**COMPANY REGISTRATION NUMBER: 04407742 CHARITY REGISTRATION NUMBER: 1093901**
## **CHESS Homeless**
# **Company Limited by Guarantee Financial statements**
# **31 March 2022**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Financial statements**
## **Year ended 31 March 2022**
||**Page**|
|---|---|
|Trustees' annual report (incorporating the directors' report)|**1**|
|Independent auditor's report to the members|**18**|
|Statement of financial activities (including income and expenditure account)|**22**|
|Balance sheet|**23**|
|Statement of cash flows|**24**|
|Notes to the financial statements|**25**|
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
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 2022.
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) Hannah Harbottle Robert Pearson (resigned 28 February 2022) Andrew Murphy Graeme Hall Janice Guy (appointed 15 April 2021 and resigned 14 June 2022) Ben Shepherd (appointed 23 August 2022)
**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 2022**
## **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._
## **Public benefit**
The trustees have taken due regard to the guidance published by the Charity Commission on public benefit. It is considered that the charity provides a public benefit through our stated; Mission, Aims and Values.
**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, Rochford, Brentwood, Uttlesford and Castlepoint. 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 portal and direct referrals 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.
**Rough Sleeper** 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 - Shelter:** The Shelter has 7 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 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 we had to close the shelter due to the impact of the pandemic. During the period of closure other accommodation with ensuite facilities was acquired in order to relocate service users of these bed spaces. On reopening late 2020, capacity at the shelter reduced from 9 to 7 in order for the facility to operate in a covid secure fashion and provide a kitchenette and lounge upstairs in the shelter so that service users could self-isolate as a household, if necessary. Prior to the temporary closure, the shelter was only accessible overnight. Since reopening, the shelter has been operating on a 24/7 basis and is referred to as 'The Shelter' rather than 'The night shelter, as previously.
**- 2 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
**Move on:** The CHESS Homeless move on accommodation consists of 7 other properties that house 33 individuals in total. Service users move from the 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:** Once a service user has stayed in CHESS accommodation for a period of assessment and support, we can 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.
**- 3 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
**Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
**- 4 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
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 rough sleeper beds or shelter to be assessed and then from there into the most appropriate accommodation for their support needs. This may follow a process where the service user accesses all levels and types of supported accommodation in CHESS Homeless, before finally moving out to live independently. Those individuals who engage well and who have lower levels of support may equally jump a level of supported accommodation before moving on.
In December 2021 CHESS Homeless opened a facility to act as a halfway house between shelter accommodation and move-on accommodation. This has 5 hours a day of support staff on site, but it is otherwise accessible and usable in the same way as core CHESS Homeless HMO properties.
Also, in December CHESS Homeless opened their first HMO style accommodation supported by a tenancy support worker in Epping providing more accessible accommodation to homeless individuals in that district.
The overall provision of beds in the year increased by 17 to 66 beds. The trustees continue to seek ways to increase bed capacity further to meet the increasing demand in the county.
Throughout all CHESS Homeless accommodation, 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 homeless population is the availability of suitable affordable accommodation for them 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 the need. Early intervention with enduring solutions is critical in addressing homelessness. Statistics generated in 2018 show the mean age at death of long term homeless was 45 years for males and 43 years for females; compared to the general population of England and Wales, where 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 with availability inconsistent across the county especially at short notice. Services that are in place are often many miles away from the user, which builds additional reluctance to engage with services. Interventions can often be short, and clients are often 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 2022**
## **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-term 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 2022**
## **Objectives and activities** _**(continued)**_
## **Social Audit**
Since 2011 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 to the impact of the pandemic over the last 2 reporting years 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 for those that are homeless. The homeless operating environment is still rapidly changing due to emerging local and central government initiatives and therefore the Trustees have placed the Social Audit on hold for a 3rd year. As an indicator of Social Impact, the trustees did input the outcomes for FY21/22 into the scoring matrix used in the 2019 Social Audit. The score values were uplifted to 2022 Economic Conditions, the outcome was an estimated Social Value of £4,052,660. The trustees are considering an alternative streamlined method of reporting outcomes and impact that will utilise the Essex County Council (ECC) Social Value scoring matrix. This format would allow CHESS Homeless to use the Rough Sleeper Initiative (RSI) contract reporting format to capture all operational activity. The logic being that the ECC scoring matrix has been shaped to reflect the prioritised objectives of our major stakeholder and offers synergy in reporting RSI performance and overall, CHESS Homeless performance. Based on the ECC Social Value scoring matrix Chess delivered £3,894,354 of operational activity and outcomes in this reporting period. Both of these estimated social value's are impressive when compared to the operating costs of £1,468k.
## **Achievements and performance**
CHESS Homeless has been funded by Department of Levelling Up Housing and Communities (DLUHC) to provide the Rough Sleeper Initiative (RSI) outreach service in Chelmsford, Epping, Braintree, Maldon, Brentwood, Castlepoint, Uttlesford and Rochford. The RSI project provides funding for 5 FTE outreach staff and an Outreach Team Coordinator. The team pick up referrals 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 visits the area where the rough sleeper has been reported within 24 hours and seeks 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 offer 77 individuals a bedspace and access to our integrated support services. This was an increase of 165% on the prior year and was due to Covid restrictions being slowly lifted through the year. 52% of these individuals moved on positively, which is roughly in line with pre-pandemic levels. As covid restrictions were eased CHESS Homeless support staff were able to work more intensely with individuals to address underlying issues. Individual consultations increased by 32%. Suitable individuals were identified for employment support consultations, these targeted consultations doubled from the prior year and helped 22 individuals gain employment during their time with CHESS Homeless.
Our RSI staff placed a further 50 individuals into dedicated RSI beds at Stock and secured alternative accommodation for an additional 143 individuals. In total 270 individuals were either prevented from rough sleeping or removed from the immediate risk of rough sleeping in this period. CHESS were delighted to be awarded the follow-on RSI contract which will run from September 2022 to December 2024. This contract renewal will allow CHESS to further enhance our focus on early intervention and triage.
Within this year we have also had four new Tenancy Support staff join the team, two working within Chelmsford, one supporting the new Epping accommodation and the other supporting individuals in Rochford.
**- 7 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
## **Achievements and performance** _**(continued)**_
A troubling legacy of the pandemic is the increase in victims of domestic abuse, much of which is worryingly under-reported. CHESS Homeless have continued their work with Safer Places Essex and have set aside a 4-bed property to help with the chronic shortage of appropriate space for victims. The trustees will continue to explore ways we can continue to support this extremely vulnerable group as we seek to partner with more socially aware landlords in our operating area.
CHESS Homeless has benefited from a tremendous level of support from our dedicated group of volunteers who support salaried staff in various roles across our operations. Pre pandemic our volunteers donated around 7,000 hours, typically averaging just over 100 hours per person per year. During the pandemic we were unable to utilise this fantastic local support. As we gradually open up our services, we are drawing in more volunteer support. At present we are using 50% of our normal volunteer support and we plan to grow this further as we open up more of our services. During the reporting period we have managed to keep our volunteers updated on our emerging plans for increased services via leaflets and face-to-face briefings.
## **Headline achievements**
- Total Bed Space Nights Generated in Core Operation - 17,350
- Achieved 94% Utilisation of Core Bed Spaces
- 77 people offered a bed and bespoke support within CHESS core facilities
- An additional 50 people offered rough sleeper beds and support RSI staff find accommodation for an additional 143 people who were street homeless or at risk of becoming street homeless
- 22 people gained employment whilst in CHESS
- 272 individuals in contact with the Outreach Team
- RSI Contacts Attempted - 1,448
- Street Casework Visits/Logs - 2,672
- RSI In-house support consultations - 3,261
- CHESS client support meetings - 1,668
- CHESS life skills/wellbeing support meetings 883
- Training and employment support meetings - 262
- Social Value of RSI Activities (based on ECC scoring matrix) £1.357m
- Total Social Value of all CHESS Homeless Activities (based on ECC scoring matrix) £3.894m
**- 8 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
**Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
## **Achievements and performance** _**(continued)**_
**- 9 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
## **Achievements and performance** _**(continued)**_
## **The current progress in ramping up operations following the relaxing of Covid-19 restrictions**
The Covid-19 Pandemic placed many limitations on CHESS Homeless operations. Our service is naturally people focused and relies heavily on face-to-face support meetings. We have been cautiously unwinding some of the restrictions imposed during the lockdown. This process has been generally a cautious incremental approach as opposed to big-bang. The bullet points below represent the increase in service provision for the charity:
- Our shelter (Hodgkinson House) continues 24 hours a day and 7 days a week with an increase from 6 to 7 beds.
- CHESS increased its property portfolio from 10 to 13, one of the properties being the first outside of Chelmsford.
- CHESS increased its total bedspaces from 49 to 66.
- All houses have been furnished with access to the internet.
- CHESS completely refurbished a 5 bedroomed property. At the time of this report another is nearly complete.
- A new working group began in Chelmsford called 'Chelmsford Homeless Forum' which involves all the statutory organisation, third sector and voluntary groups.
- Outreach reached out and responded to 820 Street-link referrals in the 8 local authorities with over 1448 visits.
- 66 Tenancies were started at Stock, 38 of which ended with a positive move on into other CHESS accommodation or into external accommodation.
- The Outreach Team helped facilitate 143 moves of clients directly from the streets into non-RSI accommodation.
- 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 continued our relationship with Safer places in giving women fleeing domestic abuse a better opportunity to rebuild their lives.
**- 10 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
## **Achievements and performance** _**(continued)**_
## **Case study**
Lloyd had a regular childhood and upbringing with good parents. He got up to regular mischief that young boys do but fell into bad company at around 17. He got involved in a fight which led to him serving time in Borstal - somewhere he describes as an absolute nightmare. He was beaten on a daily basis by other inmates and staff alike in the most brutal and demoralising manner. When Lloyd was 18 he lost his dad to cancer, and he actually died in his arms. This had a huge impact on him, pushing him further to alcohol. In spite of this he got married, had children and built a life for himself and his family by working as a car sprayer for BMW, Porsche and other big names but something didn't feel quite right. He discovered that his wife had been having affairs throughout their marriage which he describes as 'his world imploding and impossible to mend' and causing its ultimate breakdown.
Lloyd moved out and ended up sofa surfing, living in his car and eventually moving into a caravan on his friend's building yard. He had no heat, no running water and his drinking had reached a level where he would often wake up not knowing anything about the night before or how he had got where he found himself. During this period of time, he made 6 suicide attempts but failed each time. Moving into his friend's building yard was the worst move he would make. He would work all week and sometimes get paid just £14. He was beaten on a regular basis and witnessed violence all the time. He lost 7 stone in weight and was living in a nightmare situation that he felt he had no way out of. He had become a victim of modern day slavery. Every day was the same, he felt sick, anxious, he felt that he was nothing and he had nothing - he could see no future so decided he may as well be dead as he was just existing. He had one bag, one pair of pants, one pair of socks and nothing else.
Then one day the CHESS Outreach Team were outside the gates of the yard, and he went out to chat to them. They offered Lloyd a room at our facility in Stock which he decided to take. Things didn't improve straight away and he made another suicide attempt in the few months he was there. When his previous 'friend' turned up trying to get him back and he was badly beaten it was decided that he would be moved to another CHESS location.
Here he started to build relationships with people, making friends over dinner and getting to know people again and start the rebuilding process. For all the darkness Lloyd has experienced in his life he is adamant that it is a place he will never return to. He told us this 'Problems don't go away when you drink - it only prolongs the problems. I decided that I needed to change things not only for my kids so I could have a relationship with them again, but also for me. I have to realise that I have a lot to give. Every day is a good day for me, even when it's not going great, cos I've been given another chance. To fail at 6 suicide attempts someone up there obviously wants me to stick around for some reason.'
Now Lloyd is getting them help he needs and will start making use of the CHESS counselling service soon. He went on to say: "This is not just a chapter, it's my life. I'm not ashamed of what's happened to me and I'm not ashamed to tell people. I've started writing a journal every day. I don't read it myself but I make my entry and it will be there for my kids to read my story. I will close this journal on the day that I get a door key of my own for my own place. I've a lot of bridge building to do with my family who have seen me at my worst and darkest times, but they can see the change in me. I'm off the drink and I'm going to stay that way. I've battled my demons and worked so hard so I'm not going back to that place where I felt worthless'. 'For the first time in a long time I feel positive and can see light at the end of the tunnel. I want to get my own place where I can have my kids to stay, and they can be proud of their dad and how far I've come. I want to grow old with my kids, see them go on their first dates, get married etc. It's what you leave behind that counts. Thank God I was useless at suicide!"
**- 11 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
## **Financial review**
Income from Housing Benefit and rents increased by 72% to £403k (2021: £235k) This was due to the lifting of Covid-19 restrictions on bed capacity within our existing properties and a further 35% increase in new bed capacity to 66 (2021: 49).
CHESS Homeless was extremely successful in a range of Grant & Trust applications and secured a total of £1,212k in new funding (2021: £596k). The main reason behind this significant increase came from two grants of £300k each to fund the purchase of the Stock Motel.
The net result of the movements in Housing Benefits, Rent, Grants & Donations described above generated total income of £1,991k up 60% on 2021 (£1,248k).
During this year CHESS Homeless continued the relationship with an external fundraising organisation at a cost of £12k. The fundraising organisation helped CHESS Homeless secure £190k of grants and donations this year. This was an increase of 32% from 2021 (£128k).
The main grants awarded this year are summarised below; CHESS Homeless extend their sincere thanks to the organisations involved for the valuable support provided:
- Rough Sleeper Initiative, Ministry of Housing, Communities and Local Government (MHCLG), £250k
- Various Grants to Refurbish Existing Housing Stock, (CIF, Nationwide, HSBC), £27k
- NET Covid Response fund (Core costs and additional staffing) £25k
- CCG NHS Thurrock, Provision of Mental Wellbeing worker with signposting support, £55k
- NSAP (Next Step Accommodation Programme) £184k
- Lloyds Bank Foundation, Partial funding of Operational Management Post, £33k
- Chelmsford City Council Community Infrastructure Levy (CIL): £300k towards purchase of Stock Motel
- Ebeneezer Trust: £300k towards purchase of Stock Motel
- Garfield Weston: £30k
- Great change £18k
Operational Expenditure increased by 42% to £1,411k (2021: £992k) Staffing costs and increased costs associated with housing were the 2 main influences on this increase. The 44% increase in staff costs to £845k (2021: £587k) was primarily due to the 35% increase in bed capacity and the increase in outreach cover across 8 local authorities (2021: 5).
As a result of this growth our staff level increased by 34% to 34.9 FTE (2021: 26.1 FTE). We also increased the responsibility of some key staff to reflect the significantly higher levels of responsibility in the revised operating structure. 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.
Housing costs increased by 72% to £412k (2012: £240k). This increase is due to the 35% increase in bed capacity and the significant increase in energy costs.
**- 12 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
## **Financial review** _**(continued)**_
## **Reserves Policy**
During FY 20/21 the Trustees had the opportunity to reflect upon the significant impact the pandemic had on the organisation and the possibility of it, or something similar happening again. As a result of this the Trustee 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 3 months to 6 months of essential operating costs will 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 this year CHESS Homeless has continued to grow 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 the country now faces the "cost of living crisis." 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.
Operating costs for FY 21/22 was £937k, as at 31 March 2022 the charity had free reserves represented by unrestricted current assets and unrestricted current liabilities of £102,529 (2021: £122,550). With the increase in required reserves of 6 months operating costs the free reserve of £102,529 are £366k below the target level. CHESS Homeless have recently been awarded a significant uplift in Housing Benefit rates and therefore expect reserves to improve in the medium term.
During this transition period the contingency plan will be to use easily liquefiable fixed assets to increase cash holdings should a major unforeseen event materialise.
Restricted funds amounted to £771,423 (2021: £269,119).
**- 13 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
## **Plans for future periods**
CHESS Homeless are continuing to explore ways to secure more housing stock in 2022/23. 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, recession and cost of living crisis.
We are exploring options to develop the current Rough Sleeper site. The outline proposal will be to place up to 9 self-contained pods on a spare plot of land within the site boundary. We have developed early concept plans and we are currently investigating the use of renewable energy sources in the final design requirement. We are also exploring capital funding options before a final decision on a planning submission. If successful, these pods will provide additional move on housing and help maintain the natural flow of people through the CHESS/RSI pathways.
CHESS Homeless has been working in partnership with 8 local authorities (Chelmsford, Epping, Maldon, Braintree, Brentwood Castlepoint, Uttlesford and Rochford) through the Ministry of Housing Communities Local Government (Department of Levelling Up Communities and Housing) Rough Sleeper Initiative (RSI) to generate additional support and housing for rough sleepers. Epping is the first area that CHESS Homeless has been operating a leased property under the partnership initiative outside of Chelmsford.
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 specialist accommodation for one or both of the following specific needs: Substance misuse and Mental health.
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.
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.
**- 14 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
## **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, 3rd November 2015 and 16 July 2021.
## **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
## **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.
**- 15 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
## **Structure, governance and management** _**(continued)**_
## **Risk Assessment**
Chess Trustees have produced a risk register that captures the top 10 risks relevant to our operating environment. The risk register has been reviewed by the board of trustees and will become a stand-alone agenda item on all future board meetings.
## **Organisational structure**
The board of Trustees delegate the 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.
## **Fundraising standards information**
The board of trustees supports raising funds from the public in relation to our core activities. The Charity is registered with the Fundraising Regulator. There have been no complaints about fundraising activity this year.
The fundraising department has signed up to the Fundraising Regulator's Code of Fundraising Practice. All fundraising guidance and working practices have been or are being updated so that they are compliant. Fundraisers are also given a briefing before they raise funds for the Charity and will also be given annual updates/reminders via communication from the fundraising department.
All marketing material or information sent from the Charity contains clear instructions on how a person can be removed from the mailing lists and is GDPR compliant.
## **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.
**- 16 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Trustees' annual report (incorporating the directors' report)** _**(continued)**_
## **Year ended 31 March 2022**
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.
## **Auditor**
Each of the persons who is a trustee at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the charity's auditor is unaware; and
- they have taken all steps that they ought to have taken as a trustee to make themselves aware of any relevant audit information and to establish that the charity's auditor is aware of that information.
The auditors, Lovewell Blake LLP, were appointed following the year end and have indicated their willingness to accept re-appointment.
## **Small company provisions**
This report has been prepared taking advantage of the small companies' exemption of section 415A of the Companies Act 2006.
The trustees' annual report was approved on 16 January 2023 and signed on behalf of the board of trustees by:
Joy Michelle Brown (Chair) Trustee
**- 17 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Independent auditor's report to the members of CHESS Homeless**
## **Year ended 31 March 2022**
## **Opinion**
We have audited the financial statements of CHESS Homeless (the 'charity') for the year ended 31 March 2022 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 2022 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.
**- 18 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Independent auditor's report to the members of CHESS Homeless** _**(continued)**_
## **Year ended 31 March 2022**
## **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.
**- 19 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Independent auditor's report to the members of CHESS Homeless** _**(continued)**_
## **Year ended 31 March 2022**
## **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.
- 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.
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the rationale of significant transactions outside the normal course of activities and reviewing accounts estimates for bias.
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.
**- 20 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Independent auditor's report to the members of CHESS Homeless** _**(continued)**_
## **Year ended 31 March 2022**
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.
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
26 January 2023
**- 21 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Statement of financial activities (including income and expenditure account)**
## **Year ended 31 March 2022**
||||**2022**||2021|
|---|---|---|---|---|---|
|||Unrestricted|Restricted|||
|||funds|funds|**Total funds**|Total funds|
||**Note**|**£**|**£**|**£**|£|
|**Income and endowments**||||||
|Donations and legacies|**5**|435,984|783,801|1,219,785|594,124|
|Charitable activities|**6**|520,676|250,249|770,925|649,889|
|Investment income|**7**|97|–|97|687|
|Other income|**8**|–|–|–|3,448|
|||-------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|
|**Total income**||956,757|1,034,050|1,990,807|1,248,148|
|||===============================|=======================================|=======================================|=======================================|
|**Expenditure**||||||
|Raising funds||||||
|Costs of raising funds|**9**|48,600|–|48,600|53,825|
|Charitable activities|**10**|889,065|521,746|1,410,811|991,672|
|||-------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|
|**Total expenditure**||937,665|521,746|1,459,411|1,045,497|
|||===============================|=======================================|=======================================|=======================================|
|**Net income before transfer of funds**||19,092|512,304|531,396|202,651|
|Transfers between funds||10,000|(10,000)|–|–|
|||-------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|
|**Net movement in funds**||29,092|502,304|531,396|202,651|
|**Reconciliation of funds**||||||
|Total funds brought forward||927,613|269,119|1,196,732|994,081|
|||-------------------------------|---------------------------------------|---------------------------------------|---------------------------------------|
|**Total funds carried forward**||956,705|771,423|1,728,128|1,196,732|
|||===============================|=======================================|=======================================|=======================================|
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 25 to 38 form part of these financial statements.**
**- 22 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Balance sheet**
## **31 March 2022**
|||**2022**||2021||
|---|---|---|---|---|---|
||**Note**|**£**|**£**|£|£|
|**Fixed assets**||||||
|Tangible fixed assets|**16**||1,839,918||1,207,322|
|**Current assets**||||||
|Debtors|**17**|64,748||48,558||
|Investments|**18**|91,421||91,421||
|Cash at bank and in hand||209,420||381,990||
|||-------------------------------||-------------------------------||
|||365,589||521,969||
|**Creditors: Amounts falling due within**||||||
|**one year**|**19**|(91,637)||(130,300)||
|||-------------------------------||-------------------------------||
|**Net current assets**|||273,952||391,669|
||||---------------------------------------||---------------------------------------|
|**Total assets less current liabilities**|||2,113,870||1,598,991|
|**Creditors: Amounts falling due after**||||||
|**more than one year**|**20**||(385,742)||(402,259)|
||||---------------------------------------||---------------------------------------|
|**Net assets**|||1,728,128||1,196,732|
||||=======================================||=======================================|
|**Funds of the charity**||||||
|Restricted funds|||771,423||269,119|
|Unrestricted funds|||956,705||927,613|
||||---------------------------------------||---------------------------------------|
|**Total charity funds**|**21**||1,728,128
=======================================||1,196,732
=======================================|
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the board of trustees and authorised for issue on 16 January 2023, and are signed on behalf of the board by:
Joy Michelle Brown (Chair) Trustee
Company registration number: 04407742
**The notes on pages 25 to 38 form part of these financial statements.**
**- 23 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Statement of cash flows**
## **Year ended 31 March 2022**
||**2022**|2021|
|---|---|---|
||**£**|£|
|**Cash flows from operating activities**|||
|Net income|531,396|202,651|
|_Adjustments for:_|||
|Depreciation of tangible fixed assets|16,028|17,054|
|Other interest receivable and similar income|(97)|(687)|
|Interest payable and similar charges|21,029|20,813|
|Accrued expenses|27,693|12,513|
|_Changes in:_|||
|Trade and other debtors|(16,190)|(25,162)|
|Trade and other creditors|(45,573)|19,107|
||-------------------------------|-------------------------------|
|Cash generated from operations|534,286|246,289|
|Interest paid|(21,029)|(20,813)|
|Interest received|97|687|
||-------------------------------|-------------------------------|
|Net cash from operating activities|513,354|226,163|
||===============================|===============================|
|**Cash flows from investing activities**|||
|Purchase of tangible assets|(648,624)|(19,861)|
||-------------------------------|-------------------------------|
|Net cash used in investing activities|(648,624)|(19,861)|
||===============================|===============================|
|**Cash flows from financing activities**|||
|Repayment of borrowing|(37,300)|(17,119)|
||-------------------------------|-------------------------------|
|Net cash used in financing activities|(37,300)|(17,119)|
||===============================|===============================|
|**Net (decrease)/increase in cash and cash equivalents**|(172,570)|189,183|
|**Cash and cash equivalents at beginning of year**|381,990|192,807|
||-------------------------------|-------------------------------|
|**Cash and cash equivalents at end of year**|209,420|381,990|
||===============================|===============================|
**The notes on pages 25 to 38 form part of these financial statements.**
**- 24 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements**
## **Year ended 31 March 2022**
## **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.
**- 25 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
## **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.
**- 26 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
## **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:
|Fixtures and fittings|-|50% straight line|
|---|---|---|
|Motor vehicles|-|20% straight line|
|Equipment|-|50% straight line|
Due to the nature of the charity depreciation of the property held is recognised by way of maintenance costs instead of a depreciation charge. Property is also held at cost and the trustees consider that the market value of the property is greater than the cost recognised within the financial statements.
## **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|**2022**|
||£|£|**£**|
|**Donations**||||
|Donations|267,108|600,000|867,108|
|**Grants**||||
|Other grants|168,876|183,801|352,677|
||-------------------------------|-------------------------------|---------------------------------------|
||435,984|783,801|1,219,785|
||===============================|===============================|=======================================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2021|
||£|£|£|
|**Donations**||||
|Donations|214,471|–|214,471|
**- 27 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
## **5. Donations and legacies** _**(continued)**_
||Unrestricted|Restricted|Total Funds|
|---|---|---|---|
||Funds|Funds|2021|
||£|£|£|
|**Grants**||||
|Other grants|8,086|371,567|379,653|
||-------------------------------|-------------------------------|-------------------------------|
||222,557|371,567|594,124|
||===============================|===============================|===============================|
During the year ended 31 March 2022 £484,100 (2021: £97,900) of government funding was received.
## **6. Charitable activities**
||Unrestricted|Restricted|**Total Funds**|
|---|---|---|---|
||Funds|Funds|**2022**|
||£|£|**£**|
|Housing benefit and rent|403,425|–|403,425|
|Housing related support|117,251|–|117,251|
|Rough Sleeper Initiative|–|250,249|250,249|
||-------------------------------|-------------------------------|-------------------------------|
||520,676|250,249|770,925|
||===============================|===============================|===============================|
||Unrestricted|Restricted|Total Funds|
||Funds|Funds|2021|
||£|£|£|
|Housing benefit and rent|234,870|–|234,870|
|Housing related support|117,251|–|117,251|
|Rough Sleeper Initiative|–|297,768|297,768|
||-------------------------------|-------------------------------|-------------------------------|
||352,121|297,768|649,889|
||===============================|===============================|===============================|
During the year ended 31 March 2022 £367,500 (2021: £415,019) of government funding was received.
## **7. Investment income**
## **8.**
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Bank interest receivable|97|97|687|687|
||=============|=============|=============|=============|
|**Other income**|||||
||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
||Funds|**2022**|Funds|2021|
||£|**£**|£|£|
|Covid-19 Retention Scheme|–|–|3,448|3,448|
||=============|=============|======================|======================|
**- 28 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
## **9. Costs of raising funds**
|||Unrestricted|**Total Funds**|Unrestricted|Total Funds|
|---|---|---|---|---|---|
|||Funds|**2022**|Funds|2021|
|||£|**£**|£|£|
||Wages and salaries|34,571|34,571|38,379|38,379|
||Other fundraising costs|14,029|14,029|15,446|15,446|
|||--------------------------|--------------------------|--------------------------|--------------------------|
|||48,600|48,600|53,825|53,825|
|||==========================|==========================|==========================|==========================|
|**10.**|**Expenditure on charitable activities**|||||
||||Unrestricted|Restricted|**Total Funds**|
||||Funds|Funds|**2022**|
||||£|£|**£**|
||Housing costs||287,353|125,524|412,877|
||Support costs||601,712|396,222|997,934|
||||-------------------------------|-------------------------------|---------------------------------------|
||||889,065|521,746|1,410,811|
||||===============================|===============================|=======================================|
||||Unrestricted|Restricted|Total Funds|
||||Funds|Funds|2021|
||||£|£|£|
||Housing costs||63,782|175,756|239,538|
||Support costs||396,205|355,929|752,134|
||||-------------------------------|-------------------------------|-------------------------------|
||||459,987|531,685|991,672|
||||===============================|===============================|===============================|
|**11.**|**Analysis of support costs**|||||
|||||**2022**|2021|
|||||**£**|£|
||Staff costs|||810,370|549,000|
||Outsourced staff costs|||18,934|49,610|
||Communications and IT|||52,502|50,878|
||General office|||65,785|45,109|
||Finance costs|||21,029|20,813|
||Motor & travel expenses|||10,318|11,370|
||Audit fees|||6,000|9,939|
||Legal & professional|||12,996|15,415|
|||||-------------------------------|-------------------------------|
|||||997,934|752,134|
|||||===============================|===============================|
|**12.**|**Net income**|||||
|||||**2022**|2021|
|||||**£**|£|
||Depreciation of tangible assets|||16,028|17,054|
||Lease payments|||86,159|39,105|
|||||==========================|==========================|
**- 29 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
## **13. Auditors remuneration**
||**2022**|2021|
|---|---|---|
||**£**|£|
|Fees payable for the audit of the financial statements|7,764|7,320|
|Prior year over accrual|(1,764)|–|
|Prior year under accrual|–|2,619|
||----------------------|----------------------|
||6,000|9,939|
||======================|======================|
|**Staff costs**|||
||**2022**|2021|
||**£**|£|
|Wages and salaries|767,831|535,772|
|Social security costs|61,459|41,503|
|Employer pension costs|15,651|10,104|
||-------------------------------|-------------------------------|
||844,941|587,379|
||===============================|===============================|
## **14. Staff costs**
The average number of persons employed by the charity during the year amounted to 35 (2021: 26)
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 £143,567 (2021: £140,125).
## **15. Trustee remuneration and expenses**
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees.
**- 30 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
## **16. Tangible fixed assets**
||**Freehold**|**Fixtures**|**Motor**|||
|---|---|---|---|---|---|
||**property**|**and fittings**|**vehicles**|**Equipment**|**Total**|
||**£**|**£**|**£**|**£**|**£**|
|**Cost**||||||
|At 1 April 2021|1,185,000|–|39,741|49,634|1,274,375|
|Additions|600,400|10,564|17,130|20,530|648,624|
||---------------------------------------|--------------------------|--------------------------|--------------------------|---------------------------------------|
|**At 31 March 2022**|1,785,400|10,564|56,871|70,164|1,922,999|
||=======================================|==========================|==========================|==========================|=======================================|
|**Depreciation**||||||
|At 1 April 2021|–|–|37,553|29,500|67,053|
|Charge for the year|–|1,317|1,607|13,104|16,028|
||---------------------------------------|--------------------------|--------------------------|--------------------------|---------------------------------------|
|**At 31 March 2022**|–|1,317|39,160|42,604|83,081|
||=======================================|==========================|==========================|==========================|=======================================|
|**Carrying amount**||||||
|**At 31 March 2022**|1,785,400|9,247|17,711|27,560|1,839,918|
||=======================================|==========================|==========================|==========================|=======================================|
|At 31 March 2021|1,185,000|–|2,188|20,134|1,207,322|
||=======================================|==========================|==========================|==========================|=======================================|
A 10 year restriction on the sale of Woodstock Motel, Chelmsford was in place at the year end, which requires the charity to return a proportion of any gain on disposal to the previous owner. No amount for this was recognised within the financial statements at the year end as the trustees do not wish to dispose of this property and also due to the immeasurable value.
## **17. Debtors**
||**2022**|2021|
|---|---|---|
||**£**|£|
|Trade debtors|27,487|10,279|
|Prepayments and accrued income|26,224|28,335|
|Other debtors|11,037|9,944|
||--------------------------|--------------------------|
||64,748|48,558|
||==========================|==========================|
|**Investments**|||
||**2022**|2021|
||**£**|£|
|COIF Charities Deposit Fund|91,421|91,421|
||==========================|==========================|
|**Creditors:** **Amounts falling due within one year**|||
||**2022**|2021|
||**£**|£|
|Bank loans and overdrafts|17,078|37,861|
|Trade creditors|10,758|61,082|
|Accruals and deferred income|40,206|12,513|
|Social security and other taxes|20,655|15,822|
|Other creditors|2,940|3,022|
||--------------------------|-------------------------------|
||91,637|130,300|
||==========================|===============================|
## **18. Investments**
## **19. Creditors: Amounts falling due within one year**
**- 31 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
## **19. Creditors: Amounts falling due within one year** _**(continued)**_
||**2022**|2021|
|---|---|---|
||**£**|£|
|Deferred income brought forward|–|27,727|
|Released during the year|–|(27,727)|
|Deferred during the year|19,925|–|
||--------------------------|--------------------------|
|Deferred income carried forward|19,925|–|
||==========================|==========================|
|Deferred income relates to grants received for future periods.|||
|**Creditors:** **Amounts falling due after more than one year**|||
||**2022**|2021|
||**£**|£|
|Bank loans and overdrafts|385,742|402,259|
||===============================|===============================|
|**Analysis of loans payable by instalments**|||
||**2022**|2021|
||**£**|£|
|In more than one year but not more|||
|than two years|17,078|37,861|
|In more than two years but not more|||
|than five years|385,742|402,259|
||-------------------------------|-------------------------------|
||402,820|440,120|
||===============================|===============================|
Deferred income relates to grants received for future periods.
## **20. Creditors: Amounts falling due after more than one year**
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%.
**- 32 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
## **21. Analysis of charitable funds**
## _**Unrestricted funds**_
Year ended 31 March 2022
|Year ended 31 March 2022||||||
|---|---|---|---|---|---|
||At 1 April||||**At 31 March**|
||2021|Income|Expenditure|Transfers|**2022**|
||£|£|£|£|£|
|General funds|927,613|956,757|(937,665)|10,000|956,705|
||===============================|===============================|===============================|==========================|===============================|
|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|
||===============================|===============================|===============================|=============|===============================|
**- 33 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
## _**Restricted funds**_
|Year ended 31 March 2022||||||
|---|---|---|---|---|---|
||At 1 April||||**At 31 March**|
||2021|Income|Expenditure|Transfers|**2022**|
||£|£|£|£|£|
|CRM & Accounting Software|336|–|–|–|336|
|Bedrooms|2,000|–|–|–|2,000|
|General Christian Act|20|–|–|–|20|
|Client Incentives|2,327|–|–|–|2,327|
|Refurbishment 7-8 George||||||
|Street|5,079|–|–|–|5,079|
|Maintenance Support|450|–|–|–|450|
|Essex Community|800|–|–|–|800|
|ASDA quiz night|322|–|–|–|322|
|Residents Training|1,403|–|(8)|–|1,395|
|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|100,470|250,249|(319,467)|–|31,252|
|CCG NHS Thurrock|41,480|55,000|(47,730)|–|48,750|
|Rock Choir Tickets|464|–|–|–|464|
|Active Essex Bikes|354|–|160|–|514|
|HSBC|25,000|–|(20,304)|–|4,696|
|Net Covid Fund (ECF)|6,846|25,265|(6,846)|–|25,265|
|NSAP|29,137|51,073|(80,210)|–|–|
|TNL|10,000|–|–|(10,000)|–|
|British Science|106|–|(16)|–|90|
|Greater Change|1,425|18,468|(6,825)|–|13,068|
|Safer Places|7,500|–|(7,500)|–|–|
|Winter Project|–|995|–|–|995|
|Operations Manager salary|–|33,000|(33,000)|–|–|
||-------------------------------|-------------------------------|-------------------------------|--------------------------|-------------------------------|
||269,119|434,050|(521,746)|(10,000)|171,423|
||===============================|===============================|===============================|==========================|===============================|
|**_Restricted fixed assets_**||||||
||At 1 April||||**At 31 March**|
||2021|Income|Expenditure|Transfers|**2022**|
||£|£|£|£|£|
|Woodstock Motel|–|600,000|–|–|600,000|
||-------------------------------|-------------------------------|-------------------------------|--------------------------|-------------------------------|
||–|600,000|–|–|600,000|
||===============================|===============================|===============================|==========================|===============================|
||-------------------------------|---------------------------------------|-------------------------------|--------------------------|-------------------------------|
|Restricted fund total|269,119
===============================|1,034,050
=======================================|(531,746)
===============================|(10,000)
==========================|771,423
===============================|
**- 34 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
|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
===============================|
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.
**- 35 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
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.
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.
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.
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.
**- 36 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
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.
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.
**- 37 -**
## **CHESS Homeless**
## **Company Limited by Guarantee**
## **Notes to the financial statements** _**(continued)**_
## **Year ended 31 March 2022**
## **22. Analysis of net assets between funds**
**Year ended 31 March 2022**
|**Year ended 31 March 2022**||||
|---|---|---|---|
||Unrestricted|Restricted|
**Total**|
||funds|funds|**Funds 2022**|
||£|£|**£**|
|Fixed assets|1,239,918|600,000|1,839,918|
|Current assets|194,166|171,423|365,589|
|Creditors less than 1 year|(91,637)|–|(91,637)|
|Creditors greater than 1 year|(385,742)|–|(385,742)|
||---------------------------------------|-------------------------------|---------------------------------------|
||956,705|771,423|1,728,128|
||=======================================|===============================|=======================================|
|**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|
||=======================================|===============================|=======================================|
|**Analysis of changes in net debt**||||
||At||**At**|
||1 April 2021
Cash flows||**31 March 2022**|
||£|£|**£**|
|Cash at bank and in hand|381,990|(172,570)|209,420|
|Debt due within one year|(37,861)|20,783|(17,078)|
|Debt due after one year|(402,259)|16,517|(385,742)|
|Current asset investments|91,421|–|91,421|
||-------------------------------|-------------------------------|-------------------------------|
||33,291|(135,270)|(101,979)|
||===============================|===============================|===============================|
## **23. Analysis of changes in net debt**
## **24. Operating lease commitments**
The total future minimum lease payments under non-cancellable operating leases are as follows:
||**2022**|2021|
|---|---|---|
||**£**|£|
|Not later than 1 year|39,971|39,696|
|Later than 1 year and not later than 5 years|32,943|31,361|
||--------------------------|--------------------------|
||72,914|71,057|
||==========================|==========================|
## **25. Related parties**
During the year £180 (2021: £180) of unrestricted donations income was received from two Trustees, and £11,516 (2021: £14,847) of expenditure was made to Birketts of which H Harbottle is also an Associate.
**- 38 -**