REGISTERED COMPANY NUMBER: 02328684 (England and Wales) REGISTERED CHARITY NUMBER: 1076383 REGISTERED WITH THE REGULATOR OF SOCIAL HOUSING NUMBER 4707 REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEPIIENTS FOR THE YEAR ENDED 31 MARCH 2024 FOR HAWES STREET HOUSING LTD.
HAWES STREET HOUSING LTD. CONTENTS OF THE FINANCIAL STATEMENTS for the Year Ended 31 March 2024 Page Report of the trustees Report of the independent auditors 7 to 10 Statement of financlal actlvltles Statement of financlal position 12 Statement of cash flows 13 Notes to the statement of cash flows 14 Notes to the financial statements 15 to 21
HAWES STREET HOUSING LTD. REPORT OF THE TRUSTEES for the Year Ended 31 March 2024 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 2024. The trustees have adopted the provisions of Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in aCcOrd8n with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019). OBJECTIVES AND ACTIVITIES Objectives, structur8 and activities The Charity's Objects are to cary on for the benefit of the community of Staffordshire the business of: a. providing housing and any ass¢xiated amenities, services or assistance for people in necessitous circumstances on terms appropriate to their means.. b. providing specially designed or adapted housing and associated 8menities, services or assistance for people who need it or them because of chronic sickness, age or mental or physical disabilities: c. providing housing and any other associated amenities, services or assistan for any others for whorn it is charitable to do so: d. to promote any other charitable purpose for the benefit of the community in Staffordshire. Slgnificant actlvities and Public Beneflt We constantly monitor our activities and progress and review our strategic objectives on an annual basis. We continue to make progress in the achievement of our objectives. which are further detailed in the Review of Activities. The Trustees have carefully considered the requirement for public benefit reporting in accordance with guidance issued by the Charty Commission. As a result, the Trustees have satisfied themselves that the public benefrt of tt)e activtties undertaken by Saltbox, hav8 continued and are likely to do so in the future. The activities of Hawes Street Housing (HSH) which have contributed to the public benefit are summarised as follows: . The purchase and renovation of vacant houses within the area surrounding Hawes Street in the Tunstsll area of Stokewon-Trent for letting at affordable rents to local people who are homeless or in housing need. Page 1
HAWES STREEf HOUSING LTD. REPORT OF THE TRUSTEES for the Year Ended 31 March 2024 ACHIEVEMENT AND PERFORMANCE Charitable activities Review of Actlvltles 2023124 On 1st April 2023, after a period of extensive due diligence, the Board agreed to the acquisition of HSH by a local charity, Saltbox. In agreement with the HSH Board. Saltbox has provided extensive operational and management support during the year to enable the Board to meet its obligations. HSH commenced the year with 28 letting units (mainly refurbished terrats houses, plus three flats) and acquired a further propety in the year which is currently undergoing renovation, to take the housing stock to 29 units. Of these properties, 23 are wholly owned by HSH with 6 properties on a leasehold agreement with Stoke-on-Trent City Council (currently under renewal). All 28 properties were fully let during the year with 1 tenant moving to Council property after the year end. New tenants undergo a thorough application and vetting process and HSH is able to offer wider support to tenants, particularly through the projects that Saltbox runs including support for okler people and moneyldebt advice seNices. A Stock Condition Survey was commissioned during the year which has evidenced that our houses comply with the Decent Homes Stsndard. We have also developed a 5 year maintenance programme for the renovation and refurbishment of houses which will enable us to undertake significant improvements (e.g. replacement bathrooms and kitchens) in a planned and controlled manner. A considerable amount of work has taken pla during the year to ensure that HSH is compliant with the Economic Standards set out by the Regulator of Social Housing, as well as preparation for the new Consumer Standards that registered providers must comply with from 1 st April 2024. There is further work to be undertaken by staff and Trustees to ensure full Complian with the Governance & Financial Viability Standard which will be completed in the next 12 months. Value for Money In the current economic environment, it is important to ensure that HSH maximises the value for money from any expenditure undertaken. The Board considers value for money as part of its strategic approach when allocating resources, but not at the expenses of providing a quality seNice. New financial procedures have been introduced following the acquisition by Saltbox, ensuring that major items of 8xpenditure are scrutinized and approved prior to being incurred, with quotations obtalned as required, to ensure that the best prices are seGured. FINANCIAL REVIEW Financial posftlon Overall Perforn)ance The financial activity of the Charity is detailed in the Financial Statements attached. The comparative results for 2023 are for a 15 month period to 3110312023. We are pleased to report that our results for the year ended 31st March 2024 show a surplus of £26,207 (2023: surplus of £45,593). The surplus has been achieved through continued monitoring of rental income along with careful management of expenditure on repairs and renovations to properties. The Board is confident that during 2024125 HSH will continue to make good financial progress, despite the ongoing h8llenges around the economic environment and that it has sufficient reserves to enable the organisation to continue to deliver its activities. Page 2
HAWES STREET HOUSING LTD. REPORT OF THE TRUSTEES for the Year Ended 31 March 2024 FINANCIAL REVIEW Princlpal funding sources Income: HSH TS financed through the rents received from its tenants and from housing benefit for those tenants in receipt of this. Total Incoming resources during the yearwas £93,273 compared with £109,748 in the previous 15 months. Expenditure: Total resources expended for the year was £67,492 compared with £64,155 in the previous financial period. Balance Sheet: Totsl funds at 31 st March 2024 were £2,373,008 (2023: £1,156,144) of which Restricted funds were: £nil (2022: £250,0001}. Un-restricted funds were: £2,373,008 (2023: £906,144). Cash at Bank and in hand was £235,002 (2023: £301,976> which is considered adequate to meet the future cash needs of HSH. An independent review of the valuation of the housing stock was undertaken at 31st March 2024 with the 28 properties (29 units) being revalued to £2,145,000. As such, a revaluation reserve has been created to ensure that the properties are valued at fair value. Reserves policy Future Proofing the Charity's Service Provislon The Trustees have determined that the charity's res8rves are kept at a satisfactory level to provide contlnuation funding for future repairs and maintenance or for the acquisition of further properties as and when any suitable houses become available in the area. Contingency Policy To ensure that the charty remains sustainable in the event of any signifi'cant loss due to unforeseen circumstances, it is the Trustees, policy to hold reserves of approximately 3 months, expenditure. This equates to approximately £16,873 of which we currently hold £234,908 (2022 £301,672). Investment Policy In accordan with the Articles of Association, the Trustees, have the power to invest money in their absolute discretion as they think fit. Prlncipal risks and uncertainties Principal risks that have been identrfied during the course of the year have included: The ongoing impact of cost inflation on the future financial position of the charity. The renewal of the leases for 6 properties currently leased from Stoke-on-Trent City Council Page 3
HAWES STREET HOUSING LTD. REPORT OF THE TRUSTEES for thg Year Ended 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Govemlng document The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. HSH is a charitable company limited by guarantee, registered in England and Wales, company number 02328684, registered charity 1076383, controlled by its governing document (its Articles of Associatbon). It is also a Registered Provider number 4707 and regulated by the Regulator of Social Housing. Company Structu On 1 st April 2023, following a period of extensive due diligence and legal advice, HSH became a wholly owned subsidiary of Saltbox Ltd, registered charity number 1121832 and company limited by guarantee number 06247360. HSH has retained its own Board, which meets every 2 months, and has been supported by the Board and staff of Saltbox to ensure that it continues to fulfil its responsibilities as a registered provider of social housing and as a charity. Recruitment and appolntment of new trustees The election or appointment of Trustees is set out in the Artbcles of Association of HSH. Organisational structure and declsion making The Board of Trustees of meets bi-monthly and is responsible for the strategic direction and policy of the charity. A management agreement has been put in place with the parent company, Saltbox, who assist HSH in providing the operational support for the running of the organization including overseeing the receipt of income from rents and managing the repairs and maintenance of properties. A scheme of delegation is in ptace and day to day responsibility for the provision of the serViS rests with the Saltbox Chief Executive Officer (CEO), Lloyd Cooke, who leads 8 Senior Management Team. Declaratlon of Interests Trustees are required to declare interests that are relevant and material both at Board level and at subcommittee level and declarations are requested at each meeting. A record is maintained of all relevant and material interests by the Company Secretsry and this record is available on request. Indu¢tlon and training of new trustees New Trustees are identified through a trustee recruitment and selection process, based on a skills matrix of roles required for the governance of the charity. They are required to seNe a probationary period during which time they are expected to attend an initial Board meeting as an observer, meet with the Sallbox CEO and HSH Chair of the Board, and undertake a Trustee induction programme to familiarise themselves with the charity and the context in which it operates. Related parties HSH operates as a subsidiary company of Saltbox and as such, has intercompany transactions with the parent. Page 4
HAWES STREET HOUSING LTD. REPORT OF THE TRUSTEES for the Year Ended 31 March 2024 STRUCTURE, GOVERNANCE AND MANAGEMENT Risk management The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. The risk management reporting framework adopted by the Trustees includes the following: Preparation, update and review of the Risk Register at each Board meeting. with key issues identified and pro-active plans established to mitigate those identified risks, including the accountable manager and meframe for monitoring of those risks: Preparation and presentation of the monthly management accounts and cash flow position to Trustees at each Board meeting, to ensure that the charity has sufficient funds for a period of 12 months or more; Health and safety monitoring - this is carried out by the Saltbox team on a regular basis to ensure that any risks are identified, reported and mitigated. Health and Safety checks for properties are undertaken on a monthly basis, or more frequently, as risks are identified. Reporting of gas and electrical certlfications is undertaken to the Trustees at each Board meeting; REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number 02328684 (England and Wales) Registered Charity number 1076383 Registered office 3 Goodfellow Street Tunstall Stoke On Trent Stsffordshire ST6 SAX Trustses J Gerrard P Harley M W Holland (appointed 1.4.23) P J Madden C D Mcmain G D Bond (appointed 1.4.23} Company Secretary L Cooke Auditors Sumer Auditco Ltd Chartered accountants & statutory auditors Stone House Stone Road Business Park Stoke-On-Trent ST4 6SR Page 5
HAWES STREET HOUSING LTD. REPORT OF THE TRUSTEES for the Year Ended 31 March 2024 STATEMENT OF TRUSTEES. RESPONSIBILITIES The trustees (who are also the direclors of Hawes Street Housihg Ltd. for the purposes of company law) are responsible for prep8ring the Report of the trustees and the financial stslements in accordance with applicable law and United Klngdom Accounting St8ndards (United Kingdom Generally AGcepted A¢¢ounting Practice). Company law requires the trustees to prepare financial ststements 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 Gompany for that period. In preparing those financial ststements, the trustees are required to select suitable accounting policies and then appty them consistently. obseNe the methods and principles in the Charity SORP., make judgements and estimates that are reasonable and prudent, prepare the fin8n¢¢al slatements on the going concern basis unless it is inappropriate to presume that the charit8ble company will continue in business. The trustees are responsible for keeping propèr accounting records which disclose with reasonable accuracy at any time the financial position ofthe Charitable company and to enable them to ensure that the financial statements comply wlth the Companies Act 2006. They are also responsible for safeguarding the assets of Ihe charitable company and hence for taking reasonable Step8 for the prevention and detection of fraud and other Irregularitie8. In so far as the trustees are aware: there is no relevant audit infomiation of which the charltable company's auditors are unaware: and the trustees have taken all steps that they ought to have taken to make themselves aw8re of any relevant audlt infomiation and to establish that the audltors are aware of that information. AUDITORS The auditors is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006. Approved by order of the board of trustees on ... . and signed on its behalf by. C D Mcmain - Truslee Page 6
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HAWES STREET HOUSING LTD. Oplnion We have audited the financial statements of Hawes Street Housing Ltd. (the 'charitable company,) for the year ended 31 March 2024 which comprise the Statement of financial activities, the Statement of financial position, the Statement of cash flows 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- give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended. have been properly prepared in accordants wtth United Kingdom Generally Accepted AOUntIng Practice" and have been prepared in accordance with the requirements of the Companies Act 2006. 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 relatlng 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 idents'fied any material uncertainties relating to events or conditions that, individually or collectively. may cast signifi'cant 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 concem are described in the relevant sections of this report. Other information The trustees are responsible for the other infomiation. 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 otheNiise 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 infomiation 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 misststed. 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 perfomied, 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. Page 7
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HAWES STREET HOUSING LTD. Opinlons on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the Report of the trustees for the financial year for which the financial statemenls are prepared is consistent with the financial statements., and the Report of the trustees has been prepared in accordance with applicable legal requirements. Matter3 on whlch we are required to report by exceptlon In the light of the knowledge and understanding of the ch8ritable 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.. adequate accounting records have not been kept or retums adequate for our audit have not been received from branches not visited by us- or the financial statements are not in agreement with the accounting records and returns., or rtain disclosures of trustees, remuneration specified by law are. not made. or we have not received all the information and explanations we require for our audit- or the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic report or in preparing the Report of the trustees. Responsibilities of trustees As explained more fully in the Statement of twstees, 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 twstees 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 abilty to continue as a going concem, disclosing, as applicable, matters related to going concem 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 reslistic alternative but to do so. Page 8
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HAWES STREET HOUSING LTD. Our responsibilities for the audlt of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misststement, 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: We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. Identifying and assesslng potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations,.we considered the following: the nature of the industry and sector, control environment and business performance including the design of the company remuneration policies, key drivers for directors, remuneration, bonus levels and performance targets; results of our enquiries of management about their own identification and assessment of the risks of irregularrties; any matters we identified having obtained and reviewed the company documentation of their policies and procedures relating to.. identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations,. the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. Based on this approach, we were able to assess the company risks and ensure the risks were considered throughout all areas of audit testing. The audit team was professionally sceptical throughout the audit and remained alert for inaccurate or misleading information. Audit response to rlsks Identified During the planning stage of the audrt, the susceptibility of the charity to irregularities including fraud was considered and discussed with the audit team. No key audit risks were identified relating to the potential risk of fraud or irregularitÈes. Our procedures to respond to risks identified included the following: reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements., performing cut-off tests to ensure income is recognised in the appropriate accounting period; enquiring of management Conrning actual and potential litigation and claims., perfomiing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of lax provisions. and Page 9
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF HAWES STREET HOUSING LTD. in addressing the risk of fraud through management override of controls. testing the appropriateness of journal entries and other adjustments,. assessing whether the judgements made in making accounting estimates are indicative of a potenti81 bias., and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. Audit testing was completed on a targeted sample basis bas8d on our assessment of risk and materialty. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have property planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained 8 higher risk of non-detection of irregularities. as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. 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.uklauditorsresponsibilities. 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 pemiitted by law, we do not accept or assume responsibilty to anyone other than the charitable company a the charitable company's members as a body, for our audit work, for this report, or for the opinions we hav ormed. Helen Tidyman ior Statutory Auditor) for and on behalf of Sumer Auditco Ltd Chartered accountants & statutory auditors Stone House Stone Road Business Park Stoke-On-Trent ST4 6SR Date.. Page 10
HAWES STREET HOUSING LTD. STATEMENT OF FINANCIAL ACTIVITIES for the Year Ended 31 March 2024 Period 1.1.22 to 31.3.23 Total funds Year Ended 31.3.24 Total funds Unrestricted fund Restricted fund Notes INCOME AND ENDOWMENTS FROM Charitable activities Housing for the benefit of the community 93,273 93,273 109.748 other income 426 426 Total 93,699 93,699 109 748 EXPENDITURE ON Charltable activities Housing for the benefit of the communty 44,930 44,930 36,775 Other 22,562 22,562 27,380 Total 67.492 67,492 64,155 NET INCOME Transfers between funds other recognised gainsl(losses) Gains on revaluation of fixed assets 26,207 250.000 26,207 45,593 10 (250.000) 1,190657 1,190657 Net movement in funds 1.466.864 (250,000) 1.216,864 45,593 RECONCILIATION OF FUNDS Total funds brought forward 906,144 250,000 1,156,144 1,110,551 TOTAL FUNDS CARRIED FORWARD 2,373,008 2 373,008 1 156,144 The notes form part of these financial statemenls Page11
HAWES STREET HOUSING LTD. STATEMENT OF FINANCIAL POSITION 31 March 2024 31.3.24 Total funds 31.3.23 Total funds Unrestricted fund Restricted fund Notes FIXED ASSETS Tangible assets 2,145,000 2.145,000 872,854 CURRENT ASSETS Debtors Cash at bank and in hand 8,842 235 002 8,842 235,002 410 301,976 243,844 243,844 302,386 CREDITORS Amounts falling due within one year (15,836) (15,836) (19,096) NET CURRENT ASSETS 228,008 228 008 283.290 TOTAL ASSETS LESS CURRENT LIABILITIES 2,373,008 2,373,008 1.156,144 NET ASSETS 2 373,008 2 373,008 1.156.144 FUNDS Unrestricted funds Restricted funds 10 2,373,008 906.144 250 000 TOTAL FUNDS 2,373,008 1,156.144 These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The fina cial statements were approved by the Board of Trustees and authorised for issue on .2QZ¥...... and were signed on its behalf by.. C D Mcmain - Trustee The notes fomi part of these financial statements Page 12
HAWES STREET HOUSING LTD. STATEMENT OF CASH FLOWS for the Year Ended 31 March 2024 Period 1.1.22 to 31.3.23 Year Ended 31.3.24 Notes Cash flows from operating activities Cash generated from operats'ons 14,515 64,270 Net cash provided by operating activities 14,515 Cash flows from investlng activities Purchase of tangible fixed assets {81,489) Net cash (used in)Iprovided by investing activities 81,489) Change In cash and cash equivalents in the reporting period Cash and cash equivalents at the beglnning of the reporting period (66,974) 64,270 301976 237,706 Cash and cash equivalents at the end of the reporting period 235,002 301,976 The notes form part of these financial statements Page 13
HAWES STREET HOUSING LTD. NOTES TO THE STATEMENT OF CASH FLOWS for the Year Ended 31 March 2024 RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES Period 1.1.22 Year Ended 31.3.24 31.3.23 Net income for the reporting period (as per the Statement of financial a¢tivitles) Adjustments for: Depreciation charges Increase in debtors (Decrease)lincrease in creditors 26,207 45,593 421 (8.432) 3,260 18,256 Net cash provided by operations 14,515 64,270 ANALYSIS OF CHANGES IN NET FUNDS At 1.4.23 Cash flow At 31.3.24 Net cash Cash at bank and in hand 301976 66,974) 235,002 301,976 66 974) 235,002 Total 301,976 66,974 235,002 The notes form part of these financial statements Page 14
HAWES STREET HOUSING LTD. NOTES TO THE FINANCIAL STATEMENTS for the Year Ended 31 March 2024 GENERAL INFORMATION The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 3 G¢)odfellow Street, Tunstall .Stoke-on-Trent, Staffordshire, ST6 SAX. 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 modified by the revaluation of certain assets. Critical accountlng judgements and key sources of estimation uncertalnty The judgements that management has made in the process of applying the entrty's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: {1) Estimated useful lives and resldual values of fixed assets As described in the notes to the financial statements, depreciation of tangible fixed assets has b8en based on esb'mated useful lives and residual values deemed appropriate by the trustees. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take into account estimated useful lives used by other charities and actual asset lives and residual values, as evidenced by disposals during the current and prior accounting periods. (li) Provlsions Provision is made for asset dilapidation and contingencies. These provisions require management's best estimate of the costs that will be incurred based on legislative and contractual requirements. Going concern There are no material uncertainties about the charity's ability to continue as a going concern. Income All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. Expenditure Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates. Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and ServIS for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. Page 15 continued...
HAWES STREET HOUSING LTD. NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2024 ACCOUNTING POLICIES - continued Tangible fixed assets Depreciation is provided at Ihe following annual rates in order to write off each asset over its estimated useful lrfe Freehold Property Long Leasehold Office Equipment Not depreciated Not depreciated 10 /0 Straight Line Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. The charity only capitalises individual assets of a value of £1,000 or more. Freehold and long leasehold properties are not depreciated as in the opinion of the Trustees any depreciation would be immaterial. The freehold and leasehold properties are maintained to a high standard and have a high residual value. Taxation The charity is exempt from corporation tax on its charitable activities. 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. RestrictÉons arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Impairment of flxed assets A review for indicators of impaiment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. Flnancial Instruments A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrum8nt. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Page 16 continued..
HAWES STREET HOUSING LTD. NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2024 ACCOUNTING POLICIES - continued Impairment of fixed assets Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impaiment at the end of each reporting date. If there is objective evidence of impaimient, an impaimient loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. For all equity instruments regardless of significance, and other financial assets that are individual significant, these are assessed individually for Smpairnient. other fi'nancial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. NET INCOMEI(EXPENDITURE) Net incomel{expenditure) is stated after chargingl(crediting)'. Period 1.1.22 to 31.3.23 Year Ended 31.3.24 Auditors, remuneration 3,000 TRUSTEES. REMUNERATION AND BENEFITS There were no trustees, remuneration or other benefi'ts for the year ended 31 March 2024. For the period ended 31 March 2023 J Gerrard was paid an amount of £1,500 for administrative services. Trustees. expenses There were no trustees, expenses pald for the year ended 31 March 2024 nor for the perlod ended 31 March 2023. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fund Restricted fund Total funds INCOME AND ENDOWMENTS FROM Charitable actlvities Housing for the benefit of the community 109,748 109.748 Page 17 continued...
HAWES STREET HOUSING LTD. NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 March 2024 COMPARATIVES FOR THE sTATEmEr OF FINANCIAL ACTIVITIES - continued EXPENDITURE ON Unrestricted fund Restricted fund Total funds Charitable activities Housing for the benefit of the community 36,775 36,775 Other 27,380 27,380 Total 64.155 64,155 NET INCOME 45,593 45,593 RECONCILIATION OF FUNDS Total funds brought forward 860,551 250,000 1,110,551 TOTAL FUNDS CARRIED FORWARD 906,144 250,000 1,156,144 PRIOR YEAR COMPARATIVES During the year, the charity was acquired by a large charity that qualifies for audit. As a result of this, the current period financial statements have been audited. The prior year financial statements are unaudited as there was no requirements to complete an audit for this period. TANGIBLE FIXED ASSETS Freehokl propety Long leasehold Office Equipment Totals Cost or valuation At 1 April 2023 Additions Revaluations Reclassification 872,854 81,489 1,190,657 480,000) 5,669 878,523 81,489 1,190,657 480,000 At 31 March 2024 1665,000 480 000 5,669 2,150,669 Depreciation At 1 April 2023 and 31 March 2024 5,669 5,669 Net book value At 31 March 2024 1,665,000 480.000 2,145,000 At 31 March 2023 872,854 872,854 Page 18 continued...
HAWES STREET HOUSING LTD. NOTES TO THE FINANCIAL STATEMENTS- continued for the Year Ended 31 March 2024 TANGIBLE FIXED ASSETS - continued Cost or valuation at 31 March 2024 is represented by: Freehold property Long leasehold Office Equipment Totals Valuation in 2024 Cost 924,144 266,513 213487 1,190.657 1.665.000 480,000 5,669 2,150,669 The freehold properties were revalued on 9th May 2024 on a market value basis by Mounsey Chartered Surveyors. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.24 31.3.23 Other debtors Prepayments and accwed income 410 8,432 410 8,842 410 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 31.3.24 31.3.23 Accruals and deferred income 15,836 19,096 10. MOVEMENT IN FUNDS Net movement in funds Transfers beeen funds At 31.3.24 At 1.4.23 Unrestricted funds General fund 906.144 1,216,864 250,000 2,373,008 Restricted funds Restricted fund 250,000 (250,000) TOTAL FUNDS 1.156,144 1,216,864 2,373,008 Page 19 continued...
HAWES STREET HOUSING LTD. NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 Mah 2024 10. MOVEMENT IN FUNDS - continued Net movement in funds, included in the above are as follows.. Incoming resources Resources expended Gains and losses Movement in funds Unrestricted funds General fund 93,699 (67,492) 1,190,657 1,216,864 TOTAL FUNDS 67,492) 1,190,657 1,216,864 Comparatives for movement in funds Net movement in funds At 31.3.23 At1.1.22 Unrestricted funds General fund 860,551 45,593 906,144 Restrlcted funds Restricted fund 250,000 250,000 TOTAL FUNDS 1,110,551 45,593 1,156.144 Comparative net movement in funds, included in the above are as follows.. Incoming resources ReSoUrS expended Movement in funds Unrestricted funds General fund 109,748 (64,155) 45,593 TOTAL FUNDS 109.748 64,155) 45,593 Page 20 continued...
HAWES STREET HOUSING LTD. NOTES TO THE FINANCIAL STATEMENTS - continued for the Year Ended 31 March 2024 ULTIMATE PARENT COMPANY Hawes Street Housing Ltd is a subsidiary of Saltbox a registered charty, charity number 1121832, whose registered address is Gitana Street, Hanley, Stoke-on-Trent, ST11 DY. 12. CONTINGENT LIABILITIES Rents due in respect of properties is viewed as not material to the accounts because the income would offset the expenditure. 13. RELATED PARTY DISCLOSURES During the year ended 31st March 2024 CD Mcmain was paid £1,576 for professional building services undertaken. (For the period ended 3151 March 2023 an amount of £5.327 was paid) For the period ended 31 st March 2023 J Gerrard was paid £1,500 for administrative services. Page 21