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2020-10-31-accounts

Charity Registration No. 1079475

Company Registration No. 03816738 (England and Wales)

PROJECT 34

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2020

PROJECT 34

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr A Turner Mr X Vernon Mrs L Bowe Mrs S Worgan

Secretary Mr A Turner Charity number 1079475 Company number 03816738 Registered office 32-34 Weaste Road Salford M5 5FW

Independent examiner AJP Corporate Accountants Limited Unit 9, Brenton Business Complex Bury Lancs. BL9 7BE

PROJECT 34

CONTENTS

Page
Trustees' report 2 - 4
Independent examiner's report 5
Statement of financial activities 6
Balance sheet 7
Notes to the financial statements 8 - 13

PROJECT 34

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 OCTOBER 2020

The trustees, who are also the directors of Project 34 for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Project and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Project and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Project and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

PROJECT 34

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT)

FOR THE YEAR ENDED 31 OCTOBER 2020

The trustees present their report and financial statements for the year ended 31 October 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the Project's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016)

Objectives and activities

The Project's objects are to provide social housing accommodation, care and support for the homeless. From 4 December 2014 Project 34 is also a Registered Provider with the ‘Regulator of Social Housing’ (RSH) – Registration number 4800 and is required to comply with their Regulatory Framework. There has been no change in these objects and activities during the year.

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Project should undertake.

Achievements and performance

At the main hostel, Project 34 provides fully-furnished individual rooms, with cleaning services and laundry, together with communal kitchen, dining and lounge facilities, for 27 homeless people. There is also a ‘move on’ hostel with duplicate communal services, but much lighter supervision, this can accommodate a further 8 individuals. Occupancy levels are usually over 95%.

Project 34 sees the demonstration of Value for Money (VfM) as an important factor in ensuring that our Commissioners and Regulators are able to take a view on the investment made of public monies. We already monitor against various VfM indicators and are looking to identify how we can adapt our systems so as to reflect some of the new Standards that the RSH have introduced from 1st April 2018 ie even though these are geared towards ‘large Registered Providers with bed-units of 1,000 or more.

Financial review

The results for this year are dominated by the effects of Covid 19. Income from room rentals has risen 1% due a reduction in void periods arising from fewer changes of tenants. Government wage subsidies have also boosted income. In total, incoming resources rose by 4% to £570,404.

However, the costs of dealing with the pandemic have exceeded the additional income by £15,159. The principal areas where additional costs were incurred are overtime wage payments, higher cleaning costs and increased spending on food.

The total funds at 31 October 2020 amounted to £533,038, so the project is still well able to fund its day to day operations and to seek new opportunities for its expertise while remaining completely self-supporting and without having to resort to public appeals.

It is the policy of the Project that unrestricted funds which have not been designated for a specific use should be maintained at a level to give it an adequate safety margin and that will enable it to consider running other hostels as and when the opportunity arises. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the Project’s current activities while consideration is given to ways in which additional funds may be raised. The trustees have maintained the £300,000 capital building fund in order to support the proposed new building development. This level of reserves has been maintained throughout the year.

The project's primary source of income is currently Housing Benefit claimed on behalf of the client group. We are however looking at opportunities to diversify with other income streams whilst maintaining the overall aims and objectives of the Charity and also complying fully with RSH registration and standards.

PROJECT 34

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

Project 34 is still mindful that the Government may still at sometime in the near future look to impose restrictions on social housing funding and is therefore will continue to explore ways in which can demonstrate Value for Money.

Project 34 has also purchased a plot of land immediately adjacent to the main building with a view to immediate development. Full planning permission is now in place for 9 one bed room flats for affordable rent. This decision was made to increase the Project's operating surplus and also mitigate against any potential future funding changes. The trustees are aware that this building project will absorb some cash reserves, but do not expect this will put undue pressure on their reserves policy.

Structure, governance and management

Project 34 is a company limited by guarantee, incorporated on 30 July 1999 and registered as a charity from that time. The Memorandum of Association sets out the powers and objects of the charitable company which is governed under its Articles of Association. In the event of a winding up, members have guaranteed to contribute an amount not exceeding £10.

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 A Turner

Mr X Vernon Mrs L Bowe Mrs S Worgan

The Articles prescribe that these shall be a minimum of 3 and a maximum of 12 Trustees and that one third of their number shall retire at each Annual General Meeting. Only a retiring Trustee, or a person nominated by the Trustees, is eligible for election.

The trustees, networking with the local authority, the police, the probation service and other interested parties, are continuing to seek new candidates to join their ranks, and particularly, younger people with appropriate specialist knowledge. Trustee numbers and responsibility awareness will remain a key feature in the Project’s governance arrangements.

Trustee Induction and Training

The legal, financial and managerial framework, together with the obligations of a Trustee, are thoroughly explained to each candidate, before he or she accepts office. After that, the new Trustee, in the company of the very experienced hostel manager, spends time at the hostels, seeing at first hand, how operations are conducted and how the day to day problems are dealt with in order to gain a reasonable understanding of the breadth of the social business This is followed by discussions with other trustees as to the contribution the newcomer can make and how this fits into the future plans for the development of the Charity. Trustees also receive external training so as to better understand their role and responsibilities.

PROJECT 34

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

Risk Management

Risks, Risk Management and Stress Testing is a frequent agenda item at staff and Trustee Meetings and risks such as:

are assessed and mitigation options considered.

A thorough assessment of the risks to which the charity is exposed, is also regularly undertaken externally by a professional risk assessment firm, covering the risks faced by the Charity, its staff and its users in all departments. Their recommendations have been implemented and risks are kept under constant review.

There have been no collections from the public and cash receipts are small, so risks to the Charity’s funds from dishonesty are minimal. With 4 trustees it has been possible to institute a simple, but robust system of internal control, as recommended by the Charity’s independent examiner.

Trustees and Senior Staff also state ‘Declarations of Interest’ at any discussion/decision making process (eg Trustee meetings)

Organisational Structure

The trustees meet formally or informally, whenever necessary, in order to manage the Charity's affairs. Administration is delegated to a full-time Project Manager (reporting to the Trustee Chairman as required) and he and his staff, look after the day to day operation of the hostel. The Trustees provide their services on a voluntary basis; the manager and other staff are paid.

Disabled persons

The Project's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting performance.

The trustees' report was approved by the Board of Trustees.

Mr A Turner Trustee Dated: 27 April 2021

Mr X Vernon Trustee Dated:27 April 2021

PROJECT 34 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PROJECT 34 I report to the trustèes on my examination of th8 finanryal statements of Project 34 (the Project) for the year ended 31 October 2020. R8sponslbllltles and ba$ls of report As the trustees of the Proje¢t land 81s0 its dlrectors for the purposes of eompany law) you are responsible for the preparation of the financial stslemenls in a¢¢0[dan￿ with th& rèquirèments of the Companies Act 2008 Ilhe 20(￿ Acti. Having satisfied myself that the financi81 slalemenls of the Project are not ￿Qui￿￿ to be audited under Part 16 of the 2006 Act and are eligible for independent examination, l ￿port in respect of my èxamination of the Project's financial slalements carried out under section 145 of the Charities Act 2011 Ilhe 2011 Act). In carrying out my exarnination I have followed all the appli¢able Directions given by the Charity Commission undèr section 1451Sllb} of the 2011 Act. Independent examinerfs ststement Since the Projed's gross income exceeded £250,IJOO your examiner musl be a member of a body listed in section 145 01 the 2011 Act. I conlim that l am qualified to undertake the examination because l am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies. I have completed my examination. I confirrn that no mallers have come lo my attention in ¢onne¢lion with the examination giving me cause lo believe that in any rnaterial respect.. a¢¢ounling records were not kept in respect of the Project as requi￿d by section 388 of the 2006 Act.. or the finanaal statements do not accord with those records., or Ihe financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that thè accounts give a true and fair view which is not a matter considered as part of an independent examination., or the financial statements have not been prepared in accordance with the method5 and principles of th¥ Statement of Recommended Practice for accounting and reporting by charits'es applicable lo charities preparing their a¢counls in a¢¢ordan¢e with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021. I have no concern5 and have come 8cr05s no other mattels in connedion with the examination to which attention should be drawn in this rep order to enable a proper understanding of the financial $18lements lo be reached. AJP Corporate Accountants Limited Unil 9, Brenlon Business Complex Bury Lancs. BL9 7BE Dated.. 27 April 2021

PROJECT 34

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 OCTOBER 2020

Unrestricted
funds
2020
Notes
£
Income and endowments from:
Donations and grants
3
9,354
Charitable activities
4
553,884
Investments
5
90
Other income
6
7,076
Total income
570,404
Expenditure on:
Charitable activities
7
585,563
Gross transfers between funds
-
Net movement in funds
(15,159)
Fund balances at 1 November 2019
248,197
Fund balances at 31 October 2020
233,038		 Capital
funds
2020
£
-
-
-
-
-
-
-
-
300,000
300,000		 Total
2020
£
9,354
553,884
90
7,076
570,404
585,563
-
(15,159)
548,197
533,038		 Total
2019
£
-
547,492
330
-
547,822
552,142
300,000
295,680
252,517
548,197

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

PROJECT 34

BALANCE SHEET

AS AT 31 OCTOBER 2020

2020 2019
Notes £ £ £ £
Fixed assets
Tangible assets 10 243,368 225,576
Current assets
Debtors 11 89,248 86,326
Cash at bank and in hand 221,418 267,319
310,666 353,645
Creditors: amounts falling due within
one year 12 (20,996) (31,024)
Net current assets 289,670 322,621
Total assets less current liabilities 533,038 548,197
Capital funds
Building 300,000 300,000
Income funds
Unrestricted funds 233,038 248,197
533,038 548,197

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 October 2020.

The directors acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 27 April 2021

Mr A Turner Mr X Vernon Trustee Trustee

Company Registration No. 03816738

PROJECT 34

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2020

1 Accounting policies

Charity information

Project 34 is a private company limited by guarantee incorporated in England and Wales. The registered office is 32-34 Weaste Road, Salford, M5 5FW.

1.1 Accounting convention

The accounts have been prepared in accordance with the Project's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The Project is a Public Benefit Entity as defined by FRS 102.

The Project has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

The financial statements are prepared in sterling, which is the functional currency of the Project. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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 Project has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

1.4 Incoming resources

Income is recognised when the Project is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

1.5 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently 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 2%
Leasehold land and buildings 10%
Fixtures and fittings 33.3%
Motor vehicles 20%

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

PROJECT 34

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

1 Accounting policies

1.6 Impairment of fixed assets

At each reporting end date, the Project reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The Project has elected to apply the provisions of Section 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 Project's balance sheet when the Project becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective 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 classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, 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-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Project’s contractual obligations expire or are discharged or cancelled.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Project is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

PROJECT 34

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

1 Accounting policies

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Project’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting 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 revision and future periods where the revision affects both current and future periods.

3 Donations and grants

Unrestricted
funds
2020
£
Donations and gifts
700
Coronavirus job retention scheme grants
8,654
9,354		 Total
2019
£
-
-
-

4 Charitable activities

2020 2019
£ £
Services provided under contract 553,884 547,492

5 Investments

Unrestricted Unrestricted
funds funds
2020 2019
£ £
Interest receivable 90 330

PROJECT 34

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

6 Other income

Unrestricted
funds
2020
£
Net gain on disposal of tangible fixed assets
7,076
7
Charitable
2020
£
Staff costs
325,341
Depreciation and impairment
19,739
Property rental costs
66,512
Council tax and insurance
8,090
Light, heat and water
27,356
Cleaning
11,038
Repairs and maintenance
85,526
Printing, postage and stationery
3,434
Telephone
4,126
Motor running expenses
3,265
Travelling expenses
2,156
Consultancy fees
3,566
Accounting and payroll services
5,210
Sundry expenses
5,504
Food
13,052
Computer running costs
1,648
585,563
585,563		 Total
2019
£
-
activities
2019
£
303,893
17,582
66,512
7,223
22,864
8,327
81,258
2,617
5,766
5,435
1,284
4,620
5,317
5,257
8,741
5,446
552,142
552,142

8 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the Project during the year.

PROJECT 34

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

9 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2020
Number
11
£
293,465
25,400
6,476
325,341		 2019
Number
11
£
274,938
23,795
5,160
303,893

10 Tangible fixed assets

Freehold land
and buildings
Leasehold
land and
buildings
Fixtures and
fittings
Motor vehicles
£
£
£
£
Cost
At 1 November 2019
238,887
57,407
144,350
38,886
Additions
-
-
4,400
40,905
Disposals
-
-
-
(38,866)
At 31 October 2020
238,887
57,407
148,750
40,925
Depreciation and impairment
At 1 November 2019
30,812
56,628
135,422
31,092
Depreciation charged in the year
3,066
521
7,971
8,181
Eliminated in respect of disposals
-
-
-
(31,092)
At 31 October 2020
33,878
57,149
143,393
8,181
Carrying amount
At 31 October 2020
205,009
258
5,357
32,744
At 31 October 2019
208,075
779
8,928
7,794		 Total
£
479,530
45,305
(38,866)
485,969
253,954
19,739
(31,092)
242,601
243,368
225,576

PROJECT 34

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 OCTOBER 2020

11 Debtors

Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 2020
£
31,065
228
57,955
89,248		 2019
£
27,283
1,590
57,453
86,326
12
Creditors: amounts falling due within one year
Other taxation and social security
Payments received on account
Accruals and deferred income		 2020
£
6,236
1,815
12,945
20,996		 2019
£
13,241
3,250
14,533
31,024

13 Analysis of net assets between funds

Fund balances at 31
October 2020 are
represented by:
Tangible assets
Current assets/(liabilities)		 Income
Fund
2020
£
243,368
(10,330)
233,038		 Capital
Fund
2020
£
-
300,000
300,000		 Total Income Fund
2020
2019
£
£
243,368
225,576
289,670
22,621
533,038
248,197		 Capital
Fund
2019
£
-
300,000
300,000		 Total
2019
£
225,576
322,621
548,197

14 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).