CANAAN TRUST (A Company Limited by Guarartttt) UNAUDITED REPORT AND FINANCIAL STATEMENTS for the Year Ended 31 March 2023 Charity Number 1105657 CompaThy Nomber 05169595
Canaan Trust (A Company Limited by Guaran¢¢¢> Report of the Trustees for the year ended 31 MaTch 2023 The Trustees are pleased to present their annual Director's Report together with the financial statements of the charity for the year ended 31 March 2023 which are also prepared to meet the requiretnents for a Director's Rep)rt and accounts for Companie5 Act purposes. The financial statetRents comply with the Charities Act 2011, the Companies Act 2006. the Memorandum and Articles of Association, and Accounting and Reporting by Charities.. Statement of Recommended Praciice applicabl¢ to charities preparing their accounts in accordance with the Financial Reporting Standard in the UK and Republic of Ir¢land (FRS102) (effeciive l January 2019). Chairs, Re ort This financial year has been one of the most challenging in the Trust's history. This time last year we were completing th¢ purchase of 16 Main Street to develop as a female house io complement the work of Jordan House our male accommodation. Whilst we haye made good progress in putting the necessary planning pernissions and relevant plan5 in place the subsequent cost of living crisis has made fund raising a much bigger challenge. grant funding bodies, local organisations and individuals all having fewer funds to distribute. Having said that we are supported by many local IndvIdUal5 who have organised events for u5. Local superniark¢t5 Gontinue to allow us to hold ¢olle(tIOD5 alld donate goods. Finns have provided working parties for various tasks such as decorating and gardening. We aT¢ so truly grateful for all the local support we receive. We would not survive without il. Wh¢n the Gharity was inaugurated it W&5 called the Aspire Trusi the name changing to Canaan TN5t som¢ years later. We have ch95en to acknowledge thi5 by namEng llber 16"Asptre House." Whilst working io bring Aspire House into use we are mind that this should DOI have a negative impact on Jordan Hoy5e and our work in the commut]ity. The overall finances of the TNst are ther¢fore being kept under careful review to en5UTe those core 2Ctivities continue and sufficieni reserves are available for any unforeseen circumstances. eets and Aetivities The objectives of the charity are the relief of poverty, the advancement of education and the provision of a planned programme of high quality housing related services. Looking ahead we have ¢XPBnded th¢ number of trustces on the Board. These new recruits bring a wealth of knowledtse, experience and enthusiasm to the Trust. Over the coming weeks and months we will be developing ways of working to ensure they make a truly positive effect on th¢ gov¢rnaRce of Canaan and ensure we continue to provide the vital support Éo homeles5 individua15 and th05¢ threaten¢d with hom¢l¢ssness for which we are valued. A hitvernents and Perform*Thet Throughout the year the Tnjst has continued to provide accommodation for 12 homeless males with support available 24n. A number of residents have successfylly found employment and moyed on into their own accorntnodaiion. Support does not end ihere, staff are available to offer advice should they need it. There is always a waiting list for place5 $0 as soon as one clieni leaves another arrives. bringing their own issues to be addressed togetheT with the staff. Demands for support for those in the community conlinues to incrvas¢. Th¢ demand for food parcels continues to grow often ourstripping the number of donations received. We have been 5ucce55fv1 in receiving mone(ary grants ro enable us to buy food to make up the shortfall.
Trust (A Company Limited by Guarantee) Report of the Trustees for the year ended 31 Mareh 2023- Contlnued CaTraan is also known 3$ a place where advice is available. We support all who come asking for advice and our staff share thetr considerabl¢ knowledge and expertise io help them through their difficulties. The Trustees wish to acknowledge once again the lengths all OUT Staff go to to support those in need. The phr2se"above and beyond the call of duty" can easily be iyritten but the Trustees often find themselves in awe at the challenges staff have faced and how they have dealt with them. We sincerely thank them once again for all they do. The staff are backtd up by a t¢am of v¢ry hardworking volunteers who und¢rtak¢ a myrlad of tasks. Helping clietjts move furniture and belontsing5, preparing food parcels. managing donations, counting colledions are just 2 few examples of the help we receive. Again the Trustees are truly grntefvl foT all their ¢ffort5. Major events during the year were the Christmas Lullch in the Community. the Annual Sleep Out, participation in the Camival. All of these were really well supported and raised awareness Of the work of the Trnst. A significanc Public Meeting was held in January io show the plans for Aspire House and explain our hopes and plans foT ils development. This was very well atMded and generated much interest and support. To enhan¢¢ the fundraising for Aspire House we haye employed the setvice5 of a professional fundraiser for Ixje day a week. Th¢ results of heT work are already coming through. As inenlioned in the Chair's report the Board of TNstee5 has been expanded to reflect th¢ increased size of the Trusi with the a¢qNisition of Aspire House. Their induction continues as we develop a subcomtnittee Structure to ensure skills and expertise are focussed in areas where they can be most effeciive. Public Benefit Our charitable activitie5 focu5 not just otj the street ho]nele55 but a150 the'hidden homeless" who may be sofa 5urfkng with friends and those threatened with homelessness for whatever rea50n. Those who are refetred to us by local authorities often have a number of issues such as a hÈstory of alcohovdrug abuse, offending, leaming difficulties. low self esteem. These issues are addressed by providing individual programmes of 5UPPOrt, Including counselling. and education on a wide range of life skills io equip the clients for independeTrt living as well as stspport tn dealing with extemal agencies. Those in the community who atrive at our door often need short terni help and advice to ov¢rcom¢ a 5pe¢ific issue. The Trust seeks to embed fair access, fair exit, diversity and inclusion within the culhwe and p¢rfoTmance of its service. All equality and diversity policies and procedures are designed to proactivety fulfil the requirements of the trrent legislation. Equal a¢¢ess to our services 15 an important issue for us. We have a ¢onstant monitoring process io ensure entry to the proj¢¢t Ès not di5¢riminatory by disability, religious belief or Sexual orieniation. The trust¢es ¢onfirni that they have complied with their duties under s¢¢tion 17 of the 2011 Charities Aci wilh regard to Public Bellefit.
Canaan Trust (A Company Llmited by Guarantee) Trustees, Report for the Year Ended 31 March 2023- Continued Financial Review The attached financial statements show the cutrent state of the finances. The company had incoming resources during the Ye of £382.992. The company's revenue reserve unrestrrcted fund balance i5 a surplus of £844,556 at 31 March 2023 which is substantial]y held as property. The company's unrestricted deficit for the y¢ar totalled £688. Th¢ principal funding SOU¢5 of rental nme from Housing B¢n¢ftt, logether with donations have been used to support the k¢y objectiv¢s in achieving th¢ perfornianc¢ &s d¢scribed above. Investment Powers of Trust To invest trusi money in the purchase of or at interest on ihe security of such stocks funds share5 securities or other investments or property of whatever narnre and wherever simared as the Trustees in their absolute dis¢retion thitth fit to the intent thai the Trustees shall have the same 1] and Utestricted powers of invesÈing and transposing inv¢stments as if they were beneficially entitled to ihe Tnjst Fund. Gr8nt Illaking Policy At the discretion of the board of Trustees, they may from tim¢ to time make donations to other charities which have the &e objectives as the Trust. Fundrai$ing Activitie5 A variety of activities take place to iaise fuTrds for the Charity. All of these funds are used for charitable purposes. The Iru5tees are grateful for all h¢lp offered during th¢ year on a voluntary basis. Reserve5 Policy As at 31 Marth 2023 the total funds of the Trust were £844,556 (2022.. £803,374}, a substantial amount of this being represented by fLxed assets. The Trn5t segregates its funds between those that are restricted and those that are unrestricted. General fijnds represent the accumulated sury71us on unrestrictcd income and ¢xpenditure and are available for use at the discretion of the Board In pursuing the geneTal charitable objective5 of the charity. The Directors have adopted a reserves policy that unrestricted funds held in th¢ general fiind should cover 3 month5 running costs. Designated funds are fund5 that have been set aside by the Board for a specific purpose. In 2021122 a designated fund was estsblished for the expansion of the Canaan Trust for the future. The DiTpKlor5 have deterniined that thi5 fund will be dedicated to the Aspire House Womet)'s Project. In 2022123 a designated freehold property and red asset fund has been established that represents th¢ net book value of the Trust's freehold property and fixed assets, less any outstanding debt secured against those as5¢ts. Thi5 fund has been 8¢parated from the general fimd in recognition of the fact that tlie freehold property and fixed assets ar¢ used in the Trust, day-to-day work, and the fund value would not be easily realisable if needed to meet future liabilities. Restricted lunds represeni income received where the donor or the nature of the appeal generating the income has imp05ed restrictions as to how the monies shall be used.
Canaan Trust (A Company Llmlted by Guarantee) Trustees. Report lor Ibe Year Ended 31 March 2023- Continued Future Plans Our plan5 are set out in our Bu5ine5s Plan 2023-25 and the 5 Year Funding Strategy 2023-28 which have been produced this year. They are Works in pry>gress and will continue to be developed ihis year. Given the difficult financial year we have just experienced the immediate priority is to stabilise the finances of the Trust to ensure its long ter future. Alongside this are the ¢OTStinuing efforts to ra15¢ funds for the r¢furbishm¢nt of Aspire House. An element of this will be the establishment of a fundrnising task forc¢ to coordinate community events on the Trust's behalf. The coniinuing development of the work of the Board of Tnjsiees to fijlly integrate the new frnstees and ensure their skills are fully utilised. To plan the staffing StruCtte of the Trust to take account of Ehe extra staff members needed to otKTate A5pir¢ House when it comes into use.
Cana#n Trust (A Company Limited by Guarantee) Report of the Trustees for th¢ Year Ended 31 March 2023 Reference and Administrative Informatio CHARITY NAME.. Canaan Trust CHARITY REGISTRATION NUMBER: 1105657 COMPANY REGISTRATION NUMBER: 5169595 REGISTERED OFFICE: Cliffe Hill House 22-26 Nottingharn Rgad Stapleford Nottingh2m NG9 8AA OPERATIONAL ADDRESS: Jordan House 14 Main Street Long Eaton Nottintsham NGIO IGK PATRONS: Andrew James TRUSTEES OF THE CHARrrY AND DIRECTORS OF THE COMPANY". MTS D Ross ITreasur¢r) Mr D Gee (¢haiT) Mr T J Broad Mr A Goulden Mr T Jone5 Mr5 T Hopkins PROJEcf MANAGER: (Responsible for d&y to day fllDiiing of project) Kevin Curtis ASSISTANT MANAGER: Kate Bassford COMPANY SECRETARY: Not Appointed INDEPENDENT EXAMINER: Alexander Butterfield ACA Chartered Accountant Haines Watts Nottingham Lirnited Clitye Hill House 22- 26 Nottingham Road Stapleford Nottingham NG9 8AA BANKERS: The Co-operdtsve Bank PLC 4- 5 Exchange Walk Nottingham NGI 2NX Barclays Bank PLC SOLICITORS: Ellis-Fern)or Negus 35 Derby Road Long Eaton Nottingham NGIO I LU WEBSITE: www.canaan-tNst.co.uk
Can&an Trust (A Company Limited by GMargnle¢) Truste¢$' R¢port (or the Yt4r Ended 31 March 2023 Structure, GoverThance and MxnagemeDt Governin Document The OanIsation is a charitable ¢ompat]y limited by guarantee, incorporated on 2 July 2004 and registered as a ¢h&ity on 27 August 2004. The company was established under a Metnorandum of Association which established the objects and powers of the charirable company and is ooverned under its Articles of Association. In the event of th¢ company being wound-up members are required to Contribuie an amount not exceeding £10. Recrnitment and A ointment of Mana ement Committee The directors of the company aro also charity trustees for the PUTposes of charity law and under the company's Arti¢le5 are known as the Board of Directors. Under th¢ requir¢menls of the Memorandum and Articles of Association one thÈrd of th¢ members of the Board of Director5 are required to retire from office annually. The Directors to retire by rotation shall be those who have been longest in office since their last appoinknent. The Trustees appointed represent a numb¢r of churth¢s and domination5 Within the locality. Forniation Canaan Trust formally comtnenced operation on the l April 2005 when all assets and the operations of The Aspire Ttust were transferred tts the Canaan Trust by a deed of gift attd staff were transfe under TUPE. Tjwstee Induction and Trainin Any new trustee undergoes an induction Process to brief them on th¢ir l¢gal obli8&tions under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision tnaking process, the business plan and the recent financial perfomiance of the Charity. During this u?duction they meet key employees at]d other trustees. All .trustees are actively encLiuraged to attend appropriate training ¢veDts that will facilitate the undertaking of their rol¢ within the cliarity. Risk Mana ement Tlie Board of Directors has conducted a review of the major risk5 to which the charity is exposed. A risk register has been establi5htd and will be updated a[uallY. Where appropriate, systems or procedures have been established to mitigate the risks the charity face5. The TrusÉ ha5 appointed external advisers for Health and Safety. Human Resources and Inforniarion Technology to ensure compliance with current legislation and provide expert advice. Significant external risks to funding have led to th¢ development of a strategic plan which will allow for the diversificaiion of funding and attivilies. InMal ntrol risk5 are minimised by the irnplementation of procedures for authorisarion of all transactions and projects. Prgcedure5 ar¢ in place to ensure compliance with health and safety of staff. volunteer5. clients and visitors to the project. Monthly reports are produced to monitor IT2come and Expendiwre enabling steps to be taken early to lessen risk. Internal risk5 are minimised by the implementatiort of procedures for auihorisation of all transactions by at leasi 2 trustees or I trnstee and the treasurer. The Treasurer and Project Manager monitor all cash transactions and limits ore sei for monthly amounts of expenditure. The Direclors monittsr the threshold for th¢ guarantee of funds in bank a¢¢ounts and ensure our bank balanc¢s are allocated to different accounts io ensure there is no risk to them.
Can&an Trust (A Company Limited by Guarantee) Trustees, Report for the Year Ended 31 March 2023- Continued anisational Strucwre Canaan Trust has a Board of Directors which meets monthly and is responsible for th¢ 5trat¢gic direction and policy of the charity. At present the Committee has Six member5 from a variety of professional backgrounds relevant to the work of the charity. A scheme of delegation is in place and day to day responsibility for the provision of the services resis wilh the project Tnanager Mr Kevin Curtis. He is responsible for ensuring that the charity delivers the services 5pe¢ified and that key performance indicator5 OTe met. The Manager has responsibility for the day to day opeTatioRal Enanagement of the PrL)j¢Ct. individual superYi5ion of ihe staff team and also ensuring that the ieaTll continue to develop their skills and working practices in line wilh good practice. Responslbllltles ol the Trust¢e$ Company law requires the Trnstee$ to prepare financial statements for each financial year which give a twe and fair view of the state of the affairs of the ch2Tltabl¢ company as at the balance sheet date and of its incoming resources amd application of resource& including income and expendimre, for the finan¢ittl year. Ill preparing ihose finan¢ial $tatements, the management committee should follow besi practice and-. State whether applitable UK accounting standards have been followed,. subject to any material d¢pJrtiires disclosed and explained in the finantial statements. Select suitsble accounting policies and then apply them cgn5lStently' Make judgements and estitnate5 that are reasonable and prudent,. and Prepare th¢ financial statements on the going concern basis unless it is inappropriate to assume that the company will continue on that basis. Observe the methods and principles in the Charities SORP. ]e Trustees are responsible for maintaining proper accounting rewrds which disclose with reasonable accuracy at any time die financial p95ition of the charitable cornpany and to enable them to ensure that the financial statements comply with lh¢ Cotnpanies A¢t 2006. The Board of Directors is also responsible for safeguarding rhe &ssets of the charitable Company and hence for taking r¢a50nable steps for the prevention amd detection of fraud and other itTegularities. Members of ihe Mana ement ommitt¢¢ Members of the Board of Dir¢otors who ar¢ also trustees lor the purpose of charity law, who served during th¢ year and up to the date of this report are set oul on page 5. Members of the Charitable Cornpany guarant¢¢ to ¢ontrilwte an amount not exceeding £10 to th¢ assets of the charltable company in the event of windtng up. The total number of such guarantees at 31 March 2023 was 6 (2022- 6). This report has been prepared in accordance with the Staternent of Recomtnended Prdctice.. Accounting and Reportin8 by Charities in accordance with the Special Provisions of Part 15 ofthe Companies Act 2006 relating to small entities. Approved by the Board of Directors on {..... .) and signed on its behalf by: SignaNre ..... Mr D Gee (Director and Chair of Board of Trustee5)
Canaan Trust (A Company Lirniled by Guarante¢) Company Nurnber: 05169595 IndeptndeDI EJaminer'5 Report to the Tru5¢ees of Canaan Trugt I report on the charity trustees on my exalnination of the accounts of the cotnpany for the year ertded 31 March 2023. Responsibilities amd Basis of Report As the charity's tsustees of the Company land also its directors for the purpose of company law) you are responstble for the preparntion of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'l. Having satisfied myself thac ihe accounts of the Company aTe not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination. l ¥eport in respect of my examination of your charity'5 a¢¢ount5 as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act.). In canying out my examin8tion I have followed the dIrtionS given by the Charity Commission under section 145(5)(b) of the 2011 Act. Independent E%8min¢T'S Statement Since the Colnpany's gross in¢ome exceeded £250.000. your examiner Must be a m¢mber of a body listed in section 145 of the 2011 Act. I confirni that l am qualified to undertake the examination because l am a member of the Institute of Chartered Accountanis, whith is one of the listed bodies. I have completed my examination. I confim thai no matters have come io my anention in connection with the examitiation giving me cause 10 believe'.- l) Accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act: or 2) The accounts do noi accord with those record5. or 3) The atycounts do not comply with the accounting requii'tm¢nts of sectton 396 of the 2006 Act other than any r¢quir¢ments that the accounts give a 'tTue and fair view. which is not a rnatteT coiisidered as part of an indepet)dent ¢xamination' or 4) The a¢¢owits have not been prepared accordance with the method5 and principles of the Statement of recomrnended Practice for 2¢counting and reporting by cliarities (applicable to charities preparing their accounts In accordance with tile Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102)). I have no concerns and have corne across no other rnatters 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. Alexander Butterfield ACA Chartered Accouniamt Haines Watts Nottingham Limited Cliffe Hill House 22-26 Nottingham Road Stapleford Nottingham NG9 8AA
Canaan Trust (A CotnpaDy Limited by GllaraDtee) Statement of Flnaneial Activities (including lDcome aDd Expenditure Aetount} For the year ended 31 Mgrch 2Q23 Unrestri¢t¢d Funds R¢strlrted Funds To¢•1 Funds U$trICted Funds 2022 Restricted Fund5 2Q22 T(ktsl Funds 2022 2023 202J 2023 Notes Income DonAtions and Leggcles 79.855 77,118 156,973 72,567 24.754 97,321 Investment Income 504 504 457 457 Income from charitable attivltitS'. Rent & Uiili(ies Fundraising Other Income 196,165 29,337 13 196.165 29,337 13 186.019 33,544 10 186,019 33,544 10 Totgl In¢owtng Resource5 305.874 77.118 382.9)2 292.597 317.351 ExptndFture Raising futtds ChaTitablt a¢tiviiies Suppon Cosis 11,870 223.721 11,870 258,969 70.971 6,698 222,597 6.698 225,375 35.248 2.778 Totsl Expenditure 306.562 341810 295 704 2.778 298.482 net wovement in fund 16881 41,870 41.182 (3,1071 21,976 18.869 Reculleillatio of funds Totsl fund b#l8iices brokLght forwxrd l April 2022 17 781.398 21,976 803 374 784 505 784.i05 Total fund balAt)ces tarried forward 31 March 2023 17 780710 63,846 844.556 21,976 803,374 The s18ttment of financisl activities rncludes all gains and losses Én the year. AII RDcomang resources and re50UT£es expeDded derive from Continuing activitie&
Canaan Trust (A Company Limitt¢J by Cuarantee) Balance Sheet as at 31 March 2023 2023 2022 Note5 Fixed Assets Tangible Assets 853.494 505,946 Current Assets Debtors Cash at bank and in hand 13 12,905 234313 247.218 13,623 295,351 308 974 Creditors.. amounts falling due within one year. 14 Net Current A5setsJ{LiabÈlitie5) 236,062 297,428 Creditors.. amounts falling due over l year 15 245,000 N¢t Assets 844.556 803,374 Unrestricted fllnd5 Get2eral Funds- General Purpose5 Designated Fund- expansion of Canaan Trust Designaied Fund- freehold property and fixed assets 16 122,216 621,398 50,000 I60.0 608.494 Restricted Funds 16 63,846 21,976 Total Charity Funds 17 844,556 803 374 The Company is ¢Dtitled to exemption from audit under Section 477 of the Companies Act 2006 for th¢ year ending 31 March 2023. The meTnbers have not required the ¢ompany to obtain an audit of its financial st8t¢m¢nts for the year ended 31 March 2023 in accordance with Section 476 of th¢ Companies Act 2006. The trustees acknowledge their responsibilities for: Ensuring the company keeps a¢counting re¢ords whi¢h comply with Sections 386 and 387 of the Companies Act 2006, and b) Preparing financial statements which give a true aftd fair view of the state of affairs of the company as at the end of each finantial year in atcordance with the requirements of Section5 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to Éhe financial statements. so far as applicable to ihe company. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities. Approved by the Board of Directors on ........ and signed on its behalf by: ............ Mrs D Ross Treasurer and Tst¢¢/DireCtor Mr D Gee, Chairman of Directors and TNsteell)irector................... 10
Canaan Trust (A Company Limated by Gu3rantee) Notes forming part of the Finan£igl Statements for the Year Ended 31 March 2023 Accounting Polieie5 Th¢ principal accounting policies adopted, judgements and key sources of estimation uncertainry in the preparation of the financial statements are as follows: {a) Basis of preparation and assessment of going concem The financial statCTnents have been in accordance with the Accounting and Reporting by Charities., Statement of Recommendcd Practice applicable to charities preparing their accounts in accordan¢e with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (issued I, January 2019) - (Charittes SORP FRS102). The Financi81 ReportÈRtT Standard applEcabl¢ in UK and Republic of Ireland (FRS102) and the Companie5 Act 2006. Assets and liabilities are initially recognised Èt historical c05t or transaction value unless otherwise stated in ihe relevant accounting policy note(s). The ¢harity consututrs a public benefii entity as d¢fm¢d by FRSIO2. Going Concern The trust¢es' consider that there are no material uncertainties about the charity's ability to continue as a going concern. The fiEnd5 of the charity are considered sufficient to sustain the charity. The accounts ar¢ presented in Sterling £1. Infoming resouTfe5 All incoming resources are included in the statement of fjnancial activities when the ¢harity is entitled to the incotne and the atnount can be quantified with reasonable accurdcy. The following sp¢cifJ¢ policies are applied to particular categories of income.. Voluntary income is received by way of grants. donations and gift5 and is included in full in the Statemeni of Financial Activities when receivable. Grants, where entiil¢rnent is not conditional on the delivery of a specific perfortnance by the charity, ar¢ recognised when the charity becomes unconditionally entitled to the grant. Donat¢d service5 or facilities are r¢cogNised as income when the ¢hJrity h35 control over the item, any conditions a5S0Ctated with the donated item have been me¢ the r¢c¢ipt gf ¢conomic benefit from the use by the charity of the item i5 probabl¢ and that econornic b¢Defit can be m¢a5ur¢d Teliably On receipt, donated services and facilities are r¢cognised on the basi5 of ihe value of the gift to th¢ ¢hwity which 15 the a]nount the charity would have been willing to pay to obtain services or fa¢ilities of ¢quivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the peritxl of re¢eipl. Incoming resource5 from Charitable trading a¢livity are accouni¢d for when earned. Incoming resource5 from grant& wheTe related to perfomiance and SplfiC d¢liv¢rabl¢& ar¢ a¢coutt¢ed for as the charity earns the right to consideration by its perforn]ance. Interest receivable- Interest on ndS held on deposit is included when Te¢eivable and the amollnt can be received reliably by the charity.. this is nornially upon notification of the interest paid or payable by the bartk. Legacies are accounted for on a receivable basis when the following conditions have been met. The final estate a¢¢ounts have been approved The legacy is capable of measurement- and There is no reversionary interest
Canaan Trust (A Cornpany Limited by Guarantee> Notes forming part of the Financial Statements for the Year Ended 31 March 2023- Continued Resources expeuded ExpenditUTe is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fvlly recovered, and 15 reponed as part of the expenditure to whieh il relates.. Costs of generating fu#ds comprise the costs a550ciated with attracting grants incotne and donations. Charitable expenditttre comprises those costs incurred by the charity in the delivery of its activities and seryices for its beneficiaries. li include5 both c05t5 that cata be allocated directly to such actLVlties and those costs of an indirect nature necessary to 5UPPOrt them. Govemance costs include those costs associated with tneeting the constitutional and stsNtory requirements of the charity and include the audit fees and Costs linked to the straiegic management of the charity. All costs are 211ocated between the expenditure categorie5 of the SOFA on a basis designed to reflect the use of the resource. Costs Felating to a particular activity are allocated directly; others are apportioned on an appropriat¢ basis. Allocation of Support Costs- Support costs are those functions that assist the work of the charity but do not dire¢tly undertake charitable activities. SLtpport costs include back office costs, finance. personnel, payroll and gov¢rnÈn¢e costs which support the Trusts programmes and 2etivit2es. These costs have been all0¢ad between cost of raising funds and expenditure on charitable activities. The base5 on whith support costs have been allocated 8T¢ Set out nore 4. Operating Leases - The charity classifies the lease of photocopiers and mobile phones as operating l¢ase5. Rental charges are charged on 8 straight line basis over the tern) of the lease. Tanglble Flxed Assets All fixed asseis are capitalised ar cost, where considered 4)propriate to capitalise. Those purcha5¢d by SlfIC gifts and granis have been written off fully in the year of gift. Depre£iation is Provided at the following annual rates in order to write off each asset over its ¢5timat¢d useful life.. Fixture. Fitting and Equipment Property 01¢¢ Equipment 20Yo reducing balance No charg¢ for d¢preciation 250/0 on cost No deprecialion is ¢harged on land and buildings as th¢ residual value is b¢liev¢d to be higher than historical Cost. Pensions The Charity operates a dered contrÈbution pension 5chetne. The assets of the scheme are held separately from those of the Charity sn an independently administered fund. Contributions payable tor the yeaT are shown in the statement of fmancial activities. Debtors Debtors are recognised at the settlement amount owed to the Charity or prepaid. Creditors Creditors and provisions are recognised where the Charity has a present obligatiQTt re5ultints from a past event that will probably result in the trdnsfer of funds to a third party. and the amount due to Settle the obligation can be measured or estimat¢d reliably. Creditors and provisions are norn]ally recognised at their settlement amount. 12
Can08n Trust (A Company Limited by Guarantee) Notes foming part of th¢ Financial Statements for the Year Ended 31 March 21)23- Continued Financial Instruments The Charity has financial assets and finallci21 liabilitie5 of a kind that qualify as basic fEDancial instruments. Basic financial instruments are initially recognised at trallsaction value and 5ubsequ¢ntly measured at their settlement value Taxation The Charity is exempt from lax on its charithble aciivities. The Charity also rents its rooms io oiher local children's activities whi¢h satisfy the objectives of the Charity. The Trustees have reviewed the Charity's trading activities and are confident Ihat they furth¢r the Charity's aims and. as such, are considered to be primary purpose trading. Judgement and Key Sources of E51irn4tioTh Uncertainty The piepaTation of accounts using g¢n¢rally ac¢¢pted accounting principles requires managetnent to mak¢ estimates and assutnptions that affect the reported atnounts of assets and liabilities at the date of the accounts and th¢ reported amounts of revenues and expenses during th¢ reporting period. The key estimates and a55umptiOll5 used it2 the Financial Statements are detailed in the accountin8 policies. Fund Balances Unrestricted Funds Unr¢strid¢d fund5 are donation5 and other incoming resources receivable or generated for the objects of the Charity without fvrther specified purpose and are available as general funds. Desi nated ndS Designat¢d fund5 are unrestricted funds earniarked by the management committee for particular puTpose5. Restrici d F Restricted funds ar¢ to be used for specific puoSeS as laid down by th¢ donor and are subj¢¢ied tts rcstriciions of their expendirure imposed by the donor or through the t¢rnis of an appeal. Legal Ststtss of the Trust The TNst is a company limited by guarantee and has no share capital.. the liabiliry of each member in the eveni of winding up is limited 10 £10. 13
Canaan Trust (A Cornpany Limited by Guarantee) Notes forming part of the Financial Statements for the Year Ended 31 March 2023- Continued 2. Donation5 and Legaeies 2023 Total 2022 Total UDrestricted Restricted Derbyshtre County Council Co-op Community Fund National Lottery Community Fund Puddle Lan¢ Trust Breaston PPCC Erewash Borough Coun¢il - small grdnt Foundation Derbyshire Neighbourhood Foundation Sainsburys Derby City Mission Groundwork UK GeneTal Donations (including Gift Aid) Giving for new property Long Eaton Rotary A5da Foundation HSBC Supporting Communities Fund Rolls Royce- Small Grant St Ralph Sherwin- Small Grant Fine & County 1,700 2.556 9.696 2.968 2.200 125 4,000 1,000 1,846 14,250 1,125 45.765 3.090 1,000 1,000 5.000 5.320 5,320 500 500 375 375 58,304 87,973 58,304 17,050 70,923 1,800 1.800 200 501 200 501 79,855 156 973 3. Ineomt from Charitable Aclivitie5 2023 Total 2022 Total Unrestrleted Restrlcted Utility Income Rent Housing Benefit 16,203 16,203 10.695 179 962 175 324 196 165 196 165 186019 Tntee gÉving during the y¢ar lotalled £1,700 (2022: £126). 14
Canaan Trust (A Company LTniited by Guararttee) Note5 forming part of the Financial StaterneNts for the Year EDded 31 Mareh 21123 - Continued 4. ExpenditsTe 2023 Total 2022 Total Costs dlreetly allocated to ArtivÉties Staff Costs Direct 162,920 58,580 221.500 212.394 7.359 Rent, Rate5 and Water Hvdt. Light & Power Travel and Staff Expenses Insurance Usage Usage Direct 8,244 7,240 3299 5,874 2,160 9,551 8,244 7,240 7,152 33 3.332 5.874 2,400 3,266 4,036 2,370 Direci CleaninglHousekeepir*g R¢sid¢nts Exp¢ns¢s Training Costs Propety Maintenance Healthy Living costs Consultancy Fee5 and DBS Check5 Professional Fe¢s - Direct 240 Direct 9,551 5,874 Direct 495 495 356 Direct 8.391 911 8,391 911 4,419 953 Direct Direct 9,024 9.024 9,964 (New property purchase) Direct 15,224 15,224 292,186 2.346 233,333 58.853 260,489 Support eosts allocated to aetivities Fundraising Costs ststionery, photocopier and office costs 2,613 2,613 804 Usage 1,884 3.768 1,884 7,536 4,703 OffJ¢e Equipment and Maintenance Costs Usage 382 765 382 1,530 6.736 Computer Expenses Telephone. Mobile and Broadband Sundry Expenses Charitable Giving Bank Charges Accounting and Payroll Depreciation Loan Inter¢st Usage Usage Usage Direei 3,072 218 6,145 3,277 78 3,072 874 12,289 4.369 10.015 4,582 152 152 382 381 1.925 1.925 352 2,100 Usage Direct 117 3,381 2,745 375 3,756 4,575 3.618 Usage Usage 1,830 4,609 3,432 3,433 3,432 10297 11,870 25,636 12,118 70,971 49,624 37.993 Total Resources Expended 11,870 258,969 341.810 298,482 15
Canaan Trust (A Company Limited by Guarantee) Notes forming pgrt of the FiDancial Statements for the Year Ended 31 March 2023- Continued 5. Net Incoming Resources for the year This is stated after chargÈng 2023 2022 Depreciation Reporting Accountants Fee Payroll Preparation Fees 4,575 1,890 1.866 4.609 1.890 1,728 6. StaffCo$ts Nurnbers Salaries Pension Costs Employers National Insurance 202,302 8,923 10,275 221.500 193,156 8,237 10,201 212.394 Average number of paid full and part time employees in the year 16 .7 within the pension scheme (2022.. 7). The cost for ¢mploye¢'s are partly charged to support costs. The others are included in charitable activitie5. (note 4) No ¢ffiploy¢¢ received emoluments of more than £ 60.000 in the year. Total remun¢ratitsn of key Maagement p¢r50nnel in the year was £75,685 (2022.. £75,949). 7. Trustee Retnuneratlon and Related Party Tr#Ths#et10115 No emoluments were received by the Trustee% either iheir capacities as Trustees or as members of the Board of Trustees. There were no other emolument5 or expenses patd to any other Charity iru5tee, or persons connected with such a trustee directly or indirectly frotn the funds of the Charity or frotn the property of any body tonnected with the Charity. The wife of a Trustee now works on a part time basis for the chlty. ShE rs paid at a rate that is kn line with other staff members and the appointmeni was approved by all trustees. There are no other related paty transaciions. 8. Taxatio As a Charity, Canaan Trnst Is exempt from tax on income and gains falling within se¢tion 505 of the Taxes Act 1988 or s256 of the Taxation of Chargeable Gains A¢t 1992 to the extent that ihese are applied to its ¢haritabl¢ obj¢¢ts. No tax charges have arisen in the ChaTity. 16
Canaan Trust (A Company Limited by Guarantee) Notes forming part of ihe Financial Statements for the Year Ellded 31 March 2023- Continued 9. Tangible Fixed Assets Land and Buildings Office Equipment Fi¥ture$ and Equipment Van Total Cost Brought fonvard Additions 51)0,852 352,125 5,796 21,702 17.779 546,129 352.125 At 31 March 2023 852 977 898.254 Depreciation Brought forward Charge for th¢ year At 3 1 March 2023 5,796 21.053 130 13.334 40.183 Net Book Value At 31 fvlarch 2023 852.977 519 853 494 At 31 March 2022 500.852 649 4,445 505.946 There were no tangible assets donated durit]g the year that were capitalised and all assets are held for the fi]rtherance tsf the Charity's objectives. 10. Financial Commitments The Charity has the following comrnitments.. An annual commitment to pay a photocopier and printer lease. The annual lease charge payable is £937.60. A commitment to the cu]Tent insurance company for premiums of at least £3,398 per annutn until April 2023. 11. Pension Commitments The Charity operates a defined contribution pension s¢h¢me administered by Standard Life. The assets are held separate from those of the Charity in an independently administered fund. The pension cost charge represents contribuiions payabl¢ by the Charity to the and amounted to £8,923 (2022.. £8,237) 12. DonatlODS paid dllring tbe year were A$ follows: 2023 2022 Bundle of Hope The Fcmiiprinis Family 1,050 875 1.925 2.100 2.100 17
Canaan Trust (A Company LRrnited by Guarantee) Notes forjning part of the Financial Statements for the Year Ended 31 Mareh 2023 (Continued) 13. Debtor5 2023 2022 Trade Debtors Other Debtors and Prepaym¢nts 8.798 4.107 9,690 3,933 14. Creditors: Amounts falling dut in one year 2023 2022 Trdde Creditors Taxation and Social Security Other Creditors and Accwals 1,506 3.942 5,708 11.156 1,126 3,829 15. Creditors: Amounts falllng due #fter ont year 2023 2022 Bank Loan 245,000 The Bank holds security for the loan in the fomh of first and only legal chatge over the property to which it r¢lates. These amounts are repayable other than by instalments due more than 5 years from the b81an¢e she¢t dat¢. 16. Analysis of Net Assets between fund5 Gekeral Fund Restricted Fund Total Funds 2023 Total 2022 Year Ended 31 March 2023 Tangible Fixed Assets Current Assets 853.494 183.372 {11.156) (245,000) 780,710 853,494 247?18 505,946 308,974 (11,546) 63.846 cuen1 Liab*liti¢s (11,156) {245,000} Lotjg Tem) Liabilities Net Assets at 31 March 63.846 844.556 803,374 General Fund Restricted Fund Totsl Funds 2022 Total 2021 Year Ended JI March 2022 Tangible Fixed Assets Current Assets 505.946 286.998 (11.546) 781,398 505,946 308.974 (11,546) 803,374 510,555 291,565 (17,615) 784,505 21,976 Ctsrreni Liabiliti¢5 Net Assets at 31 March 21,976 18
Canaan Trust (A Company Limited by Guarantee) Notes forming part of tht Finan¢i41 Statements for the Year £Dded 31 Mareh 2023 (Continued) 17. Movements in Funds At l April 2022 Al 31 Mareh 2023 Year Ended 31 March 2023 Incorning Re50llrces Outgoing R¢sollrce5 Tran5fer5 Restricted funds Property Fund National Lottery Community Fund Puddle Lane Trust Foundation Derbyshire HSBC Supporting Communiry Fund Tesco Community Sainsburys 3.090 70,923 8,433 65,580 9.453 1.2(M) 3,833 9,453 1,200 5,320 {2,040) 4,400 4.400 375 500 77,118 375 691 63.846 569 35,248 21,976 restricted funds De5ign8ted Fund expxN$ion of Canaan Trust DesSgnatod Fund- freehold property and fixed 1$5els 621398 305 874 306.562 498 494 122.216 160.000 (110.000) 50,000 608.494 608.494 General Fund 803.374 382,992 341,810 844.556 Ai April 2021 At 31 March 2022 Year Ended 31 M#reh 2022 Incorning Re50urc Outgoing R¢50vr¢e5 Transfers Restrieted funds Freehold Property and Fixed Assets 24,754 2.778 21,976 Unrestricted funds D¢5tgnated Fuvd exp#n5ion of Canaan Trllst 784.505 292,597 295,704 {160,000) 621.398 160,000 160.000 Genernl Fund 784.505 317.351 298.482 803.374 Desigth8l¢d Fund$ ansion of Canan Trust- The trust¢es previously set a5id¢ from the g¢nerdl fund an amount of £160,01)O for the expansion of the Canaan Trnl for the future. During the ¢urr¢nt year £l10,OQO of thi5 fund was used towards the dewsit for the purchase of Aspire House and as such the fund ha5 be¢n r¢-designat¢d within the Freehold property and fixed asset designated fimd. Freehold Pro and Fixed Assets - During the year the TNsiees have designated ndS representing the net value of freehold property. fixed assets, less any outstanding debt secured against those assets, for maintenance of such assets and th¢ servicing of debts. 19
CanAan Trust {A Company Limited by Guarantee) Notes forming part of tbe Fin4ncial Statements for the Year Ended 31 March 2023 {ContiNued) Purpose of RtrIcted Funds Fund - A new property at 16 Main Street, Long Eaton was purchased by the Charity on 5 May 2022 at a eost of £350,000 with fvnds provid¢d from monies held and a loan from Kingdom Bank of £245.000. Donations from SGC Solicitors. Benefa¢t Trust and The Albert Hunt Trust totalled £70,923, with a remaining balance of £65.579. Foundation DeT she - A total of £1,320 to be spent on busines5 rates and utilities for Derby Road siorage. A fijrther £4,000 to be spent on floatÈng 5UPPOrt. ain A total of £500 to be $pent on floatintt support. Te mmuni rant- A totsl of £375 for emergency accommodation. l& DOated Aets Donation of perishable focNJ from Birds Bakery. Greggs. Tesco and Nando's, th¢ value 15 not quantified. Different churches in Long Eaton hold Harvest Festivals and fTom those ¢vents donations of food are made for the residen(S of the Charity- these are also shared with the food bank proj1 and other homeless individuals in the locality. 19. Future Capital Commitments See propety fund details in note 17. 20. Negligenc¢ In5uran¢e The Charity hold Trustee llldemnity Insurance during the year which provides cover of up to £250,000. 21. Prior Year Restatement The balance sheet as at 31 March 2022 has been restated in these accounts as shown on page 10, due io a casting error in the prior year. Thi5 restatement has had no iTnpact on the Statement of Financial A¢tiviti¢s or the notes to the accounts. 20