

SHAP LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022

15. RELATED PARTY DISCLOSURES

S Cotter-Burgess, during the year, was a director in Merseyside Law Centre Limited. A balance of £3,763 (2021 £nil) was owed from Merseyside Law Centre Limited at the balance sheet date.

16. ANALYSIS OF FUNDS

Designated unrestricted funds

----- Start of picture text -----
Net
movement
At 1.4.21 in funds At 31.3.22
£ £ £
-
Closure/redundancy costs 275,000 275,000
-
275,000 275,000
----- End of picture text -----

Closure costs - Costs designated for the recognised risk of losing a significant number of service contracts and the subsequent loss of jobs that this would entail.

17. DEFERRED INCOME

Deferred income comprises grant income received in advance from block contracts relating to services to be provided during the year ending 31 March 2023.

£
Balance as at 1 April 2021
Amount released to incoming resources
Amount deferred in year
Balance as at 31 March 2022		 41,547
(41,547)
25,824
25,824

Page 22

SHAP LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Charitable activities
Rental income
Grants & contracts
Other fees earned
Nursery income
Total incoming resources
EXPENDITURE
Charitable activities
Wages
Rent
Rates and water
Light and heat
Telephone
Postage and stationery
Sundries
Internal decoration
Furniture written off in 1 yr
Property maintenance
Cleaning, laundry & refuse
Travel expenses
Food & catering
Resident activities
Consultancy
Computer costs
White goods
Security
Tools & equip
Bad debts
Fixtures and fittings
Support costs
Management
Wages
Rent
Insurance
Telephone
Postage and stationery
Carried forward		 31.3.22
£
1,965
1,071,518
2,132,787
47,293
480,443
3,732,041
3,734,006
2,140,457
512,196
30,851
19,650
10,971
7,782
37,559
5,237
64,532
55,683
44,096
13,813
35,994
35,459
39,534
28,292
1,200
136,045
8,994
24,846
-
3,253,191
232,183
36,009
5,024
12,659
3,176
289,051		 31.3.21
£
2,342
1,061,150
2,198,309
28,180
589,131
3,876,770
3,879,112
2,130,859
537,606
30,075
23,458
14,343
7,401
20,852
5,560
58,782
59,204
34,739
15,509
33,266
24,204
34,034
18,156
2,231
131,180
6,148
22,978
737
3,211,322
258,934
37,644
21,205
20,228
3,878
341,889

This page does not form part of the statutory financial statements

Page 23

SHAP LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022

Management
Brought forward
Advertising
Sundries
Cleaning, laundry & refuse
Transport & motor expenses
Food & catering
Consultancy
Computer costs
Publications & affiliations
Training
Security
Tools & equipment
Freehold property
Plant and machinery
Motor vehicles
Governance costs
Auditors' remuneration
Legal & professional fees
Bank charges
Total resources expended
Net income		 31.3.22
£
289,051
1,885
5,019
197
15,033
-
-
28,559
22,557
13,127
1,315
-
4,392
1,333
1,149
383,617
14,000
(18,147)
5,468
1,321
3,638,129
95,877		 31.3.21
£
341,889
1,095
5,876
83
18,358
362
5,992
47,716
3,802
13,107
708
1,444
4,392
2,108
2,621
449,553
14,000
35,929
5,001
54,930
3,715,805
163,307

This page does not form part of the statutory financial statements

Page 24