OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-03-31-accounts

Company Registration Number 4819153

Charity Registration Number 1099865

OPEN DOOR (NORTH EAST)

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee)

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

CONTENTS PAGES
Trustees’ Annual Report (including Directors’ Report) 1 to 7
Independent Examiner’s Report to the Trustees 8
Statement of Financial Activities 9
Balance Sheet 10
Statement of Cash Flows 11
Notes to the Financial Statements 12 to 21

Page 1

OPEN DOOR (NORTH EAST)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

YEAR ENDED 31 MARCH 2023

The trustees present their report and the unaudited financial statements of the charitable company for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity’s governing documents, the Charities Act 2011 and ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with Financial Reporting Standards applicable in the UK and Republic of Ireland’, published in October 2019.

Trustees of the Charity

The directors of the charitable company are its trustees for the purposes of charity law. Details of the trustees who have served during the year and since the year end can be found on page 7.

OBJECTS AND ACTIVITIES

Under its Memorandum of Association, the charitable company’s objects are to relieve persons who are in need or hardship, or who are aged or sick, and to relieve the distress caused thereby, in Middlesbrough, the North East of England and such other parts of the United Kingdom as the trustees may from time to time think fit.

Since its formation in July 2003, the charity has focused its attention on providing a range of related support services and housing to both asylum seekers and refugees. Since 2009 our core focus has been on the provision of services for those seeking sanctuary in Teesside and the Tees Valley.

The trustees regularly review the objectives, purposes and activities of the charity and, as part of this review, they have considered the Charity Commissions’ general guidance on public benefit and, in particular, its supplementary guidance on the prevention and relief of poverty for the public benefit.

Our vision statement remains:

‘Hope, Justice, Mercy and Dignity for those seeking sanctuary,’

and, despite a period of societal flux during which the demand for our services has only increased, we believe that our hopes and desires for those we help are encapsulated in this statement as veraciously as ever.

Nevertheless, with a number of significant changes to the environment in which we operate, a good portion of the Trustee and Senior Management Teams’ time this year has been engaged in looking to the future. Cognisant of the lessons learned from the Covid-19 pandemic, we have invested in the development and agreement of our refreshed Strategic Plan, which covers the period 2023 to 2025.

This has been framed around our values, which run through everything that we do; these are:

Our plan was agreed in October 2022 and focuses on six objectives; objectives four, five and six are identified as enablers to ensure that the first three objectives are possible, sustainable and of good quality.

Page 2

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

YEAR ENDED 31 MARCH 2023

OBJECTS AND ACTIVITIES (Continued)

Our six objectives are as follows:

1. Casework: increasing our capacity, skills and experience to support as many people as possible in the Tees Valley who are experiencing poverty, homelessness or marginalisation owing to their immigration status in order that it becomes the core priority of ODNE’s work.

2. Housing: continuing to improve the quality, flexibility and efficiency of our housing stock to provide accommodation for those who have been through the asylum system, including developing our portfolio to be able to respond to changes in demand for housing for those that need it. This demand will also be from those who do not have the right to rent or the financial means to do so because of the conditions of their leave.

3. Integration : continuing to be able to support asylum seekers, refugees and other migrants who have come through the asylum route, to become more independent and feel part of a supporting and welcoming community, so that people move from surviving to thriving.

4. Sustainability : ensuring that our work is financially sustainable through efficient working and from a balanced range of funding sources.

5. Communications : increasing the reputation and awareness of ODNE externally with all stakeholders and improving internal communications so that staff and volunteers work in an increasingly co-ordinated and cohesive manner according to our values and ethos.

6. Governance : strengthening the systems and processes in place to ensure appropriate oversight and management by the Board and senior staff. This will enable ODNE to continue to provide safe, sustainable and efficient services for their clients and volunteers.

In terms of timeline, our strategic plan will be implemented according to agreed milestones over the next three years.

By focussing our effort in these six areas, we are convinced that Open Door North East will continue to fulfil our mission whilst building in financial resilience, innovation and excellence across all areas of the charity.

Chair’s Report

On the 3[rd] of July 2023, Open Door North East (ODNE) marked 20 years of operation as a charity, bringing practical help, quality advice and casework and safe accommodation to asylum seekers, refugees and those with complex immigration status who have come through the asylum route in the Tees Valley, many of whom have direct experience of homelessness and destitution. Over this period, ODNE has seen significant growth but this has been outstripped by the increase in demand we are facing, as well as the complexity of the needs of those whom we help.

At the time of writing last year’s report, the Covid-19 pandemic was still to an extent influencing our operations. However, our robust and resilient leadership, support work, administration and volunteer teams, together with the courage and determination shown by our clients, have ensured that ODNE has emerged from the pandemic as a stronger and more capable entity than was the case in early 2020. In particular, we have improved our triage and appointment process, increasing our ability to provide more complex and bespoke casework in a calmer, safer setting, while still providing immediate support to those facing homelessness and destitution. We are grateful for volunteers who have helped to make this a smooth transition into appointment-based service through their gift of time, warm welcome, and administrative skills.

As ever, our key focus is on our clients, who we recognise and honour, in particular for their resilience in the face of adversity, an increasingly challenging external environment for refugees and the complex situations within which they find themselves. However, their courage and determination is something that encourages all involved in the charity and gives us hope and confidence that the Tees Valley can be a place of sanctuary for people forced to flee their homeland and make the complex journey to safety.

Page 3

OPEN DOOR (NORTH EAST)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

YEAR ENDED 31 MARCH 2023

OBJECTS AND ACTIVITIES Chair’s Report (Continued)

Our staff and volunteer team has continued to provide care and support in some challenging circumstances, often at little or no notice. It has been wonderful to see how the staff team in particular has bonded and developed their skills during the last year, even as the demand for their services has grown and become more complex. I remain incredibly grateful to this team, which consistently goes above and beyond for our clients.

All of this has, of course, been enabled and sustained by the generosity of our donors, who I thank on behalf of all at Open Door North East.

Simon Rogalski Chair of Trustees

ACHIEVEMENTS AND PERFORMANCE

Programmes

All our programme areas are based on and develop as a result of our six objectives laid out above and, importantly, feed into our Vision Statement. We have seen significant development across our portfolio of programmes over the last year, which is testament to the dedication of our staff team and volunteers.

Key programme highlights are as follows:

NE RISE

Our North East Refugee Integration Support and Employment (NE RISE) programme that commenced in November 2021 has now seen 24 months of successful operation, with over 380 individual and family refugee clients having been helped on their journey to safe and secure housing, integration and employment over that period, as a result of the support given by our team. The success of this programme has been truly gratifying, having considerably exceeded all the key performance indicators allocated to it, and ODNE continues be recognised as one of the leading partner providers in the region. Looking forward, much potential still exists to help more clients that are likely to be requiring our support shortly due to ongoing, well-reported legislative changes. Our support worker team has developed enormously over the period of the programme, both in terms of capacity and capability, and is well placed to deal with this increased demand.

The programme funding is due to come to an end on 31 March 2024. However, such is the strength and effectiveness of the team, our aim is to preserve it as is, whilst developing new and more balanced funding channels in order to support this.

Destitution Services

Services to our clients within the Tees Valley who have no recourse to public funds (NRPF) continue to form the core of our activities aimed at those who would otherwise be destitute. We offer a combination of housing, emergency cash support, legal advice, English language courses and volunteering opportunities to alleviate those with the most severe needs. Our aims are to assist those who we support in seeking out and deciding upon the best route forward for them as well as providing routes to access refugee status, particularly where such support has been discontinued. In particular, we have seen a rise in people presenting with mental health challenges that have impacted their ability to engage meaningfully with legal services and who have not been able to access mental health support. In response to the growing need, we are a founding partner of the Middlesbrough Mental Health Collective, funded by Tees, Esk and Wear Valleys NHS Foundation Trust (TEWV), to support people with complex mental health conditions in the community. The aspiration is that the partnership will enable our clients to have more equitable access to mental health services and support them to be able to engage more effectively with our services to find a route out of destitution.

We continue to build flexibility into our housing, unrestricted finances and case management to ensure that we are increasingly able to meet the demand in referrals and the increasing level of destitution in the Tees Valley. We have accommodated 32 people in the last year through our destitution support services. Around a third of those accommodated have moved onto other forms of stable support or been given leave to remain in the UK.

Page 4

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

YEAR ENDED 31 MARCH 2023

ACHIEVEMENTS AND PERFORMANCE (Continued)

Housing

During the past year, the Charity has made good progress towards achieving its goal of moving towards a financially sustainable model that decreases reliance on grant funding, whilst maintaining the aim of reducing homelessness for asylum seekers, refugees and other vulnerable migrants. As ever, we are committed to providing good quality accommodation, accompanied by wraparound supportive casework, conscious that secure housing is such a key component of the integration journey.

Overall, we are conscious of the need to grow the overall size of our portfolio, as the demand that we see continues to exceed capacity to a significant degree. Recent changes in government legislation and policy lead us to believe that the need will only increase.

As previously reported, the aim going forward is to grow the proportion of properties within our portfolio which are either owned outright or leased. This speaks to the dual goal of providing an increasing degree of quality and dignity in our provision of housing, as well as increased financial sustainability. We are grateful that support from the Quaker Housing Trust has enabled us to purchase an additional property close to our offices in Middlesbrough, bringing our total number of owned properties to four. In recent months, we have also taken on an additional leased property in Stockton.

Our Housing objective (above) is therefore underpinned by four key deliverables, as follows:

In terms of b above, good progress has been made in discussions with both Middlesbrough and Stockton Councils and we expect to gain supported accommodation status over the next few months. This will make an important and significant contribution to the achievement of key deliverable c, i.e., the self-financing of the portfolio. In addition to this, an important part of our housing provision is (and will remain) dedicated to our destitution clients.

Once again, we acknowledge the generosity of our funders and supporters who have given us such a great degree of assistance to be able to develop our housing portfolio.

Partnership Working

ODNE has continued to foster and develop partnership working across our services through North East RISE, Ariadne Partnership and Justice Together Initiative North East partnership. These programmes reinforce the close working relationships needed to ensure that clients are well supported throughout the process of building a stable and settled life in the UK. We are also incredibly pleased to have developed close working relationships with Local Authority Homelessness Prevention Services.

Our experience demonstrates that working in partnership with other local charities and with the local authorities is the best way to provide holistic support to those who we support, allowing organisations to grow and develop complementary services to ensure that service users do not fall through gaps in provision. We are exceptionally fortunate to have a number of charities with which we work closely in the local area, with many offering specialised support to our clients. As we face a more complex and fragmented asylum system, we expect to develop our partnership work to a greater degree.

Page 5

OPEN DOOR (NORTH EAST)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

YEAR ENDED 31 MARCH 2023

ACHIEVEMENTS AND PERFORMANCE (Continued)

Plans for Future Periods

Our future plans tie in with those encapsulated in our Strategic Plan, mentioned above, which contains a range of key targets and milestones.

Over the next financial year, our focussed priorities, taken from the Strategic Plan are;

Service Enhancement and Community Support:

Financial Sustainability and Diversification:

Partnerships and Networking:

Organisational Development and Governance:

These four priorities provide a streamlined focus for ODNE's Strategic Plan in the next financial year, addressing key areas of service improvement, financial sustainability, partnerships and governance.

FINANCIAL REVIEW

The balance on our unrestricted funds increased from £281,498 at 31 March 2022 to £306,277 by the end of the year under review. Overall, our assets included £276,499 in tangible fixed assets, cash reserves of £67,218 and other net current assets of £14,040. The trustees are pleased to report that the fundraising strategy, to raise unrestricted funds, is bearing fruit and is continuing into 2024.

It remains the intention of the trustees to maintain cash-backed unrestricted funds, which are the free reserves of the charity, at an amount in excess of three months’ average gross expenditure within those funds. In that gross expenditure across the unrestricted fund has been running at around £53,500 per month, the charity fell short of this target at 31 March 2023. The trustees continue to consider ways in which they can improve the level of unrestricted reserves in the short to medium term by refreshing the current fundraising strategy in order to focus on unrestricted giving.

By way of development in this area, we have been fortunate during the year to attract major donor funding into our income mix, further diversifying and balancing our revenue across various sources. We are looking to enhance this going forward, including as a result of a number of events around our 20[th] anniversary. Unrestricted donations received after the financial year end have significantly improved the unrestricted cash position.

The trustees consider the overall financial position and state of affairs of the charity at the balance sheet date to be satisfactory and remain cautiously optimistic as regards the future.

Page 6

OPEN DOOR (NORTH EAST)

(A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

YEAR ENDED 31 MARCH 2023

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Open Door (North East) is a company limited by guarantee and not having a share capital, governed by its Memorandum and Articles of Association dated 3 July 2003. It is also a charity registered with the Charity Commission. The members of the charitable company guarantee to contribute an amount not exceeding £10 to the assets of the company in the event of winding up during their period of membership and within one year of their ceasing to be a member.

Appointment of Trustees

The power to appoint trustees rests with the members of the company.

Trustees’ Induction and Training

Trustees are appointed based on them having the skills to manage a charity dealing with complex issues and vulnerable individuals. The trustees have induction procedures aimed at ensuring that new trustees understand their roles and obligations. As part of these procedures, trustees are encouraged to attend appropriate internal and external training events to facilitate the understanding of their roles.

ODNE benefits strongly from its experienced team of trustees, who meet at least every 2 months and several of whom also involve themselves closely with the day-to-day affairs of the charity on an ongoing basis. We continue to seek ways to broaden our trustee team.

Staff remuneration is set by the trustees and is reviewed annually, with the National Joint Council for Local Government Services pay scales used as a reference point. Operational matters are dealt with by the Senior Management Team, all of whom have long experience in their various professional fields.

Our risks are monitored and reported on at Trustees’ Meetings on a regular basis. Where risks exist and have been identified, procedures have been established to manage and mitigate these.

Page 7

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee)

TRUSTEES’ ANNUAL REPORT (INCLUDING DIRECTORS’ REPORT)

YEAR ENDED 31 MARCH 2023

REFERENCE AND ADMINISTRATIVE INFORMATION

Company Registration No: 4819153 Charity Registration No: 1099865 Registered Office and Melbourne House Principal Place of Business: Newport Road Middlesbrough TS1 5QH Trustees/Directors: Mr S C Rogalski Mr M Kempson (resigned 14.6.22) Dr R Grob Mr S E Jones Mrs M Shebanian (appointed 14.6.22) Company Secretary: Mrs A Lewis Chief Executive: Mrs A Lewis Bankers: Barclays Bank plc Unit 1 Centre Mall Middlesbrough TS1 2NR Legal Advisors: Tilly, Bailey & Irvine LLP 12 Evolution Wynyard Park Billingham TS22 5TB Independent Examiner: Mr J Lester FCA Baines Jewitt Limited Spitfire House 19 Falcon Court Preston Farm Industrial Estate Stockton-on-Tees TS18 3TU

This report has been prepared in accordance with the Statement of Recommended Practice on “Accounting and Reporting by Charities” (SORP (FRS 102)) and in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the trustees/directors on …………………………………. and signed on their behalf by:

……………………………….

S C ROGALSKI Chair of Trustees

Page 8

INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF OPEN DOOR (NORTH EAST)

I report to the charity trustees on my examination of the accounts of the company for the year ended 31 March 2023 which are set out on pages 9 to 21.

Responsibilities and Basis of Report

As the charity trustees of the company (and also 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 your company’s accounts as 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

Since the company’s gross income exceeds £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

  1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. 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

  4. 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.

Mr J Lester FCA Baines Jewitt Limited Chartered Accountants Spitfire House 19 Falcon Court Preston Farm Industrial Estate STOCKTON-ON-TEES TS18 3TU

Dated: …………………….

JL/AJW

Page 9

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT)

YEAR ENDED 31 MARCH 2023

Unrestricted Funds Unrestricted Funds Restricted Funds Restricted Funds Total Funds
Notes 2023 2022 2023 2022 2023 2022
£ £ £ £ £ £
INCOME
Grants and donations 3 142,467 110,698 89,919 82,598 232,386 193,296
Charitable activities 4 460,528 157,664 - - 460,528 157,664
Investment income 5 7,257 16,015 - - 7,257 16,015
Other income 811 216 - - 811 216
____ ____ ___ ___ ____ ____
TOTAL INCOME 611,063 284,593 89,919 82,598 700,982 367,191
========= ========= ======== ======== ========= =========
EXPENDITURE
Raising funds 6 14,754 7,950 145 39 14,899 7,989
Charitable activities 7 606,301 372,199 25,181 9,029 631,482 381,228
Other 8 21,228 9,839 - - 21,228 9,839
____ ____ __ _ ____ ____
TOTAL EXPENDITURE 642,283 389,988 25,326 9,068 667,609 399,056
========= ========= ======= ====== ========= =========
Net income/(expenditure)
for the year 9 (31,220) (105,395) 64,593 73,530 33,373 (31,865)
Transfer between funds 55,999 68,103 (55,999) (68,103) - -
____ ____ ___ ___ ____ ____
Net movement in funds 24,779 (37,292) 8,594 5,427 33,373 (31,865)
Reconciliation of funds:
Total funds brought forward 16 281,498 318,790 15,886 10,459 297,384 329,249
____ ____ ___ ___ ____ ____
Total Funds Carried Forward 16&17 306,277 281,498 24,480 15,886 330,757 297,384
========= ========= ======== ======== ========= =========

The Statement of Financial Activities includes all gains and losses recognised in the year.

All incoming resources and resources expended derive from continuing activities.

The notes on pages 12 to 21 form part of these financial statements

Page 10

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee) Company Registration Number 4819153

BALANCE SHEET AS AT 31 MARCH 2023

Note 2023 2022
£ £ £ £
FIXED ASSETS
Tangible assets 12 276,499 229,219
CURRENT ASSETS
Debtors 13 73,204 52,795
Cash at bank and in hand 67,218 45,424
____ ____
140,422 98,219
CREDITORS: Amounts falling due
within one year 14 (59,164) (30,054)
____ ____
NET CURRENT ASSETS 81,258 68,165
_____ _____
TOTAL ASSETS LESS CURRENT 357,757 297,384
LIABILITIES
CREDITORS: Amounts falling due after 15 (27,000) -
more than one year
_____ _____
NET ASSETS 330,757 297,384
========== ==========
REPRESENTED BY:
Unrestricted funds 16&17 306,277 281,498
Restricted funds 16&17 24,480 15,886
_____ _____
330,757 297,384
========= ==========

The trustees are satisfied that the charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

The members have not required the charitable company to obtain an audit of its financial statements for the year ended 31 March 2023 in accordance with Section 476 of the Companies Act 2006.

The trustees acknowledge their responsibilities for:

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the directors and trustees on ………………………………… and signed on their behalf by:

…………………………… S C ROGALSKI Chair of Trustees

The notes on pages 12 to 21 form part of these financial statements

Page 11

OPEN DOOR (NORTH EAST)

(A Company Limited by Guarantee) Company Registration Number 4819153

STATEMENT OF CASH FLOWS YEAR ENDED 31 MARCH 2023

Note 2023 2022
£ £
Cash flow from operating activities 19 38,803 (66,846)
======== =========
Cash flow from investing activities
Payments to acquire tangible fixed assets (101,213) (81,215)
Receipts from sale of tangible fixed assets 46,947 -
Office rents receivable 6,900 15,996
Interest received 357 19
_________ ___
Net cash flow from investing activities
(47,009)
(65,200)
======== ========
Cash flow from financing activities
Receipt from new long term loan 30,000 -
___ ______
Cash flow from financing activities 30,000 -
======== =====
Net increase/(decrease) in cash and cash
equivalents 21,794 (132,046)
Cash and cash equivalents at start of year 45,424 177,470
___ ____
Cash and cash equivalents at end of year 67,218 45,424
======== =========

The notes on pages 12 to 21 form part of these financial statements

Page 12

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES

(a) General Information and Basis of Preparation

Open Door (North East) is a private company, limited by guarantee, registered in England. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity. The address of the registered office is given in the charity information on page 7 of these financial statements. The nature of the charity’s operations and principal activities are the provision of support services and housing for asylum seekers and refugees.

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 (FRS 102) 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.

The financial statements are prepared on a going concern basis under the historical cost convention. They are presented in pounds sterling, which is the functional currency of the charity, and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Income Recognition

All income is recognised once the charity has entitlement to that income, there is sufficient certainty of receipt and it is probable that the income will be received, and the amount of income can be measured reliably.

Grants and Donations

Where donors specify that grants or donations are for a particular restricted purpose, which does not amount to pre-conditions regarding entitlement, the income is included in incoming reserves within restricted funds when received.

(c) Resources Expended

Resources expended are recognised in the Statement of Financial Activities on an accruals basis, inclusive of VAT. Individual costs are allocated between the various headings in the Statement of Financial Activities by reference to their underlying nature or the reason for which those costs were incurred, on an estimated percentage basis.

Page 13

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

1. ACCOUNTING POLICIES ( Continued

(d) Unrestricted and Restricted Funds

Unrestricted funds comprise income received or generated by reference to the general objects of the charity without further specified purpose. Such funds may however be designated by the trustees for specific purposes from time to time.

Restricted funds are those donated for a specified purpose as laid down by the donor or as the result of a specific appeal or application. Such funds are kept separate from the unrestricted funds of the charity and only related expenditure is charged against them.

(e) Fixed Assets and Depreciation

Fixed assets are stated at cost less depreciation. Depreciation is calculated so as to write off the cost of an asset over the estimated useful life of that asset as follows:

Freehold property - 2% per annum straight line
Office furniture and equipment - 15% per annum reducing balance
Computer equipment - 3% per annum straight line
Motor vehicles - 25% per annum reducing balance

(f) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(g) Cash at Bank and in Hand

Cash at bank and cash 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.

(h) Creditors and Provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(i) 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.

2. LEGAL STATUS OF THE CHARITY

The charity is a private company limited by guarantee, registered in England and Wales, and has no share capital. The liability of each member in the event of winding up is limited to £10.

Page 14

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

3. GRANTS AND DONATIONS

Unrestricted Funds Unrestricted Funds Restricted Funds Restricted Funds Total Funds
This comprises: 2023 2022 2023 2022 2023 2022
£ £ £ £ £ £
Grants 94,802 94,597 89,919 82,598 184,721 177,195
Donations 47,665 16,101 - - 47,665 16,101
____ _____ ___ ___ ____ ____
142,467 110,698 89,919 82,598 232,386 193,296
========= ========= ======== ======== ========= =========

The charity benefits greatly from the involvement and enthusiastic support of its many volunteers, reference to which is made in the Trustees’ Report. In accordance with the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised within the accounts.

4. INCOME FROM CHARITABLE ACTIVITIES

INCOME FROM CHARITABLE ACTIVITIES ACTIVITIES
Unrestricted Funds Restricted Funds Total Funds
2023 2022 2023 2022 2023 2022
£ £ £ £ £ £
Rent received 54,513 32,747 - - 54,513 32,747
Property management charges 19,260 21,008 - - 19,260 21,008
Programme income 386,755 103,909 - - 386,755 103,909
____ ____ ___ ___ ____ ____
460,528 157,664 - - 460,528 157,664
========= ========= ======== ======== ========= =========

5. INVESTMENT INCOME

INVESTMENT INCOME
Unrestricted Funds Restricted Funds Total Funds
2023 2022 2023 2022 2023 2022
£ £ £ £ £ £
Office rent received 6,900 15,996 - - 6,900 15,996
Deposit account interest 357 3 - - 357 3
Interest on gift aid tax reclaims - 16 - - - 16
___ ___ ___ ___ ___ ___
7,257 16,015 - - 7,257 16,015
======== ======== ======== ======== ======== ========

6. RESOURCES EXPENDED ON RAISING FUNDS

See page 19.

7. EXPENDITURE ON CHARITABLE ACTIVITIES

See pages 20 and 21.

8. OTHER EXPENDITURE

See page 21.

Page 15

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

9. NET INCOMING/(OUTGOING) RESOURCES

9.
NET INCOMING/(OUTGOING) RESOURCES
This is stated after charging: 2023 2022
£ £
Trustees’ emoluments (note 18) - -
Staff costs (note 10) 408,344 230,753
Depreciation (note 12) 9,620 7,944
Profit on disposal of fixed assets (2,634) -
Independent examiner’s fees:
- external scrutiny 2,150 2,000
- accountancy and payroll costs 9,650 9,000
========= =========

10. STAFF AND STAFF COSTS

The average monthly number of employees in the year was 17.25 (2022: 10.6) equating to 13.38 (2022: 8.4) fulltime equivalents with aggregate emoluments of £408,844 (2022: £230,753) as follows:

2023 2022
£ £
Gross salaries 373,777 213,112
Employer’s national insurance contributions 28,104 13,192
Employer’s pension costs 6,963 4,449
_____ _____
408,844 230,753
========== ==========

No employee received remuneration of more than £60,000.

Total remuneration paid in respect of Key Management Personnel during the year was £46,993 (2022: £40,761).

11. TAXATION

The company is exempt from corporation tax on income derived from its charitable activities.

TANGIBLE FIXED ASSETS Fixtures,
Freehold Fittings & Motor
Property Equipment Vehicle Total
£ £ £ £
Cost
At beginning of year 228,283 28,653 10,800 267,736
Additions 94,415 6,798 - 101,213
Disposals (49,979) - - (49,979)
----------------- -------------- -------------- -----------------
At end of year 272,719 35,451 10,800 318,970
========== ======== ======== ==========
Depreciation
At beginning of year 15,047 15,233 8,237 38,517
Charge for year 2,977 6,002 641 9,620
On disposals (5,666) - - (5,666)
___ ___ __ ___
At end of year 12,358 21,235 8,878 42,471
======== ======== ======= ========
Net Book Value
At beginning of year 213,236 13,420 2,563 229,219
========== ======= ======= ==========
At end of year 260,361 14,216 1,922 276,499
========== ======== ======= ==========

12. TANGIBLE FIXED ASSETS

Page 16

OPEN DOOR (NORTH EAST) (A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

13. DEBTORS

13. DEBTORS
2023 2022
£ £
Taxation recoverable on gift aid donations 12,380 3,943
Other debtors 60,824 48,852
___ ___
73,204 52,795
======== ========
14. CREDITORS: Amounts falling due within one year
2023 2022
£ £
Trade creditors and accruals 44,753 23,780
Other taxes and social security 11,411 6,274
Loans 3,000 -
___ ___
59,164 30,054
======== ========
15. CREDITORS: Amounts falling due after more than one year
2023 2022
£ £
Loans 27,000 -
======== ========

The above loan from the Quaker Housing Trust is interest-free and repayable over 10 years in equal annual instalments, including £15,000 repayable after more than five years.

16. STATEMENT OF FUNDS

STATEMENT OF FUNDS
Transfers
At between At
2023 1.4.22 Income Expenditure Funds 31.3.23
£ £ £ £ £
Unrestricted Funds 281,498 611,063 642,283 55,999 306,277
---------------- ---------------- ---------------- ------------- ----------------
Restricted Funds:
Property purchase and refurbishment 15,886 20,000 - (35,886) -
Legal advice - 5,000 960 - 4,040
Property improvements - 3,000 3,000 - -
Ariadne project - 52,169 21,366 (20,113) 10,690
Melbourne House refurbishment - 9,750 - - 9,750
_____ _____ ____ __
_____
Total Restricted Funds 15,886 89,919 25,326 (55,999) 24,480
----------------- ---------------- --------------- ------------- -----------------
Total Funds 297,384 700,982 667,609 - 330,757
========== ========= ========= ======== ==========
Transfers
At between At
2022 1.4.21 Income Expenditure Funds 31.3.22
£ £ £ £ £
Unrestricted Funds 318,790 284,593 389,988 68,103 281,498
---------------- ---------------- ---------------- ------------- ----------------
Restricted Funds:
Sew2work 2,003 - - (2,003) -
Support trainer project 1,500 - - (1,500) -
Covid-19 response 666 - 666 - -
Covid-19 recovery 6,290 150 6,440 - -
Property purchase and refurbishment - 82,448 1,962 (64,600) 15,886
_____ _____ _____ ___ _____
Total Restricted Funds 10,459 82,598 9,068 (68,103) 15,886
----------------- ----------------- ---------------- ------------- -----------------
Total Funds 329,249 367,191 399,056 - 297,384
========== ========== ========== ======== ==========

Page 17

(A Company Limited by Guarantee)

OPEN DOOR (NORTH EAST)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

16. STATEMENT OF FUNDS (continued)

Restricted Funds:

Property purchase and refurbishment - the Leslie Aldridge Trust made grant funding available for the purchase and refurbishment of a house. In February 2022, the charity completed the purchase of 45 Laycock Street, Middlesbrough. The refurbishment of the property was ongoing at the year end. The purchase of the property fulfilled the restriction in relation to the funding made available for that purpose. During the year under review, further funding was received from another donor to part fund the purchase of an additional property in Middlesbrough.

Legal advice - this grant funding has been made available to support destitute clients accommodated within Open Door (North East) housing to seek legal routes out of destitution, as well as enhancing the legal services currently provided to clients, by directly funding a proportion of the costs involved.

Property improvements – this funding was made available to part fund the renovation costs of one of our properties that provide a safe, secure home for four refugees in Middlesbrough, specifically the provision of a new kitchen and bathroom, as well as a full redecoration.

Ariadne project – Ariadne is a co-ordinated partnership between Open Door (North East), Middlesbrough Asylum Project (MAP), Justice First, Refugee Futures and British Red Cross, specifically with the aim of identifying and filling gaps in provision for asylum seekers and refugees across the Tees Valley. The partnership provides welcome and orientation services, wellbeing support, practical support and casework for people experiencing destitution, legal support and advice, English language support and volunteering opportunities across the partnership, and aims to positively impact 900 asylum seeking users over a three year period.

Melbourne House refurbishment – this funding was made available to contribute to the refurbishment and redecoration of Open Door (North East)’s head office in Middlesbrough.

Sew2work - the aim of the Sew2work project was to allow women to explore different opportunities for economic inclusion, including self-employment, social enterprise and co-operative working. With the agreement of the Jill Franklin Trust, the balance of funds was transferred to unrestricted funds.

Support trainer project - Action Foundation, a similar charity operating within the Newcastle area, previously made funds available to cover some of the overheads for a support trainer project and to help cover volunteer expenses incurred relating to the project. This project did not go ahead and Action Foundation agreed that these funds could be absorbed into the unrestricted funds of the charity.

Covid-19 response - using funds provided by the National Lottery Communities Fund and other donations, Open Door (North East) were the lead partner in a National Lottery Ariadne Covid-19 response project; £28,000 was redirected to two other charities - Justice First and Methodist Asylum Project. The remaining funds were used by Open Door (North East) to fund salary and administrative costs, together with funding rents for clients who were ineligible for public funding.

Covid-19 recovery - Barrow Cadbury and some individual donors provided funds to aid Covid-19 recovery. A significant portion of the funding replaced rental income so that bed spaces could be provided for clients with no recourse to public funding. The fund also paid for interpreting services, insurance and administration costs, including updating the charity’s website.

Page 18

(A Company Limited by Guarantee)

OPEN DOOR (NORTH EAST)

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 MARCH 2023

17. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Unrestricted Restricted Total
£ £ £
Tangible fixed assets 276,499 - 276,499
Cash at bank and in hand 42,738 24,480 67,218
Other net liabilities (12,960) - (12,960)
_____ ___ _____
306,277 24,480 330,757
========== ======== ==========

18. TRANSACTIONS WITH TRUSTEES AND CONNECTED PERSONS

The charity was under the control of the trustees throughout the year under review.

No trustee received remuneration from or was reimbursed expenses by the charity in the year under review (2022: £nil).

Mr S C Rogalski is also a trustee of another local charity, Jubilee Church Teesside (JCT), which had the following transactions with Open Door (North East) (ODNE):


following transactions with Open Door (North East) (ODNE):
2023 2022
£ £
Inter-company account transactions:
Balance due from JCT to ODNE at beginning of year 2,142 4,257
Grant from JCT to ODNE 6,000 6,000
Rent from JCT to ODNE 6,000 9,996
Costs incurred by JCT on behalf of ODNE (9,500) (18,111)
__ ___
Balance due from JCT to ODNE at end of year 4,642 2,142
======= ========

During the year under review £600 (2022: £620) was received in unrestricted donations from trustees and related parties.

Other than as detailed above, there were no reportable transactions with the trustees and/or connected persons.

19. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES


ACTIVITIES
2023 2022
£ £
Net income/(expenditure) for the year 33,373 (31,865)
Office rent receivable (6,900) (15,996)
Interest receivable (357) (19)
Depreciation of tangible fixed assets 9,620 7,944
Profit on disposal of tangible fixed
assets (2,634) -
Decrease/(increase) in debtors (20,409) (33,977)
Increase in creditors 26,110 7,067
____ ___
Net cash inflow/(outflow) from
operating activities 38,803 (66,846)
=========
========

OPEN DOOR (NORTH EAST)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

6. RESOURCES EXPENDED ON RAISING FUNDS

Fundraising Costs of Grants and Donations Basis of Unrestricted Funds Restricted Funds Total Funds
Apportionment 2023 2022 2023 2022 2023 2022
Support costs allocated to activities: £ £ £ £ £ £
Staff costs Staff role 11,849 6,114 - - 11,849 6,114
Premises costs Floor area 1,061 493 - - 1,061 493
Office administration and insurance Floor area 1,544 1,145 145 39 1,689 1,184
Depreciation Floor area 300 198 - - 300 198
___ __ __ __ ___ __
14,754 7,950 145 39 14,899 7,989
======== ======= ======= ======= ======== =======

OPEN DOOR (NORTH EAST)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7. EXPENDITURE ON CHARITABLE ACTIVITIES

Basis of Unrestricted Funds Unrestricted Funds Restricted Funds Total Funds
Apportionment 2023 2022 2023 2022 2023 2022
Costs directly allocated to activities £ £ £ £ £ £
Staff costs Staff time 319,378 187,019 18,473 - 337,851 187,019
House running expenses Direct 68,227 50,100 3,000 7,241 71,227 57,341
Destitution services Direct 28,624 29,595 960 1,056 29,584 30,651
Emergency accommodation Direct 6,240 10,003 - - 6,240 10,003
Women’s project Direct - 29 - - - 29
Refugee advice project Direct 24,975 83 - - 24,975 83
ESOL expenses Direct 16,959 179 - - 16,959 179
Motor expenses Direct 3,016 2,516 - - 3,016 2,516
Depreciation Direct 3,618 3,991 - - 3,618 3,991
Profit on disposal of fixed assets Direct (2,634) - - - (2,634) -
Sundries Direct 170 349 - - 170 349
Employment services Direct 6,194 - - - 6,194 -
Bad debts written off Direct 542 - - - 542 -
Support costs allocated to activities
Staff costs Time 56,794 35,582 - - 56,794 35,582
Premises costs Floor area 19,105 8,854 - - 19,105 8,854
Office administration and insurance Floor area 27,806 20,616 2,603 693 30,409 21,309
Depreciation Floor area 5,402 3,557 - - 5,402 3,557
Governance costs See below 21,885 19,726 145 39 22,030 19,765
_____ _____ ___ __ _____ _____
TOTAL EXPENDITURE ON CHARITABLE ACTIVITIES 606,301 372,199 25,181 9,029 631,482 381,228
========== ========== ======== ======= ========== ==========

OPEN DOOR (NORTH EAST)

(A Company Limited by Guarantee)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

7. EXENDITURE ON CHARITABLE ACTIVITIES (Continued)

Governance Costs Basis of Unrestricted Funds Restricted Funds Total Funds
Apportionment 2023 2022 2023 2022 2023 2022
Governance costs allocated to activities £ £ £ £ £ £
Accountancy and independent examination Direct 11,800 11,000 - - 11,800 11,000
Other professional fees Direct 4,725 4,698 - - 4,725 4,698
Staff costs Staff time 2,350 2,038 - - 2,350 2,038
Premises costs Floor area 1,061 493 - - 1,061 493
Office administration and insurance Floor area 1,544 1,145 145 39 1,689 1,184
Depreciation Floor area 300 198 - - 300 198
Bank charges and interest paid Direct 105 154 - - 105 154
___ ___ __ __ ___ ___
21,885 19,726 145 39 22,030 19,765
======== ======== ======= ======= ======== ========

8. OTHER EXPENDITURE

OTHER EXPENDITURE
Basis of Unrestricted Funds Restricted Funds Total Funds
Apportionment 2023 2022 2023 2022 2023 2022
Costs relating to sub-let property £ £ £ £ £ £
Premises costs Direct 21,228 9,839 - - 21,228 9,839
======== ======= ======= ======= ======== =======