**COMPANY REGISTRATION NUMBER: 04407742 CHARITY REGISTRATION NUMBER: 1093901**
## **CHESS Homeless**
## **Company Limited by Guarantee**
# **Financial statements**
# **31 March 2021**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Financial statements**
## **Year ended 31 March 2021**
||**Page**|
|---|---|
|Trustees' annual report (incorporating the directors' report)|**1**|
|Independent auditor's report to the members|**14**|
|Statement of financial activities (including income and expenditure account)|**18**|
|Balance sheet|**19**|
|Statement of cash flows|**20**|
|Notes to the financial statements|**21**|
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)**
## **Year ended 31 March 2021**
The trustees, who are also the directors for the purposes of company law, present their report and the financial statements of the charity for the year ended 31 March 2021.
The financial statements have been prepared in accordance with the accounting policies set out in notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and 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 published in October 2019.
## **Reference and administrative details**
**Registered charity name** CHESS Homeless **Charity registration number** 1093901 **Company registration number** 04407742 **Principal office and registered** 200 New London Road **office** Chelmsford Essex CM2 9AB
## **The trustees**
The trustees who served during the year and at the date of approval were as follows:
Joy Michelle Brown (Chair) Patricia Bruguier (resigned 2 February 2021) Hannah Harbottle Robert Pearson Andrew Murphy (appointed 5 August 2020) Graeme Hall (appointed 2 November 2020) Janice Guy (appointed 15 April 2021)
**Company secretary** David Brinkley **Chief Executive Officer** Rob Saggs **Operations manager** Lis Gutteridge **Auditor** Lovewell Blake LLP Chartered accountants & statutory auditor Bankside 300 Peachman Way Broadland Business Park Norwich NR7 0LB **Bankers** The Co-operative Bank plc 1 Balloon Street Manchester M60 4EP
**- 1 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Objectives and activities**
The Charity's objects are restricted specifically, only for the public benefit, to relieve poverty, hardship and distress, in particular but not exclusively, amongst the homeless, those at risk of homelessness, and those living in adverse conditions.
This is encapsulated within our Mission statement, Aims and Values of the charity:
## **Our Mission**
_CHESS works to ensure that people who find themselves homeless are supported in ways that enable them to move forward purposefully and in good health._
## **Our Aims**
_To provide a good standard of accommodation for the homeless. Supporting improvement in the health and well-being of service users without discrimination or judgement. Giving practical support in achieving independence. Raising awareness of homelessness and to become a catalyst for change and partnership recognising the resources of others._
## **Our Values**
_We care for the homeless and those at risk of homelessness, respecting their need for safety and dignity. We promote a sense of security, self-worth and acceptance of the diversity of the individuals we serve. We encourage the growth and development of our staff and service users through partnerships and training opportunities with others. We are committed to equality of opportunity for all._
**CHESS Homeless activities:** CHESS Homeless service delivery consists of the following mechanisms:
**Outreach service:** We deliver outreach to the following areas Chelmsford, Braintree, Maldon, Epping and Rochford. This is where our Rough Sleeper Initiative (RSI) team funded by the Ministry of Housing, Communities and Local Government (MHCLG) go out to investigate reports of rough sleepers initiated by members of the public via the Street-link app and also direct from the local authorities we work with.
We can offer supplies and begin a journey that will hopefully see the individual that is rough sleeping engage and become housed. This can be either directly with us or with another agency or into a private rented scheme.
**RSI** Emergency bed spaces that mostly serve the outreach team and the 5 local authorities that we operated in during this financial year. This facility has 9 self-contained units a large communal space and office. The facility houses the outreach team and offers 24/7 support to those living on site. It is used as a feeder housing to help those either move back to the areas that they come from, into CHESS or other specialist provision and other move on accommodation.
**Hodgkinson house - Night shelter:** The night shelter has 6 bedrooms in total and one of these is an independent self-contained disability suite. Each service user is on a license during their stay here at CHESS homeless. The night shelter also has a professional kitchen where cooking classes take place, a therapeutic green space, 3 private consultation rooms and a small training space. It also houses our support and admin team and is our registered office address. During 2020/21 we had to close the night shelter due to the impact of the pandemic and then reopen it with the ability to enable our service users to self-isolate if needed. The capacity at the night shelter reduced from 9 to 6. The rational for this was so that we could have a kitchenette and lounge upstairs in the night shelter. The night shelter is now operating 24/7 and has been renamed 'Hodgkinson House' to recognise the work of the previous chair of Trustees.
**- 2 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Objectives and activities** _**(continued)**_
**Move on:** The CHESS Homeless move on accommodation consists of 7 other properties that house 33 individuals in total. Service users move from the night shelter into move on once they have engaged with the 'change programme' that is on offer that helps lead them back into independent living.
**Back into independent accommodation:** Having had the individual that has previously been homeless in our accommodation we are able to verify that they can hold down accommodation in a House of Multiple Occupancy (HMO) environment. This offers assurances to supported housing providers and private landlords.
CHESS Homeless uses its accommodation to help address the needs of those that are rough sleeping, homeless or at risk of becoming homeless. There is a tiered system that enables a person to access the correct service in CHESS Homeless, this can be from accessing the RSI Beds to then move from that into Hodgkinson House and then into move on before finally moving out.
Support staff are assigned to each service user to help them address issues that may have seen them become homeless in the first place. These issues can range from the need of affordable accommodation to substance misuse and access to mental health services.
The biggest challenge we face in reducing our rough sleeper population is the availability of suitable affordable accommodation for our rough sleepers to move in to. There remains a challenge to influence and engage landlords to offer accommodation to residents who are on the 'homeless journey'. There have been some successes but not enough to meet need. We have also experienced higher demand for the night shelter provision because there is a lack of suitable move on housing.
Coupled with the dynamic of the homeless community where 'The mean age at death was 45 years for males and 43 years for females in 2018; in the general population of England and Wales, the mean age at death was 76 years for men and 81 years for women.". This provides the challenge of being able to successfully provide specialist 'wrap-around' support to enable a successful move away from the streets and into accommodation.
Complex drug and alcohol services in Essex can be difficult to access and inconsistent across the county at short notice. This is particularly so when services that are in place are often many miles away from the user which builds a reluctance to travel and hence access services. Interventions can often be short, and clients are discharged too quickly. For our clients to make the large step back into society they need consistent longer-term interventions by specialist workers to successfully aid recovery.
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## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Objectives and activities** _**(continued)**_
*National data from Homeless link reports that 80% of homeless clients have a form of mental health issue; 45% have been diagnosed with a mental health issue; 73% have reported physical health problems; 39% said that they take drugs or are recovering from a drug problem: 35% have been to A&E and 26% had been admitted into hospital over the past 6 months.
Specialist services currently have difficulty in providing support to this client group. Threshold levels for mental health services are often too high for this client base and case closure is often too quick due to the difficulties and complexities posed by rough sleepers' often chaotic lifestyle. This is exasperated further by the difficulties in keeping in regular communication. Behaviours displayed by these clients often lead to their tenancies breaking down and many of our clients face a revolving door of rough sleeping. A specialist consistent approach is needed to successfully access appropriate longer terms services.
## **CHESS Homeless Organisation Hierarchy**
*https:www.homeless.org.uk/facts/our-research/all-research-reports/homelessness-and-health-research
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## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Objectives and activities** _**(continued)**_
## **Social Audit**
Over the last 8 years CHESS Homeless has routinely conducted a Social Audit using the guidance issued by the Social Audit Network (SAN). This Social Audit has been an embedded process in our operating routine, but due the impact of the pandemic over this reporting year we have not had the opportunity to deliver on this. This has been due to the senior team needing to have all staff available to respond to the issues and challenges of the pandemic and the increase in our provisions to those that are homeless. Ordinarily at the start of each year we invite key external stakeholders onto our Social Audit Panel. The panel are then responsible for a peer review of the appropriateness of our inputs, activities, outputs, outcomes and impacts and agreeing the suitable metrics used to measure performance.
At the end of the reporting period the panel sits to review the results achieved. The final draft report is then reviewed externally by a SAN representative. The report is then published on the SAN website. The Covid-19 pandemic has necessitated the suspension of the final Social Audit Report for FY20-21. Trustees are very keen to resurrect the Social Audit process as soon as the operational pressures created by the pandemic ease.
## **Achievements and performance**
CHESS Homeless have been funded by Ministry of Housing, Communities and Local Government (MHCLG) to provide the Rough Sleeper Initiative (RSI) outreach service in Chelmsford, Epping, Braintree, Maldon and Rochford. The RSI project provides funding for 5.7 FTE outreach staff, 2 have specific mandates for tenancy support. The team pick up tasking from members of the public who can report Rough Sleepers via the Street-link app. The team can also be tasked direct from the Council.
The team visit the area that the rough sleeper has been reported within 24 hours and seek to engage with them. If CHESS Homeless has capacity within the RSI rooms, we will offer a bed space to the person and provide help and support to address the issues that saw the individual become homeless in the first instance. Then the former rough sleeper will be assigned a support worker to help them on their journey into independent living and develop a tailored support programme. This may include signposting them to other agencies for bespoke services.
During this reporting year CHESS Homeless managed to increase planned exits as a proportion of total intake to 63%. This is the highest success rate for 6 years and reflects the impact the CHESS Homeless Hub is now having on 'joined up client support.' During this reporting year CHESS Homeless have been able to work with clients more intensely due to the increased availability of clients being in the accommodation. Due to the impact of the Pandemic, there was an increase in the take up of online education engagement and 53% of clients reported that they felt they had more education opportunities and 67% felt they had more employment opportunities.
If we compare the success rate of clients who entered CHESS Homeless via the Rough Sleeper Initiative (RSI) against the intake from routine referrals, then the figures show a stark contrast. The success rate of RSI outcomes is 66% compared to a 39% success rate for routine referrals. These outcomes are down from the previous year where RSI was 74% and routine referrals were 42%. Some of this variance in outcomes could be explained by the impact of the pandemic and how those that are amongst the most vulnerable reacted to the challenges of a lockdown.
The provision of permanent bed space capacity increased significantly this year and is set to continue to grow in FY21/22. With the closure of the Winter project during the previous year and, health England not desiring to see projects like this continue CHESS service increased its permanent bed spacing to meet the needs of the rough sleeping group. Some additional properties are still being sought to continue with this growth in meeting the unmet demand.
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## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Achievements and performance** _**(continued)**_
Chess Homeless has a dedicated group of volunteers who support salaried staff in various roles across our operations. In FY 20/21 we had an average of 82 volunteers supporting our efforts. They each provided an average of 75 hours of their time. Having won the Queens Award for Voluntary services during the last reporting period CHESS saw a significant reduction in volunteering hours due to the impact of the Pandemic and the consequences that could come from it. Volunteering hours went from staggering 6150 in the previous accounting cycle to 272.25. During this reporting year CHESS saw a reduction in the number of active volunteers from 82 to 21.
**- 6 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Achievements and performance** _**(continued)**_
## **The Impact of Covid-19 on operations to date**
Although the Covid-19 Pandemic impacted so many individuals, businesses statutory bodies, and charities the outcome from this financial year has mostly been positive, this has been due to the hard work of all those that have been working with CHESS to help the homeless. The bullet points below represent the positive outcomes for the charity:
- Service users were offered a tablet and sim card to enable them to engage with their support workers virtually and were also invited to use bikes that were separately funded to help with physical activity.
- Remote training was offered to staff and service users.
- During November 2020 CHESS re-opened its renamed night shelter (now called 'Hodgkinson House') 24 hours a day and 7 days a week with a reduced capacity of 6.
- CHESS increased its property portfolio from 6 properties to 10.
- CHESS increased its long-term bedspaces from 32 (Before the pandemic) to 49.
- CHESS completely refurbished one of our 5 bedroomed properties. At the time of this report another is nearly complete.
- CHESS worked with local partners to ensure that every homeless rough sleeper in Chelmsford is made an offer of accommodation.
- A new working group began in Chelmsford called 'Chelmsford Homeless Forum' which involves all the statutory organisation, Third sector and voluntary groups.
- The number of people that CHESS housed throughout the financial year was 115 this was during the pandemic!
- Outreach reached out and responded to 1487 Street-link referrals in the 5 local authorities.
- During 2020 The Social and economic impact of the charity during the financial year (this is an unaudited un-official social accounting value) of 2020/21 was: £2,593,676 - this is a 297% return on investment with the costs of the charity being £870,457.
- CHESS recruited and inducted 13 new staff (fulltime and part time and some on bank) through funding that enabled us to increase our service delivery in working with rough sleepers in new facilities, areas, and circumstances.
- Updated the HR documentation and H&S documentation with Peninsula.
- The board reviewed the constitution to enable CHESS to work throughout the country and broaden its homeless objectives.
- The Trustees recruited three new active board members.
- We began working with Safer places in giving women fleeing domestic abuse a better opportunity to rebuild their lives.
- Throughout the 2020/21 financial year CHESS Homeless bed utilisation rate was at 99%.
**- 7 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Financial review**
Chess Homeless increased Actual Bed Spaces from 32 (19/20) to 49 (20/21), an increase of 53% on the prior year. During the same period Covid measures necessitated the closure of the night shelter for 7 months. The net impact of these two factors generated an increase in Income from Housing Benefit of 30% to £235k. Housing Related support remained static at prior year levels (£117k). Fundraising activities reduced during the year due to a significant reduction in fundraising opportunities and activities. These activities are often by third party organisers that will host community fundraising events on behalf of CHESS, but due to the lockdowns and the impact of the pandemic the majority of these events did not take place. Our in-house fundraisers continued to engage with our members, volunteers and the local community even though lockdown significantly impacted the way we completed this. The team found novel ways of raising funds in our local area which included the promotion of 'the BIG sleep-in' where people were encouraged to sleep out in their own gardens instead of CHESS hosting its large annual sleepout. Fundraising activities also included the 2.6 challenge, the run for heroes - 5KMay, as well as our Christmas gift campaign. During this year we continued with our external fundraising organisation at a cost of £11k. The external fundraising organisation that applies to Trust and grant applications helped CHESS Homeless generate an additional £128k in their first full year of operating with CHESS Homeless. This was an increase from the previous year's total of £43k.
CHESS Homeless was extremely successful in a range of Grant & Trust applications and secured a total of £596k in new funding (2019/20 = £295k). This funding came from numerous sources and covered a range of targeted initiatives, the main grants awarded this year are summarised below:
- Rough Sleeper Initiative, Ministry of Housing, Communities and Local Government (MHCLG), £298k
- Various Grants to Refurbish Existing Housing Stock, (CIF, Nationwide, HSBC), £50k
- NET Covid Response fund (Core costs and additional staffing) £50k
- National Lottery Community Fund (Staffing and IT requirements) £63k
- CCG NHS Thurrock, Provision of Mental Wellbeing worker with signposting support, £24k
- NSAP (Next Step Accommodation Programme) £95k
- Lloyds Bank Foundation, Partial funding of Operational Management Post, £33k
The significant success in new grant funding meant total income increased by 43% in year to £1,248k. Operational Expenditure increased to £1,045k as the new grant funding came on stream. A further two FTE posts were seconded in to assist in the delivery of the Rough Sleeper Initiative across the expanded geographic area. CHESS forged stronger working relationships with Reach and Open Road through these seconded post holders. Thanks to the Lloyds Bank Foundation Funding Chess Homeless has been able to put in place a good senior team over the past year. This has enabled us to react swiftly and practically throughout the year and the impact that the Covid-19 pandemic has had on the services.
Total staff costs increased from £463k to £587k, this was caused by; Recruitment of RSI staff, Wellbeing workers and the new operating time of 24/7 needing to have a staff on site to cover this, as well as having security on site at Hodgkinson house. CHESS Homeless automatically enrols all staff into a defined contribution pension scheme. CHESS Homeless employer liability to this scheme is 3% of pensionable earnings per annum.
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## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Financial review** _**(continued)**_
## **Reserves Policy**
During this reporting period the Trustees have had the opportunity to reflect upon the significant impact the pandemic has had on the organisation and the possibility of it, or something similar happening again. As a result of this the Trustees have agreed to increase general reserves to ensure that the charity is able to manage any short-term disruption to income. The Trustees believe that increasing reserves from the current 3 months to 6 months of essential operating costs would be sufficient. Essential operating costs are defined as those relating to core operating activities, these costs will naturally exclude any costs covered by restricted funding.
During the pandemic CHESS Homeless has undergone significant growth in terms of funding and operational delivery. This growth is expected to continue as the country transitions out of the pandemic. Sadly we expect a growth in demand for services as Job Retention and Universal Credit measures are trimmed back. The Trustees recognise that the need to increase reserves will directly conflict with the anticipated future demand for operational services. The Trustees have therefore agreed a 3 year target to gradually increase reserves to the new level. It is also recognised that as operational costs grow to meet operational demand then the shortfall between current reserves and the new target reserves will increase. For this reason the trustees recognise that the 3 year target may not be realistic and the aim to grow reserves may take longer than the 3 year target. During the interim period the contingency plan will be to use an easily liquefiable fixed assets to increase cash holdings should a major unforeseen event materialise.
Unrestricted expenditure for FY 20/21 was £514k and unrestricted reserves were £928k. As at 31 March 2021 the charity had free reserves represented by unrestricted current assets and unrestricted current liabilities of £122,550 (2020: £98,217). With the increase in required reserves of 6 months operating costs the free reserve of £122,550 are £135k below the target level.
## Restricted funds amounted to £269,119 (2020: £131,469).
## **Case study**
This service user was helped onto the winter project by Phoenix Futures staff as he was on the Horizons Project following prison release. He then progressed into the hub (Hodgkinson House) and then Covid-19 hit. Hodgkinson House had to be closed and he was found accommodation in another town, still supported by CHESS but with limited face to face support. He was unable to function on his own. He could not do simple tasks like call a GP or arrange a prescription from a new pharmacy. This person was a drug user of 37 years and had spent a large proportion of time in and out of prison. His drug use spiralled out of control following the death of his mother with whom he was very close. His drug use led to offending, non-compliance with daily tasks and falling into the wrong peer group leading to Anti-Social Behaviour. It was because of this; he was evicted from his property and ran up considerable arrears. His mum was a huge help to him with completing paperwork and ensuring he prioritised his rent and bills and without her he did not know where to turn to get the support he required. He was issued with a tablet so he could communicate with CHESS support staff and take part in purposeful activity. He could not even send an e mail when he first got it, but slowly with help from support staff and other service users he became competent in basic communicating and was able to take part in facetime calls with his support worker which he said made him feel less lonely. He had to navigate bus transport back into Chelmsford to attend script appointments, DRR testing and probation and due to extreme anxiety, he picked at his skin and made deep wounds. Staff encouraged him to claim for extra benefits to offer support with this which he was successful in obtaining. After working very hard with Phoenix Futures and Open Road he became stable in his abstinence. He was also working with probation and was proud to be completing negative results for his DRR. He went from strength to strength; having been completely reliant on support staff he became semi-independent and started to take on small tasks by himself. We were able to get him back on the housing register and he believed there was little hope of him ever achieving his own accommodation again.
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## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Financial review** _**(continued)**_
## **Case study (continued)**
He used his backdated payment for health benefit to pay off a large proportion of his arrears and he agreed to a profile with Greater change to help with the debt that was causing a barrier to accommodation. This was all a huge success and with the rent arrears cleared he was validated on the housing register and able to bid for properties. He made use of our bike loan scheme and registered interest in volunteering. This was difficult due to Covid-19 and the lockdowns, but he is still hoping to do this and has a particular interest in Farleigh Hospice where his mum passed away.
He has now successfully obtained a property of his own and has even adopted himself a cat.
He sent the following text "I can't believe what you have done for me, thank you for everything and please let Nikki know how much I appreciate everything that has been done for me"
We continue to work with this service user as he adapts to living alone and the routine of what comes with running your own property.
## **Plans for future periods**
CHESS Homeless are continuing to explore ways to secure more housing stock in 2021/22. The trustees consider this as critical to meet the current high level of need and sadly those who have become homeless or are going to be homeless in the wake of Covid-19.
CHESS has been working in partnership with 5 local authorities (Chelmsford, Epping, Maldon, Braintree and Rochford) through the Ministry of Housing Communities Local Government (MHCLG) Rough Sleeper Initiative (RSI) to generate additional housing stock. Epping will be the first area that CHESS Homeless will operate a new leased property under the new partnership initiative. During the next reporting cycle CHESS Homeless will operate a 4 bedroomed leased property in Epping. We are working with Chelmsford City Council to increase the current level of accommodation to meet their anticipated demand for temporary accommodation.
The aim is to have enough accommodation so that people do not have to sleep rough prior to having their housing situation addressed. Within Chelmsford, CHESS is looking at developing a specialist accommodation site in one or more of the following areas: Substance misuse; Mental health or Housing for those fleeing domestic abuse.
CHESS has been working on a 'pilot' programme with Safer places (a charity that works with people fleeing domestic abuse) with CHESS Homeless providing the housing and support to keep that housing. Then Safer places delivering the tailored support for those vulnerable women fleeing the domestic abuse.
We are keen to ensure that we continue to deliver a 24/7 service in going forward so that our clients do not need to walk the streets.
**- 10 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Plans for future periods** _**(continued)**_
One of our properties is currently going through planning permission so that CHESS can purchase the site and then look at increasing our provision from there and redeveloping the site.
We are working closely with the MHCLG, Essex County Council, Chelmsford City Council and the local authorities that we currently operate with to find solutions to those that are homeless. We are also hopeful to secure longer term funding that will enable us to give our team that are on shorter term contracts a more secure future. This will then ensure that we do not lose the expertise gained from them for those posts.
Before Covid-19 we had a highways company that was going to begin taking on trained service users for employment - we are going to re-open this and hopefully give opportunities of employment to our clients.
We are keen to ensure that all our properties reflect the value that each of us share for our clients, and that they are housed with dignity, respect and the opportunity for a brighter future. We will continue to work on providing better housing for them.
We will work on better collaborative partnerships working to ensure those that are homeless are offered the best solutions to their situation.
## **Structure, governance and management**
CHESS Homeless is a public benefit entity and a private company limited by guarantee, registered in England & Wales and a registered charity in England & Wales. Chess Homeless is governed by its Memorandum and Articles of Association dated 2nd April 2002 and revised on 6th February 2006 and 23rd November 2015.
The board of Trustees delegate day to day running of the Charity to the CEO. The CEO and Operations Manager routinely report to the board during monthly board meetings.
The board of Trustees are as detailed on page 1.
## **Setting of remuneration for key management personnel**
Remuneration for members of the Senior Management Team is set and agreed by the Chief Executive Officer and Chair of the Trust in consultation with the Trustees with responsibility for HR or Finance.
Remuneration for the Chief Executive Officer is set by the Chairman of the Trust in consultation with the Trustees with responsibility for HR and Finance.
All posts are determined by comparisons within the industry and local market demands.
**- 11 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2021**
## **Structure, governance and management** _**(continued)**_
## **Recruitment, Appointment and Training of Trustees**
The recruitment and appointment of new trustees follows this process:
CHESS Homeless will advertise for a trustee appointment and request that a trustee application form is completed by those interested individuals. Once the deadline has passed the applicants are shortlisted and invited to attend an interview. Upon a successful interview the candidate / candidates will be invited to sit in and contribute at a minimum of two trustee meetings - the candidate will then be discussed by the current board of Trustees and feedback will be given to the candidate / candidates as to whether they have been successful or not.
Trustees are given an induction pack that explains the role and responsibilities of the trustee. Training for Trustees will be given on an annual basis in the form of away days - these may be virtual depending on the pandemic and restrictions
## **Risk Assessment**
CHESS Homeless operating costs have increased significantly over the last year and are projected to increase further as we seek new partnerships to address the homeless issue in a wider area of Essex. The board of trustees recognise that CHESS Homeless is committed to developing a risk register that will cover the associated risks in our increasingly complex operations. This risk register is currently being put together and will be in place by the next reporting period. The risk register will become a stand-alone agenda item on future board meetings.
## **Trustees' responsibilities statement**
The trustees (who are also directors for the purposes 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. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company for that period.
In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP 2019 (FRS102);
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
**- 12 -**
CHESS Homeless
Company Limited by Guarantee
Trustees. annual report (incorporating the directors, report) (condnuld)
Year ended 31 March 2021
Audltor
Each of the persons who is a trustee at the date of apprDval of this reN)rt Confirms ihat..
so far as thèy are aware. ihèrè is no relevant dit infcrnation of which Ihe chariVs audiior is
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22 Dmbèr 2021
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Joy Michelle Brown Ichairl
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13
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Independent auditor's report to the members of CHESS Homeless**
## **Year ended 31 March 2021**
## **Opinion**
We have audited the financial statements of CHESS Homeless (the 'charity') for the year ended 31 March 2021 which comprise the statement of financial activities (including income and expenditure account), balance sheet, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 charity's affairs as at 31 March 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
- have been prepared in accordance with the requirements of the Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
**- 14 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Independent auditor's report to the members of CHESS Homeless** _**(continued)**_
## **Year ended 31 March 2021**
## **Other information**
The other information comprises the information included in the trustees annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the trustees' report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from the requirement to prepare a strategic report.
**- 15 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Independent auditor's report to the members of CHESS Homeless** _**(continued)**_
## **Year ended 31 March 2021**
## **Responsibilities of trustees**
As explained more fully in the trustees' responsibilities statement, the trustees (who are also the directors for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as 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 concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.
## **Auditor's responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Enquiry of management and those charged with governance to confirm there are no instances of fraud or non-compliance with laws and regulations.
- Reviewing journal entries to ensure they are appropriate and do not indicate management override.
- Review of key accounting estimates, to ensure reasonable and no signs of management bias.
- Review of disclosures within the financial statements and vouching these to supporting documentation to ensure compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
**- 16 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Independent auditor's report to the members of CHESS Homeless** _**(continued)**_
## **Year ended 31 March 2021**
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charity's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charity's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's members as a body, for our audit work, for this report, or for the opinions we have formed.
## (A footer
Mark Proctor FCA DChA (Senior Statutory Auditor)
For and on behalf of Lovewell Blake LLP Chartered accountants & statutory auditor Bankside 300 Peachman Way Broadland Business Park Norwich NR7 0LB
## 23/12/2021
**- 17 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Statement of financial activities (including income and expenditure account)**
## **Year ended 31 March 2021**
||||**2021**||2020|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**5**|222,557|371,567|594,124|372,201|
|Charitable activities|**6**|352,121|297,768|649,889|497,551|
|Investment income|**7**|687|–|687|705|
|Other income|**8**|3,448|–|3,448|–|
|||-------------------------------|-------------------------------|---------------------------------------|-------------------------------|
|**Total income**||578,813|669,335|1,248,148|870,457|
|||===============================|===============================|=======================================|===============================|
|**Expenditure**||||||
|Raising funds||||||
|Costs of raising funds|**9**|53,825|–|53,825|44,654|
|Charitable activities|**10**|459,987|531,685|991,672|728,269|
|Other expenditure|**12**|–|–|–|131,917|
|||-------------------------------|-------------------------------|---------------------------------------|-------------------------------|
|**Total expenditure**||513,812|531,685|1,045,497|904,840|
|||===============================|===============================|=======================================|===============================|
|||-------------------------------|-------------------------------|---------------------------------------|-------------------------------|
|**Net income/(expenditure) and net**||||||
|**movement in funds**||65,001|137,650|202,651|(34,383)|
|||===============================|===============================|=======================================|===============================|
|**Reconciliation of funds**||||||
|Total funds brought forward||862,612|131,469|994,081|1,028,464|
|||-------------------------------|-------------------------------|---------------------------------------|---------------------------------------|
|**Total funds carried forward**||927,613|269,119|1,196,732|994,081|
|||===============================|===============================|=======================================|=======================================|
The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.
**The notes on pages 21 to 33 form part of these financial statements.**
**- 18 -**
CHESS Horneless
Company Limited by Guarantee
Balance sheet
31 March 2021
2021
2020
Note
Fixed assets
Tangible fixed assets
17
1.207.322
1,204,515
Cuirent asséts
Debtors
Investments
Cash at bank and In hand
18
19
48.558
91.421
381.9
23,35S
91,421
192,807
521.
307,624
CrBdltor5: Arnounts falling due within
one year
20
(130,3}
(77,9381
Nèt ¢urrènt assets
391,669
229.686
TotaE assets less current liabilities
1.434,201
Creditors= Amounts falling dLSe •fter
mort than one year
21
1402.2591
1.196.732
1440,1201
994.081
Net assets
Funds of the charity
Restricted funcs
Unreslrict8d ftjnds
269.119
927.613
131,469
862,612
Total eharlty fund5
22
1.196.732
994.081
financial statements have been prepared in accorda with the ky0vion$ a1(able lo companiès
subiect to ihe small compaii w. regime.
These [inar141 statements We apr¥ovgd by the t¥)ard of trustees and authorised for issue on
22Decèmbér.202Ènd are signed on behalf of the board by:
Joy Mich
Trustee
Ile Brow) (Chair)
Company rggistration numter. 04407742
The notes on pages 21 to 33 fomi part of these financlal statement&
19
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Statement of cash flows**
## **Year ended 31 March 2021**
||**2021**|2020|
|---|---|---|
||**£**|£|
|**Cash flows from operating activities**|||
|Net income/(expenditure)|202,651|(34,383)|
|_Adjustments for:_|||
|Depreciation of tangible fixed assets|17,054|18,198|
|Other interest receivable and similar income|(687)|(705)|
|Interest payable and similar charges|20,813|21,042|
|_Changes in:_|||
|Trade and other debtors|(25,162)|139,830|
|Trade and other creditors|31,620|27,343|
||-------------------------------|-------------------------------|
|Cash generated from operations|246,289|171,325|
|Interest paid|(20,813)|(21,042)|
|Interest received|687|705|
||-------------------------------|-------------------------------|
|Net cash from operating activities|226,163|150,988|
||===============================|===============================|
|**Cash flows from investing activities**|||
|Purchase of tangible assets|(19,861)|(19,428)|
|Purchases of other investments|–|(291)|
||-------------------------------|-------------------------------|
|Net cash used in investing activities|(19,861)|(19,719)|
||===============================|===============================|
|**Cash flows from financing activities**|||
|(Repayment of)/proceeds from borrowing|(17,119)|(16,410)|
||-------------------------------|-------------------------------|
|Net cash used in financing activities|(17,119)|(16,410)|
||===============================|===============================|
|**Net increase in cash and cash equivalents**|189,183|114,859|
|**Cash and cash equivalents at beginning of year**|192,807|77,948|
||-------------------------------|-------------------------------|
|**Cash and cash equivalents at end of year**|381,990|192,807|
||===============================|===============================|
**The notes on pages 21 to 33 form part of these financial statements.**
**- 20 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements**
## **Year ended 31 March 2021**
## **1. General information**
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 200 New London Road, Chelmsford, Essex, CM2 9AB.
## **2. Statement of compliance**
The charity constitutes a public benefit entity as defined by FRS 102. The financial statements have been prepared in accordance with 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 issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounting Practice.
## **3. Accounting policies**
## **Basis of preparation**
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain assets measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
## **Going concern**
The financial statements have been prepared on a going concern basis as the trustees believe that no material uncertainties exist. The trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the charity to be able to continue as a going concern.
The Trustees have considered the impact of Covid-19 when assessing the going concern status of the charity.
## **Fund accounting**
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's
purposes.
Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal.
**- 21 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
## **3. Accounting policies** _**(continued)**_
## **Income**
All income is included in the statement of financial activities when entitlement has passed to the charity, it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income:
- Income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably.
- Income from housing benefit is recognised when the charity becomes entitled to the resource.
- Income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
## **Expenditure**
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates:
- Expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods.
- Expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities.
- Other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
- All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
## **Operating leases**
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
## **Tangible assets**
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An impairment review is carried out annually by the trustees of those assets held at valuation.
**- 22 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
## **3. Accounting policies** _**(continued)**_
## **Depreciation**
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Motor vehicles - 20% straight line Equipment - 50% straight line
## **Financial instruments**
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted.
## **4. Limited by guarantee**
The Company is limited by guarantee. In the event of winding up, each member is liable to contribute a sum not exceeding £10.
## **5. Donations and legacies**
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2021**|
||£|£|**£**|
|**Donations**||||
|Donations|214,471|–|214,471|
|**Grants**||||
|Other grants|8,086|371,567|379,653|
||-------------------------------|-------------------------------|-------------------------------|
||222,557|371,567|594,124|
||===============================|===============================|===============================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2020|
||£|£|£|
|**Donations**||||
|Donations|216,678|5,173|221,851|
|**Grants**||||
|Other grants|34,768|115,582|150,350|
||-------------------------------|-------------------------------|-------------------------------|
||251,446|120,755|372,201|
||===============================|===============================|===============================|
During the year ended 31 March 2021 £97,900 (2020: £29,750) of government funding was received.
**- 23 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
## **6. Charitable activities**
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2021**|
||£|£|**£**|
|Housing benefit and rent|234,870|–|234,870|
|Winter project|–|–|–|
|Housing related support|117,251|–|117,251|
|Rough Sleeper Initiative|–|297,768|297,768|
||-------------------------------|-------------------------------|-------------------------------|
||352,121|297,768|649,889|
||===============================|===============================|===============================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2020|
||£|£|£|
|Housing benefit and rent|180,454|–|180,454|
|Winter project|54,846|–|54,846|
|Housing related support|117,251|–|117,251|
|Rough Sleeper Initiative|–|145,000|145,000|
||-------------------------------|-------------------------------|-------------------------------|
||352,551|145,000|497,551|
||===============================|===============================|===============================|
During the year ended 31 March 2021 £398,105 (2020: £317,097) of government funding was received.
## **7. Investment income**
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|---|
|||Funds|**2021**|Funds|2020|
|||£|**£**|£|£|
||Bank interest receivable|687|687|705|705|
|||=============|=============|=============|=============|
|**8.**|**Other income**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2021**|Funds|2020|
|||£|**£**|£|£|
||Covid-19 Retention Scheme|3,448|3,448|–|–|
|||======================|======================|=============|=============|
|**9.**|**Costs of raising funds**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2021**|Funds|2020|
|||£|**£**|£|£|
||Wages and salaries|38,379|38,379|34,349|34,349|
||Other fundraising costs|15,446|15,446|10,305|10,305|
|||--------------------------|--------------------------|--------------------------|--------------------------|
|||53,825|53,825|44,654|44,654|
|||==========================|==========================|==========================|==========================|
**- 24 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
## **10. Expenditure on charitable activities**
||||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|---|---|
||||Funds|Funds|**2021**|
||||£|£|**£**|
||Winter project||–|–|–|
||Housing costs||63,782|175,756|239,538|
||Support costs||396,205|355,929|752,134|
||||-------------------------------|-------------------------------|-------------------------------|
||||459,987|531,685|991,672|
||||===============================|===============================|===============================|
||||Unrestricted|Restricted|Total Funds|
||||Funds|Funds|2020|
||||£|£|£|
||Winter project||65,111|549|65,660|
||Housing costs||161,701|41,022|202,723|
||Support costs||317,575|142,311|459,886|
||||-------------------------------|-------------------------------|-------------------------------|
||||544,387|183,882|728,269|
||||===============================|===============================|===============================|
|**11.**|**Analysis of support costs**|||||
|||||**2021**|2020|
|||||**£**|£|
||Staff costs|||549,000|347,231|
||Outsourced staff costs|||49,610|–|
||Communications and IT|||50,878|25,867|
||General office|||45,109|38,339|
||Finance costs|||20,813|21,042|
||Motor & travel expenses|||11,370|13,393|
||Audit fees|||9,939|5,940|
||Legal & professional|||15,415|8,074|
|||||-------------------------------|-------------------------------|
|||||752,134|459,886|
|||||===============================|===============================|
|**12.**|**Other expenditure**|||||
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|||Funds|**2021**|Funds|2020|
|||£|**£**|£|£|
||Write off Wingspan Works debt|–|–|131,917|131,917|
|||=============|=============|===============================|===============================|
|**13.**|**Net income/(expenditure)**|||||
|||||**2021**|2020|
|||||**£**|£|
||Depreciation of tangible assets|||17,054|18,198|
||Lease payments|||39,105|21,600|
|||||==========================|==========================|
**- 25 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
## **14. Auditors remuneration**
||**2021**|2020|
|---|---|---|
||**£**|£|
|Fees payable for the audit of the financial statements|7,320|5,940|
|Prior year under accrual|2,619|–|
||----------------------|----------------------|
||9,939|5,940|
||======================|======================|
|**Staff costs**|||
||**2021**|2020|
||**£**|£|
|Wages and salaries|535,772|457,193|
|Social security costs|41,503|39,410|
|Employer pension costs|10,104|8,270|
||-------------------------------|-------------------------------|
||587,379|504,873|
|Recharged to Wingspan Works|–|(42,069)|
||-------------------------------|-------------------------------|
||587,379|462,804|
||===============================|===============================|
## **15. Staff costs**
The average number of persons employed by the charity during the year amounted to 26 (2020: 22)
No employees received an income of more than £60,000 during the year.
## **Key Management Personnel**
The Key Management Personnel include the Chief Executive Officer together with the Finance Officer and Operations Manager.
The total value of remuneration and benefits received by Key Management Personnel was £140,125 (2020: £128,075).
## **16. Trustee remuneration and expenses**
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
**- 26 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
## **17. Tangible fixed assets**
|||**Freehold**|**Motor**|||
|---|---|---|---|---|---|
|||**property**|**vehicles**|**Equipment**|**Total**|
|||**£**|**£**|**£**|**£**|
||**Cost**|||||
||At 1 April 2020|1,185,000|39,741|29,773|1,254,514|
||Additions|–|–|19,861|19,861|
|||---------------------------------------|--------------------------|--------------------------|---------------------------------------|
||**At 31 March 2021**|1,185,000|39,741|49,634|1,274,375|
|||=======================================|==========================|==========================|=======================================|
||**Depreciation**|||||
||At 1 April 2020|–|34,366|15,633|49,999|
||Charge for the year|–|3,187|13,867|17,054|
|||---------------------------------------|--------------------------|--------------------------|---------------------------------------|
||**At 31 March 2021**|–|37,553|29,500|67,053|
|||=======================================|==========================|==========================|=======================================|
||**Carrying amount**|||||
||**At 31 March 2021**|1,185,000|2,188|20,134|1,207,322|
|||=======================================|==========================|==========================|=======================================|
||At 31 March 2020|1,185,000|5,375|14,140|1,204,515|
|||=======================================|==========================|==========================|=======================================|
|**18.**|**Debtors**|||||
|||||**2021**|2020|
|||||**£**|£|
||Trade debtors|||10,279|3,657|
||Prepayments and accrued income|||28,335|18,292|
||Other debtors|||9,944|1,447|
|||||--------------------------|--------------------------|
|||||48,558|23,396|
|||||==========================|==========================|
|**19.**|**Investments**|||||
|||||**2021**|2020|
|||||**£**|£|
||COIF Charities Deposit Fund|||91,421|91,421|
|||||==========================|==========================|
|**20.**|**Creditors:** **Amounts falling due within one year**|||||
|||||**2021**|2020|
|||||**£**|£|
||Bank loans and overdrafts|||37,861|17,119|
||Trade creditors|||61,082|3,397|
||Social security and other taxes|||15,822|13,218|
||Other creditors|||15,535|44,204|
|||||-------------------------------|--------------------------|
|||||130,300|77,938|
|||||===============================|==========================|
**- 27 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
## **20. Creditors: Amounts falling due within one year** _**(continued)**_
|||**2021**|2020|
|---|---|---|---|
|||**£**|£|
||Deferred income brought forward|27,727|–|
||Released during the year|(27,727)|–|
||Deferred during the year|–|27,727|
|||--------------------------|--------------------------|
||Deferred income carried forward|–|27,727|
|||==========================|==========================|
||Deferred income relates to grants received for future periods.|||
|**21.**|**Creditors:** **Amounts falling due after more than one year**|||
|||**2021**|2020|
|||**£**|£|
||Bank loans and overdrafts|402,259|440,120|
|||===============================|===============================|
||**Analysis of loans payable by instalments**|||
|||**2021**|2020|
|||**£**|£|
||In more than one year but not more|||
||than two years|37,861|17,119|
||In more than two years but not more|||
||than five years|402,259|440,120|
|||-------------------------------|-------------------------------|
|||440,120|457,239|
|||===============================|===============================|
The bank loans are on a repayment basis repayable over 60 months from the date the loan was drawn and is secured on property leased by the charity. Interest is calculated at a fixed rate of 4.25%.
## **22. Analysis of charitable funds**
## _**Unrestricted funds**_
Year ended 31 March 2021
|Year ended 31 March 2021||||||
|---|---|---|---|---|---|
||At 1 April||||**At 31 March**|
||2020|Income|Expenditure|Transfers|**2021**|
||£|£|£|£|£|
|General funds|862,612|578,813|(513,812)|–|927,613|
||===============================|===============================|===============================|=============|===============================|
|Year ended 31 March 2020||||||
||At 1 April||||**At 31 March**|
||2019|Income|Expenditure|Transfers|**2020**|
||£|£|£|£|£|
|General funds|979,664|604,702|(720,958)|(796)|862,612|
||===============================|===============================|===============================|=============|===============================|
**- 28 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
## _**Restricted funds**_
Year ended 31 March 2021
|Year ended 31 March 2021||||||
|---|---|---|---|---|---|
||At 1 April||||**At 31 March**|
||2020|Income|Expenditure|Transfers|**2021**|
||£|£|£|£|£|
|CRM & Accounting Software|336|–|–|–|336|
|Bedrooms|2,000|–|–|–|2,000|
|Counsellors salary|2,432|–|(4,543)|2,111|–|
|Meaningful Activity|286|–|–|(286)|–|
|Multiple Occupancy rent|469|–|–|(469)|–|
|General Christian Act|20|–|–|–|20|
|CSCS Cards|268|–|–|(268)|–|
|Christmas Lunches|359|–|(183)|(176)|–|
|New Accommodation Support|248|–|–|(248)|–|
|Waterproof Duvets|250|–|–|(250)|–|
|Client Incentives|630|–|–|1,697|2,327|
|Refurbishment 7-8 George||||||
|Street|17,660|–|(12,580)|–|5,079|
|Maintenance Support|250|200|–|–|450|
|Essex Community|800|–|–|–|800|
|ASDA quiz night|322|–|–|–|322|
|Residents Training|1,403|–|–|–|1,403|
|Property Revaluation|24,900|–|–|–|24,900|
|Hub Appeal|1,200|–|–|–|1,200|
|Kitchen Refurbishment|7,200|–|–|–|7,200|
|House Furnishings|300|–|–|–|300|
|Rough Sleeper Initiative|36,711|297,768|(234,009)|–|100,470|
|SELEP|426|–|(3,428)|3,002|–|
|CCG NHS Thurrock|32,875|24,447|(15,842)|–|41,480|
|Rock Choir Tickets|124|339|–|–|464|
|Active Essex Bikes|–|6,950|(6,596)|–|354|
|HSBC|–|25,000|–|–|25,000|
|Nationwide Trust|–|9,646|(9,646)|–|–|
|Sulley Foundation|–|5,000|(5,000)|–|–|
|Vinci Foundation|–|4,380|(4,380)|–|–|
|National Lottery Community||||||
|Fund|–|62,780|(62,780)|–|–|
|Net Covid Fund (ECF)|–|75,000|(68,154)|–|6,846|
|NSAP|–|94,900|(60,650)|(5,113)|29,137|
|TNL|–|10,000|–|–|10,000|
|Essex Locality Fund|–|3,000|(3,000)|–|–|
|British Science|–|500|(394)|–|106|
|Greater Change|–|1,425|–|–|1,425|
|Safer Places|–|15,000|(7,500)|–|7,500|
|Operations Manager salary|–|33,000|(33,000)|–|–|
||-------------------------------|-------------------------------|-------------------------------|----------------------|-------------------------------|
||131,469|669,335|(531,685)|–|269,119|
||===============================|===============================|===============================|======================|===============================|
**- 29 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
|Year ended 31 March 2020||||||
|---|---|---|---|---|---|
||At 1 April||||**At 31 March**|
||2019|Income|Expenditure|Transfers|**2020**|
||£|£|£|£|£|
|CRM & Accounting Software|336|–|–|–|336|
|Bedrooms|2,000|–|–|–|2,000|
|Counsellors salary|1,422|8,000|(6,991)|–|2,432|
|Meaningful Activity|286|–|–|–|286|
|Multiple Occupancy rent|469|–|–|–|469|
|General Christian Act|180|20|(180)|–|20|
|CSCS Cards|268|–|–|–|268|
|Christmas Lunches|359|–|–|–|359|
|New Accommodation Support|248|–|–|–|248|
|Waterproof Duvets|250|–|–|–|250|
|Client Incentives|630|–|–|–|630|
|Refurbishment 7-8 George||||||
|Street|10,000|20,980|(13,320)|–|17,660|
|Maintenance Support|250|–|–|–|250|
|Essex Community|800|–|–|–|800|
|ASDA quiz night|322|–|–|–|322|
|Residents Training|6,080|–|(4,677)|–|1,403|
|Property Revaluation|24,900|–|–|–|24,900|
|Hub Appeal|–|1,200|–|–|1,200|
|Kitchen Refurbishment|–|7,200|–|–|7,200|
|House Furnishings|–|300|–|–|300|
|Wingspan Training & PPE|–|112|(345)|233|–|
|Rough Sleeper Initiative|–|145,000|(108,289)|–|36,711|
|SELEP|–|9,269|(8,842)|–|426|
|Winter Project|–|–|(549)|549|–|
|TENT Appeal|–|550|(564)|14|–|
|CCG NHS Thurrock|–|40,000|(7,125)|–|32,875|
|Rock Choir Tickets|–|124|–|–|124|
|Operations Manager salary|–|33,000|(33,000)|–|–|
||--------------------------|-------------------------------|-------------------------------|-------------|-------------------------------|
||48,800
==========================|265,755
===============================|(183,882)
===============================|796
=============|131,469
===============================|
CRM & Accounting Software: represents funding received towards the integration of accounting and CRM software
Bedrooms: represents funding received towards the purchase of bedroom furniture.
Counsellors salary: represents funding received towards the Counsellors salary costs.
Meaningful Activity: represents funding received towards the support of service users.
Multiple Occupancy rent: represents funding received towards the support of service users.
General Christian Act: represents funding received towards the support of service users.
CSCS Cards: represents funding received towards the training of residents.
Christmas Lunches: represents funding received towards the support of service users.
New Accommodation Support: represents funding received towards the upkeep of the charity's properties.
Waterproof Duvets: represents funding received towards the purchase of waterproof duvets.
**- 30 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
Client incentives: represents funding received towards the support of service users.
Refurbishment 7-8 George Street: represents funding received towards the refurbishment of 7-8 George Street.
Maintenance Support: represents funding received towards the training of the maintenance staff.
Essex Community: represents funding received towards the upkeep of the charity's properties.
ASDA Quiz night: represents funding received towards quiz activities for the residents of the charity.
Residents Training: represents funding received towards the costs of training for residents.
Hub Appeal: represents funding received towards refurbishment of 200 New London Road.
Kitchen refurbishment: represents funding received towards the refurbishment project.
House Furnishings: represents funding received towards the refurbishment project.
Wingspan Training & PPE: represents funding received towards the purchase of PPE and training costs.
Rough Sleeper Initiative: represents funding received towards Rough Sleeper Initiative.
SELEP: represents funding received towards the refurbishment project.
Winter Project: represents funding received towards the annual Winter Project programme.
TENT Appeal: represents funding received towards the purchase of tents for rough sleepers.
CCG NHS Thurrock: represents funding received towards a mental health worker with counselling and therapy support
Rock Choir Tickets: represents funding received towards the Rock Choir show for the residents of the charity.
Operations Manager salary: represents funding received towards the cost of the Operations Manager's salary.
Active Essex Bikes: represents funding received towards the cost of the client bikes.
HSBC: represents funding received towards the cost of property refurbishment.
Nationwide Trust Grant: represents funding received towards the cost of property refurbishment.
Sulley Foundation: represents funding received towards the cost of new laptops.
Vinci Foundation: represents funding received towards the cost of new laptops.
National Lottery Community Fund: represents funding received towards the running costs of properties.
Net Covid Fund (ECF): represents funding received towards the cost of the renovation costs of move on properties during Covid-19.
NSAP: represents funding received towards the running costs of properties.
TNL: represents funding received towards the cost of a new car for support workers.
**- 31 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
Essex Locality Fund: represents funding received towards staff and security costs associated with Hodgkinson House.
British Science Grant: represents funding received towards the costs of the Support Spring Event.
Greater Change: represents funding received towards the support worker staff costs.
Safer Places: represents funding received towards the cost of the Safe Haven pilot project.
## **23. Analysis of net assets between funds**
## **Year ended 31 March 2021**
|**Year ended 31 March 2021**||||
|---|---|---|---|
||Unrestricted|Restricted|**Total**|
||funds|funds|**Funds 2021**|
||£|£|**£**|
|Fixed assets|1,207,322|–|1,207,322|
|Current assets|252,850|269,119|521,969|
|Creditors less than 1 year|(130,300)|–|(130,300)|
|Creditors greater than 1 year|(402,259)|–|(402,259)|
||---------------------------------------|-------------------------------|---------------------------------------|
||927,613|269,119|1,196,732|
||=======================================|===============================|=======================================|
|**Year ended 31 March 2020**||||
||Unrestricted|Restricted|Total Funds|
||funds|funds|2020|
||£|£|£|
|Fixed assets|1,204,515|–|1,204,515|
|Current assets|176,155|131,469|307,624|
|Creditors less than 1 year|(77,938)|–|(77,938)|
|Creditors greater than 1 year|(440,120)|–|(440,120)|
||---------------------------------------|-------------------------------|---------------------------------------|
||862,612|131,469|994,081|
||=======================================|===============================|=======================================|
**- 32 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2021**
## **24. Analysis of changes in net debt**
||At||**At**|
|---|---|---|---|
||1 April 2020|Cash flows|**31 March 2021**|
||£|£|**£**|
|Cash at bank and in hand|192,807|189,183|381,990|
|Debt due within one year|(17,119)|(20,742)|(17,861)|
|Debt due after one year|(440,120)|37,861|(402,259)|
|Current asset investments|91,421|–|91,421|
||-------------------------------|-------------------------------|-------------------------------|
||(173,011)
===============================|206,302
===============================|33,291
===============================|
## **25. Operating lease commitments**
The total future minimum lease payments under non-cancellable operating leases are as follows:
||**2021**|2020|
|---|---|---|
||**£**|£|
|Not later than 1 year|39,696|–|
|Later than 1 year and not later than 5 years|31,361|–|
||--------------------------|-------------|
||71,057|–|
||==========================|=============|
## **26. Related parties**
During the year £180 (2020: £2,590) of unrestricted donations income was received from two Trustees, and £14,847 (2020: £Nil) of expenditure was made to Birketts of which H Harbottle is also an Associate.
During the year the following transactions were undertaken with Wingspan Works, a related party of CHESS Homeless:
||**2021**|2020|
|---|---|---|
||**£**|£|
|Recharge of expenditure|–|47,020|
|Repayment of recharges|–|37,317|
|Balance due before write off|–|131,917|
|Write off of bad debt|–|131,917|
**- 33 -**