Charfty reglstration number 1078607 (England and Wales) Company registration number 03141290 THE HOPE FOUNDATION LIMITED ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024
THE HOPE FOUNDATION LIMITED LEGAL AND ADMINISTRATIVE INFORMATION Trustees Mr P J Winstone Mr J Kearney Mrs L P Sowerby DrA Knight Mr G Rodgers Secretary Mr J Kearney Charity number 1078607 Company number 03141290 Reglstered offlce Hope House 1 Grange Road Mlddlesbrough TS15BA Independent examlner AbacusBean Limited Level Q Surtees Business Park Stockton on Tees TS18 3HR Bankers Barclays Bank PIC Unlt 1 Centre Mall The Mall Middlesbrough TS12NR
THE HOPE FOUNDATION LIMITED CONTENTS Page Trustees, report Independent examinels report Statement of financial activiti'es 10 Balance sheet 11 Statement of cash flows 12 Notes to the financial statements 13-25
THE HOPE FOUNDATION LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 JUL Y 2024 The Trustees who are also directors of the charity for the purp)ses of the Companres Act 2006 present their annual report and financlal statements for the year ended 31 July 2024. The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charitys Memorandum and Articles of Association. the Companies Act 2006 and "Accounting and Reporting by Charltles.. Ststement of Recommended Practice applicable to charities preparing thelr accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). Objectlves and actlvlties Purposes and Alms of The Hope Foundation From the Charities Commission Governing Document.. The advancement of education. the provision of opportunltles for training, the advancement of rellgion and the relief of poverty of persons on low income. Charity Alms The aim of the charity is rellevlng poverty and helping provide hope and a purpose for local people. We do this by improving their identification of available opportunities, abllty to aCsS them and support for them to achiev8 their goals and targets in a supportive environment. Specific aims Include a) Raising aspirations. motivation and participation in social, educational and economlc Ilfe b) Enabling people to address barriers including social, psychological, personal 8nd health issues c} Increasing skills and employability d) Encouraging the integration of all sectors of the community e) Reducing lonellness and isolation Supporting people to progress into work, education or volunteering g) Helplng people develop their confidence in themselves and their abllltles h) Providing volunteering and work experience opportunities l) Working with a wide range of partners to meet individual and community need This helps create a safer and stronger local communlty, helping addr&85 poverty, exdusion and disadvantage for local residents. This year has been challenging due to th8 Cost of living crisis and local Issues around fu81 food and digital povety and giving to charity. The organisation has continued to be agile in responding to local need and the current ffinancial situation. l•Ve have continued to achieve our aims adapting our work ar methods of delivery to continue to meet the challenging and changing local need in a very difficult economic climate. PubliG benefit In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commission's guidance on public benefit. All work and services we carry out are for public benefft and the good of our local community. They are all to meet our aims and obi8Ctives.
THE HOPE FOUNDATION LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Local Situatlon Employment and Skills Between the census of 2011 and 2021 the population of Middlesbrough has incre8S8d by 4% the 3rd largest percentage increase in the North East. 5.3% of the population are unemployed (economically active) across Middlesbrough compared to 3.7% nationally and 3.9°h across the North East. The proportion claiming unemployment related benefits was 6.20A in March 2024. 29.20/0 of the population were economically inactive (retired, looking after the home or family being temporarily long term sick and disabled. This is higher than across the North East 24.2% and nationally 21.2%. Health and Wellbeing Employment, skills and poverty are importarrt risk factors linked to health and wellbeing of local residents (Director of Health Report - mental health and emotional wellbeing in Middlesbrough 2014115). Loneliness and isolation are societal issues. WHO defines mentsl health as the state of wellbeing in which every individual realises his or h8r own potential, can cope with the normal stresses of life, can work productively and fruitfully and is able to make a contribution to their community. There is a massive rfse in mental health needs and drug and alcohol issues locally.
THE HOPE FOUNDATION LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2024 Achlevements and perfomianc• Significant activilies and achievements against objeGtives Actlvllles, Projects and Servlces The charity has continued to successfully develop Its vrfork, delivering services that make a difference in. and as part of, the Middlesbrough and Tees Valley communty. By deliverlng our services we directly impact identified IcKal issues in the 6th most deprived area in the county (index of mU1ple Deprivation). We impact the Index Categories of Education, skills and training (IMD scores 13.5/0), income deprivation (IMD 22.5%), employment deprivatlon (22.5 % ). health deprivation and disability (13.50/0), barri8rs to housing and services domain (9.3%). Our objectives are To continually identify local need and facilitste the delivery of appropriate services to meet that need. We do that through our own delivery. collabordtion or signposting to a wide range of partners ensuring we support people appropriately and in a holistic way. To meet the needs identified by enabling local residents to recognise and have the support they requlre and know how to achieve thelr aspirations, goals and targets in a safe and supportive environment. Ov8r the year we had an average 14 employees on the charitable activities with 17 staff In total. We are able to provlde SeICe8 and activities with financlal support through fundraising, grants, contracts and service level agreements, as well as working with partners and volunteers. The organisation contlnues to work hard to be sustainable and continue to respond to the increasing and changing communlty needs and funding landscape which continues to be particularly challenging as well as the Increased costs of staff and premises. This year there has been real development in work rfth businesses and 'in kind support,. Our current serviceslactivits'es include but are not limited to.. mia uni Mlddlesbrough Collego The Hope Foundation delivers functlonal skills qualifications from enty 1 to level 2 induding Maths. English and IT, alongside lrfe skills around social skills, confidence and employability. Our teachlng approach is a¢sSIble and provid8s leaming in a supportlve way. The community are able to take up opportunib'es to learn in a way that suits them and in a space that suits them. The majorlty of this work is funded through TVCA from Ihe Adult Skills Budget as a subcontractor of Mkldlesbrough College. Achlevements In tha year We successfully adapted our dellvery model to an online one to meet the changing needs caused by Qjvid arKI the government restrictions. Although this was difficult for learners and staff at the time this has resulted in a blended face to face and online blended model which has enabled us to provide a much more responsive teachirvJ model and service. V¥e delivered 432 courses in the academlc year to 141 learners and average of 3 qualifications per leamer. The Key strongths of the d•llvery are A very responsive management and stsff team with a culture of flexibility, with an ablllty to make positive and tlmely changes, to ensure timely responses to contract and leamer needs. The qualty of the teaching, leaming and assessment is very good and leamers do benefit from high expectations. engagement, care. support and motivation from the full staff team. Device and connectivity support Is provided through our device library and furbdit project. Management, systems and processes and qualty standards are excellent with very good reports from exam boards and other external audits. Vile conducted a pilot programme dellvering ESOL for work with a cohort of learners funded through the RISE programme. The work was to bring together refugee needs around language and what they need to functi?n well in employment. The course was very successful.
THE HOPE FOUNDATION LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2024 ortln th devolo ment of dl I I sklll and use of tèchn lo to s rt Inclusl n and We vrfere able to distribute devices and engage learners that were most digitally excluded with data support provided through the databank and the Gwd Things Foundats'on. Furbdlt This project ww.furbdit.org.uk has continued to develop as it now has funded support with dedicated staff to Vrk on the project. Natlonal Lottery Communlty Fund - Reaching Communities monies support this computer recycling and re distribution project to ensure digital inclusion through WOTking with 120+ organisations working with the most vulnerable. The fvnd employs a Business Development Manager and support worker but the funds cx)me to an end in March 2025. The project is tackirYJ digital exclusion and digital inequality by collecting, refurbishing and th8n re distributing computers, laptops. phones, tablets, printers and parts. Partnership with Th8 University of Teesside has resulted in furbdit moving into the Launchpad Spa in October 2022. This is currently still on a 6 month renewable lease, in an entrepreneurial communty helping start-ups and founders of new businesses. Furbdit has built up links with buslnesses and statutory S8rvices as donors of redundant equipment. Many local agencies, working with the most vulnerable in society, have been recruited as distributors of the devices to the people they are working wlth. Local agencies hav8 been recruited as drop off points including Middlesbrough libraries. Connectivity needs have been supported through the Nats'onal data bank. UK Social Prosperfty Fund The Hope Foundation was part of a partnership which in June 2023 was successful in accessing support through th8 UKSPF from Tees Valley Comblned Authority. The main partners are The Unlversity of Teesside, The Hope Foundation and Good Things Foundation. This feasibility project which ran until Marth 2024 helped to support furbd. Through the fund we there able to start the development of an ecommerce platform, rebrand furbdit to furbd, employ a technical manager, a pat time volunteer manager and a digitsl officer. The Vrk was very SUCssful in ralslng the understsnding of the Impact of the furbd project in the local area. It also helped the development of work to make the project sustainable in the longer term. The University conducted the research as to local needs with the project looking at the issues through a feasibility study around drgital excluslon and the 3 main pillars., the need for devices, connectivity and skills. The local authorities as part of the project eXplod different skills delivery models to meet local needs. At the end of the funds we have been able to sustain the digital inclusion officer as an IT tutor and the volunteer coordinator through our centre for warmth. Unfortunatety we were unable to sustain the technical manager's role. Device Library have fomied a device library which enables people to borrow tablets. laptops and phones for specific purposes such as to do a course or other time limited activities. This is well used. Inform an Our contract with Educational Development Trust {EDT) enables us to deliver through the govemmenfs National Careers Service. The seiCe includes quality workshops, 1 to 1 appointments and drop in support. This contract is important in being able to help link local people with preparing for working life and to address their barriers, as well as further support into employment. training and volunteering opportunitie5. The service delivers in Middlesbrough. The current contract was renewed in March 2024 for a further year. A lot of our work is to help progress individuals to where they need to be, to achieve their goal. The employabilty support includes a CV workshop, work club and cybercafé. Through support with basic IT skills we he with using the Intemet and applying for Jobs and recording job search adivty. We have access to quality LMI {Labour Market Intelligence) and good local employer and training delivery knowledge. This work is supported through parts of the National Careers Service and Mlddlesbrough College contracts as well as the cybercafé and volunteer support. In the year, from the people w• have supportod these are the posltlve progresslon outcomes.
THE HOPE FOUNDATION LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 On average leam8r8 completed 3 qualifications with us. We work with a wlde range of organisations and the majority of our learners continue to work with other agencies for more complex life issues while still worklng us. Ive are often part of a long journey. rienc The support of volunteers is key to the Charltys day to day operations. Volunteers and work experience opportunities are avallable in all areas of the delivery. This includes adminlstration, reception, kntor support. fè support, work club delivery, digital skills and activities. Volunteers provide added value to all areas of our work and helps us to be able to deliver quality services. For some this has proved to provide a pathway into employment. We have formal volunteers with a number of regular days supporting the work that goes on. INe also have infomal volunteering opportunities where people help on an ad hoc basis for example with handyman and garden roles. Access Foundation The support from the Access Foundation helped us to us to fomialise our volunteering programme working Vth the new Volunt88r Academy which has been set up locally. Through the support we are able to meet volunteer costs, provide training and support and develop routes into work and leaming especially around digital skllls. Digltsl Volunteers All our volunteering uses aspects of IT. From logging hours to supporting people to access IT. Partnership with the College and Universily has resulted in work experience and internshlps being offered. Current placements are for T level students, masters and degree students and level 3 technical students. The T level students are key to supporting the furbd contract. In the year we calculated volunteers worked 3,592 hours for the Charity. At a notional cost of £10.76 per hour over the period this equates to a contribution of approximately £38,650. Ban Our current social activities programme has continued to grow and develop with programmes across wery day of the week. Ve are a member of far8share and recycle unwanted food, which enables us to keep our café costs dovm. while providing an excellent healthy menu. We have a 'Snug' and warm space where people can attend who are having difficulties paying their bills. Activities occur weekly and include cr8fts, Bingo, a coffee morning, tea and technology drop in, board games, quiz and record club. These are delivered by volunteers with staff support. Various funds are accessed to help support the actlvltles. Café The café is a safe space for the community of Hope and Middlesbrough town centre. This is where lmers, staff and friends meet. Activities tske pla In this social space with internet access and accessible sp&8 for meals and drop In. The Stsff are supportive 8nd they always find time to chat and make people welcome. As It ats about 35 people there is always a presence and people who come along soon make friends and are able to aCS support as required. We operate 8 subsidised kitchen with cheap hom&made nutritious healthy meals. Many of our client group are on low incomes and the Kitchenlcafa offers affordable meals and drinks and a welcoming meeting place. Mlddlesbrough Mental Health Collactive The formal partnership has Gontinued lo grow with 10 partner voluntsry organisations Involved as part of the mental health transformation programm8. The café and staff support many people with complex mental health and other issues who need a space to go and 'belong' and be 'seen'. The work is progressing wilh further funding this year. By linking up services, signposting and informal and formal support people are better served to have their needs met in terms of mental health support. We have community navigators through the NHS based in the certre once a week Cyber café The cyber café enables people to get access and support for digitsl skills. Hope 2 Work and CV wortshops with the focus on finding work take place weekly. Other work includes te8 and tech Sessions, support to apply for jobs, how to use your devlce and support accessing online courses and leaming. Centr• for Warmth April 2024 a new project working wlth the Northem Gas Network is helping people with their utility bills tackling the cost of living and fuel Crisis. By helping vulnerable people reglster on the priority service register and learn about the effects of carbon monoxide and also having access to carbon monoxide alarms residents are supported. Other benefits of the project include healthy eating and the dlstrlbution of slow cookers.
THE HOPE FOUNDATION LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2024 Premises and Bulldin There have been ongoing general Improvements to the building and intemally to the premises in the year to better facilitate how the building is used to meet local need. This has included building works and redecoration of dassrooms. IT Infrnstructure There have been no significant changes in the year viith the Cyber Security plus standard mairrtained. are equipped to be able to upgrade to Mfindows 11. Financial review Unrestricted funds income decreas8d by £25.244 (7%). Restricted funds income increased by £116,263 (87%). Six new Restricted Funds were secured in the year (note 14). Café income increased £14,664 (48%) as the café enjoyed increased patronage. Other income decreased by £15,762 (32%). Overall totsl income increased by £91,019 (18%) with Unrestricted income making up 59% of total income vs 74% in the prevlous year, so there vS a significant change in the make up of the funding Streams accessed, to provide the services to meet the current needs of the local community. Totsl resources expended were in line wÈth the changing income streams and totalled £392.195 for Unrestrlcted funds expenditure and £241,002 for Restricted funds expenditure. The net movement in funds for the year was an increase in Unrestricted funds of £10,583 and a decrease in Restrlcted funds of £34.947 vthich was a satisfactory outcome in a challengirKJ year. The balance sheet remains well geared with fixed assets at £359,727 with no debt and the working pital ratro is 2.1 wth net current assets of £319.105 which meets the Charitys policy on reserves of 6 months expenditure. Total fund5 at the balan sheet date Vre £678.832 (2023 £703.196). R&seryes policy It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to six month's expenditure. The Trustees consider that reserves at this level will ensure that. in the event of a significant drop in funding. they viill be able to continue the charity's current activities vthile consideration is given to vrfays in which additional funds may be raised. This level of reserves has been maintained throughout the year. Rlsk management The trustees have a duty to identify and revlew the risks to hvhich the charity is exposed and to ensure appropriate controls are In place to provide reasonable assurance against fraud and error. The trustees are aware of the potential risks to the charty both financlal and otherwise and implements strategies to control or minimise these risks. Regular reviews of risks and controls are undertaken.
THE HOPE FOUNDATION LIMITED TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Plans for future perlods There are conts'nuing funding challenges in the current financial climate. We are hopeful that 41[ be abl8 to sustain our activities and the support of Ic&g1 people. Our confidence is based on a resilient staff team with a proven track record of delivery vtho have continually, over many years. responded in a timely and effective way to meet local need. Financially the Charity is strong which allows us to underpin our activity effectively Some of the challenges in the year viill be 1) To continue to address digital poverty and the needs of the local communty in terms of digital skills with the end of the Big Lottery Funding support in March 2025. 2) Increase the management team of the charity to better meet the staff. charity and communty needs. 3) To continue to provide and develop the social activities to help people regardlng mental heallh and loneliness and isolation. This work linking in with partners and referral agencies while building on the work of the Mental H8alttr, Collective. 4) To conts'nue to address food and fuel povety to meet communty need. 5) To maintain the staff team with the end of the UKSPF programme in March 2024 and the National Lottery Communty Fund in March 2025. 6) To find fit for purpose premises for furbd and help to develop ts sustainability through the e-commerce platfomi. 7) To develop the partnership with business in the community to review the current premises and potential cost savings through building improvements. 8) New sources of funding are belng continually sought to ensure adequate funding to maximise the delivery of our PurFoses and Aims to the community. Adequate finanaal resourtss are held to meet current and future liabilities of the Charity and to fulfil our Reserves policy. Structure. govèrnance and management Governlng document The organisation is a Christian based charitable company limited by guarantee, incorporated on the 27 December 1995 arKI registered as a charity on 15 December 1999. The company was established under a Memorandum of Association which establishes the objects and powers of the charitable company and is govemed under its Articles of Association. The Trustees, who 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: Mr P J Winstone Mr J Keamey Mrs L P Sowerby DrA Knight Mr G Rodgers Recmitment and app.ntment of tnistees The directors of the charitable company are its trustees for the purposes of charity law and throughout the report are collectively referred to as the trustees. The trustees are appointed accordirKJ to the constitution of the organisation. One third of the trustees are required to retlre from office at each AGM. A retiring trustee is eligible for re-electlon.
THE HOPE FOUNDATION LIMITED TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Oryanisation81 stnicture The executive committee met 4 times between August 2023 and July 2024 to review activities, consider the financial posrtion arKJ to decide strategy and procedures. The chief executlve, who is responsible to and reports to the Executive Commlttee, overse8S the day to day work of the charity. The Ttuste8s' report was approved by the Board of Trustees. Mr J Kearney Trust••
THE HOPE FOUNDATION LIMITED INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE HOPE FOUNDATION LIMITED I report to th8 Trustees on my examinatron of the financial statements of The Hope Foundation Limited (the charity) for the year ended 31 July 2024. Responsibilities and basls of report As the Trustees of the charity (and also Its directors for the purposes of company law), you are responsible for the preparation of the financial statements in accordance Vth the requirements of the Companies Act 2006. Having satisfied myself that the financial ststements of the charity are not required to be audited under Part 16 of the Companies Act 2006 and are eligible for independent examination, I report in respect of my examination of the charity's financial statements carried out under section 145 of the Charities Act 2011. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the Charities Act 2011. Independent examlnefs statement Since the charity's gross income exceeded £250,000. the independent examiner must be a member of a body listed in section 145 of the Charitles Act 2011. 1 confjmi that l am qualified to undertake the examination because l am a member of the Institut8 of Chartered Accountants in England and Vvales. th1¢h Is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attentlon In connection with the examination giving me c8use to believe that in any material respect.. accounting records were not kept in respect of the tharity as required by section 386 of the Companies Act 20(X. the financial statements do not accord with those records., or the financial statements do not comply with the accounting requirements of section 396 of the Companies Act 2006 other than any requirement that the finandal statements give a true and fair view. whlch is nc* a rnatter considered as part of an independent examination; or the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Pra1 for accounting and reporting by charities applicable to charities preparing their finanGial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102). I have no concerns and have come across no other matters in cx>nnection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reathed. B•vorley Go¢)dall BA BFP FCA AbacusBean Limited Level Q Surtees Business Park Stockton on Tees TS18 3HR
THE HOPE FOUNDATION LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 JULY 2024 Unrestricted Restricted funds funds 2024 2024 Tolal Unrestrlcted Restricted funds funds 2023 2023 Totsl 2024 2023 Income and endowments from: hari Grants 8nd contracts Café income 271,645 45.092 249,572 521,217 45,092 300,879 30,428 133,309 434,188 30,428 Investments Other income 8,490 34,034 8.490 34.034 3,402 49,796 3.402 49,796 Total incomo 359,261 249,572 608,833 384,505 133,309 517.814 Expendlture on: Charitable activities Other expendlture 392,195 241,002 633.197 397,686 124 119,331 517.017 124 12 Tolal expenditure 392,195 241,002 633,197 397.810 119,331 517,141 Net Incomel{expendlture) (32,934) 8,570 (24,364) (13,305) 13,978 673 Transfers between funds 43,517 (43,517) Net movement in funds 10,583 (34,947) (24,364) (13,305) 13.978 673 Reconeiliatlon of funds: Fund balances at 1 August 2023 641,336 81.860 703,196 654.641 47.882 702.523 Fund balances at 31 July 2024 651,919 26.913 678.832 641.336 61,860 703,196 The statement of financial activities Includes all gains and losses recognised in the year. All income and expenditure derlve from continuing activitie8. The statement of financlal activities also complies with the requirements for an income and expenditure account under the Companies Act 2006. 10-
THE HOPE FOUNDATION LIMITED BALANCE SHEET AS AT31 JULY2024 2024 2023 Notss Flxed assets Tangible assets 13 359.727 388.833 Current assets stocks Debtors Cash at bank and in hand 14 15 12,491 79,916 487,229 109,152 228,917 579,636 338.069 Credltors: amounts falling due withln one year 16 (260,531) (23,706} Net current assets 319.105 314.363 Total assets less currant Ilablllties 678,832 703.196 Net assets 678.832 703,196 The funds of the charity Restricted income funds Unrestricted funds 18 26,913 651,919 61,860 641,336 678,832 703,196 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 July 2024. The directors acknowledge thelr responsibilities for complying with the requirements of the Companies Act 2006 I¥th respect to accounting records and the preparation of financlal statements. The members have not required the company to obtsin an audit of its financial statements for the year in question in attordance wlth wtion 476. These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companles regime. The fin nci a¥14/a5. . I ststements were approved by the Trustees on .. . . . ... Mr J Kearney Trustee Company registration numter 03141290 (England and Wales) 11
THE HOPE FOUNDATION LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 JULY 2024 2024 2023 Notss Cash flows from operating actlvltles Cash generated froml{absorb8d by) operations 250,484 {15.086) Investing actlvltles Purthase of tangible fixed assets PrOedS from disposal of tangible fixed assets Investment income received (662) (1,944) 120 3,402 8,490 Net cash generated from Investlng actlvltles 7.828 1,578 Net cash generatsd from financlng actlviti08 Net increaseJ(decrease) in cash and cash equlvalents 258.312 (13,508) Cash and cash equivalent8 at beginning of year 228.917 242,425 Cash and cash equlvalents 8t end of year 487.229 228,917 -12-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 JULY 2024 Ac¢ountlng policies Chartty information The Hope Foundation Limited is a private company limited by guarantee incorporated in England and IAlales. The registered office is Hope House, 1 Grange Road, Middlesbrough. TS15BA 1.1 Accountlng convention The financial statements have been prepared in accordan with the chanvs Memorandum and Artides of Association. the Companies Ac* 2CQ6, FRS 102 °The Financial Reporting Standard applicable in the UK and Republic of Ireland. (°FRS 102) and the Charities SORP "Accounting and Reporting by Charities.. Statement of ROrnMended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102)" {effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Golng concern At the time of approving the financial statements, the Trustees have a reasonable 8XFeCtation that the charity has adequate resources to continue In operational existence for the foreseeable future. Thus the TrLBtees continue to adopt the going conc8m basis of accounting in preparlng the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretlon of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to spe(afic conditlons by donors or grantors as to how they may be used. The purposes and u5e5 of the restricted funds are set out in the rteS to the financial statements. Endovfftent funds are subject to specffic conditions by donors that the capital must be maintained by the charity. 1A Income Income is recognised when the itharity is legally entitled to it after any performan conditions have been met. the amounts can be measured reliably. and it is probable that income 111 be reived. Cash donations are recognised on reipt. Other donations are recognised On the charity has been notified of the donation, unless performan conditions require deferral of the amount. Income tax recoverable in relation to donations received under GiftAid or deeds of covenant is recognised at the time of the donation. Legacies are recognised on reIpt or otherwise if the charlty has been notified of an impending distribution. the amount is thown, and receipt is expected. If the amount is rt known, the legacy is treated as a contingent asseL Gifts of fixed assets are induded within donations in the Statement of Financial Activities at their estimated market value and capitalis8d in the balance sheet. Intsngible income, which comprises donated services, is included in income at a valuation th1¢h is an estimate of the finanaal cost bome where such cost is quantifiable and measurable. No income is recognlsed ffien there is no financial cost borne by a third party. Coronavirus Job Retentlon Scheme and other Covid support grants are accounted for on an accruals basis and are induded in other income. 13-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Accounling policles (Continued) 1.5 Expendlture Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party. 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 classrfied by activity. The costs of each activity are made up of the total of dir costs and shared costs. including support costs involved in undertaking each activity. Direct costs attributatle to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs vthich are not attributable to a single activity are apportioned between those activities on a basis consistent viith the use of resources. Central staff costs are allocaterj on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. 1.6 Tangible flxed assets Tangible fixed assets are initially measured at cost and subsequenlly measured at cost or valuation. net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases.. Freehold land and buildings Fixtures and fittings Computers 2% on cost on buildings 20% on reducing balanc8 50% on reducing balance and 20% on cost The gain or loss arising on the disposal of an asset is deterniined as the differen between the sal8 proceeds and the carrying value of the asset. and is recognised in the sL3tement of financial activities. 1.7 Impaimient of flxed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to deteIne ether there is any indication that those assets have suffered an impairment loss. If any such indtcation exists. the recoverable amount of the 855et is estimated in order to determine the extent of the impaimient Ios5 (rf any). 1.8 Stock8 Stocks are stated at the loVr of cost and estimated selling price less costs to complete and sell. Cost Comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost. Net realisable value is the estlmated selling price less 8118stimated costs of completion and costs to be incurred in marketing, selling and distribution. 1.9 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-temi liquid Investments with original maturltles of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 14-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 Accounting policles (Contlnued) 1.10 Financial Instruments The charity has elected to apply the provisions of Sectlon 11 'Basic Financial Instruments, and Section 12 'other Financial Instruments Issues, of FRS 102 to all of its financial instwments. Financial instruments are recognised in the chaiity's balance sheet when the charity becomes paty to the corrtr8Ctual provisions of the instrument. Financial assets and liabilitles are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognlsed amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. Basic financial assots Basic financial assets, which include debtors and cash and bank balans. are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the 8ffective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of Interest. Financial assets classlfied as receivable within one year are not amortised. Baslc financial liabilities Basic financlal liabilities. including cr8ditors and bank loans are initially recognised at transaction prfce unle&s the arrangement constitutes a financlng transaction, where the debt instrument Is measured at the present value of the future payments discounted at a market rate of Interest. Financial liabilities dasslfled as payable within one year are not amortlsed. Debt instruments are subsequently carried at amortised cost, using the effectlve interest rate method. Trade credltors are obligations to pay for goods or servi8 that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities rf payment is due within one year or less. If not, they are presented as non-current liabllltles. Trade creditors are recognlsed initially at transaction price and subsequently measured at Smortised cost using the effective interest method. Derecognltlon of financlal liabilities Financial liabilities are derecognlsed when the charity's contractual obligations expire or are discharged or Cancelled. 1.11 Employee beneffts The cost of any unused holiday entitlement is recognised in the perlod in which the employee's services 8re received. Temiination benefits are recognised immediately as an expense when the tharity is demonstrably committed to teminate the employment of an employee or to provlde termination beneffts. 1.12 Retlrement beneffts Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 1.13 Voluntary servlces In addition to recorded incoming resources, the tharty received the benefit of many voluntary hours and unclaimed out of pocket expenses contributed to by its supporters. It would be Impossible to place a value on 811 these services and expenses. without whtch much of the work undertaken could not be achieved and for which the charty is extremely grateful. 15-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Critical accountlng estlmates and Judgements In the applicatlon of the ch8rity's accounting policies, the Trustees are required to make Judgements, estimat8s and assumptions about the carying amount of assets and liabilities that are not readily 4Jparent from other sources. The estimates and associated assumptlons are based on historical experience and other factors thal are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. R8visions to accounting estimates ar8 recognised in the period in whlch the estimate is revised where the revision aff8Cts cnly that period. or In the period of the revision and fLrture periods where the revision affects both current and future periods. Income from charitable actlvltles Grants andcafé Income contracts 2024 Total Grants and Café Income contracts 2023 Total 2024 2024 2023 2023 Services provided under contract ncillary trading Income 521,217 521,217 434,188 434,188 45,092 45,092 30,428 30.428 521,217 45.092 566,309 434,188 30,428 464,616 Anatysls by fund Unrestricted funds Restricted funds 271,645 249,572 45,092 1,132.818 249.572 300.879 133.309 30,428 331,307 133,309 521,217 45,092 1,382,190 434,188 30,428 464,616 Income from inv8slments Unrestricted Unrestrlctsd funds funds 2024 2023 Interest receivable 8,490 3,402 16-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Other Income Unrestrlctod Unrestrlcted funds funds 2024 2023 Sundry income Room hire Car park Employment allowance 25,589 2,005 1.440 5.000 38,996 4,260 1,540 5,OCN) 34.034 49,796 Expenditure on charitable actlvlties Charltable Charltable Expendlture Expènditure 2024 2023 Staff costs Depreciation and impairment Other charitable expenditure 395,858 29.768 171,046 327,544 30,748 121,454 596.672 479.746 Share of support and governance costs (see note 7) Governance 36,525 37,271 633.197 517,017 Analysls by fund Unrestricted funds R8Strict8d funds 392,195 241,002 397.886 119,331 633,197 517,017 Support costs allocated to aetlvities 2024 2023 Govemance costs 36,525 37,271 Anatysed bètween: Charitable Expenditure 36,525 37,271 17-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 Net movemènt In funds 2024 2023 The net mov8ment in funds is stated after chargingl(crediting): Fees payable for the independent examination of the charitS financial statements Depreciation of ovmed tangibie fixed assets Loss on disposal of tangible fixed assets 2.640 29.768 2,640 30,748 124 Trustees One or more of the trustees has been paid remuneration or has received other b8nefrts from an employment with the charty. This rernuneration is only received in respect of services they provide as employees under their contracts of employment and not in respect of their services as trustees. The value of trustees. remuneration and other benefits was as follows.. Mrs L P Sowerby Rernuneration £807 (2023.. £6.353) Employer's pension contributions £22 {2023.' £191) There were no expenses paid to trustees for the year ended 31 July 2024 nor for the year ended 31 Ju 2023. 10 Employees The average monthly number of employees during the yearwas.. 2024 Number 2023 Number Charitable Activities Managment and administration 14 11 Total 17 14 Employment costs 2024 2023 Wages and salaries Social security costs Other pension costs 364,824 33,886 16.642 310,868 21,789 13,018 415,352 345,675 There were no employees ose annual remuneratlon was more than £60.000. 18-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y2024 10 Employees (Continued) Remuneratlon of key management personnel The remuneration of key management personnel was as follows: 2024 2023 Aggregate compensation 53,975 49.029 11 Taxatlon The charity is exempt from taxation on its activities because all Its Income is applied for charitable purposes. 12 Other expendlture Unrestrlcted Unrestrlcted funds funds 2024 2023 Net loss on disposal of tangible fix8d assets 124 124 13 Tanglble fixed assets Frnehold Jand Fixture8 and and bulldlng8 flttings Compthr5 Totsl Cost At 1 August 2023 Additicns 557,262 200,834 662 68,243 826,339 662 At 31 July 2024 557,262 201,496 68,243 827,001 Depreclallon and Impaimignt At 1 August 2023 Depreclatlon charged in the year 217,677 11,399 178,988 4,799 42.861 13.570 437,506 29.768 At 31 July 2024 229,076 181,767 56,431 467,274 Carrylng amount At 31 July 2024 328,186 19,729 11,812 359,727 At 31 July 2023 339,585 23.866 25,382 388,833 19-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JUL Y 2024 14 Stocks 2024 2023 Raw materlals and consumables 12,491 15 Debtorn 2024 2023 Amounts falling due wlthin one year: Trade debtors Other debtors Prepayments and accrued income 46,728 359 32,829 36,440 5,829 66,883 79,916 109,152 16 Credltors: amounts falling duo withln one year 2024 2023 Other tsxation and social security Trade creditors Accruals and deferred income 5.430 12,883 242,218 5,268 5,661 12,777 260,531 23,706 17 Retlrement benefft schemes 2024 2023 Deflned contrlbutk)n schemas Charge to profft or lo&s in respect of defined contribution schemes 16.642 13,018 The charity oper*s a defined contribution pension scheme for all qualfying employees. The assets of the scheme are held Separate from those of the charity in an independently administered fund. -20-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 18 Restrlcted funds The restricted funds of the charty comprise the unexpended balances of donations arKI grants held on trust subject to speclflc conditions by donors as to how they may be used. At 1 August 2023 Incomlng resources Resources •xpended Transfers At 31 Juty 2024 Tees Valley Business Fund CDCF National Emergencies Trust Covld 19 Fund Awards forAII (Fun, food and friendship) Good Things Foundation- Everyone Thriveslmake It Clid Access Foundation Awards forAII (2013) Awards forAII (2011) Blg Lottery Fund DMP - Ac¢ess4Work (Cafe) Good Things Foundation - Dlgltal Inclusion Grant Teesside University- Participatory Research Fund Northem Gas - cent for Vvarmth Teesside Universty - Digital Indusion Project Big Lottery - Furbdit 2,432 (1,620) 812 1,650 (990) 660 4,113 (850) 3,263 600 33,281 1,404 177 18.203 (300) (33,281) {138} (79) (189) (18,932) 300 1.266 98 18,014 18,932 6,000 (160) (3,340) 2,500 2,500 (2.500) 14.287 (14.287) 152.158 55,695 (120,047) (47,629) (32.111) {8,C66) 61.860 249,672 (241,002) (43.517) 26,913 21
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY2024 18 Restrlcted funds {Contlnued) Previous year: At 1 August 2022 Incomlng resources Resources expended Transfer3 At 31 July 2023 National Lottery Communlty Fund- Reaching Communities CDCFI Darllngton Building Society Thirteen ESF Communlty Grant Tees Valley Business Fund CDCF National Emergencies Trust Covid 19 Fund Awards forAII (Fun, food and friendship) Good Things Foundation- Everyone Thriveslmake it click Access Foundation Covid Recovery Grant (Middlesbrough Council) Awards for All (2013) Awards forAII {2011) Big Lottery Fund UKSPF 61,252 (61,252) 6.734 7,668 {6,734) (7,668) (4,721) (1,620) 4,721 4,052 2,432 2,640 (990) 1.650 5,141 {1,028) 4,113 900 (300) <7,455) 600 33,281 40.736 565 1,491 278 18.413 (565) <87) (101) (210) (26,800) 1,404 177 18.203 26,600 47,882 133,309 (119,331) 61,860
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 18 Restri¢ted funds (Continued) Restrlcted Funds Community Fund (2022) - fvnding to employ fvrfo staff with a contributs'on to overheads to develop the work of Furbdit. CDCFIDarlington Building Society (2022) - provision of a safe sc¢ial space and activities for people to get involved and participate after Covid. Communlty Fund (Big lottery Fund) Ageing Better Middlesbrough (2015-2022) - working with local residents who are aged 50+ to reduce lonellness and isolation and incr8ase digitsl incluslon and community development. Thirteen {2021)- funding to develop the work of furbdit ESF Community Grant (2021) - to delNer infonnation, advice and guidance to adults, in Tees Valley. ensbling them to make better career choices. CDCF Coronavirus Community Support Fund: Connectivty Rules {2022) set up of a device library and connectivity support for people 1) shielding 2) self-isol8ting 3) no connectivity 4) lonely or isolated. Tees Valley Business Fund (2020) - funding towards a new computer network. This fund is depreciated in line with the depreciation policy for the asset classes. CDCF National Emergencies Trust Covld 19 Fund (2020) - purchase staff laptops to enable staff to work from home during the Covid lockdowns. This fund is depCIated in line with the depreciation policy for the asset classes. Awards for All (Fun, food and frierKlship) (2020) - utilised in October 2021 to upgrade and get the café ready to reopen afier Covid. This fund is depreciated in line vAth the depreciation policy for the asset classes. Goc(J Things Foundation- Everyone Thriveslmake it click (2020) - funding to help improve people's lif8 and work outcomes through the use of digital technology. supply 4 computers and staff tim8. CDCF National Emergencies Trust Covid 19 Fund (2020) - funded the dev8lopment of www.furbdit.org.uk websrte to 1) records the collection of unynted d8vices 2) manage the process of receiving and recycling dewces 3} the distribution of the devices in the communlty. Middlesbrough Council Covid Recovery Grant (2020) - supporting Middlesbrough residents coming out of Covld. Awards for All (2013) - a capital grant for café and outdoor fumiture and byke bins. This fund is depreclated in line with the depreciation pollcy for the asset dasses. Awards forAII (2011) - a grant towards development of the cybercafé, reception and Café area. Big Lottery Fund (2007) - a grant to provide and refurbish a new classroom, purchase new equipment and contribution to overheads to support the integratlon and education project. This fund is depreciated with the deprecl£tlon policy for the a&8et cl8sses. Northern Gas - Centre for Vvamith - helkwng people with their utilty bllls tackling the cost of living and fuel crisis. Helping vulnerable people register on the priority service register and learn about the ef of carbon monoxide and also having access to carbon monoxide alanns resldents are supported. Other beneffts of the project include healthy eatlng and the distribulion of slow cookers. -23-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 19 Unrestrlcted funds The unrestricted funds of th8 charity comprise the unexpended balances of donations and grants which are not subject to specrfic condltions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees ft)r specifi¢ wrposes. At 1 August 2023 Incoming resources Resources expended Tran8f•r5 At 31 Juty 2024 General funds 641,338 359,261 (392,195) 43,517 651,919 Prevlou$ year: At 1 August 2022 Incomlng resources R•$ourc•8 expanded Transfers At 31 July 2023 General funds 654,641 384.505 (397,810) 641,336 20 Analysi8 of net assets between funds Unrestrlcted funds 2024 Restrlcted funds 2024 Totsl 2024 At 31 July 2024: Tangible assets Current assetsl(liabilities) 337,735 314.184 21,992 4,921 359.727 319.105 651.919 26,913 678,832 Unrestrlctad funds 2023 Restrictsd funds 2023 Total 2023 At 31 July 2023: Tanglble assets Current assetsi<iiabiliti'es) 362,675 278,661 26,158 35,702 388,833 314.363 641,338 61.880 703,196 21 Financlal commltmonts, guarantees and contlngent Ilabllftles Grants receivable may be repayable in part or in full rf certain condttions associated V*ryth the grants are not met. -24-
THE HOPE FOUNDATION LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 JULY 2024 22 Limited by guarantee The company doe5 not have share capital, but every member of the company undertakes to contribute such an amount, not exceeding £1. as may be required, to the assets of the company if it should be wound up while they are a member, or within one year after they ase as a a member, for payment of the debts and liabilities of the company contracted before they cease as a member and the costs, charges and expenses of windng up, and for the adjustment of the rights for the contrFbutories among themselves. 23 Relatsd party transactlons During the year, Sue Keamey, wrfe of John Kearney. a trustee, was paid remuneration in respect of seNices she provided as CEO under a contract of employment with the charity. Detalls are covered in note 10 under remuneration of key m8nag8ment personnel. Cash generated froml(absorbed by) operations 2024 2023 {Deficit)Isurplus for the year (24.364) 673 Adjustments for: Investment income recognised in statement of financial activities (Gain)lloss on disposal of tangible fixed assets Depreaation and impairment of tangible fixed assets {8,490) (3,402) 124 30.748 29,768 Movements in working capltal: (Increase) in stocks Deueasel{increase) in debtors Increasel(decrease) in creditors (12,491) 29,236 236,825 (42,280) {949) Cash generated froml<absorbod by) operatlons 250,484 (15,086) 25 Analysls of changes In net funds The charity had no material debt during the year. -25-