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← Streetscene Addiction Recovery

2024-06-30-accounts

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

Charity registration number 1118773

Company registration number 05841338 (England and Wales)

STREETSCENE ADDICTION RECOVERY

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

LEGAL AND ADMINISTRATIVE INFORMATION

Directors Mr J Dorrington
Dr D Phillips
Mrs A Rodgers
Ms R Pullan (Appointed 23 November
2023)
Secretary Lord T Howson-Green
Chief Executive
Charity number 1118773
Company number 05841338
Registered office 108 Cobham Road
Ferndown Industrial Estate
Wimborne
Dorset
BH21 7PQ
Auditor Fiander Tovell Limited
Stag Gates House
63/64 The Avenue
Southampton
Hampshire
SO17 1XS
Bankers CAF Bank Limited
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
ME19 4JQ
HSBC
165-176 High Street
Poole
BH15 1AV
Solicitors Laceys Solicitors
9 Poole Road
Bournemouth
Dorset
BH2 5QR

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CONTENTS

Page
Trustees' report 1 - 4
Independent auditor's report 5 - 8
Statement of financial activities 9
Balance sheet 10
Statement of cash flows 11
Notes to the financial statements 12 - 23

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TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2024

The trustees present their annual report and financial statements for the year ended 30 June 2024.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "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).

Objectives and activities

StreetScene Addiction Recovery is a charitable company governed by Memorandum and Articles of Association incorporated on the 8[th] June 2006. It represents the incorporation of the earlier charitable trust, StreetScene, originally declared in 1989, registration number 802521. It has two objectives:

Assets

All the fixed assets are utilised for the work of the charitable company and are held by the company. All deeds are retained by the Solicitors; Laceys. The company retains the reserves from the operations of the company, operating profits and prepaid accounts in the reserves account.

Operations

StreetScene operates three residential rehabilitation units being Allington House - Bournemouth (16 beds), Francis House - Southampton (18 beds) and Cornerways – Bournemouth (20 beds) where clients receive residential detoxification and treatment. Additionally, the Unity Project operates 50 tertiary beds as supported accommodation to assist clients to reintegrate.

StreetScene operates for the public benefit in both helping people suffering from addictions and educating both those suffering and those affected by addiction but the result of treating the clients means there is a benefit to society as a whole caused by the lifestyle of those people who are in active addiction.

Review of 2023 – 2024 operations.

StreetScene faced some challenges in this year due to a lower than expected occupancy rate (79% compared to 89% in the 22-23 year), however procedures were put in place to mitigate this and although the year was challenging, and a small deficit of £70,899 was made (compared to a £86,410 surplus in 2023), the charity was in a strong position going into 2024-2025.

The vast majority of statutory clients paid a weekly fee of between £850 and £910, with 18 paying £990 per week since the price increase on 1 April 2024. There was also a price increase for private clients which has helped contribute to the performance for the year, despite the drop in occupancy.

The detoxification program was expanded and price rises were minimised to enable StreetScene to be accessible to more people and Bursary beds were still offered to those people who would not have been able to access treatment anywhere else.

We have retained access to Avensure for HR matters and QCS for online policies. We are involved in introducing a new HR system with Moorepay, which will give staff greater access to their own records. This will bed-in during the coming year and overall should improve efficiency, reduce paper use, speed up communication between different parts of the organisation and hopefully free up extra time for staff to be with clients, rather than dealing with paper.

We had an inspection with CQC at the beginning of the year, where the findings came out as an overall rating of Good across all houses. CQC have recently announced that they have been found unfit for purpose so we are waiting to see what happens next. At present there is little confidence in the system with regards to the specialist field of addiction rehabilitation.

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TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

Bursary Beds

This year we provided bursary treatment for 3 clients for 105 days, with one in a bursary bed at time of reporting. This includes one detox. We also provided assistance for far more clients who were only given limited funding by virtue of the financial crisis and the lack of appropriate housing available. This support provided free care for approximately 350 days.

Public benefit

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Reserves Policy

StreetScene’s policy is to establish a reserve fund as defined by SORP 2000 and the Charity Commission advice CC19.

The reserve fund is to:

  1. Provide short-term funding to ensure the company can meet its financial and legal obligations in the event of restricted or fluctuating cash flow. (FINANCIAL)

  2. To meet the costs of any future legislation; such as the requirements of extra training, equipment or professional advice or to finance any exceptional unforeseen costs or repairs. (CONTINGENCIES AND RISKS)

  3. To take advantage of market opportunities to expand or improve the service provided within the remit of the charities governing documents, including the funding of new projects, central development of management, the funding of furniture and equipment, the training and development needs of its staff and volunteers and the acquisition of suitable premises. (OPPORTUNITIES)

While no figure can be put on the level of the reserve needed as they are beyond the charities control, the Trustees have agreed it would be prudent that a policy that aims to achieve a level of reserves equivalent to one months' unrestricted expenditure is an ideal target.

This year our reserves have been used on occasion to assist short term cash shortfalls. We would like to retain one months running costs in reserve however this is difficult to achieve but is still our target. It was not possible or prudent to use our reserves to reduce the mortgages due to the very high penalties which would have become due. All reserves are held as cash with HSBC.

Plans for 2024 to 2025

Achievements for 2023 – 2024

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TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

Structure, governance and management

The company has a structure based on five tiers.

Tier 1: The board of Director/Trustees, who have overall control of the charity and meet at least 3 times each year to discuss the performance to date and future plans. A rotation of trustees aims to visit every unit each month to observe the work first hand and speak to clients and staff about their experiences with StreetScene Addiction Recovery. Their report is presented at the next Trustees meeting.

Tier 2: The operational responsibility is delegated to the five chiefs of staff, who make up a team of people who work together with particular areas of responsibility, which are:

Tier 2 meet on a regular basis to discuss the overall strategic planning for the organisation.

Tier 3: The Managers of each unit, the treatment units being Allington House, Cornerways, Francis House and the Re-settlement unit, based at Unity.

The Administration Managers providing support to all units are: Finance, IT, Purchasing and Maintenance.

Tier 4: The staff with external responsibilities, including the finance team, DSS Liaison, the in-house purchaser, the counsellors and project staff who have external responsibilities to our service purchasers.

Tier 5: The staff are those who work within the units but whose external responsibilities are generally through the unit manager, this includes weekend project staff, night staff, maintenance staff and volunteers.

Each staff member has their own role within the charity, covered by job descriptions, generally the roles are:

These staff members also have a voice in regular meetings held in each unit, line management meetings, supervision and regular training events.

All key management personnel salaries are approved by the trustees and inflationary increases are applied each year, which is set as a proportion of the inflationary increase applied to other members of staff.

The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Mr J Dorrington Dr D Phillips Mrs A Rodgers Ms R Pullan (Appointed 23 November 2023) Mrs H Corner (Deceased 24 December 2023)

Recruitment and appointment of trustees

Any member of the body of Trustees is able to nominate further trustees to the board or applications can be received via the local Voluntary Services. If the person is willing to be considered after various checks have been undertaken, including CRB checks, the board can vote a new member on to the board by means of a majority vote.

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TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

Statement of trustees' responsibilities

The trustees, who are also the directors of Streetscene Addiction Recovery for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity 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 charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

In accordance with the company's articles, a resolution proposing that Fiander Tovell Limited be reappointed as auditor of the company will be put at a General Meeting.

In summary

These are challenging times for everyone. We need to remain vigilant to ensure we can continue to help and support people in need. We need to continually strive to do the best we possibly can for our clients and staff within the financial constraints we face, to help them move on from their addiction to become valuable members of society, contributing to the community, whilst at the same time continuing to support all our staff and volunteers.

Disclosure of information to auditor

Each of the trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The trustees' report was approved by the Board of Trustees.

..............................

Ms R Pullan Trustee

30/4/2025 | 15:59 BST

Date: .............................................

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF STREETSCENE ADDICTION RECOVERY

Qualified opinion

We have audited the financial statements of Streetscene Addiction Recovery (the ‘charity’) for the year ended 30 June 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion section of our report, the financial statements:

Basis for qualified opinion

We have not been able to gain significant audit evidence in relation to the existence of a stock balance of £34,240 due to a year end count not being completed as at 30 June 2024. Consequently we were unable to determine whether any adjustment to this balance was necessary.

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity 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 qualified 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 charity’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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. 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. 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 course of 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.

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STREETSCENE ADDICTION RECOVERY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF STREETSCENE ADDICTION RECOVERY

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report included within the trustees' report.

In respect solely of the limitation on our work relating to existence of stock described above:

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees' responsibilities, the trustees, who are also the directors of the charity for the purpose 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 charity’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.

Auditor's responsibilities for the audit of the financial statements

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 an auditor's report 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF STREETSCENE ADDICTION RECOVERY

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:

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

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

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

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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor's 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

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INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF STREETSCENE ADDICTION RECOVERY

Adam Buse FCA (Senior Statutory Auditor) for and on behalf of Fiander Tovell Limited

30/4/2025 | 17:13 BST

.........................

Chartered Accountants Statutory Auditor

Stag Gates House 63/64 The Avenue Southampton Hampshire SO17 1XS

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STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 30 JUNE 2024

Unrestricted
Restricted
funds
funds
2024
2024
Notes
£
£
Income and endowments from:
Donations and legacies
3
21,036
-
Charitable activities
4
2,834,504
-
Investments
5
3,412
-
Other income
6
-
-
Total income
2,858,952
-
Expenditure on:
Charitable activities
7
2,929,851
-
Total expenditure
2,929,851
-
Net income/(expenditure)
(70,899)
-
Transfers between
funds
1,329
(1,329)
Net movement in
funds
9
(69,570)
(1,329)
Reconciliation of funds:
Fund balances at 1 July 2023
1,407,197
1,329
Fund balances at 30 June
2024
1,337,627
-		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
21,036
27,682
1,100
2,834,504
2,893,106
-
3,412
1,180
-
-
694
-
2,858,952
2,922,662
1,100
2,929,851
2,833,303
4,049
2,929,851
2,833,303
4,049
(70,899)
89,359
(2,949)
-
-
-
(70,899)
89,359
(2,949)
1,408,526
1,317,838
4,278
1,337,627
1,407,197
1,329		 Total
2023
£
28,782
2,893,106
1,180
694
2,923,762
2,837,352
2,837,352
86,410
-
86,410
1,322,116
1,408,526

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

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BALANCE SHEET

AS AT 30 JUNE 2024

2024 2023
Notes £ £ £ £
Fixed assets
Tangible assets 13 1,727,397 1,757,688
Current assets
Stocks 14 34,240 22,980
Debtors 15 426,396 320,561
Cash at bank and in hand 135,171 320,222
595,807 663,763
Creditors: amounts falling due within 17
one year (325,782) (331,774)
Net current assets 270,025 331,989
Total assets less current liabilities 1,997,422 2,089,677
Creditors: amounts falling due after
more than one year 18 (659,795) (681,151)
Net assets 1,337,627 1,408,526
The funds of the charity
Restricted income funds 20 - 1,329
Unrestricted funds 21 1,337,627 1,407,197
1,337,627 1,408,526
The notes on pages 12 to 23 form part of these financial statements.
The financial statements were approved by the trustees on ......................... The financial statements were approved by the trustees on ......................... The financial statements were approved by the trustees on .........................
30/4/2025		 15:59 BST The financial statements were approved by the trustees on .........................
30/4/2025		 15:59 BST

The financial statements were approved by the trustees on .........................

..............................

Ms R Pullan Trustee

Company registration number 05841338 (England and Wales)

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2024

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
25
Investing activities
Purchase of tangible fixed assets
Proceeds recieved on loans
Repayment of loans
Investment income received
Net cash used in investing activities
Financing activities
Repayment of bank loans
Net cash used in financing activities
Net (decrease)/increase in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2024
£
£
(67,762)
(48,949)
-
665
3,412
(44,872)
(72,417)
(72,417)
(185,051)
320,222
135,171		 2023
£
(4,500)
(1,663)
-
1,180
(75,145)		 £
285,239
(4,983)
(75,145)
205,111
115,111
320,222

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024

1 Accounting policies

Charity information

Streetscene Addiction Recovery is a private company limited by guarantee incorporated in England and Wales. The registered office is 108 Cobham Road, Ferndown Industrial Estate, Wimborne, Dorset, BH21 7PQ.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the charity.

1.4 Income

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings 2% straight line Fixtures and fittings 20% on straight line Computers 33% on straight line Motor vehicles 25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

The policies detailed in the 2023 financial statements were not consistent with the accounting policies being applied in the fixed asset register, therefore the policies noted above have been updated to correctly reflect the depreciation being charged. This is not a change of accounting estimate.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

1 Accounting policies

(Continued)

1.10 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.11 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The trustees consider there to be no critical accounting estimates.

3 Income from donations and legacies

Unrestricted
Restricted
funds
funds
2024
2024
£
£
Donations and gifts
21,036
-
Donated goods and
services
-
-
21,036
-		 Total
Unrestricted
Restricted
funds
funds
2024
2023
2023
£
£
£
21,036
14,402
1,100
-
13,280
-
21,036
27,682
1,100		 Total
2023
£
15,502
13,280
28,782

Donated goods and services

The charity in line with its charitable objectives offers assistance and treatment to ex clients at below market cost in circumstances deemed to be appropriate to all concerned. During the year the charity provided the equivalent of 105 (2023 - 48) days of such assistance at a valuation of £16,350 (2023 - £13,280).

4 Income from charitable activities

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Rehabilitation income
Fees recievable 2,282,398 2,355,830
Resettlement income
Fees recievable 552,106 537,276
2,834,504 2,893,106

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

5 Income from investments

Unrestricted Unrestricted
funds funds
2024 2023
£ £
Interest receivable 3,412 1,180
6 Other income
Unrestricted Unrestricted
funds funds
2024 2023
£ £
Other income - 694

7 Expenditure on charitable activities

Rehabilitation
services
Resettlement
services
Total
Rehabilitation
services
Resettlement
services
2024
2024
2024
2023
2023
£
£
£
£
£
Direct costs
Staff costs
992,520
279,577
1,272,097
946,930
285,161
Depreciation and
impairment
-
-
-
49
-
Allington House
200,011
-
200,011
142,572
-
Francis House
187,456
-
187,456
158,559
-
Cornerways
176,325
-
176,325
167,994
-
Resettlement
-
370,138
370,138
-
272,499
1,556,312
649,715
2,206,027
1,416,104
557,660
Share of support and governance costs (see note 8)
Support
707,386
4,993
712,379
824,757
31,331
Governance
11,445
-
11,445
7,500
-
2,275,143
654,708
2,929,851
2,248,361
588,991
Analysis by
fund
Unrestricted
funds
2,275,143
654,708
2,929,851
2,244,312
588,991
Restricted funds
-
-
-
4,049
-
2,275,143
654,708
2,929,851
2,248,361
588,991		 Total
2023
£
1,232,091
49
142,572
158,559
167,994
272,499
1,973,764
856,088
7,500
2,837,352
2,833,303
4,049
2,837,352

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

8 Support costs allocated to activities

Staff costs
Depreciation
Operating lease charges
Cost of finance
Client welfare
Loan interest
Premesis costs
Office expenses
Motor
Insurance
Misc
Bad debts
Staff costs
Governance costs
Analysed between:
Rehabilitation services
Resettlement services
9
Net movement in funds
The net movement in funds is stated after charging/(crediting):
Fees payable for the audit of the charity's financial statements
Depreciation of owned tangible fixed assets
Operating lease charges		 2024
£
349,422
79,240
23,391
6,787
22,413
62,266
18,131
65,833
22,375
37,814
17,438
1,146
6,123
11,445
723,824
718,831
4,993
723,824
2024
£
9,571
79,240
23,391		 2023
£
330,165
69,253
19,382
4,892
66,059
49,335
82,824
94,409
12,050
25,186
29,155
69,834
3,544
7,500
863,588
832,257
31,331
863,588
2023
£
3,465
69,302
19,382

10 Trustees

None of the trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

11 Employees

The average monthly number of employees during the year was:

2024 2023
Number Number
62 63

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

11
Employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 (Continued)
2024
2023
£
£
1,449,128
1,410,966
117,526
104,080
54,865
47,210
1,621,519
1,562,256		 (Continued)
2024
2023
£
£
1,449,128
1,410,966
117,526
104,080
54,865
47,210
1,621,519
1,562,256
1,562,256

There were no employees whose annual remuneration was more than £60,000.

Remuneration of key management personnel

The remuneration of key management personnel was as follows:

2024 2023
£ £
Aggregate compensation 316,596 295,132

12 Taxation

The charity is exempt from taxation on its activities because all its income is applied for charitable purposes.

13 Tangible fixed assets

Freehold land
and buildings
Fixtures and
fittings
£
£
Cost
At 1 July 2023
2,539,976
180,187
Additions
-
40,605
At 30 June 2024
2,539,976
220,792
Depreciation and impairment
At 1 July 2023
847,402
129,908
Depreciation charged in the year
50,800
19,493
At 30 June 2024
898,202
149,401
Carrying amount
At 30 June 2024
1,641,774
71,391
At 30 June 2023
1,692,574
50,279		 Computers
£
69,952
3,794
73,746
62,970
6,599
69,569
4,177
6,982		 Motor
vehicles
£
29,200
4,550
33,750
21,347
2,348
23,695
10,055
7,853		 Total
£
2,819,315
48,949
2,868,264
1,061,627
79,240
1,140,867
1,727,397
1,757,688

Land and buildings comprise Freehold properties purchased in Streetscene Addiction Recovery at £1,416,886 and Freehold properties transferred from Streetscene Charitable Trust on the winding down of that charity's activities. The properties transferred from the latter were revalued in 2005 at £1,500,000 and were transferred in 2008 at £1,322,640 being the valuations less depreciation to date of transfer.

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

14
Stocks
Finished goods and goods for resale
15
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income
16
Loans and overdrafts
Bank loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments		 2024
£
34,240
2024
£
270,460
10,710
145,226
426,396
2024
£
739,857
80,062
659,795
269,432		 2023
£
22,980
2023
£
216,082
9,211
95,268
320,561
2023
£
812,275
131,124
681,151
156,655

The long-term loans are secured by fixed charges over the properties 20 Bradley Road, Bournemouth, 46 Dean Park Road, Bournemouth and 2 Hulse Road, Southampton dated 2 September 2016. The loan is for a period of 15 years ending in September 2031.

17 Creditors: amounts falling due within one year

Notes
Bank loans
16
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2024
£
80,062
28,380
152,161
7,152
58,027
325,782		 2023
£
131,124
24,005
130,612
8,245
37,788
331,774

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

18 Creditors: amounts falling due after more than one year

18
Creditors: amounts falling due after more than one year
Notes
Bank loans
16
19
Retirement benefit schemes
Defined contribution schemes
Charge to profit or loss in respect of defined contribution schemes		 2024
£
659,795
2024
£
54,865		 2023
£
681,151
2023
£
47,210

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

A total of £8,885 (2023 - £7,675) of these contributions were unpaid as at the balance sheet date.

20 Restricted funds

The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used.

At 1 July 2023
Incoming
resources
Resources
expended
Transfers
At
£
£
£
£
Motor
148
-
-
(148)
Football
81
-
-
(81)
Other
1,100
-
-
(1,100)
1,329
-
-
(1,329)
Previous year:
At 1 July 2022
Incoming
resources
Resources
expended
Transfers
At
£
£
£
£
Motor
197
-
(49)
-
Football
81
-
-
-
Fire
4,000
-
(4,000)
-
Other
-
1,100
-
-
4,278
1,100
4,049
-		 30 June
2024
£
-
-
-
-
30 June
2023
£
148
81
-
1,100
1,329

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

21 Unrestricted funds

The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes.

At 1 July 2023 Incoming Resources Transfers At 30 June
resources expended 2024
£ £ £ £ £
General funds 1,407,197 2,858,952 (2,929,851) 1,329 1,337,627
Previous year: At 1 July 2022 Incoming Resources Transfers At 30 June
resources expended 2023
£ £ £ £ £
General funds 1,317,838 2,922,662 (2,833,303) - 1,407,197
Analysis of net assets between funds
Unrestricted Restricted Total
funds funds
2024 2024 2024
£ £ £
At 30 June 2024:
Tangible assets 1,727,397 - 1,727,397
Current assets/(liabilities) 270,025 - 270,025
Long term liabilities (659,795) - (659,795)
1,337,627 - 1,337,627
Unrestricted Restricted Total
funds funds
2023 2023 2023
£ £ £
At 30 June 2023:
Tangible assets 1,757,688 - 1,757,688
Current assets/(liabilities) 330,660 1,329 331,989
Long term liabilities (681,151) - (681,151)
1,407,197 1,329 1,408,526

22 Analysis of net assets between funds

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

23 Operating lease commitments

Lessee

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Within one year
Between two and five years
In over five years		 2024
£
38,845
142,379
28,901
210,125		 2023
£
-
-
-
-

24 Related party transactions

Transactions with related parties

Within the year, the employees of Imperial Homes South Limited undertook fundraising for Streetscene which generated £11k of donations. One of the Streetscene trustees is a director of Imperial Homes.

Purchases of £5,679 (2023: £7,365) were also made from Imperial Homes South Limited in the year.

During the year, the spouse of the CFO was employed by the charity to provide additional support to the finance team. The CFO subsequently requested to reduce their salary to offset the cost of the additional support.

The recruitment, and a decision on the request to reduce the CFO's salary, were approved by the Board of Trustees, without any input from the finance director in accordance with the charity's conflict of interest policy.

Docusign Envelope ID: F62DF13C-16EF-40B8-BF94-BC8572A1B4C3

STREETSCENE ADDICTION RECOVERY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2024

25 Cash generated from operations 2024 2023
£ £
(Deficit)/surpus for the year (70,899) 86,410
Adjustments for:
Investment income recognised in statement of financial activities (3,412) (1,180)
Depreciation and impairment of tangible fixed assets 79,240 69,302
Movements in working capital:
(Increase)/decrease in stocks (11,260) 10,219
(Increase)/decrease in debtors (106,500) 125,622
Increase/(decrease) in creditors 45,069 (5,134)
Cash (absorbed by)/generated from operations (67,762) 285,239
26 Analysis of changes in net (debt)/funds
At 1 July 2023 Cash flows At 30 June 2024
£ £ £
Cash at bank and in hand 320,222 (185,051) 135,171
Loans falling due within one year (131,124) 51,062 (80,062)
Loans falling due after more than one year (681,151) 21,356 (659,795)
(492,053) (112,633) (604,686)