REGISTERED COMPANY NUMBEIL. 01946544 (England and Wales) REGISTERED CHARITY NUMBEIL. IIJ75118 ETR ES AND NCI ME THE YEAR E ED31 CH2 HAP IMITED C A Hunter Limited SLthitory Auditors Britannia Chambers 26 George Street St Helens Merseyside WAIO IBZ SHAP LIM ED TATE 2024 TS FOR YEAR END D31 MA Page Report ofthe Tn Report of the Independent Auditorg 9 to 12 ststemeDt of Flnancial Aelfvltleg 13 Balance Sheet 14 to 15 Casb Flow S14tement 16 Notes to tbe Cash Flow Statement 17 Notes to the FiDan¢lal Ststements 18 to 28 SHA ITED 46544 TOFTH E YEAR END USTE D31M H 2024 The tswstees who are also directors of the charity for the purposes of the Companies Aet 2006, present their report with the fmancial statements of the charity for the year ended 31 March 2024. The tsvstees have adopted the provisions of Accounting and ReportÉng by Charities: Statement of Recommended Practice applicable to dmrities preparing their accounts in accordance with the Financial Reporting Standard appli￿1¢ in the UK and Republic of Ireland (FRS 102) (effecÉive I Janw 2019). Page I P LIMIT GISTER NUMBE 1946544 TOFTH ED RUSTEE ARCH 2 RTHEY OBJEcfivES AND ACTIVITILS Aims and objectives for the public benefit SHAP$ principle activities continue to be the provision of accommodation with support and community well-being services. The focus of its work is young single homeless peopl4 looked after children and care leaver& However the charity ￿$0 provides services for people of all ages or for those with $pe¢ific needs such &$ those related to alcohol, drng mis•use or offending behaviour. The charitys Valu￿ as defined by staff and service users are: Approachable: being Ope￿ friendly and welcoming Tnistworthy. honest and dependable: being respectful and hon4 doing the right thin& focutsing on service users and being ¢ommitt¢d to the organisation and to colleagues Safe: making people feel safe and at home, giving them a sense of belongin& making SHAP a place where they feel able to Creative: delivering a diverse rdnge of services. being dynamic and flexible in approach and responsive to peopl¥s needs Positive: looking for solutions not problans. being helpful and confidenL empowering people to take up opportunities Supportive: lis*nin& understandin& supporting p￿p]e to a¢hieve their goals Supporting each other D&erniined: being persistenL going the extra mile, d￿llenging poor attitudes and practices R•: being generous in spiriL making people feel they matter. not judging and not discriminating Achievements and Perforniance SHAP'$ services continue to be extremely busy. The past two years have seen an extraordinary increase in homelessness - particularly rough sleepin& SHAP is continuing to work with Local Authorities and other partners to tdentify ways to address this homelessness crisis. In 2023 - 2024 SHAP provided services for over 1800 people. SHAPS Board and Chief Exe¢utive continue to make sure that the charitys activities are in line with the ¢harity$ ￿re objectives and values. Q￿lIty AsSUra￿e During the year 2023-2024 SHAP took the decision not to renew our certification with IS090012015. This was because of the application to become a registered provider of services under the Supported Acwmmodation Regulations of 2023. These regulations govern the position of supported accommodation for young people who ar¢ 16 or 17. SHAP has chosen to use these regulations and accompanying stafid￿ as the core of its quality assurance frameworfi in the firture. Many of the tools that were developed to support the lS090012015 Quality Assurance Frammrk will continue to be used and an internal audit p￿￿arnme will be published at the beginning of each year. Quality assurance is once again within the job role of the senior manager and perfornmnce will be rq)orted to the Board on a quarterly basis. Succession Planntng SHAPS Board and Chief Exec￿1Ve continued wtth their focus on succession plannin8 during this year. The Boards succession strategy agreed in 2023 is undemy and will gather momentum during 2024-2025. This Strate￿ is commercially sensitive and therefore remains Confidential to the Charitys Board. Pa8e 2 HAP LI REGI TER NUMBER. 46544 FOR TH ED CH 2024 Financial Review In 2023-2024 the charity was able to produce a slight sutplus. An increasingly ¢hallenging financial environment has meant tight financial controls have had to remain in place. Full cost recovery has not been possible for many services over recent years, as contract fees have failed to keep pla￿ with rising inflatioTh The charity has just managed to retain financial stability through challenges such &8 exponential incre&ses in energy costs and int]ation8ry pressures on salaries, foo building materials and transport Cos￿ Further challenges now lie ahead as increases to the national minimum wage and the national living Wdge - in addition to an increase of1.2•/• in Employers National Insurance Contributions - will create fiwther upward pressure on salary SHAP. along with many other charities has called for charities to be exempt from this Nl The plan to transfer the dmritys nursery setting out of the Charity and into another mechanism has been delayed due to le&8e and contractsMI issues and will now take place in 2025. SHAP continues to look for opportunities to work wllaborativety with other agencies and organisations aftd is always open to discussions around muttthlly benefi¢tal strategic path¢rships. It is for these reasons that SHAP'S Tiustees believe that the charity remains a going concern for a period of at least the next 12 months. Page 3 SHAP TED TE NUMB 946544 TR ED FOR TH RCH 2024 STRATECIC REPORT Financial Risk SHAP continues to review the viability of all its services in the con*xt of national, regional and local politics and decision making. This has been and remains extremely challenging. The financial crisis of recent years combined with a sector wide workfor¢¢ shortage. have produced an exceptionally difficult set of financial circumstances. For the third year in succession SHAP has made a substantial pay award to its staff. A fixed sum for all stsff has been as the most equable way of delivering this and will continue to be the forniula on whi¢h collective bargaining around pay is based. Achieving full cost re¢overy for many of the charitys service contracts is now vtrtually impossible. Contract budgets were g￿erallY set to Incre￿ at around 2-220/0 ¢adb year but in reality Costs have risen by an average of ￿/+ over the past two SHAP Continues to look for ways to generate additional income which can support core fill￿ whttst ensuring that services are as cost effective and efficient as they can b& SHAPS services for young people present outstanding value for money and oir strategic plan includes an objective around developing a wider offer for the young people - incI￿ling providing care as well as support. This require$ specialist knowledge and experience and we are developing a senior manasrment post to lead the management and development of care and support services for young p￿p]e. SHAP mainlains a risk register which identifies all key risks that the charity is factng at any given time. The risk register identifies a number of financial risks that the charity faces and grad¢s them fft tern￿ of likelthood. SHAPS leadership team then set out how these risk8 will be managed or mitigated. The risk regis*r is reviewed regularly by the Chief Executiv4 the Finance Officer and Senior Managers and is discussed by the Board tyvice a year. Detsiled quarterly management accounts are provided to the Board to enable them to review the SI￿lfiCant risk of our failing to deliver against our cost controls. Increasing pressure costs, particularly around energy and building ma*rials have led to this risk being increased. Although less than in previous yeats risks associated with Covid are still present and we also face continuing uncertainty as a result of hi8h inflation, political instability and escalating workforce challenges. Transactions and financial position The ¢uThent financial climate is reflected in SHAP'S finan¢ial position as it manages to sustain increasing services with decreasing resources. The pattern of funds is Changing between restri¢ted and unrestricted income 8$ some of our funders are in¢¥easingly aware of the need for us to be more flexible with our resources. The statement of financial activities shows a surplus of £10.402 (2023 surplus of £78.69D. Tothl reserves carried forward as at 31 Mar¢h 2024 stand at £713,993 (2023: £703,591) with unrestricted funds of £713.993 (2023: £693.538) and restricted funds of £nil (2023: £10.053). The chartty continues to hold restricted and unrestricted and to maintain reserves in line with its Reserves Policy. The aim of the policy is to nmintain a reserve of unrestric*d fimds at a level that will enable the charity to operate for an opttmum period of 6 months and a minimum period of 3 months. The Board of Trustees regularly revi¢w the amount of reserves that are required to ensure that this fllwicial 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 ift a diminished reserve but one which still meets our minimum requirement of 3 months, r￿￿[n8 costs. The Trustees are satisfied that our provision and our process for monitoring are pnthnt and appropriate. They will coThtinue to review this situation every 6 months. Page 4 LIMITED ER: 01 RTOFTHET STEES THE YEAR END D31 MA 024 srRATEGIC REPORT Futhre plan$ Futtre plans. Ow strdtegy for the future The Tntstees and executive management of the organisation will continue to refresh our strategi¢ 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 yea We remain committed to the following objectives: l. Contributing to the creation of sustainable communities in the area where we work and to the prevention of homelessness. 2. Communicating brilliantly. 3. Promoting diversty, anti-racism and social justice. 4. A¢hieving a stsv¢ture that ensures maximum stability for our existing services and provides best opportunities for growth: a clear, stron& efftctive and flexible management structh. 5. Having skilled and motivated staff empowering service users who have access to a wide range of opwtunities. 6. Enabling people's views about their own situations to b¢ 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: SHAPS primary offer h&8 always been providing young people wtth good standard accommodation and Struct￿ support around lif¢ skills and independent living. Over recent years we have seen a marked increase in young peopl¢ who also have Si￿1ficant care needs. These needs must be met in order for them to confidently move towards Independe￿e. SHAP will therefore look to reall￿ some of its service offers and develop new ones which will enable us to develop mod¢ts of care a￿1 supporL Initially this will be through the development of models of semi-independent living for children and young people who are look￿ after by local authorities or preparing to leave their care. We are confident that our values and core expertise provide a good fO￿datIOn for such a service development and will ensure that suitably experienced and qualified managers are brought into the organisation to e￿Ure their effective delivery. We beli¢ve that the pandemic has shown the importance of publiclprivate 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 servi¢¢ changes because of financial pressures but this will create a need for innovation. Health and ￿CIal care services will be ¢ommissioned and delivered differentty over the next few years and a focus on population health Meas￿ delivered at a local level will agafft provide opportunities for imaginative collaborative responses from public and third sector organisation& SHAP intends to becom¢ a leading providerlenabler of these community well-b¢ing services. Page 5 P LIMITE 0194 TO HETR E YEAR ENDED ARCH 202 STRucfuR4 GOVERNANCE AND MANACEMENT Governfiog doeumeDt SHAP Limited is a Charitable company, limited by guararttt. incorporated in September 1985 and registered as a charity. The company was established under its Memorandum and Arttcles of Association that set out the objects and powers of charitable company. In the event of th¢ ￿MpanY bein8 wound up, members ar¢ required to contribute an amount not exceeding £1. Trnstees The directors of the charitable company are also Tn￿ for the puo)ose of charity law. Tn￿tee$ are known as members of the management Board of Trustees and are elected to serve for a period of three year4 after which they may be r¢•elerted at the next ann￿1 genernl meetin& The Charity successfully re¢ruited a chair designate in 2022 - Diane Williams became Chair during the period covered by these accoiints. The Trustees recorded their thanks to Mary Milton who had undertaken the role of Chair of Trustees for a number ofyears. Induellon and trnining of new trnstees New trustees ore invited to attend meetings with the chief ex¢¢utive and the senior manwent team to familiarise themselves with th¢ charitable companys activities and the context within which it operates. Areas covered would in¢lude the obligations and responsibilities of becoming a tswstee. a review of the govemtng document and the current financial position. OrgaDisatioDal strncture The Board of Trustees of whi¢h there is no m&ximum number but a minimum number of two. meets quarterly to administer activities and set the policy and strategi¢ direction of the charity. The Board ¢le¢ts the Chair every three years who is responsible for organising Board meetings and meeting regularly with the Chief Executive. A publtshed sch¢me of delegation sets out the responsibilittes which the Board keeps to ttself 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 pgrtles SHAP delivers three services in partnership with other ag¢ncies - a homeless families ¢entre and a harni redu¢tion residential service in Liverpool in parthership with The Whitechapel Centre and a floating support s¢rvi¢e in Halton in parthership with Plus Dane Housin& REFERENCE AND ADMINISTRATIVE DETAIIS Regigtered Company number 01946544 (England and Wales) Registered Charity number 1075118 Registsred office Bearly House 67 Liverpool Road St Helens Merseyside WAIO IPQ Page 6 AP LIM ECIST RED EIL. 019 TOF HE EES D31 MA ORTHEY 2024 Tn￿tee$ M Milton S Cotter-Bur8ess (re$l￿ed 15.1.24} P J Barron D Williams CompaDy Seeretsry M C Weights Andito C A Hunter Limi*d Statutory Auditors Britannia Chambers 26 George Street St Helens Merseyside WAIO IBZ STATEMENT OF TRusfEES' RESPONSIBILITIES The trustees (who are al￿ the directors of SHAP Limited for the purposes of Company law) are responsible for preparing the Report of the Tn￿ and the financial ststements in accordance with appltcable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial sthtements for ea¢h financial year which give a ttue and fair view of the stsk of affairs of the charitable ¢ompany and of the incoming resources and application of resour¢e& including the income and expendits￿@ of the charitable company for that period. In preparing those fllwi¢ial statements th¢ triistees are required to select suitable accounting policies and then apply them consistently: obsave the methods and principles in the Charity SORP. - mak¢ judgements and estimates that are r¢asonable and prudenL' prepare the financial st*ments on the going concern basis unless it is inappropriate to preswne that the ¢lwitable company will continue in business. The triiste¢$ are responsibl¢ for keeping proper a¢counting records which disclose with reasonable a￿uraCY at any time the financial position of the charitable company and to enable them to ensure that the fman¢ial statements comply with the Companies A¢t 2006. They ar¢ also responsible for safeguarding the a￿ets of the charitsble company and hence for tsking re&%MMble steps for the prevention and detection of fraud and othv irregulariti In $0 far as the trustees are aware: - thtte is no relevant audit infornlltion of which the charitable companys auditors are unawar¢' and - the trustees have taken all s*PS that they ought to have taken to make ￿MSelveS aware of any relevant audit infomiation and to estsblish that the auditors are aware of that infOrn￿tIon. AUDITORS The auditor4 C A Hunter Limite