Company registration number- 05098895 Charity registration number: 1104045 RELATE Hull and East Yorkshire {A company limited by share capital) Annual Report and Financial Statements for the Year Ended 31 March 2024 bacp | Accredited Service RELATE Hull and East Yorkshire Contents Reference and Administrative Details Trustees, Report 2to9 Independent Examiner's Report io Statement of Financlal Artivities Ilto12 Balancesheet 13 Notes to the Financial Statements 14to24 RELATE Hull and East Yorkshire Reference and Administrative Details Trustees Mrs T. Ives, Chairperson Mr P, G. Stark Mr D. M. Piercy Ms P. J. Litten Mr5 R.A. Harman Mr P.J. Choules Mrs P. M. Calvert (Deceased) Secretary Mrs D. Andrew Charity Registration Number 1104045 Company Registratlon Number 05098895 The charity is incorporated in England and Wales. I Charlotte Street Mews Hull East Yorkshire HUI 3BP Reglstered Offlce Independent Examlner J W Smith & Co Ltd Independent Examiner Oberon House Ferries Street Hull HU9 IRL Page I RELATE Hull and East Yorkshire Trllsteesl Report The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2024. Trustees MrsT. Ives, Chairperson Mr P. G. Stark Mr D. M. Piercy Ms P. J. Litten Mrs R.A. Harman Mr PJ. Choules Mrs P. M. Calvert IDeceasedl Objective5 and activitie5 Objerts and alms The Charity operates in Hull and other nearby areas, provldlng counselling for individuals and couples. The objective5 and aim5 of the Charity is to educate the public concerning the benefits of secure couple relationships, marriage and family life in order to improve the emotional, sexual and spirited well-being of individuals, which is derived from committed relatlonships. To promote research into all aspects of couple relationships and marriage and to make the results avallable to the public. To seek to enhance the good health, both mental and physical, of adults and children by increaslng publlc awareness of the benefit of committed couple relationships, marriage and family life and working to prevent poverty and hardship and distress caused by the breakdown of such relationships. Statement ofcommon Purpose Relate's role is to help people build better couple relationships: To enhance the quality of couple and parental family relationships. To help relationshlps and marriage withstand the pressures leading to breakdown. To limit the damage which commonly accompanies failing relationships, separation and divorce, and increase the prospett of subsequent relationships succeeding. Relate aims to deliver its services with cultural sensitivity and without discrimination. Relate believes that". An individual's physical well-being and emotional and mental health benefit from a committed relationship. Children thrive in familie5 where relationships are free from destructive conflict. People gain from an understanding of their sexuality. Expressing clear commitment is a helpful contribution to a healthy and secure couple relationship. The trustees have paid due regard to guidance i55ued by the Charitles Commission in deciding what activities the charity should undertake. The Charity has provided counselling services in a variety of contexts, some of which are discussed in detail below. The majority of our income comes from contracted services, which has been the case for some time now. Pag¢ 2 RELATE Hull and East Yorkshire Trustees, Report Objertives, strotegies and ortNities Education & Training We are continuing to work with Action for Children to run Planning Together for Children workshops and e- learning. This is provided when Family Law Courts request either one or both parties should attend these workshops. They are for family members who are in conflirt over child contatt. This is usually parents btjt can also be grandparents or other family members. We also continue to direct any profit from this area into providing counselling for members of the public who are unable to make a donation towards our services. We are also continuing to review our current Life Skills courses. Publicbenefit The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. Page 3 RELATE Hull and East Yorkshire Trustees, Report Chairperson's Report 202312024 This year has been marked by loss, not financial or due to market forces but of a much more significant kind. we have lost a dear and valued friend and colleague, Pat Calvert. Pat, who ha5 been with us as a member of the Relate family for 20 years died in July 2023 after so many years of dedicated service. She is sorely missed. By comparison the commercial events of the year seem unimportant, but our continued success is driven by the effort of those who remain, and their dedication ensures that we remain viable and able to continue our important work. Relate Hull and East Yorkshire continues to perform well, the contract work has remained stable allowing us to plan ahead and to secure continuou5 employment for our much-valued colleagues. We welcomed Jayde Hall to our Management team which has strengthened the skills base and is part of our succession planning route making us fit for the future. We are still providing a hybrid approach which continues to provide the flexibility needed in both our clients and our Counsellors, lifestyles. We have been able to make some further improvements to the working environment both for clients and colleagues and this has helped with 8eneral wellbeing for all. Our supporters have continued to provide grants that have allowed us to make these changes, and we are grateful for their support. On the commercial front, at a time when disposable income has decreased for many, our charlty shop provides dual purpose, serving as a benefit to the community and also an income for the benefit of the charity. The volunteers who give their time freely to allow us to continue with the charity shop cannot be commended more highly. we thank them for their continued commitment. We would also like to offer our thanks to Vicky Mandam who stepped in to cover the co￿rdinatiOn of the Charity Shop team. We continue to review our processes to ensure that we provide a robust and cost-effective servlce to our customers, clients and staff Members. A new messa8in8 System has been Introduced that has increased our ability to make better use of appointments that have previously been wasted. We continued to provide Counselling for NHS employees under an extended contract with Humber Coast and Vale and we are already planning for the changes within the areas that CAFCASS require covering in the next contract due in April 2024. A new 3-year Business Plan 15 being produced and is being shared with the Trustees, this is an ongoing activity which will be signed off in the coming financial year. Once again. we thank our Team who have continued to provide the excellent service, we have come to expect in driving Relate Hull and East Yorkshire forward. On behalf of the Trustees, we would like to thank Debbie Andrew who provides excellent leadership and dirertion for the whole team, we know Relate Hull and East Yorkshire is in safe hands. Pag¢ 4 RELATE Hull and East Yorkshire Trustees, Report Snapshot of work 2019120 5504 463 31 18 90 344 6450 2020121 4999 518 021122 458 50 022123 534 24 023124 846 29 Counselling Sessions PST Se55ions Sex Addiction YP Counselling Family Counsellin Initial Asse55ments TOTAL 22 14 198 401 65 5619 18 332 76 579 We have again seen a slight increase in sessions and will be building on this in the next financial year. 319 appointments were wasted because the client did not attend. There were 784 appointments cancelled In 23124, of whlch 179123%) were subsequently refilled. We continue to revlew the current servlces that we offer In1Sne with demand. Pag¢ 5 RELATE Hull and East Yorkshire Trusteesl Report A Sample of feedback received at our end of treatment were: "A very friendly and professional service, taking the time to ask questions and understand exattly what l am there for." ery professional and friendly service in a comfortable environment." "I was worried video conference would be impersonal the counsellor was warm and friendly, and I was excited for each session despite knowing I was 80ing to be tired. "Very helpful, my counsellor was lovely and helped me a lot wlth thelr advice. I struggle to open up to people especially strangers, but my counsellor was very helpful. and I felt comfortable being honest with them." he time it took to set up appointments with a professional was not long at all. especially in the current climate. The help and support we received was spectacular!" 'Brilliant triage service and counsellor who listened to me and understood me, including my challenges due to being neurodiver8ent." 'The service was excellent from the start of the process to my slgnlng off. My counsellor was amazing, and I looked forward to our sessions, she made me feel so comfortable over the phone from our first and I will miss talking to her.. "Everything from booking the appointment to the counselling amazing service." "Gave me space to talk through my grief without feeling the pressure to move on and be okay.. "I received lots of help in order to understand why l am experiencing some of the thoughts and feelings that l am experiencin8 at the moment. l also received lots of information around self-help strategies that will help me to overcome the depression and anxiety that I feel as a consequence of the trauma that l experienced. l am well informed about how to seek more help in the future in order to try and live a normal and happy life again." '1 felt supported to speak openly in a safe space about things that I'd otherwise keep to myself. After talking through things, I felt like I had a different perspective and validation towards my thoughts and feelin8s. I got a lot from it." "My counsellor made a difference, just a friendly unbiased ear...It helped." "My therapist was easy to talk to and soon had an understanding of me and my personality. She listened and interjected at all the appropriate times. Lovely lady. Also. the next appointments were always made after each session and kept. The support staff {Hulll were always friendly and helpful too." he counsellor was excellent really listened to me. It was very non-judgmental and helped me find my own 501utions whilst recognising that I may need some positive dirertion. She showed empathy and was supportive on sessions that were very emotive for me.. "My therapist provided challenging conversation that allowed growth between sessions." Pag¢ 6 RELATE Hull and East Yorkshire Trllstees, Report Going con￿rn The Charity depends on contracts from various bodies. who are affected by the current economic climate and funding decisions by Local and National Bodies. but the trustees are confident that the accounts can be prepared on a going concern basis. Structurei governance and management Nature oAqovernlnq document The Charity is a company limited by guarantee and constitutes a limited company as defined by the Companies Att 2006 and is controlled by its governing document, a deed of trust. Charity Status was given on 28th May 2004 and was incorporated on 8th April 2004. RELATE Hull & East Yorkshire is part of the RELATE Federation but nevertheless is a separate Charity in its own right and as such has to raise its own funds. Recruitment and oppolntmentof trustees RELATE Hull & East Yorkshire recognises that an effective board of trustees is essential if the Charity is to be effective in achieving its objectives. The board must seek to be representative of the people with whom the charity works and must have available to it all of the knowledge and skills required to run the Charity. Individual trustees must have sufficient knowledge, both of trusteeship in general and of the Charity's activities, to enable them to carry out their role and to represent the Charity at meetings and other events. RELATE Hull & East Yorkshire seeks to ensure diversity in its board of trustees as well as in its staff base and consideration will be given to ways In whlch groups that are under-represented on the board might be reached and encouraged to apply. However, at the point of selection the board will not discriminate unfairly on any of the grounds listed in the Equal Opportunities Policy. Indurtlon and tralning of trustees People enquiring to become trustees will be sent appropriate documentation about the Charity, introductory material about trusteeship and will be asked to complete an application form. Arrangements will be made to assist any potential applicant with specific needs in relation to completion of the form or access to the supporting materials. Arrangementsfvrsetting key manageMentpe￿0nnel remunemtion The remuneration of all staff including senior management Is reviewed annually by the finance committee (consisting of Trustees of the Charity). Page 7 RELATE Hull and East Yorkshire Trustees, Report Orgunlsutlonulstrurture Managing Director- Debbie Andrew Supervi50rs- Paul Baker, Siobhan Lane, Ann Thompson and Alison Tinsley Business Intelligence Manager- Dawn Blake Operations Manager- Jayde Hall Office Mana8er- Maria Bell We have 8 staff members providing support for the organisation and 6 volunteers. We currently have 18 counsellors providing a mixture of Relationship Counsellin& Psychosexual Therapy, Family and Young People's Counselling. They also provide generic counselling for stress and anxiety. Our Charity Shop is run by 3 paid colleague5 With the help of 6 volunteers. Pagc 8 RELATE HulI and East Yorkshire Trnstees, Report Majorrisks and manogementof those risk5 Risk Management The trustees have assessed the major risks to which the Charity is exposed, these include loss of contract work and the loss of the Hull BuildinL which is leased. The trustees are satisfied that systems are in place to rnitiBate exposure to the major risks. We have expanded the number and range of contracts to ensure that the loss ofsome contracts would not greatly affect our provision of services and employment of our current staff. Guiding Principles The Directors of Relate acknowledge that future needs of beneficiaries must not be compromised in providing current services and so future risks and liabilities need to be 3$5essed periodically in order to maintain a proportionate and adequate level of reserves. It is also recognised that free reserves are to be the value of unrestricted funds, less the current value of any fixed assets held as unrestricted funds. Reasons for maintaining reserves: Cash Flow- Some funds are claimed and received retrospectively. This may be on a monthly or quarterly basis. It would also be necessary to allow for actual payment from clalm date, and thls alone could be a further month. Uncertainty - Some funding arrangements are made retrospectively. Some service levels agreements are not fully agreed until June/July each year, although they are to start in April. We may be expending funds in good faith that we may not be able to recover. Also, negative outcomes may mean redundancies that would need funding: Some funded projects incur unexpected expenditure beyond budget levels. Certainty some funding will end at a pre-determined date, and projects may continue for an Intervenlng period until new funding is identified. Some funded projects expenditure trends may indicate that the projett will be set to overspend beyond agreed fundin8 and may need top-up funds. rinancial instruments Objertlves ondpollcles The charity's activities expose it to 3 number of financial risks including credit risk, cash flow risk and liquidity risk. The use of financial derivatives is governed by the charity's policies approved by the board of trustees. which provide written principles on the use of financial derivatives to manage these risks. The charity does not use derivative financial instruments for speculative purposes. Coshflow risk The charivs activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The charity uses foreign exchange forward contratts and interest rate swap contracts to hedge these exposures. Interest bearing assets and liabilities are held at fixed rate to ensure certainty of cash flows. Page 9 RELATE Hull and East Yorkshire Trustees, Report Credlt rfsk The ¢harit¢s principal financial assets are bank balances and cash, trade and other receivables, and investments. The charl￿S credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubrful receivables. An allowance for impairment is made where there is an identified105s event which. based on previous experience, is evidence of a reduction in the recoverability of the cash flows. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The charity has no significant concentration of credit risk. with exposure spread over a lar8e number of counterparties and ¢ustorners. Llquidity risk In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the charity uses a mixture of long-term and short-term debt finance. Further details re8ardin8 liquidity risk can be found in the Statement of Accounting policies in the financial statements. Statement of Trustees, Responslbilitles The trustees {who are also the directors of RELATE Hull and East Yorkshire for the purposes of company law} are responsible for preparing the trustees, report and the financial Statements in accordance with the United Kingdom Accounting Standards {United Kingdorn Generally Accepted Accountin8 Practice) and applicable law and regulations. Company law requires the trustees to prepare financlal statements for each financial year. Under company law the trustees must not approve the financial statements unles5 they are satisfied that they give a true and fair view of the state of affairs of the charitable 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 apply them consistentlyi observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable UK AccountinB Standards have been followed, subject to any material departures dlsclosed and explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy at any time the financial position of the charitable 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 charitable company and ce for taking reasonable steps for the prevention and detection of fraud and other irregularities. Th nual reportwas approved bythe trustees of the charity on3111012024 and signed on its behalf by: Mr P. G. Stark Trustee Pag¢ 10 RELATE Hull and East Yorkshire Independent Examinerls Report to the trustees of RELATE Hull and East Yorkshire ("the Company") I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2024. Responsibilitles and basls of report As the charity's trustees of the Company {and a150 its directors for the purposes of company lawl you are responsible for the preparation of the accounts in accordance with the requirements of the Companie5 Act 20061'the 2006 Act'l. Having satisfied myself that the accounts of RELATE Hull and East Yorkshire are not required to be audited under Part 16 of the 2006 Art and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 20111.the 2011 Act'l. In carrying out my examination I have followed the Directions given by the Charity Commission under section 145{5llbl of the 2011 Act. Independent examlnees statement Since the Company'5 gr055 income exceeded £250,000 your examiner must be a member of 3 body listed in section 145 of the 2011 Act. I confirm that l am qualified to undertake the examination because l am a member ofthe Institute of Chartered Accountants, which is one of the listed bodies. I have completed my examlnatlon. I confirm that no matters have come to my attention In connection with the examination 8lvlng me cause to believe: l. accounting records were not kept In respect of RELATE Hull and East Yorkshire 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 rnethods and principles of the Statement of Recommended Practice for accountin8 and reporting by charities lapplicable to charities preparing their accounts in accordance with the Financial Reporting standard applicable in the UK and Republic of Ireland IFRS 10211. I have no concerns and have come across no other matters in connection with the examination to which attentio should be drawn In th15 report In order to enable a proper understanding of the accounts to be reach Jo athan Morley FCA (J W Smith & Co Ltd) Independent Examiner Institute of Chartered Accountants in England and W31e5 Oberon House Ferries Street Hull HU9 IRL D3te:5th November.2024 Pagell RELATE Hull and East Yorkshire Statement of Financial Activities for the Year Ended 31 March 2024 ncluding Ineome and Expenditure Account and Statement of Total Recognised Gains and Losses) Unrestricted funds Totsl 2024 Note Income and Endowments from: Charitable activities Other trading activities Investment income 446.275 38,811 4660 446,275 38,811 4660 Total income 489,746 489,746 Expenditure on: Raising funds Charitable activities 122,6671 1448,8651 {22.6671 1448,8651 Total expenditure 1471,5321 1471,5321 Net income 18.214 18,214 Net movement in funds 18,214 18,214 Reconciliation of funds Total funds brought forward 266,927 266,927 Total funds carrled forward 19 285.141 Unrestrlcted funds 285,141 Total 2023 Note Income and Endowments from: Charitable actlvitles Other trading activities Investment income 428,683 38.335 1,341 428,683 38,335 1,341 Total income 468,359 468,359 Expenditure on: Raising funds Charitable artivities 119,9321 {423.584} 119,9321 1423,584} Total expenditure 1443,5161 1443,5161 Net income 24,843 24,843 Net movement in funds 24,843 24,843 Reconciliation of funds Total funds brought forward 242,084 242.084 Total funds carried forward 19 266,927 266,927 All of the charity's activities derive from continuing operations during the above two periods. The notes on pages 15 to 25 forn] an integral part of these financial statement& Page 12 RELATE Hull and East Yorkshire Statement of Financial Activities for the Year Ended 31 March 2024 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses) The funds breakdown for 2024 is shown in note 19. The notes on pages 15 to 25 forni an integral part of these financial statements. Pag¢ 13 RELATE Hull and East Yorkshire (Registration number: 05098895) Balance Sheet as at 31 March 2024 2024 2023 Note Flxed assets Tangible assets 12 18,649 21,934 Current assets Stocks Debtors Cash at bank and in hand 13 14 15 585 21,078 252,430 585 50,268 205.267 274,093 256,120 Credltors: Amounts falllng due within one year 16 17,6011 111,1271 Net current assets 266,492 244.993 Net assets Funds of the charity: Unrestrlrted Income funds Unrestritted funds 285,141 266,927 Total funds 19 For the financial year ending 31 March 2024 the charity was entitled to exemption from audit under section 477 of the Companies Att 2006 relating to small companies. Dirertors, responsibilities: The members have not required the charity to obtain an audlt of its accounts for the year in question in accordance with section 476; and The direttors acknowledge their responsibilities for complying with the requlrements of the Act with respect to accounting records and the preparation of accounts. Thefi .31/10 ancial statements on pages 11 to 27 were approved by the trustees, and authorised for issue on 2024 and signed on their behalf by: MrP. G.Stark Trustee The notes on pages 15 to 25 form an integral part of these fmancial statements. Page 14 RELATE Hull and East Yorkshire Notes to the Financial Statements for the Year Ended 31 March 2024 I Charity Status The charity is limited by share capital, incorporated in England and Wales. The address of its registered office is: I Charlotte Street Mews Hull East Yorkshire HUI 3BP These Financial Statements were authorised for issue by the trustees on 31" October 2024 2 Accounting policies Summary of slgnlficant accountin8 policies and key accountlng estlmates The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. Statement of compliante The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practlce (applicable to charities preparin8 their account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 10211 (issued in October 20191 (Charities SORP IFRS 10211, the Financial Reportin8 Standard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Basls of preparatlon RELATE Hull and East Yorkshire meets the definitlon 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 notes. Golng concern The trustees consider that there are no material uncertainties about the charity's ability to continue as a goin8 concern nor any significant areas of uncertainty that affert the carrying value of assets held by the charity. Exemptlon from preparlng a cash flow statement The charity opted to early adopt Bulletin I published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements. Income and endowments Investment income Dividends are recognised once the dividend has been declared and notification has been received of the dividend due. Page 15 RELATE Hull and East Yorkshire Notes to the Financial Statements for the Year Ended 31 March 2024 Expenditure All expenditure is recognised once there is a le8al or constructive obligation to that expenditure. it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headin85 they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the assevs use. Other support costs are allocated based on the spread of staff costs. Roisingfvnds These are costs incurred in attratting voluntary income, the management of investments and those incurred in trading activities that raise funds. Chorftuble artivities Charitable expenditure comprises those costs Incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated dlrectly to such activities and those costs of an indirert nature necessary to support them. Governance costs These include the costs attributable to the charivs compliance with constltutional and statutory requirements, including audit, strategic management and trustees, meetings and reimbursed expenses. Taxatlon The charity is considered to pass the tests set out in Paragraph I Schedule 6 of the Finance Att 2010 and therefore it meets the definition of a charitable company for UK corporatlon tax purposes. Accordingly, the charity is potentially exempt from taxation In respett of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. Tangible fixed assets Individual fixed assets costin8 £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Depreciatlon and amortlsation Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value. over their expected useful economic life as follows: Asset dass Freehold Land Freehold Buildings Depreciation method and rate Not Depreciated IY. & IOYO on Cost 15%on Reducing Balance,IO% and 20% on Cost Furniture & Shop Refit Office Equipment Stock Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out {FIFOI. 33.4% on Cost Page 16 RELATE Hull and East Yorkshire Notes to the Financial Statements for the Year Ended 31 March 2024 Trade debtors Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business. Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collett all amounts due according to the original terms of the receivables. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits. and other short-term highly liquid investments that are readily convertible to a known amount of cash and are Subject to an insignificant risk of change in value, Trade credltors Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the charlty does not have an unconditional right, at the end of the reportin8 perlod, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost uslng the effective interest method. Borrowings Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds. net of transaction costs. and the amount due on redemption being recognised as a charge to the Statement of Financial Activities over the period of the relevant borrowin8. Interest expense is recognised on the basls of the effettive interest method and is included in interest payable and similar charges. Borrowlngs are classified as current liabilities unless the charity has an unconditlonal right to defer settlement of the liability for at least twelve months after the reporting date. Page 17 RELATE Hull and East Yorkshire Notes to the Financial Statements for the Year Ended 31 March 2024 Foreign exchange Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date. The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rate5 ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity {attributed to non