Charity registration number 1076680 Company registration number 3516328 (England and Wales) DIGARTREF CYF. ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 llll 'ADCB184X¥ 2410912024 COMPANIES H(XJSE 71
DIGARTREF CYF. LEGAL AND ADMINISTRATIVE INFORMATION Trustees M Blackbum J G Fraser K A Griffiths B A Hughes D Ll Jones C A Kirkwood N Lane J Morgan F D P Morgan-Hamilton M E Roberts Secretary A Greenough Charity number 1076680 Company number 3516328 Registered office Units 1, 2. 4 & 5 Holyhead Enterprise Centre Kingsland Road Holyhead Anglesey LL65 2HY Auditor Crestmere Limited Unit F1. Intec Ffordd y Parc Parc Menai Bangor Gwynedd United Kingdom LL57 4FG Accountant Azets Brynford House 21 Brynford Street Holy4vell Flintshire United Kingdom CH8 7RD
DIGARTREF CYF. CONTENTS Page Trustees, report ststement of Trustees, responsibilities IrKlependent auditorfs report ststement of financial activities Balance sheet 9-10 Statement of cash flows 11 Notes to Ihe financial statements 12-26
DIGARTREF CYF. TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The Irustees presenl their annual report and financial statements for the year ended 31 March 2024. The financial ststements have been prepad in accordance ¥th the accounting poli(ies set out in note I to the financial statements and c(Thply with the charivs [goveming document], the Companies Act 2006 and "Accounting and Reportin9 by Charities.. Statement of Recommended Practice applicable to Gharikn'es preparing their accounts in a¢rnrdan¢e wrth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021" (effective 1 January 2019). Objectives and activities The company was formed to promote the relief of those who are homeless in Northwest Wales. to offer them support in their areas of need. and to support them in achieving independent livin9. The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake and how successful out¢omes should be evaluated. Achievements and perforniance The overall performance of the charity throughout 2023124 has been excellent. An in-depth overview of Digartref Cyfs achievements and performance bwll be outlined in its 2024 Annual Report. whith will be published in time for the AGM in October 2024. One of the main issues affeth'ng the charity during 2023124 relates to income via grants and longer term funding streams, therefore the focus for this years Trustees Report will predominanily refer to these matters. Digartref Cyf is pleased to report Ihat the partnership project, Gvffeiddiau Mon Roots, a >year project funded by the National Lottery Community Fund, Ythich aims to help end Tural homelessness mmmenced delivery during the reporting period, enabling all organisations invdved to better respond to the challenges wral homelessness presents for those experiencing related difficullies as well as in delivenng responsive wrap around services. Digartref Cyf was also successful in securing a fijrther 1 year's funding from the Welsh Government under the Youth Innovation Grant, enabling the continued delivery of the Llety Pontio Project. This project works with the private rented sector and Ihe local authority to provide temporary accommodation with support for young people aged 16 to 25 who might otheNise have to be accommodaled in emergency B&B provision. Via funding from the Area Planning Board. the charity secured an addits'onal >year contract to continue to deliver an outreach service across Gvrynedd and Ynys Mon. This provides for the provision of 4 outreach worker5 to support those with complex needs including substance use and mental health issues, who are homeless or at risk of homelessness. The charity was also successful in retendering the continued delivery for a fvrther 6 years of ils range of supported housing services lor young people aged 16 to 24. induding the wovision of 2 x 24 hour staffed hostels, a range of self-contsined properbes with support and 2 x Iloating support services with the Isle of Anglesey County Council. The Homeless Prevention Grant (preNiously administered by the Welsh Govemment) ha5 for many years funded several of the charity's homeless prevenbon services including.. the Lighthouse Day Centre. the medialion and family interventy.on service. the Learn4Lrfe programme and a generic floating support service. From April 2024. the Homeless Prevention Grant under a redistribution fomiula was passed over for local authorities to administer, becoming part of its Houyng Support Grant allocation. Under this process. Digartref Cyf lost over £175.000 of its income, putting ihe delivery of these key seryices at risk. Over the course of 2023124, various successful applicats'ons were made to a range of funders, allowing for the continuation of the above SeiCe$, accessed by vulnerable beneficiaries. These funders included: Nationwide, Children in Need, Moondance and Y Gymdeithas. To summaries. this has been a challenging and busy 12 months for the charity financialty. due mainly to the loss of long term established funding and the requirement to secure new fvnding streams as well as maintaining others through the retendering process. Thanks to the hard work of key staff and Ihe support of the Trustees, the finanaal challenges that presented ihemselves were overcome. allowing for the conts-nuation and expansion of Digartref Cyr5 homeless prevention services.
DIGARTREF CYF. TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Financbal review It is the policy of the charity that unrestricted fvnds whith have not been designated for a specific use should be maintained at a level equivalent to between three and six month's expenditure. The trustees consider that reserves al this level will ensure that. in the event of a significant drop in funding. they will be able to Continue the charity's current activities while consideration is given to ways in vthich additional funds may be raised. This level of reserves has been maintained throughout the year. Plans for future periods The aim of the charity continues to be focused on gradually increasing the range of homelessness prevention services tt provides and the areas of Norh Wales it covers. along with the remodeling of existing seNices where necessary. to meet the growng demand for homeless related assistance and support for those within our community. Unfortunately, Ihe charity and its d05e working partners such as the local authority continue to have lo strive to address the demand on related seNices. It is highly likdy Ihat this will contr.nue to be the case for the foreseeable future. The charity continues to forecast that more people wll find it difficult to acces$ and maintain accommodation for several reasons induding the matter of affordability, accessibility. and the depletion of suitable hOUn9 stock. In addition. it is also extremely likely Ihat the cost-of4iving cnsis, interest rate increases and the hike in energy and food G051s will continue to impact, pushing people further into housing difficulty. being unable to heat their homes, feed themselves and their families. while keeping on top of high rent charges in the private rented sector in particular. The charity's plans for future development and delivery of servi$ will need to take account of all the issues above as well as ihose that occur at a local level. for example, the loss of private rented accommodalion across the Isle of Anglesey and Gwynedd. with the related stock being lost to more lucrats've holiday let models. This is conts'nuing io have a detrimental effect on available properties for those people the tharity SUPPOrts. The aim to develop a homeless hub at the Holyhead Enterprise Centre remains a key priority for the charity. Some capitsl fvnding has already been secured for this development with the outcome of one final related application pending. If this is secured. then the tharity aims to commence redevelopment work Imthin the next two to three months and realise a long-term strategic goal. In achieving this aim. Digartref Cyf will be able to provide a range of homeless and other community services under one roof, ensure a more modern, spacious Day Centre with capa¢ity to support the increasing number of people who access that service year on year. The charity is also currently working with a private propety developer who has a purF4)sevbuilt facility in Gwynedd that could be utilised to provide a supported housing service to those centlY accommodaled in emergencyl temporary accommodation by the local authority. One of Digartref Cyf s business aims is to expand its services into other local authority areas. this would be achieved if revenue fundin9 can be secured for this proiect. Structure, governance and management The charity is a company Mited by guarantee and govemed in accordance with its Memorandum and Articles of Associalion.
DIGARTREF CYF. TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 The twstees, wha are also the directors for the purpose of company law. and who served during the year and up to the date of signature of the financial statements were.. M Blackbum J G Fraser K A Griffiths B A Hughes D Ll Jones S R Jones C A Kirkwood N Lane J Morgan F D P Morgan-Hamilton M E Roberts (Resigned 10 October 2023) Trustees are recruited from professional and related backgrounds. and training is available to them. The organisational structure is based on fomal govemance. The Board meets at regular intervals to consider strategi matters and monitor oper*ons None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding UP. The Trustees, report was approved by the Board of Trustees. A Greenough 2 September 2024
DIGARTREF CYF. STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 The trustees. who are also the directors of Digartref Cyf. for the purpose of company law, are responsible for preparing the Trustees. Report and the finanoal statements in accordance with applicable law and United Kingdom Accounting Stsndards (United Kingdom Generally Accepted Accounting Prath). Company Law requires the trustees to prepare financial statements for each finanoal year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources. including Ihe income and expenditure, of the tharitable company for that year. In preparing these finanoal ststements. the trustees are required to: - select suitsble accounting poliaes and then apply them consistently., - observe the methods arKI principles in the Charities SORP: - make judgements and estimates that are reasonable and prudent: and prepare the financial slatements on the going concem basis unless rt is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping adequate accwnting records that disdose wsth reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statement5 comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable Steps for the prevention and detection of fraud and other irregularities.
DIGARTREF CYF. INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF DIGARTREF CYF. Opinion We have audited the finanaal statements of Digartref Cyf. (the 'charity') for the year ended 31 March 2024 vthich comprise the statement of financial ackn"vities, the balance sheet, the statement of cash flows and notes to the financial statements, induding significant accounting policies. The financia reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards. including Finanual 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- give a true and fair view of the state of the charitable company's affaiTS as at 31 March 2024 and of its incoming resources and applicab'on of resources, for the year then ended., have been properly prepared in accordance %*ith United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance viith the requirements of the Companies Act 2006. Basis for oplnion We conduded our audit in arxordance with Intemational Standards on Auditing (UK) {ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditorfs sponSibl/ll1eS for the audit ol the financial statements secti¢)n of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial ststements in the UK, including ihe FRC'S Ethical Standard. and we have fijlfilled 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 conduded that the Trustees, use of the going Concem basis of accounting in the preparation of the financial statements is appropnate. Based on the work we have performed, have not identified any material uncertainties relating to events or conditions that, individually or collectively, may casl significant doubt on the charity's abilty lo continue as a going con¢em for a period of at least twelve months from when the financial statements are authorised for issue. Our Tesponsibilities and the responsibilitie5 Of the trustees wtth respect to going conrn are described in the relevant sections of this report. Othor information The other information comprises the infomiation induded in the annual report other than the finanaal statements and our auditofs report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statemenls does not cover the other infomiation and we do not express any fom of assurance conclusion thereon. Our responsits.lity is to read the other infonnation and, in doing so, consider whether the other infonnats-on is materially inconsistent with the finanaal ststements or our knowledge obtained in the course of the audit, or otheNise appears to be materially misstated. If we identify such material inconsislenaes or apparent material misstatements. we are required to detemiine 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 material misstatement of this other inf0MtiOn, we are required to report that fact. We have nothing to report in this regard. Matters on which we are required to report by exception We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you rf, in our oi%nion'. the infomiation given in the financial statements is inconsistent in any material respect with the Trustees, report. or sufficient accounting records have not been kept; or the financial statements are not in agreement with the accounting records; or we have not received all the infomation and explanations we require for our audit.
DIGARTREF CYF. INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DIGARTREF CYF. Rosponsibilities of trustees As explained more fully in the statement of Trustees. responsibilities. the trustees, vtho are also the directors of the charity for the purpose of company law. are responsible for the pparation of the finan¢ral statements and for being satisfied that they give a true and fair view, and for such intemal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity's ability to continue as a going concem, disclosing, as applicable. matters re5ated to going concem and using the going concern basis of a¢¢ounb"ng unless the trustees either intend to liquidate the charttable company or to cease operations, or have no realisb"c alternats've but to do so. Auditor's responsibilities for the audit of the financial statements We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a vthole are free from material misststement, whether due to fraud or eOr, and lo issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance but is nol a guarantee that an audit conducted in accordance Vth ISAS (UK) will always detect a malerial misstatement when it exists. Misststements can arise from fraud or error and are considered material if, individually or in the aggregate. they could rea5t)nably be expected to influence the economic decisions of users taken on the basis of these finanoal ststements. A further description of Our responsiknlities is available on the Financial Reporting Council's website at.. https'.11 w•M.frc.org.uklauditorsresponsibilities. This description fomis part of our auditorfs report. Extent to which the audit was considered capable of detecting irregularities. including fraud Irregularities, induding fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilits'es. outlined above and on the Financial Reporting Council's website, to detèct material misstatements in respect of irregulartties, induding fraud. We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments. including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding. we identify and assess the risks of material misstatement of the financial statements. whether due to fraud or error. design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This indudes consideration of the risk of acts by the entity that were contrary to applicable law5 and regulations, induding fraud. In response to the risk of irregularits'es and non-compliants laws and regulations. induding fraud, we designed procedures which included: Enquiry of management and those charged with govemance around actual and potential litigation and daims as well as actual, suspected and alleged fraud.. ReVievng minutes of meetings of those charged with govemance.. Assessing the extent of compliance wth the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection,. Reviewing financial statement disdosures and testing to supporting documentation to assess compliance with applicable laws and regulations.. Perfoming audit work over the risk of management bias and override of controls, induding testing of journal entries and other adiuslments for appropriateness. evaluating the business rationale of significant transaclions outside the nomial course of business and reviewng accounting eslimates for indicators of potenbal bias. Because of the inherent limitations of an audit. there is a risk that we will not detect an irregularities, induding those leading to a material misstatement in the financial statements or nonthcompliance wilh regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions rellected in the financial ststements. as we wll be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulbng from error. as fraud may involve collusion, forgery, intentional omissions, mi5representstions, or the override of intemal control. Use of our report
DIGARTREF CYF. INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DIGARTREF CYF. This report is made solely to the chanty's trustees. as a body, in accordance with part 4 of the Charities (A)unt8 and Reports) Regulations 2008. Our audit work has been undertaken so that y might state to the charity's trustees those matters we are required to stale to them in an auditof s report and for no other purpose. To the fijllest extent pemitte by law. we o not accepl or assume responsibility lo anyone other than the charity and the tharity's trustee as a body, f ur audit work. for this report. orfor the oniOnS we have formed. Barrie Buels FCCA FCIE For and on behalf of (Sonlor Statutory Audltor) Crestmere Limited 3 September 2024 Chartered Certified Accountants Statutory Auditor Unit F1. Intec Frdd y Parc Parc Menai Bangor United Kingdom LL57 4FG
DIGARTREF CYF. STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Unrestricted Restricted funds funds 2024 2024 Totsl Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Nots Income from: Donations and legacies Charitable activitses Other trading activities Investments 7,845 1.352.820 7,845 1,352,820 17,735 1.277.066 17,735 1,277,066 65,826 9.602 65.826 9.602 53.121 1.444 53,121 1,444 Total income 1,436.093 1.436.093 1,349.366 1,349.366 enditure on: Chantable athvities 1,423.846 1,423.846 1.301.690 1,301.690 Actuarial gainslllosses) in respect of pension schemes 12 (6,000) (6.000) 1.000 1,000 Net incoming resources before transfe 6,247 6,247 48,676 48,676 Gross transfers between funds 18,444 (18,444) 18,444 (18.444) Net incomellexpenditure) for the yearl Net movement in funds 24,691 (18,444) 6.247 87,120 {18,444) 48,676 Fund balances at 1 April 2023 999,554 277,771 1.277,325 932,434 296,215 1,228,649 Fund balances at 31 March 2024 1,024.245 259,327 1.283,572 999,554 277.771 1,277,325 The statement of financial activities indudes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The statement of financial activities also comFlies with the requirements for an inc<xne and expenditure account under the Companies Act 2006.
DIGARTREF CYF. BALANCE SHEET ASAT31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets 14 534.640 554.371 Current assets Debtors Cash at bank and in hand 15 63,016 1.188.458 100,118 806,323 1.251.474 906,441 Creditors: amounts falling due withln one year 17 (399.542) (86,487) Net current assets 851,932 819,954 Total assets less current liabllltles 1.386.572 1,374.325 Provisions for liabilities 18 (103.000) (97.000) Not assets 1.283.572 1,277.325 Income funds Restricted funds Unrestricted funds Designated fijnds General unrestricted funds 20 259.327 277.771 21 228.314 795.931 237,979 761.575 1,024,245 999,554 1.283.572 1,277.325
DIGARTREF CYF. BALANCE SHEET (CONTINUED) AS AT31 MARCH 2024 The c¢Jmpany is enlided to the exemption from the audit requirement contained in section 477 af the Companies Act 2006, for the year ended 31 Marth 2024, although an audrt has been carried Ixjt under section 144 of the Charities Act2011. The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements. The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Ad 2006, for the year in question in accordance with section 476. These financial ststements have been prepared in accordance yth the provisions applicable to companies subject to the small companies regime. The financial statements were approved by the Trustees on 2 September 2024 B A Hughe Trustee D Ll Jones Trustee Company registrdtion number 3516328 10-
DIGARTREF CYF. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows from operating activities Cash generated from operations 24 384,850 60,190 Investing activities Proceeds from disposal of investrnents Investrnent income received (6,000) 9,602 1,000 1,444 Net cash genèrated from Invèstlng activities 3,602 2.444 Financing activities Repayment of bank loans (6,317) {49,086) Net cash used in financing activities (6,317) (49,086) Net increase in cash and cash equivalents 382,135 13,548 Cash and cash equivalent5 at beginning of year 806,323 792.775 Cash and cash equivalents at end of year 1.188.458 806,323 11
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charity information Digartref Cyf. is a private company I1ted by guarantee inctyporated in England and Wales. The registered office is Units 1, 2, 4 & 5 Hotyhead Enterprise Centre, Kingsland Road, Holyhead, An9lesey, LL65 2HY. 1.1 Accounting convention The finanal statements have been prepared in accordance with the charity's Igoveming documentl, the Companies Act 2006, FRS 102 "The Financial ReportÈng Standard applicable in the UK and Republic of Ireland. (°FRS 102°) and the Charities SORP "Accounting and Reporting by Charities. Ststement of Recommended Practice applicable lo 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). The charity is a Public Benefit Entsty as defined by FRS 102. The financial stalements are prepared in sterfing, which is the functional currency of the chanty. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the histoncal cost convention. [modified to include the revaluation of freehold properties and to indude investment Fyoperties and certain financial instruments at fair valuel. The principal accounting policies adopted are set out below. 1.2 Going concern At the time of approving the financial statements. the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existen for the foreseeable future. Thus the twstees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitsble funds Unreslricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restn'cted funds are subject to specific conditions ty donors as to h¢)w they may be used. The Purposes and uses of the restricted funds are set out in the notes to the finanual ststements. Endowment funds are subject to spec#fic conditions by donors that the capital must be maintained by the charity. 1.4 Income Income is recognised when the charity is legally entitled to it after any performance condition5 have been met, the amounts can be measured reliably, and it is probable that income wll be received. Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of Covenant is recognised at the time of the donation. Legae$ are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and ceipt is expected. If the amount is not known. the legacy is treated as contingent asset. 12-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Ac¢ounting policies (Continued) 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty. it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably. Expenditure is classified by athwty. The costs of each activity are made up of the totsl of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated direcuy to that activity. Shared costs which contnbule to more than one aclivity and support costs which are not attributable to a single activity are apportioned between those ath'vits'es on a basis consistent with the use of resources. Central staff costs are all¢xated on the basis of ts'me spenL and depreciation charges are allocated on the portion of the assefs use. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequentty measured at cost or valuation, net of deprecialion and any impaimient losses. The gain or loss arising on the disposal of an asset is detemiined as the difference beeen the sale proceeds and the carying value of the asset. and is recognised in Ihe statement of financial activities. Depreaation is provided at the rate of 30% (reducing balance) per annum on equipment, fixture and fittings. Individual items costing less than £1.000 a not capitalised. 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 pMiseS following their aquisitr'on and redevelopment. Impainnent reviews are carried out on a regular basis. 1.7 Impainnent of fixed assets At each reporting erKI date, the charity reviews the carryin9 amounts of its tangible assets to detemine whether there is any indication that those assets have suffered an impaimient loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impaimient loss {if any). 1.8 Cash and cash equivalents Cash and cash equivalents include cash in hand. deposits held at call with banks and other short-tem liquid investments with original matunts.es ot three months or less. 1.9 Financial Instruments The charity has elected to apply the provisions of secb.on 11 'Basic Financial Instruments, and Section 12 'Other Financial Instruments Issues. of FRS 102 to all of its financial instruments. Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial ststements, when there is a legally enforceable right to set off ihe recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic r Inancial assets Basic financial assets. which include debtors and cash and bank balances, are initialty measured at transaction price including Iransaclion costs and are subsequently carried at amortised cost using the effects've interest method unless the arrangement constitutes a financing transaction, where the transaclion is measured at the present value of the future reiptS discounled at a market rate of interest. Financial assets dassified as receivable within one year are not amortised. 13-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accountlng policies (Continued) Basic financial liabilities Basic financial liabilities, induding creditors and bank loans are initially recognised at transaction ptice unless the arrangement constitutes a financing transath"on, where the debt instrument is measured at the present value ol the future payments discounted at a market rate of interest. Financial liabilities dassified as payable within one year are not amortised. Debt instruments are subsequently canied at arnortised st using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not. they are presented as nOn-cUenI liakn'lits'es. Trade creditors are recognised initially at transaction price and subsequently measured at amortised c05t using the effective interest method. Derecognition of financial liabllities Financial liabilits.es are derecognised when the tharity's contractual obligations expire or are discharged or cancelled. 1.10 Provisions Provisions are recognised en the charity has a legal or crst[Uctive present obligation as a result of a past event, it is probable that the tharity will be required to settle ihat obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a promsion is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking inlo accounl the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expecled to be required lo settle the obligation is recognised at present value. en a provision is measured at present value. the unwinding ot the discount is recognised as a finance cost in net incomel(expenditure) in the period in which it arises. 1.11 Employee benefits The cost of any unused holiday entitlement is rewgnised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide tennination benefits. Critical accounting estlmates and ludgements In the application of the tharity's accounting policaes, the trustees are required to make judgements. estimates and assumptions abcut the carying amount of assets and liabilities that are not readily apparent from other sources. The estimates and assooated assumptions are based on historical experience and other factors that are considered to be relevant. Actual resuSts may differ fT¢Jn these estimates. The estimates and underfying assumptions are reviewed on an ongoing basis. Revisions to a¢unting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the reNllson and future periods where the revision affects both current and fLrture periods. 14-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Donations and legacies Unrestricted Unrnstricted funds funds 2024 2023 Di)nations and gifts 7,645 17,735 Charitable activities 2024 2023 Grants and Rents 1,352,820 1,277,066 Grants ts1Ved amounted to £1.141,825 (2023: 962,663) Rents received amounted to £210,99S (2023.. 314,403) Other trading activities Unrestricted Unrestricted funds funds 2024 2023 Office charges and contnbutions Management income 56,073 9,753 40.887 12,234 Other trading activities 65,826 53.121 Investments Unrestricted Unrestricted funds fvnds 2024 2023 8ank interest received 9,602 1,444 15-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Charitsble activities 2024 2023 Staff costs Depreciation al impairment Rent, rates and insurance Heat and Light Advertising and recruitment Support, travel & subsistence Training costs Other charitable expenditure 936,882 19.731 138,734 36.011 2,134 18,074 14,809 252,152 882,993 23,055 129,744 26.917 2,718 13,319 9,639 207,232 1,418,527 1,295,617 Share of govemance costs (see note 8) 5.319 6,073 1,423,846 1,301,690 Support costs Support Governance costs costs 2024 2023 Audit fees Legal and professional AGM Costs 3,120 1.512 687 3,120 1.512 687 3,120 2,142 811 5.319 5.319 6.073 Analysed between Charitable acb'vities 5.319 5.319 6,073 Govemance costs indude payments to the auditots of £3.120 (2022,. £3.120) lor audit fees. Trustees None of the trustees lor any persons connected with them) received any remuneration or benefits from the charity during the year. Expenses paid to trustees amounted to £nil (2023-. £127) 16-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 1 D Employees The average mcjnthly number of employees during the year was.. 2024 Number 2023 Number Llys y Gwynt and Floating Support SL Coedlys and Floating Support staff Outreach staff Learning for Life and Mediati¢)n Lighthouse & Resettlemenucanada Gardens Rural Homelessness (Lottery) Relief staff Chief Executive Officer and managers Finance and administration stsff Cleaners and caretakers Total 40 40 Employment costs 2024 2023 Wages and salaries 936,882 882,993 Only one employee received emoluments in excess of£60.000, falling in the band of £60,000 to £70,000. 17-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 11 Penslon scheme - Defined Benefft The company participates in The Social Housing Pension Scheme (the Scheme), a multi-employer 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 furKling legislation (xrtlined in the Pensions Act 2004 vthi¢h 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 valuaticn of the scheme for funding purposes was carried out as at 30 September 2017. This valuats'on revealed a deficat 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 dassfied as a 'last4nan standing arrangement.. Therefore the company is polentially liable for other participating employers, obligations if those employers are unalle to meet Iheir share of the scheme deficit following bwthdrawal from the Scheme. Participats'ng employers are legally required to meet their share of the Scheme defiot 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 2023 to infomi the liabilities for the accounting year ended 31 Marth 2024. The liabilities are compared, at the accountsng date, with the company's fair share of the Scheme's total assets to calculate the company's net deficit or surplus. Present Values ol Defin ation Fair Valu fAssets and Defined BenefitAsset 31 March 2024 £OOO's 447 550 (103) {103) 31 Marth 2023 £OOO's 450 547 197) (97) Fair value of plan assets Present value of defined benefit obligation Surplus (deficit) in plan Defined benefit asset Oiability) to be recognised Reconciliation of the Im act of the Asset Ceilin Period ended 31 March 2024 £OOO'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 Impad of assets ceiling at end of period 18-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 11 Ponsion scheme - Defined Benefit (Continued) Reconciliation of O enin and Closin Balances of the Oefined Benefit Obli ations Period ended 31 March 2024 £OOO's 547 Defined benefit obligatson at start of period Current serwce cost Expenses Interest expense Member contributions Actuarial losses (gains) due to stheme experience Actuarial losses Igainsl 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 26 (7) (3) (18) 550 Reconcilialion of O nin Closin Balan the Fair Val f Pl n Assets Period ended 31 March 2024 £OOO's 450 22 (33) Fair value of plan assets at start of penod Interest income Experience on plan assets (excluding amounts induded in interest income) gain {lossl Employer contributions Member contributions Benefits paid and expenses Fair value of plan assets at end of period 26 {18) 447 The actual retum on the plan assets (induding any changes in share of assets) over the period ended 31 March 2024 was (£11.000) Defined B osls Reco nised in nt of Com nsive Income soci Penod from 31 March 2023 to 31 March 2024 £OOO's Current service ¢ost Expenses Net interest expense Defined benefit costs recognised in Statement of Comprehemsive Income (SOCI) Benefit Costs Reco se her Com rehensiv In me oci Period ended 31 March 2024 (£OOO's) Experience on plan assets (exduding amounts induded in net interest cost)- gain(loss) Experience gains and losses ansing on the plan I1a-1rtIes gain(loss) Effects of changes in the demographic assumptions underlying the present value of the defined benefit obligation - gain(loss) Effects of changes in the financial assumptions underlying the present value of the defined benefit olgatIOn gain(loss) Totsl actuanal gains and losses (before reslriction due to some of the surplus not being recognisable) gain(loss) Total amount recognised in Other Comprehensive Income - gain (loss) (33) (2) {25) (25) 19-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 11 Penslon scheme - Defined Benefrt (Contsnued) Ke Assum tions 31 March 2024 % per annum 4.90 3.15 2.78 3.78 75% of max allowance 31 March 2023 % per annum 4.86 3.19 2.77 3.77 75% ofmax allowance Discount Rate inflation {RPI) Inflation (CPI) Salary Grovth Allowance for commutalion of pension for Gash at retirement The mortality assumpti¢)ns adopied at 31 March 2024 imply the following life expectancies". Life expectancy at age 65 (Years) 20.5 23.0 21.8 24.4 Male retiring in 2024 Female retiring in 2024 Male retiring in 2044 Female retiring in 2044 Assets 31 March 2024 (£OOO's) 45 17 16 15 14 31 March 2023 (ÈOOO'S) Global Equty Absolute Retum Distressed Opportunities Credit Relative Value Altemative Risk Premia Emerging Market Debt Risk Sharing 1nsuranceThnked Secunties Property Infrastructure Private Debt Opportunistic Illiquid Credit High Yield Opportunistic Credit Cash Corporate Bond Fund Liquid Credit Long Lease Propety Secured Income Liability Driven Investment Currency Hedging Net Current Assets Total Assets 14 17 26 33 11 19 51 20 19 18 45 18 17 14 21 208 13 182 447 450 None of the fair values of the assets sh¢Jwn above include any direct investments in the employerfs ovm financial instFuments or any property occupied by. or other assets used by, the employer. -20-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 12 Actuarial gainslllosses} in respect of pension schemes Unrestrict8d Unrestricted funds funds 2024 2023 Actuarial gainl(loss) in respect of pension schemes (6,000) 1,000 13 Taxation The charity is exempt from tax on income and gains falling within section $05 of the Taxes Act 1988 or section 252 of Ihe Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. 14 Tangible fixed assets Freehold land Equlpmgrt and buildlngs fixtures and fittlngs Totsl Cost At 1 April 2023 697,949 177,781 875,730 At 31 March 2024 697,949 177,781 875.730 Depreciation and impaimient At l April 2023 Depreciation charged in the year 169,440 11,972 151.919 7,759 321,359 19,731 At 31 March 2024 181.412 159,678 341,090 Carying amount At 31 March 2024 516.537 18,103 534.640 At 31 March 2023 528,509 2S,862 554,371 The Trustees are of the opinion that the net book value rf buildings does not exceed open market value at the balance sheet date. IS Debtors 2024 2023 Amounts falllng due within one year: Trade debtors Other debtors Prepayments and accnjed income 10,373 34,030 18,613 63,151 18,674 18,293 63,016 100.118 21
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 16 Loans and overdrafts 2024 2023 8ank loans 6,317 Payable within one year 6,317 The bank loan has been fully repaid and the legal charge over the Holyhead Enterprise Centre property has been discharged. 17 Creditors: amounts falling due within one year 2024 2023 Notes Bank loans Other taxation and sooal security Deferred grants Trade creditors Other creditors Accruals 16 6,317 12,612 36,811 4,781 2,582 23,384 13,694 322,435 19,239 14,951 29.223 19 399.542 86.487 18 Provisions for liabilities 2024 2023 Retirement benefit obligation5 103.000 97,000 Movemerrts on provisions: At 1 April 2023 Actuarial (gainllloss 97,000 6,000 At 31 March 2024 103,000 19 Govemment grants Deferred income is induded in the financial ststements as follows: 2024 2023 Defeffed income is induded within.. Cuent liabilities 322,435 36,811 Movements in the year. -22-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 19 Government grants (Continuedl Deferred income at 1 April 2023 Released from previous periods Resources deferred in the year 36.811 (36.811) 322,435 18,811 18,000 Deferred income at 31 March 2024 322,435 36.811 -23-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS ICONTINUEO) FOR THE YEAR ENDED 31 MARCH 2024 20 R•&tri¢ted fund¥ The irtome of Ihe chwty re5ts•d the fo1•r8 unexFerthd •ice$ of(&)nats) grants held on trLtfor specific wrposes.. Movement In funds l Aprl IQZJ r•wur¢es e¥pen 31 IknTch 2rtr24 Restricted IrLorr fuThJ 298.215 118.4441 277.771 118.4441 259,327 -24-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 21 Designatod funds The income fiJnds of the charity include the follov•ryng designated funds twhich have been set aside out ot unrestricted funds by the Irustees for specific purposes.. Bal*n¢? at 1 April 2022 Ttransfe Bal•nce at 1 April 2023 Transfers 8alance at 31 March 2024 Designated major repair fund Designated HEC redevelopment fund 33,423 200,000 4,556 37,979 200.000 (9,665) 28.314 200,000 233.423 4.556 237.979 (9,665) 228,314 22 Analysis of net assets between funds Unrestricted Restricted funds funds 2024 2024 Total Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Fund balances at 31 March 2024 are represented by.. Tangible assets Current assetsl{liabilitie5) Provisions 534.640 592.605 (103,000) 534,640 851,932 (103,0001 554.371 542,183 (97,000) 554.371 819,954 (97,000) 259.327 277,771 1,024.245 259.327 1,283.572 999.554 277.771 1.277.325 23 R8lated party transactions There were no di5dosable related party transactions during the year {2023 - none). 24 Cash generated from operatlons 2024 2023 Surplus for the year 6,247 48,676 Adjustments for: Investment income recognised in statement of finanoal activities Lossl(gain) on disposal of investments Depreciation and impairment of tangible fixed assets (9,6D2) 6.000 19,731 (1,444) (1.000) 23,055 Movements in working capital.. Decrease in debtors Increasel(decrease) in creditors {Decrease)lincrease in provisions Increase in deferred income 37,102 33,748 6,000 285,624 2,664 (28,761) (1,000) 18.000 Cash generated from operations 384,850 60,190 -25-
DIGARTREF CYF. NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 25 Analysis of changes in net funds At 1 April 2023 Cash flowsAt 31 March 2024 Cash at bank and in hand 806,323 382,135 1,188,458 Loans falling due within one year (6,31n 6,317 800.006 388.452 1.188,458 -26-