Registered number: 04460483 Charity number: 1098079
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED (A company limited by guarantee)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2022
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
CONTENTS
| Page | |
|---|---|
| Reference and administrative details of the company, its Trustees and advisers | 1 |
| Trustees' report | 2 - 3 |
| Independent examiner's report | 4 |
| Statement of financial activities | 5 |
| Balance sheet | 6 |
| Notes to the financial statements | 7 - 16 |
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE COMPANY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 30 JUNE 2022
Trustees
B H Spence Rev A Golba J Spence S C Day
G W Schulz
Company registered number
04460483
Charity registered number
1098079
Registered office
73-75 North Street Barrow-upon-Soar Loughborough Leicestershire LE12 8PZ
Accountants
Baldwin Scofield Accountancy LLP Chartered Accountants 3 Newhouse Business Centre Old Crawley Road Horsham West Sussex RH12 4RU
Bankers
National Westminster Bank plc 120 - 122 High Street Hornchurch Essex RM12 4UL
Page 1
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
TRUSTEES' REPORT FOR THE YEAR ENDED 30 JUNE 2022
The Trustees present their annual report together with the financial statements of the company for the 1 July 2021 to 30 June 2022. The Annual report serves the purposes of both a Trustees' report and a directors' report under company law. The Trustees confirm that the Annual report and financial statements of the charitable company comply with the current statutory requirements, the requirements of the charitable company's governing document and the provisions of the Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).
Since the company qualifies as small under section 382 of the Companies Act 2006, the Strategic report required of medium and large companies under the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 has been omitted.
Objectives and activities
Policies and objectives
The main object of the charity is to provide properties for the homeless to stay in.
In setting objectives and planning for activities, the Trustees have given due consideration to general guidance published by the Charity Commission relating to public benefit, including the guidance 'Public benefit: running a charity (PB2)'.
Achievements and performance
Review of activities
The trust has maintained the properties in Loughborough and Kegworth, leasing these to The Carpenter’s Arms (Midlands) Trust as in past years.
Both properties have been looked after well and improvements have been made to keep them up to standard.
Financial review
Going concern
After making appropriate enquiries, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements.
Structure, governance and management
Constitution
Homes for the Homeless (Leicestershire) Limited is registered as a charitable company limited by guarantee and was set up by a Memorandum of Association.
Methods of appointment or election of Trustees
The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Memorandum of Association.
Page 2
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED (A company limited by guarantee)
TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2022
Structure, governance and management (continued)
Related party relationships
The Company leases its property to Carpenter's Arms (Midlands) Trust, a charity with common trustees with the Company. It uses the premises as supported accommodation for those challenged with homelessness due to an addictive lifestyle.
Financial risk management
The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.
Members' liability
The Members of the company guarantee to contribute an amount not exceeding £1 to the assets of the company in the event of winding up.
Statement of Trustees' responsibilities
The Trustees (who are also the directors of the company 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 . 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 company and of its incoming resources and application of resources, including its income and expenditure, 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 of the Charities SORP (FRS 102);
-
make judgments and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards (FRS 102) 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 company will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by order of the members of the board of Trustees on 27 March 2023 and signed on their behalf by:
J Spence
Page 3
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED (A company limited by guarantee)
INDEPENDENT EXAMINER'S REPORT FOR THE YEAR ENDED 30 JUNE 2022
Independent examiner's report to the Trustees of Homes for the Homeless (Leicestershire) Limited ('the company')
I report to the charity Trustees on my examination of the accounts of the company for the year ended 30 June 2022.
Responsibilities and basis of report
As the Trustees of the company (and its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the company's accounts carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
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accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a 'true and fair' view which is not a matter considered as part of an independent examination; or
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the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)].
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
This report is made solely to the company's Trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. My work has been undertaken so that I might state to the company's Trustees those matters I am required to state to them in an Independent examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's Trustees as a body, for my work or for this report.
Signed: Dated: 27 March 2023 Nicholas M Baldwin BA(Econ) FCA DChA
Baldwin Scofield Accountancy LLP Chartered Accountants
Page 4
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 30 JUNE 2022
| Note Income from: Donations and legacies 2 Charitable activities 3 Total income Expenditure on: Charitable activities 5 Total expenditure Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward |
Restricted funds 2022 £ - - - - - - 74,950 - 74,950 |
Unrestricted funds 2022 £ 10 48,445 48,455 50,556 50,556 (2,101) 172,889 (2,101) 170,788 |
Total funds 2022 £ 10 48,445 48,455 50,556 50,556 (2,101) 247,839 (2,101) 245,738 |
Total funds 2021 £ 25 61,395 61,420 88,367 88,367 (26,947) 274,786 (26,947) 247,839 |
|---|---|---|---|---|
The Statement of financial activities includes all gains and losses recognised in the year.
The notes on pages 7 to 16 form part of these financial statements.
Page 5
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED (A company limited by guarantee) REGISTERED NUMBER: 04460483
BALANCE SHEET AS AT 30 JUNE 2022
| Note Fixed assets Tangible assets 9 Current assets Cash at bank and in hand Creditors: amounts falling due within one year 10 Net current liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 11 Total net assets Charity funds Restricted funds 12 Unrestricted funds 12 Total funds |
10,647 10,647 (101,155) |
2022 £ 336,246 (90,508) 245,738 - 245,738 74,950 170,788 245,738 |
602 602 (10,997) |
2021 £ 347,288 (10,395) 336,893 (89,054) 247,839 74,950 172,889 247,839 |
|---|---|---|---|---|
The company was entitled to exemption from audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit for the year in question in accordance with section 476 of Companies Act 2006.
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime.
The financial statements were approved and authorised for issue by the Trustees on 27 March 2023 and signed on their behalf by:
G W Schulz
The notes on pages 7 to 16 form part of these financial statements.
Page 6
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
1. Accounting policies
1.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Homes for the Homeless (Leicestershire) Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
1.2 Income
All income is recognised once the company has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
1.3 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.
Expenditure on charitable activities is incurred on directly undertaking the activities which further the company's objectives, as well as any associated support costs.
Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.
All expenditure is inclusive of irrecoverable VAT.
1.4 Tangible fixed assets and depreciation
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Page 7
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED (A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
1. Accounting policies (continued)
1.4 Tangible fixed assets and depreciation (continued)
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
- Freehold property 2% straight line - Building improvements 12.5% straight line - Fixtures and fittings 33.3% straight line - Computer equipment 33.3% straight line
1.5 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
1.6 Liabilities and provisions
Liabilities are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised in the Statement of financial activities as a finance cost.
1.7 Financial instruments
The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.
1.8 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the company and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.
Page 8
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
2. Income from donations and legacies
| Unrestricted funds 2022 £ Donations 10 Total 2021 25 |
Total funds 2022 £ 10 25 |
Total funds 2021 £ 25 |
|---|---|---|
3. Income from charitable activities
| Unrestricted funds 2022 £ Rental income - charitable activities 48,445 Total 2021 61,395 |
Total funds 2022 £ 48,445 61,395 |
Total funds 2021 £ 61,395 |
|---|---|---|
4. Analysis of grants
| Grants Total 2021 |
Grants to Institutions 2022 £ - 24,960 |
Total funds 2022 £ - 24,960 |
Total funds 2021 £ 24,960 |
|---|---|---|---|
Page 9
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
5. Analysis of expenditure on charitable activities
Summary by fund type
| Costs of charitable activities Total 2021 |
Restricted funds 2022 Unrestricted funds 2022 £ £ - 50,556 6,782 81,585 |
Total 2022 £ 50,556 88,367 |
Total 2021 £ 88,367 |
|---|---|---|---|
6. Analysis of expenditure by activities
| Costs of charitable activities Total 2021 |
Activities undertaken directly 2022 £ 50,556 63,407 |
Grant funding of activities 2022 £ - 24,960 |
Total funds 2022 £ 50,556 88,367 |
Total funds 2021 £ 88,367 |
|---|---|---|---|---|
Analysis of direct costs
| Depreciation Repairs and renewals Loan interest Consultancy fees Rent Bookkeeping Sundry expenses Insurance Governance costs |
Total funds 2022 £ 11,042 28,465 1,587 4,920 2,505 280 13 1,024 720 50,556 |
Total funds 2021 £ 12,674 27,863 4,055 4,920 12,990 245 - - 660 |
|---|---|---|
| 63,407 |
Page 10
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
6. Analysis of expenditure by activities (continued)
Analysis of direct costs (continued)
7. Independent examiner's remuneration
| 2022 | 2021 | |
|---|---|---|
| £ | £ | |
| Fees payable to the company's independent examiner for the independent | ||
| examination of the company's annual accounts | 720 | 660 |
8. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2021 - £NIL) .
During the year ended 30 June 2022, no Trustee expenses have been incurred (2021 - £NIL) .
9. Tangible fixed assets
| Cost or valuation At 1 July 2021 At 30 June 2022 Depreciation At 1 July 2021 Charge for the year At 30 June 2022 Net book value At 30 June 2022 At 30 June 2021 |
Freehold property £ 517,521 517,521 170,924 10,350 181,274 336,247 346,597 |
Long-term leasehold property £ 167,733 167,733 167,042 692 167,734 (1) 691 |
Fixtures and fittings £ 25,897 25,897 25,897 - 25,897 - - |
Computer equipment £ 5,657 5,657 5,657 - 5,657 - - |
Total £ 716,808 |
|---|---|---|---|---|---|
| 716,808 | |||||
| 369,520 11,042 |
|||||
| 380,562 | |||||
| 336,246 | |||||
| 347,288 |
Page 11
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
9. Tangible fixed assets (continued)
The charity purchased the freehold of the property at 97 Nottingham Road, Kegworth, Derby DE74 2FH in 2020 having obtained a loan from CPD Trust Fund which has a first legal charge over the property as security for the loan. Subsequent to the year end this loan was redeemed and a new mortgage of £245,000 obtained which is secured on the Nottingham Road property.
The properties owned by the charity have been given as security to a loan held be the related charity The Carpenters Arms (Midlands) Trust.
10. Creditors: Amounts falling due within one year
| Other loans Amounts owed to associates Accruals and deferred income |
2022 £ - 99,740 1,415 101,155 |
2021 £ 9,582 - 1,415 |
|---|---|---|
| 10,997 |
Page 12
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
11. Creditors: Amounts falling due after more than one year
| Other loans Included within the above are amounts falling due as follows: Between one and two years Other loans Between two and five years Other loans Over five years Other loans |
2022 £ - 2022 £ - - - |
2021 £ 89,054 |
|---|---|---|
| 2021 £ 10,018 |
||
| 32,673 | ||
| 46,363 |
The aggregate amount of liabilities payable or repayable wholly or in part more than five years after the reporting date is:
| Payable or repayable by instalments | 2022 £ - - |
2021 £ 43,363 |
|---|---|---|
| 43,363 |
The charity has obtained a loan of £110,000 from CPD Trust Fund to purchase the property at 97 Nottingham Road, Kegworth, Derby DE74 2FH. The CPD Trust had a first legal charge over the property as security for the loan until the loan was settled during the year.
Page 13
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
12. Statement of funds
Statement of funds - current year
| Unrestricted funds General Funds - all funds Restricted funds Restricted Funds - all funds Total of funds Statement of funds - prior year Unrestricted funds General funds Restricted funds Refurbishment fund Total of funds |
Balance at 1 July 2021 £ 172,889 74,950 247,839 Balance at 1 July 2020 £ 193,054 81,732 274,786 |
Income £ 48,455 - 48,455 Income £ 61,420 - 61,420 |
Expenditure £ (50,556) - (50,556) Expenditure £ (81,585) (6,782) (88,367) |
Balance at 30 June 2022 £ 170,788 |
|---|---|---|---|---|
| 74,950 | ||||
| 245,738 | ||||
| Balance at 30 June 2021 £ 172,889 |
||||
| 74,950 | ||||
| 247,839 |
Page 14
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
13. Summary of funds
Summary of funds - current year
| General funds Restricted funds Summary of funds - prior year General funds Restricted funds |
Balance at 1 July 2021 £ 172,889 74,950 247,839 Balance at 1 July 2020 £ 193,054 81,732 274,786 |
Income £ 48,455 - 48,455 Income £ 61,420 - 61,420 |
Expenditure £ (50,556) - (50,556) Expenditure £ (81,585) (6,782) (88,367) |
Balance at 30 June 2022 £ 170,788 74,950 |
|---|---|---|---|---|
| 245,738 | ||||
| Balance at 30 June 2021 £ 172,889 74,950 |
||||
| 247,839 |
Page 15
HOMES FOR THE HOMELESS (LEICESTERSHIRE) LIMITED
(A company limited by guarantee)
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022
14. Analysis of net assets between funds
Analysis of net assets between funds - current year
| Tangible fixed assets Current assets Creditors due within one year Total |
Restricted funds 2022 Unrestricted funds 2022 £ £ 74,950 261,296 - 10,647 - (101,155) 74,950 170,788 |
Total funds 2022 £ 336,246 10,647 (101,155) 245,738 |
|---|---|---|
Analysis of net assets between funds - prior year
| Tangible fixed assets Current assets Creditors due within one year Creditors due in more than one year Total |
Restricted funds 2021 £ 74,950 - - - 74,950 |
Unrestricted funds 2021 £ 272,338 602 (10,997) (89,054) 172,889 |
Total funds 2021 £ 347,288 602 (10,997) (89,054) 247,839 |
|---|---|---|---|
15. Related party transactions
As at 30 June 2022 the charity owed £99,740 (2021: £Nil) to The Carpenter's Arms (Midlands) Trust, a charitable trust whose board of trustees includes trustees of Homes for the Homeless (Leicestershire) Limited.
A company owned by Mr G Schulz, a trustee, provided accountancy services to the charity during the year amounting to £280 (2021: £245)
Page 16