DIGARTREF CYF
(A COMPANY LIMITED BY GUARANTEE)
REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
COMPANY NUMBER 3516328
CHARITY NUMBER 1076680 (England and Wales)
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DIGARTREF CYF
CONTENTS OF THE REPORT AND ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
| COMPANY DETAILS TRUSTEES' REPORT AUDITORS’ REPORT STATEMENT OF FINANCIAL ACTIVITIES BALANCE SHEET STATEMENT OF CASH FLOWS NOTES TO THE ACCOUNTS |
Page |
|---|---|
| 2 3 7 10 11 12 13 |
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DIGARTREF CYF
COMPANY / CHARITY DETAILS
Name - Digartref Cyf
Status - Company limited by guarantee
Charity Number - 1076680 Company Number - 3516328 Principal Office - Enterprise Centre, Holyhead, LL65 2HY
Chief Executive – Wendy Hughes
Auditor - Crestmere Limited, Unit F1, Intec, Parc Menai, Bangor, LL57 4FG
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DIGARTREF CYF
DIRECTORS' / TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022
The Directors / Trustees present their report and the accounts of the company for the year ended 31 March 2022. The report and accounts have been prepared to meet the requirements for a Directors’ Report and Accounts for Companies Act purposes.
1. Objectives and Activities
The company was formed to promote the relief of those who are homeless in North West Wales, to offer them support in their areas of need, and to support them in achieving independent living. The results of the year's activities are shown on page 9. The Trustees have paid due regard to the guidance issued by the Charities Commission on public benefit in deciding what activities the Charity should undertake and how successful outcomes should be evaluated.
2. Structure, Governance and Management
The charity is a company limited by guarantee and governed in accordance with its Memorandum and Articles of Association. The Directors / Trustees who served during the period were:-
| J Morgan | S R Jones |
|---|---|
| D Ll Jones | M Blackburn |
| B A Hughes | K A Griffiths |
| C A Appleton-Owen | G M Beeken |
| M E Roberts |
Trustees are recruited from professional and related backgrounds, and training is available to them. The organisational structure is based on formal governance. The Board meets at regular intervals to consider strategic matters and monitor operations.
3. Achievements and Performance
The overall performance of the charity throughout 2021/22 has been excellent. More face-to-face support was provided to its beneficiaries as the Corona virus restrictions began to ease,
Income remained steady, at similar levels to the previous year across all sources. Digartref Cyf were successful in securing again the Homeless Prevention Grant from the Welsh Government and was awarded a further year’s funding commencing April 2022.
In addition, a further 1 year’s funding was secured from the Welsh Government under the Youth Innovation Grant, enabling the continued deliver of the Llety Pontio Project, which works with the private rented sector and the local authority to provide temporary accommodation with support for young people aged 16 to 25 who might otherwise have to be accommodated in emergency B&B provision.
Via funding from the Area Planning Board, the charity was able to continue to deliver an outreach service across Gwynedd and Ynys Mon following a review of the service. This provides for the provision of 3 outreach workers to support those with complex needs including substance misuse and mental health issues, who are homeless or at risk of homelessness.
The Homeless Prevention team (funded through the Welsh Government’s Homeless Prevention Grant) and which delivers a range of services including, The Lighthouse day Centre, a mediation and family intervention service, the Learn4Life programme and a generic floating support service, met and exceed related performance indicators set for 2021/22, providing support and assistance to 397 individuals compared to 340 in the previous financial year.
Up on the previous year’s figure of 111, 122 individuals accessed the Lighthouse Day Centre during 2021/22. Despite the restrictions and difficulties staff faced in relation to the pandemic and related safe working measures, the service opened 365 days, providing homeless related support and assistance, welfare benefit advice, hot food, laundry and shower facilities as well as onward referral to specialist
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DIGARTREF CYF
DIRECTORS’ / TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)
services. Figures and data for the past 4 years show that there has been a year-on-year increase in the numbers accessing this vital provision and is a crucial service in providing support to those in crisis such as rough sleepers and sofa surfers.
The delivery of Nightstop was put on hold between 2020 and early 2022, due mainly to the Corona Virus pandemic as it relies on volunteers to host emergency placements in their homes for those who might otherwise find themselves street homeless or placed in emergency B&B.
In relation to the charity’s supported housing provision, including floating support, 178 referrals were received during the period and 52 individuals aged between 16 and 25, who were homeless or in housing need were accommodated and/or supported. The number housed and supported during 2021/22 is down from 96 in the previous year and reflects how extremely difficult it is to move young people through the service and on to their own long term accommodation post pandemic, with a lack of affordable accommodation, social housing and private rented sector properties being available.
Llety Pontio, one of the charity’s more recently funded projects (via the Youth Innovation Grant) continues to develop and establish itself. During 2021/22, 15 young people aged between 16 to 24 accessed the service, receiving support and accommodation.
The Isle of Anglesey, across which the charity mainly operates, has experienced an increase in 2[nd] home purchases and private landlords changing their business models from residential to holiday lets. The effect has been to dramatically push up the cost of property sale values as well as rent charges, making it impossible for many of the charity’s beneficiaries to move on to affordable, quality accommodation. This situation poses major difficulties and challenges for those who are at risk or experiencing homelessness, the local authority who have the legal duty to assist in this situation as well as for Digartref Cyf which aims to alleviate homelessness.
4. Reserves Policy
At 31 March 2022 the charity’s unrestricted funds amounted to £932434, of which £281211 was invested in fixed assets and £233423 was designated towards major repair expenditure and redevelopment of the Holyhead Enterprise Centre, leaving free reserves of £417800. The Trustees consider that free reserves of at least this amount are required to finance future capital expenditure plans and to ensure continuation or an orderly reduction of operation given the unpredictability of future funding and costs.
5. Risk Management
The Trustees have identified 5 main areas of risk to which the charity is exposed as follows: Governance Risks Operational Risks Financial Risks External Risks Compliance and Regulatory Risks
The Trustees have established systems regularly review related risks and to mitigate against these. Financial risk is managed primarily by setting and monitoring budgets for key functions based on income sources.
6. Plans for the Future
The aim of the charity continues to be focused on gradually increasing the range of homelessness prevention services it provides and the remodelling of existing services where necessary, to meet the growing demand for homeless related assistance and support from those within our community.
Unfortunately, based up on experience and knowledge in the related field, it is highly likely that demand for the charity’s services will continue to grow in the foreseeable future for a range of reasons. The charity forecasts that more people will find it difficult to access and maintain accommodation for several reasons including the matter of affordability, accessibility, and the depletion of suitable housing stock. In addition, it is also extremely likely that the cost-of-living crisis and the huge hike in energy costs will
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DIGARTREF CYF
DIRECTORS’ / TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)
push people further into housing difficulty, being unable to heat their homes, feed themselves and their families, while keeping on top of escalating rent changes in the private rented sector in particular.
Specific to the post pandemic period, the charity’s personnel and other key agencies are observing an increase in the numbers of people sleeping rough, sofa surfing or in unsuitable temporary accommodation as the special measures put in place by the Welsh Government to address homelessness during the pandemic are removed. Such measures included people being temporarily accommodated, taking them off the streets, and landlords not being able to evict tenants etc.
The charity’s plans for the future development and delivery of services will need to take account of all the issues above as well as those that occur at a local level, for example, there has been a huge shift within the private rented sector across the Isle of Anglesey and Gwynedd, with private rented accommodation available in this area being lost to more lucrative holiday let models. This is having a detrimental effect on available properties for those people the charity supports. Additionally, being homeless in a rural area brings its own specific challenges such as one’s ability to travel to appointments, and accessing key services, supermarkets, G.P appointments etc. adding to everyday costs while on an extremely low income at the same time living costs are escalating. Digartref and its partners will therefore aim to take services, support and advice out to the more rural areas of Anglesey and Gwynedd, aiming to address hidden homelessness and reduce the need for people to travel into the main towns to access services.
The aim to develop a homeless hub at the Holyhead Enterprise Centre remains a priority for Digartref and will provide a range of homeless and other community services under one roof and will ensure a more modern, spacious Day Centre with capacity to support the increasing number of people who access that service year on year. We are delighted to report that there has been further progress over the past few months, and we are currently awaiting the outcome of a planning application. In relation to this development, the charity is now poised to commence work on identifying and applying for related capital funding.
7. Small Company Exemption
In preparing this report the directors have taken advantage of the special exemptions applicable to small companies.
8. Statement of Directors’ / Trustees’ Responsibilities
The trustees (who are also directors of Digartref Cyf for the purposes of company law) are responsible for preparing the trustees’ report (incorporating the directors’ report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 income and expenditure of the charitable company for that period. In preparing these financial statements, the directors are required to
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select suitable accounting policies and then apply them consistently;
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make judgements and estimates that are reasonable and prudent;
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
The trustees are responsible for maintaining 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.
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DIGARTREF CYF
DIRECTORS’ / TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)
9. Disclosure to Auditors
In so far as the trustees are aware:
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there is no relevant audit information of which the charitable company’s auditors are not aware; and
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the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.
By Order of the Board ,
Registered Office: Enterprise Centre Holyhead
A Greenough (Secretary) 15 September 2022
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DIGARTREF CYF
INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF DIGARTREF CYF
Opinion
We have audited the financial statements of Digartref Cyf (the ‘Charity’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement, and the 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, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
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give a true and fair view of the state of the Charity’s affairs as at 31 March 2022, and of its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Charity 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 company’s ability to continue as a going concern for a period of at least 12 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 other information comprises the information included in the annual report other than the financial statements and our Auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions 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 trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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DIGARTREF CYF
INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF DIGARTREF CYF (CONTINUED)
- the trustees’ report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.
We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us;
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the financial statements are not in agreement with the accounting records and returns;
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we have not obtained all the information and explanations necessary for the purposes of our audit;
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• the directors were not entitled to prepare the financial statements in accordance with the small companies regime, take advantage of the small companies’ exemption in preparing the directors’ report, and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of the trustees
As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees 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 they 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 Charity’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 Charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly, we have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The extent to which the audit was considered capable of detecting irregularities including fraud 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:
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the engagement principal ensured he had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
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laws and regulations applicable to the charitable company were identified through discussions with trustees and other management, and from knowledge and experience of the charity and the charity sector;
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specific focus was made on laws and regulations which may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006,
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DIGARTREF CYF
INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES OF DIGARTREF CYF (CONTINUED)
The Charities Act 2011, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
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the extent of compliance with the laws and regulations identified above was assessed through making enquiries of management and inspecting legal correspondence; and
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throughout the audit process non-compliance with the identified laws and regulations was closely considered.
Susceptibility of the company’s financial statements to material misstatement was assessed, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls:
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analytical procedures were performed to identify any unusual or unexpected relationships;
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journal entries to identify unusual transactions;
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an assessment was made of whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
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the rationale behind significant or unusual transactions was investigated.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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agreeing financial statement disclosures to underlying supporting documentation;
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reading the minutes of meetings of those charged with governance;
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enquiring of management as to actual and potential litigation and claims; and
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reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company’s legal advisors;
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auditing the risk of management override of controls.
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 noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors/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 is available on the Financial Reporting Council’s website at: www.frc.orrrg.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of this report
This report is made solely to the company’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditor’s 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 company and the company’s members as a body, for our audit work, or the opinions we have formed.
Barrie Buels (Senior Statutory Auditor) For and behalf of Crestmere Limited Chartered Certified Accountants and Statutory Auditor 15 September 2022
Unit F1 Intec Parc Menai Bangor
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DIGARTREF CYF
STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022
| INCOME Donations Charitable Activities - Grants and Rents - Other |
UNRESTRICTED INCOME FUNDS TOTAL 12315 12315 1283125 1283125 1570 1570 |
UNRESTRICTED INCOME FUNDS TOTAL 12315 12315 1283125 1283125 1570 1570 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | Note | TOTAL | ||||||||
| 13826 | 12315 | |||||||||
| 1177340 | ||||||||||
| 11487 | ||||||||||
| 444 | Bank Interest | --- | 58 | 58 | ||||||
| 1203097 | TOTAL INCOME | --- | 1297068 | 1297068 | ||||||
| EXPENDITURE | ||||||||||
| 1146598 | Charitable Activities | 2 | --- | 1139422 | 1139422 | |||||
| 1146598 | TOTAL EXPENDITURE | --- | 1139422 | 1139422 | ||||||
| 56499 | NET INCOME / (EXPENDITURE) | --- | 157646 | 157646 | ||||||
| OTHER RECOGNISED GAINS / (LOSSES) | ||||||||||
| (114000) | Actuarial gain / (loss) in respect of pension schemes 4 |
--- | 53000 53000 |
|||||||
| --- | TRANSFER BETWEEN FUNDS | (18444) | 18444 | --- | ||||||
| (57501) | NET MOVEMENT IN FUNDS | (18444) | 229090 | 210646 | ||||||
| 1075504 | Funds brought forward | 314659 | 703344 | 1018003 | ||||||
| £1018003 | FUNDS CARRIED FORWARD | £296215 | £932434 | £1228649 |
The Statement of Financial Activities also complies with the requirements for an Income and Expenditure Account under the Companies Act 2006.
The results for the year derive from continuing activities and there are no gains or losses other than those shown above.
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DIGARTREF CYF
BALANCE SHEET AS AT 31 MARCH 2022
| 2021 | FIXED ASSETS Tangible Assets |
FIXED ASSETS Tangible Assets |
Note 5 |
Note 5 |
Note 5 |
|||||
|---|---|---|---|---|---|---|---|---|---|---|
| 560410 | 577426 | |||||||||
| CURRENT ASSETS Cash at Bank and in Hand |
792775 | |||||||||
| 682237 | ||||||||||
| 75221 | Debtors and Prepayments | 102782 | ||||||||
| 757458 | 895557 | |||||||||
| CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Sundry Creditors Accruals and Deferred Income |
6 | 45067 45864 |
||||||||
| 22003 | ||||||||||
| 44991 | ||||||||||
| 8778 | Loans | 7 | 8901 | |||||||
| 75772 | 99832 | |||||||||
| 681686 | NET CURRENT ASSETS | 795725 1373151 |
||||||||
| 1242096 | ||||||||||
| CREDITORS: AMOUNTS FALLING DUE AFTER ONE YEAR | ||||||||||
| 54093 | Loans | 7 | 46502 | |||||||
| 1188003 | 1326649 | |||||||||
| 170000 | PROVISIONS FOR LIABILITIES AND CHARGES | 4 | 98000 | |||||||
| £1018003 | £1228649 | |||||||||
| 703344 | UNRESTRICTED INCOME FUNDS | 9 | 932434 | |||||||
| 314659 | RESTRICTED INCOME FUND | 9 | 296215 | |||||||
| £1018003 | £1228649 |
The company is entitled to the exemption from the audit requirement contained in Section 477 of the Companies Act 2006, for the year ended 31 March 2022, although an audit has been carried out under Section 144 of the Charities Act 2011. No member of the company has deposited a notice pursuant to section 476 requiring an audit of these accounts under the requirements of the Companies Act 2006.
The directors acknowledge their responsibility for ensuring that the company keeps accounting records which comply with section 386 of the Act and for preparing accounts which give a true and fair view of the state of affairs of the company as at the end of the financial year and if its incoming resources and application of resources, including its income and expenditure, for the financial year are in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to accounts, so far as applicable to the company.
The financial statements were approved by the board of directors on 15 September 2022 and signed on its behalf by:
J Morgan
D Ll Jones
Company N[o] : 3516328
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DIGARTREF CYF
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022
2021
| (57501) Net movement in funds 65000 Add: Depreciation (444) Deduct: Interest received 932 Decrease / (increase) in debtors (1040) Increase / (decrease) in creditors falling due within one year 94000 Increase / (decrease) in provisions _ 100947 Net cash from / (used in) operating activities Cash flows from investing activities 444 - Interest received (1230) - Acquisition of tangible fixed assets Cash flows from financing activities (6328) - Loans received / (repaid) _ 93833 Increase / (decrease) in cash in the year 588404 Cash at beginning of the year _ £682237 Cash at end of the year |
210646 19112 (58) (27561) 23937 (72000) __ 154076 58 (36128) (7468) _ 110538 682237 _____ £792775 |
|---|---|
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DIGARTREF CYF
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022
1. Accounting Policies
(a) Duration
These financial statements are prepared for the year ended 31 March 2022; comparative figures refer to the year ended 31 March 2021.
- (b) Convention and Policies
The accounts have been prepared under the historical cost convention.
The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 Section 1A).
The financial statements are denominated in sterling. Recording is to the nearest £1.
Digartref Cyf meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.
The charity reported a net cash inflow of £163775 for the year. The Trustees are of the view that the charity is a going concern. In forming their opinion the Trustees are aware of no material uncertainties which might affect the charity’s ability to continue as a going concern.
Incoming Resources -
All grants and other generated funds which are revenue in nature are recognised when they become receivable. During the year funds comprised one restricted income fund and an unrestricted income fund. Accruals are provided at the year end for money earmarked for specific applications.
Resources expended -
Liabilities are recognised in the financial statements on an accrual basis.
Where appropriate, resources expended are stated inclusive of any irrecoverable Value Added Tax.
Governance costs comprise an appropriate proportion of management costs plus professional fees.
- (c) Tangible Fixed Assets
Depreciation is provided at the rate of 30% (reducing balance) per annum on equipment, fixtures and fittings. Individual items costing less than £1000 are not capitalised. The capitalised building costs relating to premises occupied under management agreements have been depreciated fully this year. Premises acquired and developed by the Charity are depreciated on a straight-line basis over a period of 25 years starting in the year of commencement of operations from these premises following their acquisition and redevelopment. Impairment reviews are carried out on a regular basis.
- (d) Capital Grants
Capital Grants and In-Kind Contributions received and receivable in relation to the acquisition and development of land and buildings by the Charity are accounted for in a Restricted Income Fund, and are then transferred to Unrestricted Income Funds in line with the depreciation policy outlined in (c) above.
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DIGARTREF CYF
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)
(e) Pension Scheme
The company participates in both defined contribution and defined benefit schemes operated by the Social Housing Pension Scheme. Contributions in respect of the defined contribution scheme are charged to the Income and Expenditure Account for the year in which they are payable to the Scheme. The defined benefit scheme is accounted for in accordance with FRS 102 (see note 4).
(f) Liabilities
Creditors and provisions are recognised when there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
2. Charitable and Governance Expenditure
Charitable and governance expenditure includes -
Depreciation Auditors’ Remuneration |
2022 £ 19112 4200 |
2021 £ 65000 3120 |
|---|---|---|
An outline of expenditure on charitable activities is set out below –
| Llys y Gwynt cluster Homeless Prevention and Day Centre Coedlys cluster Other Projects |
2022 £ 395633 234541 328987 180261 1139422 |
2021 £ 416633 196482 282308 251175 1146598 |
|---|---|---|
None of the trustees (or any persons connected with them) received any remuneration or expenses as trustees during the year.
3. Staff Costs
Wages and Salaries Social Security Costs Pension costs erage number of employees during the year was: Llys y Gwynt cluster Coedlys cluster Homeless Prevention and Day Centre Other Projects Administrative support |
2022 £ 761331 45103 21424 827858 2022 12 12 8 3 33 |
2021 £ 708779 44995 20769 774543 2021 12 12 8 3 3 |
|---|---|---|
The average number of employees during the year was:
Only one employee received emoluments in excess of £60000, falling in the band of £60000 to £70000. The total remuneration and benefits paid to key management personnel amounted to £66237.
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DIGARTREF CYF
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)
4. Pension Scheme – Defined Benefit
The company participates in the The Social Housing Pension Scheme (the Scheme), a multiemployer scheme which provides benefits to some 500 non-associated employers. The scheme is a defined benefit scheme in the UK.
The Scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.
The last triennial valuation of the scheme for funding purposes was carried out as at 30 September 2017. This valuation revealed a deficit of £1,522m. A Recovery Plan has been put in place with the aim of removing this deficit by 30 September 2026.
The Scheme is classified as a ‘last-man standing arrangement’. Therefore the company is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the Scheme. Participating employers are legally required to meet their share of the Scheme deficit on an annuity purchase basis on withdrawal from the Scheme.
For financing years ending on or after 31 March 2019, it is possible to obtain sufficient information to enable the company to account for the Scheme as a defined benefit scheme.
Actuarial valuations of the scheme were carried out as at 30 September 2021 to inform the liabilities for the accounting year ended 31 March 2022.
The liabilities are compared, at the accounting date, with the company’s fair share of the Scheme’s total assets to calculate the company’s net deficit or surplus.
Present Values of Defined Benefit Obligation, Fair Value of Assets and Defined Benefit Asset (Liability) 31 March 2022 31 March 2021 £000’s £000’s Fair value of plan assets 697 692 Present value of defined benefit obligation 795 862 Surplus (deficit) in plan (98) (170) Defined benefit asset (liability) to be recognised (98) (170) Reconciliation of the Impact of the Asset Ceiling Period ended 31 March 2022 £000’s Impact of asset ceiling at start of period - Effect of the asset ceiling included in net interest cost - Actuarial losses (gains) on asset ceiling -
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DIGARTREF CYF
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)
Reconciliation of Opening and Closing Balances of the Defined Benefit Obligation
Defined benefit obligation at start of period Current service cost Expenses Interest expense Member contributions Actuarial losses (gains) due to scheme experience Actuarial losses (gains) due to changes in demographic assumptions Actuarial losses (gains) due to changes in financial assumptions Benefits paid and expenses Defined benefit obligation at end of period |
Period ended 31 March 2022 |
Period ended 31 March 2022 |
|---|---|---|
| £000’s 862 - 3 18 - 25 (13) (62) (38) 795 |
Reconciliation of Opening and Closing Balances of the Fair Value of Plan Assets
Fair value of plan assets at start of period Interest income Experience on plan assets (excluding amounts included in interest income) – gain (loss) Employer contributions Member contributions Benefits paid and expenses Fair value of plan assets at end of period |
Period ended 31 March 2022 |
Period ended 31 March 2022 |
|---|---|---|
| £000’s 692 15 3 25 - (38) 697 |
The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2022 was £18000
Defined Benefit Costs recognised in Income and Expenditure Account
Period from 31 March 2021 to 31 March 2022 £000’s Current service cost - Expenses 3 Net interest expense 3 Defined benefit costs recognised in Income and Expenditure Account 6
DIGARTREF CYF
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)
Defined Benefit Costs recognised in Other Gains/(Losses)
Period ended 31 March 2022 (£000’s) Experience on plan assets (excluding amounts included in net 3 interest cost) – gain(loss) Experience gains and losses arising on the plan liabilities – (25) gain(loss) Effects of changes in the demographic assumptions underlying 13 the present value of the defined benefit obligation – gain(loss) Effects of changes in the financial assumptions underlying the 62 present value of the defined benefit obligation – gain(loss) Total actuarial gains and losses (before restriction due to some 53 of the surplus not being recognisable) – gain(loss) Total amount recognised in Other Recognised Gains/(Losses) 53
Key Assumptions
| 31 March 2022 31 March 2021 | |
|---|---|
| % per annum % per annum | |
| Discount Rate | 2.79 2.18 |
| Inflation (RPI) | 3.54 3.27 |
| Inflation (CPI) | 3.17 2.87 |
| Salary Growth | 4.17 3.87 |
| Allowance for commutation of pension for cash | 75% of max 75% of max |
| at retirement | allowance allowance |
| The mortality assumptions adopted at 31 March 2022 imply the following life expectancies: | |
| Life expectancy at age 65 | |
| (Years) | |
| Male retiring in 2022 | 21.1 |
| Female retiring in 2022 | 23.7 |
| Male retiring in 2042 | 22.4 |
| Female retiring in 2042 | 25.2 |
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DIGARTREF CYF
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)
Assets
Global Equity Absolute Return Distressed Opportunities Credit Relative Value Alternative Risk Premia Emerging Market Debt Risk Sharing Insurance-Linked Securities Property Infrastructure Private Debt Opportunistic Illiquid Credit High Yield Opportunistic Credit Cash Corporate Bond Fund Liquid Credit Long Lease Property Secured Income Liability Driven Investment Currency Hedging Net Current Assets Total Assets |
31 | March 2022 (£000’s) 134 28 25 23 23 20 23 16 19 50 18 23 6 2 2 47 - 18 26 195 (3) 2 697 |
31 | March 2021 |
|---|---|---|---|---|
| (£000’s) 110 38 20 22 26 28 25 17 14 46 16 18 21 19 - 41 8 14 29 176 - 4 692 |
None of the fair values of the assets shown above include any direct investments in the employer’s own financial instruments or any property occupied by, or other assets used by, the employer.
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DIGARTREF CYF
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)
5. Tangible Fixed Assets
| Fixed Assets | ||||||
|---|---|---|---|---|---|---|
| COST As at 01.04.21 Additions Disposals As at 31.03.22 DEPRECIATION As at 01.04.21 Charge for the year Disposals As at 31.03.22 NET BOOK VALUE As at 31.03.22 As at 31.03.21 |
LAND AND BUILDINGS 695294 2655 --- 697949 139844 17624 --- 157468 £ 540481 £ 555450 |
EQUIPMENT FIXTURES AND FITTINGS 144308 33473 --- 177781 139348 1488 --- 140836 £ 36945 £ 4960 |
TOTAL 839602 36128 --- |
|||
| 875730 | ||||||
| 279192 19112 --- |
||||||
| 298304 | ||||||
| £ | 577426 | |||||
| £ | 560410 |
The Trustees are of the opinion that the net book value of Buildings does not exceed open market value at the balance sheet date.
6. Accruals and Deferred Income
| ls and Deferred Income | ||
|---|---|---|
| Accruals Deferred Grants |
2022 26722 18811 £ 45533 |
2021 24543 20448 |
| £ 44991 |
Incoming resources earmarked for specific activities have been deferred to clarify the financial position relating to individual projects. Deferrals are included in the balance sheet in the category "Accruals and Deferred Income". Movements for the year are set out as follows:
Llys y Gwynt Coedlys Others Total Opening balances 10649 7909 1890 20448 Released to Income and Expenditure Account (10649) (7909) (1890) (20448) Deferred this year 10660 6541 1610 18811 Closing balances £10660 £6541 £ 1610 £18811
None of the closing balance is attributable to the restricted income fund.
Page 20
DIGARTREF CYF
NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2022 (CONTINUED)
7. Loan
2022 2021 Bank loan £ 55403 £ 62871
The loan is repayable over a period of 10 years from March 2019 and is secured by legal charge over the Holyhead Enterprise Centre property.
8. Contingent Liability
The Big Lottery Fund have registered a charge over the Coedlys building in respect of its grant funding of the acquisition and development costs. The grant shall be repayable in full if the conditions of the grant are breached at any time prior to the expiration of the grant period in 2032.
9. Reserves
| Opening balance Restricted Income fund 314659 Unrestricted Income fund - General 574344 - Designated major repair fund 29000 - Designated HEC redevelopment fund100000 £1018003 £ |
Income - 1297068 - - 1297068 |
Expenditure - (1086422) - - £(1086422) |
Transfers (18444) (85979) 4423 100000 £ - £ |
Closing balance 296215 699011 33423 200000 1228649 |
|---|---|---|---|---|
The restricted income fund comprises Big Lottery Fund grants towards the cost of operating the Coedlys Project. No Big Lottery Fund grants were received during the year.
10. Capital Commitments
At 31 March 2022 capital expenditure commitments were as follows:
2022 2021 Contracted but not yet provided for £ - £ - Approved but not yet contracted for £ - £ -
The company continue to plan the redevelopment of the Holyhead Enterprise building.
11. Limited by Guarantee
The company is limited by Guarantee.
12. Related Parties
There were no related party transactions during the year.