2020-12-31-accounts - Giroscope Limited

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REGISTERED COMPANY NUMBER: 02046356 (England and Wales) REGISTERED CHARITY NUMBER: 1117457

Giroscope Limited

Report of the Trustees and

Financial Statements

for the Year Ended 31st December 2020

cbaSadofskys Statutory Auditors Princes House Wright Street Hull East Yorkshire HU2 8HX

Giroscope Limited

Contents of the Financial Statements for the year ended 31st December 2020

		Page
Report of the Trustees	1	to	5
Report of the Independent Auditors	6	to	9
Statement of Financial Activities		10
Balance Sheet	11	to	12
Cash Flow Statement		13
Notes to the Cash Flow Statement		14
Notes to the Financial Statements	15	to	23
Detailed Statement of Financial Activities	24	to	25

Giroscope Limited

Report of the Trustees for the year ended 31st December 2020

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31st December 2020. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

A MESSAGE FROM THE ACTING CHAIRMAN

2020 was a strange and challenging year, yet in spite of all of the challenges, we managed to keep supporting our tenants, volunteers and our local community.

Over the last year many of the problems faced by the people with whom we work, have been exacerbated, as people have become more isolated and subject to greater levels of stress. Our response to the COVID-19 pandemic adapted to the lockdowns and restrictions, as well and changes in our user's situations and circumstances. Initially our work was mainly reactive: providing support over the telephone to check in and make sure that people were managing, offering food parcels and providing activities to keep people occupied.

The distribution of food has been one of the biggest ways our organisation has supported our tenants, volunteers and local community over the last year. We have concentrated on distributing healthy, fresh food, including fresh fruit and vegetables.

During the year we distributed 59 devices (laptops, computers, tablets and smartphones) to enable children to access online teaching from home, and adults who were shielding, to get online and be more connected.

Seven empty properties were renovated during the year: five flats in 167 Coltman Street were completed and two long-term empty houses. The flats at 167 Coltman Street were finished in February 2020 and 7 new tenants moved into the building. This was an interesting project where we installed our first air source heat pumps, triple glazed windows with wall, floor and roof insulation to improve the energy performance and comfort of the building.

The Community Self Build project made substantial progress during 2020. The structural frames for the first property were constructed and raised in February. Progress was interrupted during the first lockdown, but work continued steadily with a small team for the rest of the year.

Progress was also made on the redevelopment of the former St Matthews Church. We obtained planning permission in December for works to the building to create workspace and new community spaces and facilities within the building. We plan to start the construction works in 2021.

OBJECTIVES AND ACTIVITIES

Objectives and aims

The company's objects and principal activities were those of the purchasing, renovation and modernisation of housing in poor condition and the renting out of these houses to the unemployed and other disadvantaged groups in society.

ACHIEVEMENT AND PERFORMANCE

In 2020 the organisation completed the renovation of seven properties; two houses and five flats in the same building. During the year we also purchased five new properties. At the end of the year Giroscope owned a total of 114 properties: 129 residential units (102 houses and 27 flats) as well as 5 non-residential buildings providing workspace to 15 organisations. At the end of the year Giroscope provided housing to over 320 people. 16 bed-spaces across 6 different properties are ring-fenced for young people who are homeless or at risk of homelessness. During the year 22 young people, at risk of homelessness were housed in these properties.

Giroscope continue to participate in wider discussions at a local, regional and national level on topics including community-based approaches to regeneration, affordable housing, empty homes and self-help housing.

Giroscope continues to offer guidance and support to new or emerging organisations interested in developing projects bringing empty properties back into use, providing affordable housing and support offering volunteering or training opportunities.

Page 1

Giroscope Limited

Report of the Trustees for the year ended 31st December 2020

FINANCIAL REVIEW

Principal funding sources

The principle funding source of the charity are the rents received from the tenants. Giroscope now has an agreement in place for us to receive enhanced housing benefit up to 30 tenants that need additional support.

The staff and Management Committee seek funding to support renovating empty properties, provide additional support to our beneficiaries or regenerate our neighbourhood.

Giroscope received funding from the Lloyds Bank Foundation, Hull Community Led Local Development and the Bettys and Taylors Family Fund contributed towards the volunteer programme and other training opportunities.

The capital work renovating empty properties and the new construction of the Community Self Build project was funded by social investment from Social and Sustainable capital blended with grant funding from Power to Change and Hull City Council's Right-to-Buy Replacement grant fund.

Grants received from the Martin Lewis Coronavirus Emergency Fund, the Good Things Foundation, The Tudor Trust and LandAid supported some of our activity to respond to the COVID-19 pandemic. The Hull and East Riding Charitable Trust continued to support Giroscope's Emergency Fund that provides small grants for our tenants and volunteers.

Investment policy and objectives

Aside from retaining a prudent amount in reserves, each year most of the charity's funds are spent in the short term so there are few funds for long term investment. Having considered the options available, the Management Committee has decided to invest the small amount it has available in an interest-bearing account.

Reserves policy

The Management Committee will be examining the charity's requirements for reserves in light of the main risks to the organisation.

It will establish a policy whereby the unrestricted funds not committed or invested in tangible fixed assets held by the charity should not exceed 6 months of expenditure.

The reserves are needed to meet the working capital requirements of the charity, and the Management Committee are confident that at this level they would be able to continue the current activities of the charity in the event of a significant drop in funding.

FUTURE PLANS

The charity plans to continue it's activities outlined in the forthcoming years, subject to satisfactory funding arrangements. In addition, it will look to develop other projects to help regenerate Giroscope's neighbourhood, increase the opportunities and/or provide better support for people living there. These will include:

The further purchase and renovation of empty residential properties to let as affordable housing.
The purchase and renovation of empty non-residential space to provide affordable workspace for other social enterprises and start-up businesses in our community.
The redevelopment of the former St Matthews Church.
Development of a self-build housing model to construct affordable housing on the land to the rear of 69 Coltman Street or other vacant plots of land in our neighbourhood.
Develop our volunteer programme to provide a wide range of opportunities and holistic support for people excluded and disadvantaged in the employment market.
To continue to develop our trading subsidiary Giroscope Services Limited.

Page 2

Giroscope Limited

Report of the Trustees for the year ended 31st December 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The organisation is a charitable company limited by guarantee, incorporated on 13th August 1986 and registered as a charity on 4th January 2007. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.

Recruitment and appointment of new trustees

The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Executive Committee. Under the requirements of the Memorandum and Articles of Association the members of the Management Committee will be elected to serve a period of three years after which they must be re-elected at the next Annual General Meeting. (Resolution of Annual General Meeting November 2006).

The Management Committee is made up of a mix of traditional business skills from their own particular area of responsibility. In an effort to maintain this broad skill mix and in the event of particular skills being lost due to retirements, individuals are approached to offer themselves for election to the Committee.

Organisational structure

Giroscope Limited has an Executive Committee of 3 members who meet quarterly and are responsible for the strategic direction and policy of the charity. At the end of the financial year the Management Committee had three members. These members are from a variety of 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 rests with the Co-ordinator. The Management Committee is responsible for ensuring that the charity pursues its Aims and Objectives as well as setting strategic policy. The Co-ordinator has responsibility for the individual supervision of the staff team and also ensuring that the team continue to develop their skills and working practices in line with good practice.

Induction and training of new trustees

All of our trustees are already familiar with the practical work of the charity and are encouraged to familiarise themselves with the staff and volunteers within the organisation.

Additionally, new trustees are invited and encouraged to attend an introductory meeting with the Chair of the Management Committee and familiarise themselves with the charity and the context within which it operates. This meeting covers:

The obligations of Management Committee members
The main documents which set out the operational framework for the charity including the Memorandum and Articles
Resourcing and the current financial position as set out in the latest published accounts
Future plans and objectives
Charity Commission
Company Law

A Trustees induction pack has also been prepared drawing information from the various Charity Commission publications signposted through the Commission's guide 'the Essential Trustee' as an 'aide memoir'. This is distributed to all new trustees along with the Memorandum and Articles and the latest financial statements.

Page 3

Giroscope Limited

Report of the Trustees for the year ended 31st December 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.

The charity has a Risk Register which identifies the risks to which the charity is exposed. Systems and procedures have been established to mitigate and manage the risks the charity faces. The Risk Register is reviewed as and when necessary, at a minimum at the quarterly Board Meetings.

Internal control risks are minimised by the implementation of procedures for authorisation of all transactions and projects.

Procedures are in place to ensure compliance with health and safety for all staff, volunteers, clients and visitors to Giroscope.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

02046356 (England and Wales)

Registered Charity number

1117457

Registered office

69 Coltman Street Hull East Yorkshire HU3 2SJ

Trustees

A Brocklehurst - Accountant R Amesbury - Director Ms H R Galbraith - Director (appointed 20/1/20)

Auditors

cbaSadofskys Statutory Auditors Princes House Wright Street Hull East Yorkshire HU2 8HX

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Giroscope Limited for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charity SORP;
make judgements and estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

Page 4

Giroscope Limited

Report of the Trustees for the year ended 31st December 2020

STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

there is no relevant audit information of which the charitable company's auditors are unaware; and
the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

AUDITORS

The auditors, cbaSadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 24th May 2021 and signed on its behalf by:

R Amesbury - Trustee

Page 5

Report of the Independent Auditors to the Trustees of Giroscope Limited

Opinion

We have audited the financial statements of Giroscope Limited (the 'charitable company') for the year ended 31st December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
give a true and fair view of the state of the charitable company's affairs as at 31st December 2020 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

the information given in the Report of the Trustees is inconsistent in any material respect with the financial statements; or
the charitable company has not kept adequate accounting records; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.

Page 6

Report of the Independent Auditors to the Trustees of Giroscope Limited

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Page 7

Report of the Independent Auditors to the Trustees of Giroscope Limited

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the pharmaceutical industry;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, UK tax legislation, and data protection, anti-bribery, employment, environmental, health and safety legislation along with industry specific regulations and requirements such as compliance with regulations set out by the Department of Health and the Medicines and Healthcare products Regulatory Agency (MHRA);
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of
actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were
indicative of potential bias; and
investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators, and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

Page 8

Report of the Independent Auditors to the Trustees of Giroscope Limited

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

cbaSadofskys Statutory Auditors Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Princes House Wright Street Hull East Yorkshire HU2 8HX

24th May 2021

Page 9

Giroscope Limited

Statement of Financial Activities

for the year ended 31st December 2020

Notes INCOME AND ENDOWMENTS FROM Donations and legacies 2 Charitable activities 4 Renovation and letting of housing Investment income 3 Other income Total EXPENDITURE ON Charitable activities 5 Renovation and letting of housing NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD	Unrestricted funds £ 924 184,956 736,140 504 922,524 707,150 215,374 3,514,399 3,729,773	Restricted fund £ - - - - - - - - -	2020 Total funds £ 924 184,956 736,140 504 922,524 707,150 215,374 3,514,399 3,729,773	2019 Total funds £ 727 153,549 603,629 - 757,905 614,403 143,502 3,370,897 3,514,399

The notes form part of these financial statements

Page 10

Giroscope Limited

Balance Sheet

31st December 2020

Unrestricted funds Notes £ FIXED ASSETS Tangible assets 11 48,011 Investments Investments 12 4,999 Investment property 13 6,956,806 7,009,816 CURRENT ASSETS Debtors 14 171,614 Cash at bank 107,138 278,752 CREDITORS Amounts falling due within one year 15 (234,472) NET CURRENT ASSETS 44,280 TOTAL ASSETS LESS CURRENT LIABILITIES 7,054,096 CREDITORS Amounts falling due after more than one year 16 (3,324,323 ) NET ASSETS 3,729,773 FUNDS 19 Unrestricted funds TOTAL FUNDS	Restricted fund £ - - - - - - - - - - - -	2020 Total funds £ 48,011 4,999 6,956,806 7,009,816 171,614 107,138 278,752 (234,472) 44,280 7,054,096 (3,324,323 ) 3,729,773 3,729,773 3,729,773	2019 Total funds £ 46,482 4,999 6,478,819 6,530,300 183,644 38,579 222,223 (171,991) 50,232 6,580,532 (3,066,133 ) 3,514,399
			3,514,399 3,514,399

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31st December 2020.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The notes form part of these financial statements

continued...

Page 11

Giroscope Limited

Balance Sheet - continued 31st December 2020

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

The financial statements were approved by the Board of Trustees and authorised for issue on 24th May 2021 and were signed on its behalf by:

R Amesbury - Trustee

The notes form part of these financial statements

Page 12

Giroscope Limited

Cash Flow Statement

for the year ended 31st December 2020

Notes Cash flows from operating activities Cash generated from operations 1 Interest paid Net cash provided by operating activities Cash flows from investing activities Purchase of tangible fixed assets Purchase of investment property Sale of tangible fixed assets Interest received Net cash used in investing activities Cash flows from financing activities New loans in year Loan repayments in year Net cash provided by financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period	2020 £ 364,986 (116,139) 248,847 (3,939) (477,987) 1,010 4 (480,912) 427,500 (126,876) 300,624 68,559 38,579 107,138	2019 £
		267,152 (97,820) 169,332 (1,395) (320,649) - - (322,044) 287,574 (90,002) 197,572 44,860 (6,281) 38,579

The notes form part of these financial statements

Page 13

Giroscope Limited

Notes to the Cash Flow Statement

for the year ended 31st December 2020

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of Financial Activities) Adjustments for: Depreciation charges Profit on disposal of fixed assets Interest received Interest paid Decrease in debtors Increase in creditors Net cash provided by operations	2020 £ 215,374 1,904 (504) (4) 116,139 12,030 20,047 364,986	2019 £ 143,502 1,979 - - 97,820 507 23,344 267,152

2. ANALYSIS OF CHANGES IN NET DEBT

Net cash	At 1/1/20 Cash flow At 31/12/20 £ £ £
Cash at bank	38,579 68,559 107,138
	38,579 68,559 107,138
Debt
Debts falling due within 1 year	(90,002) (42,434) (132,436)
Debts falling due after 1 year	(3,066,133 ) (258,190) (3,324,323)
	(3,156,135 ) (300,624) (3,456,759)
Total	(3,117,556 ) (232,065) (3,349,621 )

The notes form part of these financial statements

Page 14

Giroscope Limited

Notes to the Financial Statements

for the year ended 31st December 2020

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property	-	not provided
Plant and machinery	-	at variable rates on reducing balance
Fixtures and fittings	-	at variable rates on reducing balance
Motor vehicles	-	25% on reducing balance

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in market value is transferred to a fair value reserve.

Related party exemption

The charitable company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

continued...

Page 15

Giroscope Limited

Notes to the Financial Statements - continued

for the year ended 31st December 2020

1. ACCOUNTING POLICIES - continued

Government grants

Government grants are recognised using the accruals model. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

Grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the assets to which they relate.

A grant that becomes receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the company with no future related costs, is credited to income in the period in which it becomes receivable.

2. DONATIONS AND LEGACIES

2020 £ 924 2020 £ 736,136 4 736,140 2020 £ 108,967 75,989 184,956	2019 £	2019 £
		727

	2019 £ 603,629 -
	603,629

	2019 £
	100,012 53,537 153,549

2020	2019
£	£
62,500	61,000
41,911	195,003
7,570	-
-	1,000
2,453	18,770
-	38,767

114,434	314,540

continued...

Page 16

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2020

4. INCOME FROM CHARITABLE ACTIVITIES - continued

Grants received, included in the above, are as follows:

National Lottery Awards for All Hull and East Riding Charitable Trust Architectural Heritage Fund Lloyds Bank Foundation Hull Community Led Local Development Yorkshire Bank Bike Library Tudor Trust Bettys and Taylors Family Fund Land Aid Martin Lewis Coronavirus Emergency Fund Good Things Foundation Duke of Edinburgh Award Scheme Tesco Bags of Help Covid-19 Communities Fund Rank Foundation Leftfield - Fix your bike voucher scheme Job retention scheme 5. CHARITABLE ACTIVITIES COSTS Renovation and letting of housing 6. SUPPORT COSTS Renovation and letting of housing	Direct Costs £ 575,909	2020 2019 £ £ - 10,000 4,500 2,000 - 6,207 23,200 23,200 16,493 42,887 - 3,718 12,000 12,000 16,665 - 8,318 - 7,755 - 5,600 - 550 - 500 - 486 - 150 - 12,750 - 108,967 100,012 Support costs (see note 6) Totals £ £ 131,241 707,150 Governance costs £ 131,241	2019 £ 10,000
			2,000 6,207 23,200 42,887 3,718 12,000 - - - - - - - - - 100,012

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration	2020 2019 £ £ 3,780 3,420
Depreciation - owned assets	1,904 1,979
Surplus on disposal of fixed assets	(504) -

continued...

Page 17

Giroscope Limited

Notes to the Financial Statements - continued

for the year ended 31st December 2020

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31st December 2020 nor for the year ended 31st December 2019.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31st December 2020 nor for the year ended 31st December 2019.

9. STAFF COSTS

Wages and salaries Social security costs Other pension costs	2020 £ 207,101 14,743 4,032 225,876	2019 £ 172,797 10,424 2,691 185,912

The average monthly number of employees during the year was as follows:

Management and administration Support	2020 5 7 12	2019 4 7 11

No employees received emoluments in excess of £60,000.

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES

INCOME AND ENDOWMENTS FROM Donations and legacies Charitable activities Renovation and letting of housing Investment income Total EXPENDITURE ON Charitable activities Renovation and letting of housing NET INCOME RECONCILIATION OF FUNDS Total funds brought forward	Unrestricted funds £ 727 153,549 603,629 757,905 614,403 143,502 3,370,897	Restricted fund £ - - - - - - -	Total funds £ 727 153,549 603,629 757,905 614,403 143,502 3,370,897

continued...

Page 18

Giroscope Limited

Notes to the Financial Statements - continued

for the year ended 31st December 2020

10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES - Unrestricted funds £ TOTAL FUNDS CARRIED FORWARD 3,514,399 11. TANGIBLE FIXED ASSETS Improvements to property £ COST At 1st January 2020 38,474 Additions - Disposals - At 31st December 2020 38,474 DEPRECIATION At 1st January 2020 - Charge for year - Eliminated on disposal - At 31st December 2020 - NET BOOK VALUE At 31st December 2020 38,474 At 31st December 2019 38,474 Motor vehicles £ COST At 1st January 2020 5,010 Additions 3,939 Disposals (1,910) At 31st December 2020 7,039 DEPRECIATION At 1st January 2020 3,393 Charge for year 650 Eliminated on disposal (1,404) At 31st December 2020 2,639 NET BOOK VALUE At 31st December 2020 4,400 At 31st December 2019 1,617	continued Restricted fund £ - Plant and machinery £ 7,370 - - 7,370 6,964 80 - 7,044 326	continued Restricted fund £ - Plant and machinery £ 7,370 - - 7,370 6,964 80 - 7,044 326
			Total funds £ 3,514,399
				Fixtures and fittings £ 23,464 - - 23,464 20,353 456 - 20,809 2,655
38,474		406		3,111
Motor vehicles £ 5,010 3,939 (1,910) 7,039 3,393 650 (1,404) 2,639 4,400	Computer equipment £ 3,927 - - 3,927 1,053 718 - 1,771 2,156			Totals £ 78,245 3,939 (1,910) 80,274 31,763 1,904 (1,404) 32,263 48,011
1,617		2,874		46,482

continued...

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Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2020

12. FIXED ASSET INVESTMENTS

12.	FIXED ASSET INVESTMENTS
			Shares in
			group
			undertakings
			£
	MARKET VALUE
	At 1st January 2020 and
	31st December 2020		4,999
	NET BOOK VALUE
	At 31st December 2020		4,999
	At 31st December 2019		4,999
	There were no investment assets outside the UK.
	The company's investments at the balance sheet date	in the share capital of companies include the	following:
	Giroscope Services Limited
	Registered office: 69 Coltman Street, Hull,HU3 2SJ
	Nature of business: Property and building repairs	%
	Class of share:	holding
	Ordinary	100
13.	INVESTMENT PROPERTY
	FAIR VALUE		£
	At 1st January 2020		6,678,932
	Additions		477,987
	At 31st December 2020		7,156,919
	AMORTISATION
	At 1st January 2020
	and 31st December 2020		200,113
	NET BOOK VALUE
	At 31st December 2020		6,956,806
	At 31st December 2019		6,478,819

continued...

Page 20

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2020

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2020 £ Rent arrears 23,127 Other debtors 148,487 171,614 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2020 £ Bank loans and overdrafts (see note 17) 130,770 Other loans (see note 17) 1,666 Trade creditors 67,058 Social security and other taxes 3,995 Other creditors 27,383 Accrued expenses 3,600 234,472 16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2020 £ Bank loans (see note 17) 3,312,652 Other loans (see note 17) 11,671 3,324,323 17. LOANS An analysis of the maturity of loans is given below: 2020 £ Amounts falling due within one year on demand: Bank loans 130,770 Other loans 1,666 132,436 Amounts falling between one and two years: Bank loans - 1-2 years 3,312,652 Other loans - 1-2 years 11,671 3,324,323
		2019 £ 42,470 141,174 183,644

		2019 £ 88,336
		1,666 58,018 3,453 17,098 3,420 171,991

	2019 £ 3,052,796
	13,337 3,066,133

	2019 £ 88,336 1,666 90,002
	3,052,796 13,337 3,066,133

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Page 21

Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2020

18. SECURED DEBTS

The following secured debts are included within creditors:

Bank loans	2020 £ 3,443,422	2019 £ 3,141,132

The bank loans are secured by way of a legal mortgage over the properties to which they relate and the bank overdraft is secured by way of a fixed and floating charge over the company's assets.

19. MOVEMENT IN FUNDS

Unrestricted funds General fund TOTAL FUNDS Net movement in funds, included in the above are as follows: Unrestricted funds General fund TOTAL FUNDS Comparatives for movement in funds Unrestricted funds General fund TOTAL FUNDS	At 1/1/20 £ 3,514,399 3,514,399 Incoming resources £ 922,524 922,524 At 1/1/19 £ 3,370,897 3,370,897		Net movement in funds £ 215,374 215,374 Resources expended £ (707,150) (707,150) Net movement in funds £ 143,502 143,502	At 31/12/20 £ 3,729,773 3,729,773 Movement in funds £ 215,374 215,374 At 31/12/19 £ 3,514,399 3,514,399

continued...

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Giroscope Limited

Notes to the Financial Statements - continued for the year ended 31st December 2020

19. MOVEMENT IN FUNDS - continued

Comparative net movement in funds, included in the above are as follows:

Incoming resources £ Unrestricted funds General fund 757,905 TOTAL FUNDS 757,905 A current year 12 months and prior year 12 months combined position is as follows: At 1/1/19 £ Unrestricted funds General fund 3,370,897 TOTAL FUNDS 3,370,897	Resources expended £ (614,403) (614,403) Net movement in funds £ 358,876 358,876	Movement in funds £ 143,502 143,502 At 31/12/20 £ 3,729,773 3,729,773

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds	Incoming Resources resources expended £ £	Movement in funds £
General fund	1,680,429 (1,321,553 )	358,876
TOTAL FUNDS	1,680,429 (1,321,553 )	358,876

20. RELATED PARTY DISCLOSURES

Page 23

Giroscope Limited

Detailed Statement of Financial Activities

for the year ended 31st December 2020

INCOME AND ENDOWMENTS Donations and legacies Donations Investment income Rents received Deposit account interest Charitable activities Grants Other income Other income Gain on sale of tangible fixed assets Total incoming resources EXPENDITURE Charitable activities Wages Social security Pensions Rates and water Insurance Light and heat Telephone Postage, stationery and advertising Sundries Motor expenses Repairs and renewals Sub contractors Volunteer development costs Bad debts Donations Support costs Governance costs Auditors' remuneration Carried forward	2020 £ 924 736,136 4 736,140 108,967 75,989 184,956 504 922,524 207,101 14,743 4,032 25,867 15,599 22,370 4,909 3,460 12,140 8,048 15,686 218,924 15,031 2,814 5,185 575,909 3,780 3,780	2019 £ 727 603,629 - 603,629 100,012 53,537 153,549 - 757,905 172,797 10,424 2,691 21,909 17,123 17,460 4,021 4,996 12,879 9,847 14,846 168,502 33,831 9,710 5,513 506,549 3,420 3,420

This page does not form part of the statutory financial statements

Page 24

Giroscope Limited

Detailed Statement of Financial Activities

for the year ended 31st December 2020

Governance costs Brought forward Legal fees Bank charges Credit card charges and interest Depreciation of tangible fixed assets Bank loan interest Total resources expended Net income	2020 £ 3,780 4,830 4,580 8 1,904 116,139 131,241 707,150 215,374	2019 £ 3,420 126 3,680 829 1,979 97,820 107,854 614,403 143,502

This page does not form part of the statutory financial statements

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