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2022-12-31-accounts

Charity registration number 1121132

Company registration number 06188419 (England and Wales)

HOPE HOUSE SCHOOL LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

HOPE HOUSE SCHOOL LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Mr J Barrie
Mr B Jones
Chair Mr B Jones
Charity number 1121132
Company number 06188419
Registered office Hope School
Barnby Road
Balderton
Newark
Notts
NG24 3NE
Auditor Rogers Spencer
Newstead House
Pelham Road
Nottingham
NG5 1AP
Senior Staff Mrs Michelle McRae - Headteacher (appointed Sept 22)
Mrs Joanne Kiernan- Interim Headteacher (Sept 21 - Aug 22)

HOPE HOUSE SCHOOL LIMITED

CONTENTS

Page
Trustees' report 1 - 4
Statement of Trustees' responsibilities 5
Independent auditor's report 6 - 9
Statement of financial activities 10
Balance sheet 11
Statement of cash flows 12
Notes to the financial statements 13 - 21

HOPE HOUSE SCHOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees present their annual report and financial statements for the year ended 31 December 2022.

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)” (as amended for accounting periods commencing from 1 January 2016).

Objectives and activities

Hope House School is a small independent special school for students with a primary need of autism spectrum disorder and related speech and language communication needs. Some students also have other complexities such as, ADHD, PDA. Many of our students have a disjointed education history, often due to long term school absence. All students have an Education Health Care Plan.

Our Vision… is for every young person to fulfil their personal potential. Hope House school provides every student with support when they need it - for them to develop into happy, healthy, and secure young adults who are prepared for adult life.

Our Core Values … Are based on the recognition that many of our students have had difficult journeys before arriving at Hope House school. Educational provision has been inappropriate, often resulting in several adverse experiences for both the young person and their family. Therefore, we aim to transform those early experiences of education by addressing any barriers to learning through both individualised and personalised learning experiences. At the same time, we acknowledge the importance of a student’s social and emotional development and the importance of working together with peers and adults, to build positive relationships. Relationships underpin our values at Hope House school. We understand the power of building positive relationships to create and foster a culture of warmth, nurture, integrity, mutual respect, and kindness within the school environment, valuing the individual at all times, which is reflected by ensuring the voice of our young people is heard through PRIDE (Peace, Respect, Independence, Determination and Equality) FORCE.

The school is in a rural setting in Balderton, near Newark, Nottinghamshire. It is housed in several independent one storey buildings, set out in a ‘u’ shape around a central grassy area which is currently being developed into a multi-sensory space. There are other detached two storey buildings in the grounds, one used for post-16 pupils and the other for administration. There is an outdoor space devoted to forest school activities and a wooden play area with specialist equipment for pupils to use as part of their curriculum and at group social times. An outdoor area attached to the lower school classroom provides an enhanced provision to extend children’s learning and exploration. There is a separate building dedicated to additional curriculum activities such as music and food technology. It houses a well-equipped sensory room that supports activities that are bespoke to individual needs and group activities. A multi-agency room provides space for 1:1 sessions/assessment and the delivery of specific programs of intervention. In addition to specific reading areas in each classroom, there is a small communal library for pupils to access as part of the focus on promoting reading for pleasure.

The school has an ambitious and engaging curriculum which is broad and rich to enable all our young people to reach their potential as they Prepare for Adulthood (PfA). The school’s curriculum offer is diverse, catering for the needs of pupils from early Engagement through to Level 2 qualifications. The PfA curriculum is accredited through ASDAN via personalised pathways. There are various enrichment opportunities and memorable experiences for all students, including visits to National Trust places of interest and local landmarks to embed student’s understanding of cultural diversity and British values. All students have regular access to the local community and travel far and wide to promote skills for independent living. All students engage in careers education and, in addition to this, older students receive career guidance from independent advisors. Pupils have the option to access riding for the disabled (RDA) as part of their provision. Weekly swimming and tennis lessons are also provided within our local community.

Multi-disciplinary professionals regularly visit the school, including an educational psychologist, occupational therapist and a speech and language therapist. All staff receive training from the Autism Educational Trust to ensure we have the knowledge and skills to provide a personalised provision for our students. We are currently on a journey to become a recognised trauma-informed school.

HOPE HOUSE SCHOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

Financial review

2022 Business Review

We are pleased to highlight the recent increase in pupil numbers and the subsequent positive impact on the school's operations and financial stability. This growth has been a testament to the exceptional educational environment and the unwavering commitment of our staff and administration.

Over the past academic year, the School has experienced a notable increase in pupil numbers, with a rise from 15 to 24 students. This growth reflects the school's growing reputation for providing quality education and fostering a supportive learning environment.

The growth in pupil numbers from 15 to 24 at Hope House School has been a transformative experience for our institution. The increased student body has positively impacted the running of the school, allowing for expanded educational opportunities and personalised instruction. Furthermore, the financial stability resulting from this growth has empowered us to invest in our infrastructure.

Income / funding

Over the 21/22 academic year, the school has experienced a significant increase in income/funding, amounting to £139K higher than budgeted. This substantial boost in financial resources has had a profoundly positive effect on the overall running of the school and cashflow.

With this increased income, we have been able to enhance various aspects of our educational offerings, providing an enriched learning experience for all our students. The additional funding has allowed us to invest in modern teaching materials, updated technology, and improved facilities, ensuring that our students have access to the best resources available.

As part of our commitment to maintaining exceptional standards, the school continues to undergo regular quality assurance visits. These visits help us identify areas for improvement and ensure that we are constantly delivering the highest standard of education to our students. The additional income/funding has allowed us to implement the recommendations from these visits promptly, further enhancing the quality of our educational provision.

In line with our dedication to financial transparency, we will regularly review school fees to ensure they cover all the costs associated with running the school. This proactive approach ensures that our financial resources are effectively allocated, enabling us to maintain and improve the quality of education while remaining financially sustainable.

Overall, the significant increase in income/funding over the 21/22 academic year has brought about numerous positive changes to our school. It has allowed us to enhance our educational offerings, expand our capacity, and ensure the continuous improvement of our educational provision through regular quality assurance visits. We remain committed to providing an exceptional educational experience for all our students while ensuring financial stability for the long-term sustainability of the school.

HOPE HOUSE SCHOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

2022 Financial performance Summary

In the past year, our School experienced a welcome increase in income, primarily due to the enrollment of more pupils, reflecting our School’s growing popularity and trust within the community. While this was a positive development, our financial performance faced challenges as overheads costs only slightly decreased by £25k ultimately leaving us with a deficit of £27k. However, this deficit is an improvement on the previous year's deficit of £342k.

Despite our efforts, a significant portion of our expenses consists of fixed costs, such as salaries and essential operational expenses. Unfortunately, these costs do not offer much flexibility for adjustments, which posed a challenge in aligning our expenses with our increased income.

As we look ahead, it’s essential to continue to explore strategies to manage our fixed costs more efficiently, ensuring a more balanced financial position in the future while maintaining the quality of education we provide to our students.

Reserves policy

It is the policy of the Charity to maintain unrestricted free reserves at a sufficient level to finance three months trading. Assuming monthly expenditure of £100k per month, the Charity has not been able to satisfy this target with a balance in the bank amounting to £166k at 31 December 22.

This was a temporary dip in cashflow as the Spring term invoices weren’t paid until early January 2023. This is expected to be upheld throughout 2023.

Unrestricted Funds

The unrestricted funds of £17k will be rolled over into the 2023 year.

Principal source of funding

The principal source of funding is that of various Midlands-based councils, in particular Nottinghamshire and Lincolnshire County Councils.

Principal risks and uncertainties

The Trustees have examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks.

2023 and 2024 expectation overview

The positive expectations of last year’s review have been achieved and Trustees look forward to an increase in pupil placements and the DfE have given approval for two additional places from September 2023. Local Authority support has proven positive. The new Headteacher has developed the school in every area including the curriculum, teaching and learning, professional development and budget control and management.

As well, strategic decisions taken over the last 3 years means that the school is considered efficient. A robust structure, reporting and process driven controls also means that business can be managed effectively and is unlikely to encounter the same type of challenges seen over the last 4 years.

Trustees are in discussion with the land owners to further develop the school and site in 2023/24.

Structure, governance and management

Hope House School is a company limited by guarantee by its Memorandum and Articles of Associations dated 26[th] August 2007.

Appointment of trustees

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 Barrie

Mr C Coen (Resigned 11 November 2022)

Mr B Jones

HOPE HOUSE SCHOOL LIMITED

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees are guided by the Head Teacher who advises them on the key aspects of business operations and personnel. This included setting pay rises for the whole staff and increments for the Senior Management Team following appraisals.

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.

Mr B Jones

Chair Dated: 26 September 2023

HOPE HOUSE SCHOOL LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

The Trustees, who are also the directors of Hope House School Limited 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.

HOPE HOUSE SCHOOL LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HOPE HOUSE SCHOOL LIMITED

Opinion

We have audited the financial statements of Hope House School Limited (the ‘charity’) for the year ended 31 December 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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, 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, the financial statements:

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 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 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

HOPE HOUSE SCHOOL LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HOPE HOUSE SCHOOL LIMITED

Matters on which we are required to report by exception

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

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

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charities Act 2011 and report in accordance with those Acts.

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.

The extent of which the audit was considered capable of detecting irregularities including fraud

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

HOPE HOUSE SCHOOL LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HOPE HOUSE SCHOOL LIMITED

We assessed the susceptibility of the 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 trustees 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.

HOPE HOUSE SCHOOL LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HOPE HOUSE SCHOOL LIMITED

Use of our report

This report is made solely to the charitable company’s trustees, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and 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 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Melvin Bailey FCCA DChA (Senior statutory auditor) Rogers Spencer

27 September 2023

Chartered Accountants Statutory Auditor

Newstead House Pelham Road Nottingham NG5 1AP

Rogers Spencer is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

HOPE HOUSE SCHOOL LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Income from:
Donations and legacies
3
Charitable activities
4
Investments
5
Total income
Expenditure on:
Charitable activities
6
Finance interest
10
Total resources expended
Net expenditure for the year/
Net movement in funds
Fund balances at 1 January 2022
Fund balances at 31 December 2022		 Unrestricted
2022
£
3,382
1,259,396
17
1,262,795
1,280,790
8,998
1,289,788
(26,993)
44,421
17,428		 funds
2021
£
6,353
965,419
38
971,810
1,306,241
8,122
1,314,363
(342,553)
386,974
44,421

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

HOPE HOUSE SCHOOL LIMITED

BALANCE SHEET

AS AT 31 DECEMBER 2022

2022
Notes
£
Fixed assets
Tangible assets
12
Current assets
Debtors
13
463,901
Cash at bank and in hand
166,455
630,356
Creditors: amounts falling due within
one year
15
(652,790)
Net current (liabilities)/assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
16
Net assets
Income funds
Unrestricted funds		 2021
£
£
44,572
14,400
435,931
450,331
(446,765)
(22,434)
22,138
(4,710)
17,428
17,428
17,428		 £
48,537
3,566
52,103
(7,682)
44,421
44,421
44,421

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2022, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

The financial statements were approved by the Trustees on 26 September 2023

Mr B Jones

Trustee

Company Registration No. 06188419

HOPE HOUSE SCHOOL LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

Notes
Cash flows from operating activities
Cash absorbed by operations
20
Investing activities
Purchase of tangible fixed assets
Proceeds on disposal of tangible fixed
assets
Interest received
Net cash used in investing activities
Financing activities
Payment of obligations under finance leases
Net cash used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2022
£
£
(261,958)
(8,697)
3,772
17
(4,908)
(2,610)
(2,610)
(269,476)
435,931
166,455		 2021
£
£
(192,203)
(30,346)
11,830
38
(18,478)
(5,598)
(5,598)
(216,279)
652,210
435,931

HOPE HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

Charity information

Hope House School Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is Hope School, Barnby Road, Balderton, Newark, Notts, NG24 3NE.

1.1 Accounting convention

The financial statements have been prepared in accordance 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)” (as amended for accounting periods commencing from 1 January 2016). 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 31 December 2022 the financial statements indicate net current liabilities of £22,434 with cash at bank of £166,455. However, since the year end pupil numbers have increased and have remained consistent resulting in predicted surpluses for both 2023 and 2024. This has resulted in a much improved and higher bank balance at the time of approving the accounts.

Therefore, 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 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.

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.

HOPE HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

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.

Liabilities are recognised as resources expended when it is probable that a transfer of economic benefits will be required in settlement and the obligation can be measured reliably. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure relating to donated services and facilities is included on the same basis and at equivalent amounts as recognised within incoming resources.

Expenditure on charitable activities comprises those costs incurred by the charity in the delivery of its activities and services of its beneficiaries. It includes both the direct pay and non-pay costs and support costs relating to those activities.

Governance costs are shown as part of support costs. These are associated with the administrative arrangements of the charity which relate to the general running of the charity as opposed the those costs associated with the charitable activity. These include audit fees, legal advice, and preparation of the statutory accounts and costs of trustee meetings.

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:

Leasehold improvements 10% Straight line Fixtures and fittings 25% Reducing balance Computers 33% Straight line Motor vehicles 25% 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.

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 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.

HOPE HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

1 Accounting policies

(Continued)

1.9 Retirement benefits

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

1.10 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

3 Donations and legacies

**Unrestricted ** Unrestricted
funds funds
2022 2021
£ £
Donations and gifts 3,382 6,353
4 Income from charitable activities
2022 2021
£ £
Fees from local authorities 1,259,396 965,419

HOPE HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

5 Investments

**Unrestricted ** Unrestricted
funds funds
2022 2021
£ £
Interest receivable 17 38

HOPE HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

6 Expenditure on charitable activities

Staff costs
Depreciation and impairment
Staff training
Equipment, furniture and resources
School trips
School uniform
Other school expenses
Sensory integration, therapy and counselling
Animal expenses
School food
Rent
Light and heat
Water rates
Repairs and maintenance
Motor expenses
Insurance
Printing, postage and stationery
Telephone and data cost
Disclosure and barring service
Sundry expenses
Profit or loss on disposal of tangible assets
Share of governance costs (see note 7)
Analysis by fund
Unrestricted funds
For the year ended 31 December 2021
Unrestricted funds		 2022
£
935,395
11,189
18,318
41,292
60
2,156
14,783
27,111
1,292
16,975
30,958
25,043
738
16,006
8,971
39,837
2,086
26,698
653
2,452
(2,301)
1,219,712
61,078
1,280,790
1,280,790
1,280,790		 2021
£
920,432
10,246
28,940
30,088
-
601
13,117
47,577
4,604
9,112
30,382
16,815
628
31,107
14,896
31,660
2,442
23,900
414
4,986
26,867
1,248,814
57,427
1,306,241
1,306,241
1,306,241

HOPE HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

7 Governance costs

Accountancy fees
Audit fees
Legal & professional fees		 2022
£
16,400
10,080
34,598
61,078		 2021
£
13,250
10,080
34,097
57,427

8 Trustees

Trustees received £nil of remuneration in 2022 (2021: £nil).

No expenses have been paid out to the trustees in 2022 (2021: £nil).

9 Employees

The average monthly number employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
Number
30
2022
£
866,373
42,467
15,559
935,395		 2021
Number
32
2021
£
852,445
36,650
10,739
920,432

There were no employees who received total employee benefits of more than £60,000.

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

Remuneration of key management personnel

2022 2021
£ £
Aggregate compensation 89,841 123,492

HOPE HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

10 Finance interest

Unrestricted Unrestricted
funds funds
2022 2021
Financing costs 8,998 8,122

11 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

12 Tangible fixed assets

Leasehold
improvements
Fixtures and
fittings
Computers Motor vehicles
£
£
£
£
Cost
At 1 January 2022
20,574
2,319
8,726
105,525
Additions
-
-
8,697
-
Disposals
-
-
-
(6,580)
At 31 December 2022
20,574
2,319
17,423
98,945
Depreciation and impairment
At 1 January 2022
1,372
342
2,014
84,881
Depreciation charged in the year
2,057
406
3,933
4,793
Eliminated in respect of disposals
-
-
-
(5,109)
At 31 December 2022
3,429
748
5,947
84,565
Carrying amount
At 31 December 2022
17,145
1,571
11,476
14,380
At 31 December 2021
19,203
1,978
6,712
20,644
13
Debtors
2022
Amounts falling due within one year:
£
Trade debtors
463,361
Prepayments and accrued income
540
463,901		 Total
£
137,144
8,697
(6,580)
139,261
88,609
11,189
(5,109)
94,689
44,572
48,537
2021
£
13,611
789
14,400

HOPE HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

14 Finance lease commitments

Future minimum lease payments due under finance leases:

Within one year
Within two and five years
15
Creditors: amounts falling due within one year
Notes
Obligations under finance leases
14
Payments on account
Trade creditors
Other creditors
Accruals and deferred income
16
Creditors: amounts falling due after more than one year
Notes
Obligations under finance leases
14
17
Deferred income
Deferred income is included in the financial statements as follows:
Deferred income at 1 January 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 December 2022		 2022
2021
£
£
9,714
9,352
4,710
7,682
14,424
17,034
2022
2021
£
£
9,714
9,352
-
23,075
46,447
19,517
23,970
37,110
572,659
357,711
652,790
446,765
2022
2021
£
£
4,710
7,682
2022
2021
£
£
354,175
312,279
(354,175)
(312,279)
550,749
354,175
550,749
354,175

Deferred income represents amounts received in advance from local authorities relating to post year end term fees.

HOPE HOUSE SCHOOL LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

18 Retirement benefit schemes

Defined contribution schemes

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.

The charge to profit or loss in respect of defined contribution schemes was £15,559 (2021: £10,739).

19 Related party transactions

Salaries include £Nil (2021: £32,855) paid to Mr M Westmoreland (the husband of the ex trustee and principal Mrs T A Westmoreland).

20 Cash generated from operations 2022 2021
£ £
Deficit for the year (26,993) (342,553)
Adjustments for:
Investment income recognised in statement of financial activities (17) (38)
(Gain)/loss on disposal of tangible fixed assets (2,301) 26,868
Depreciation and impairment of tangible fixed assets 11,189 10,246
Movements in working capital:
(Increase)/decrease in debtors (449,501) 48,108
Increase in creditors 205,665 65,166
Cash absorbed by operations (261,958) (192,203)