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 prepa￿d 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 Se￿iCe$, accessed by vulnerable beneficiaries. These funders included: Nationwide, Children in Need, Moondance and Y Gymdeithas. To summaries. this has been a challenging and busy 12 months for the charity financialty. due mainly to the loss of long term established funding and the requirement to secure new fvnding streams as well as maintaining others through the retendering process. Thanks to the hard work of key staff and Ihe support of the Trustees, the finanaal challenges that presented ihemselves were overcome. allowing for the conts-nuation and expansion of Digartref Cyr5 homeless prevention services. DIGARTREF CYF. TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Financbal review It is the policy of the charity that unrestricted fvnds whith have not been designated for a specific use should be maintained at a level equivalent to between three and six month's expenditure. The trustees consider that reserves al this level will ensure that. in the event of a significant drop in funding. they will be able to Continue the charity's current activities while consideration is given to ways in vthich additional funds may be raised. This level of reserves has been maintained throughout the year. Plans for future periods The aim of the charity continues to be focused on gradually increasing the range of homelessness prevention services tt provides and the areas of Norh Wales it covers. along with the remodeling of existing seNices where necessary. to meet the growng demand for homeless related assistance and support for those within our community. Unfortunately, Ihe charity and its d05e working partners such as the local authority continue to have lo strive to address the demand on related seNices. It is highly likdy Ihat this will contr.nue to be the case for the foreseeable future. The charity continues to forecast that more people wll find it difficult to acces$ and maintain accommodation for several reasons induding the matter of affordability, accessibility. and the depletion of suitable hOU￿n9 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 c￿￿entlY 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 con￿rn 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 inf0M￿tiOn, 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 p￿paration 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 e￿Or, 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 V￿th 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.. ReViev￿ng 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 o￿niOnS 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 Fr￿dd 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