**Charity Registration No. 1133284**
## **Company Registration No. 06877535 (England and Wales)**
## **HOPE HOUSING, TRAINING AND SUPPORT LTD**
A company limited by guarantee
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
## **FOR THE YEAR ENDED 31 DECEMBER 2020**
26-32 Oxford Road Bournemouth Dorset United Kingdom BH8 8EZ
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **LEGAL AND ADMINISTRATIVE INFORMATION**
|**Chief Executive Officer**|Mrs. J Berti|
|---|---|
|**Trustees**|Mr. G Underhill|
||Mrs. S Olley|
||Mrs. S Harvey|
||Mr J Adams|
||Ms A Jones|
||Ms S Elsbury|
|**Charity number**|1133284|
|**Company number**|06877535|
|**Registered office**|10 St Swithuns Road South|
||Bournemouth|
||Dorset|
||United Kingdom|
||BH1 3RQ|
|**Auditor**|TC Group|
||26-32 Oxford Road|
||Bournemouth|
||Dorset|
||United Kingdom|
||BH8 8EZ|
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **CONTENTS**
||**Page**|
|---|---|
|Trustee report|1 - 5|
|Independent auditor's report|6 - 10|
|Statement of financial activities|11|
|Balance sheet|12|
|Statement of cash flows|13|
|Notes to the financial statements|14 - 27|
## **HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **TRUSTEE REPORT (INCLUDING DIRECTORS' REPORT)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees present their report and financial statements for the year ended 31 December 2020.
The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts 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)” .
## **Public Benefit Statement**
The Board of Trustees are satisfied that they have fully complied with the duty in section 4 of 2011 Charities Act to have due regard to public benefit guidance issued by the Charity Commission, and that the mission, aims and activities of Hope Housing, Training and Support Ltd meet with these criteria.
## **Objectives and activities**
The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.
## **Achievements and performance**
We had 251 people come for assessments last year. 206 male and 51 female.
- We welcomed 162 (2019: 137) new residents into Hope Housing training and support in 2020 of which 27 were women. 44 (2019: 48) residents moved successfully onto independent living, some supported by our 10 for 10 project helping us to improve year on year.
-Depression and anxiety and psychiatric illness amounted to 84% (2019: 80%) of health and wellbeing issues. Another increase year on year.
Before Lockdown, Hope managed to have its first Valentine Ball held at the Hilton Hotel in Bournemouth on Friday 7 th February. This raised £20k and a lot of community interest in our Charity. We definitely want to have another in the future.
- 1 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **TRUSTEE REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **2020 was spent dealing with Covid and its subsequent problems.**
- All support team staff were working from home on the phones to all our residents.
- Residents without phones were supplied with phones so we could reach them.
- Whatsapp groups and zoom meetings were being carried out with residents where possible.
- A Whatsapp group was setup between support staff and also with food donators.
- All properties which did not have internet had emergency internet supplied to the properties.
- We sourced second hand TV’s and Laptops to supply to those that needed them to do online courses etc.
- We purchased games/word search/brain games/cards/jigsaws etc to distribute to houses to keep them busy.
- We distributed gardening materials to houses which have gardens so they can get out and enjoy the fresh air.
- We moved the outdoor table tennis table onto the main car park so people can come and access it for some exercise.
- We continued to move people in with forehead thermometer checks and mouth swab drug tests and a travel declaration form.
- We kept one of our ensuite rooms vacant to allow anyone with symptoms to self-isolate with their own bathroom.
- We still received donations to our people fridge in reception and residents got as much help as we could offer with food as and when it was received and we had a volunteer distributing specific client food parcels every Monday.
We had 4 residents out of 100 contract Covid and due to the strict procedures of isolation and help package we provided these were very well contained. 4 staff also caught Covid during 2020 and luckily everyone made a full recovery with no hospitalisations.
## **Through all this madness we still saw some great achievements** .
- 27 managed to do some volunteering including helping with COVID
- 21 did remote college courses with the help of devices and internet provisions.
- 28 gained working employment.
## **Financial review**
Incoming resources for the year were £1,262,876 (2019 - £1,210,520) and resources expended were £1,185,151 (2019 - £1,129,817). The surplus for the year was £77,725 (2019: £80,703).
It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s expenditure. The trustees considers that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised. This level of reserves has been maintained throughout the year.
Hope’s Reserves for 31 December 2020 were £325,647 of which unrestricted was £282,944.
- 2 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **TRUSTEE REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
The trustees have assessed the major risks to which the charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.
The trustees have a risk management strategy, which comprises:
- An annual review of the principal risks and uncertainties that the Charity face;
- The establishment of policies, systems and procedures to mitigate those risks identified in the annual review; and
- The implementation of procedures designed to minimise or manage any potential impact on the charity should those risks materialise.
This work has identified that financial sustainability is the major financial risk for charity. A key element in the management of financial risk is a regular review of available liquid funds to settle debts as they fall due, regular liaison of bank transactions, and active management of trade debtors and creditors balances to ensure sufficient working capital by the Charity. Attention has also been focussed on non-financial risks such arising from fire, health and safety, staff training and IT Systems. These risks are managed by ensuring accreditations are up to date, having robust policies and procedures through our 1S09001 quality standards and regular training of staff in these operational areas.
## **Future Plans**
Hope will open its first Charity Shop within its Hope and More CIC.
Local vulnerable people will be able to obtain a voucher from the partners we work with across the conurbation to allow them to choose their own clothing and shoes items and pay for them using the voucher giving them the dignity of shopping and choosing for themselves.
The ethos of Hope and More is ‘you buy one, we give one’ and this will be rolled out across other project in addition to the Charity Shop like our Bike project and AOK rucksack project and our Hope Soap. Meaning that every time an item is purchased from these projects by the public we will donate one free to a vulnerable person in the local area.
Hope has been liaising with the local BCP council to see how it can help with the Homeless Strategy and be present on several of the partnership boards giving advice and ideas.
We are working with the local BCP Council to house the Homeless they are currently in B&B and Hotels in the area and in addition provided move in packs to each of them through AOK and clothing Vouchers through the shop.
With the data we collected in 2019 and 2020 and the impact of Covid it has become essential to raise funds and bring a Mental Health Nurse on board the team to complete the needs of the resident and be able to offer a complete individual rounded approach to their needs with no interruptions in the circle of support needs. We are currently liaising with our community partners as to how best provide this provision alongside the current offering.
We intend to launch our Hope Soap range in time for Christmas 2021 sales.
- 3 -
## **HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **TRUSTEE REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Covid 19**
At the date of approval of these financial statements, the charity, like all organisations in the UK, is affected by COVID-19 pandemic which is having significant detrimental impact on the social and financial economy of the UK.
The UK government have announced numerous measures to contain the spread of COVID-19, which the charity have implemented within its operations and working practices, to ensure a continuity of the services the charity provides to its residents.
Although there are uncertainties over the duration of the COVID-19 pandemic and of future measures that may be announced by government, the charity's finances, its income sources and expenditure, have to date been largely unaffected.
The trustees therefore have a reasonable expectation that the charity has adequate resources to contend with the uncertainties that may arise as a result of the ongoing COVID-19 pandemic, and to continue in operational existence for the foreseeable future.
## **Structure, governance and management**
The charity is a company limited by guarantee.
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:
Mrs. V Dunster (Resigned 31 December 2020) Mr. G Underhill Mrs. S Olley Mrs. S Harvey Mr J Adams Ms A Jones Ms S Elsbury
All of the trustees are members of the company and guarantee to contribute £1 0 in the event of a winding up.
- 4 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **TRUSTEE REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **Statement of Trustee responsibilities**
The trustees, who are also the directors of Hope Housing, Training And Support Ltd for the purpose of company law, are responsible for preparing the Trustee 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:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements ; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
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.
## **Disclosure of information to auditor**
In so far as the trustees are aware:
- there is no relevant audit information of which the charitable company’s auditor is 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 auditor is aware of that information.
The Trustee r eport was approved by the Board of Trustees.
..............................
## **Mr. G Underhill**
Dated: .........................
- 5 -
## **HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **INDEPENDENT AUDITOR'S REPORT**
## **TO THE MEMBERS OF HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **Opinion**
We have audited the financial statements of Hope Housing, Training And Support Ltd (the ‘charity’) for the year ended 31 December 2020 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:
- give a true and fair view of the state of the charitable company's affairs as at 31 December 2020 and of its incoming resources and application of resources, 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 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 c harit y'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.
- 6 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE MEMBERS OF HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **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 auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 our audit:
- the information given in the Trustee Report, which includes the d irectors’ r eport prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the d irectors’ r eport included within the Trustee r eport has been prepared in accordance with applicable legal requirements.
## **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 d irectors’ r eport included within the Trustee r eport.
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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the Trustee r eport and from the requirement to prepare a s trategic r eport.
- 7 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE MEMBERS OF HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **Responsibilities of trustees**
As explained more fully in the s tatement of Trustee r esponsibilities, 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
- 8 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE MEMBERS OF HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
Our approach was as follows:
- We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the trustees and other management (as required by auditing standards), and discussed with the trustees and other management the policies and procedures regarding compliance with laws and regulations;
- We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102, Companies Act 2006 and the Charities Act 2011) and the relevant charity regulations in the UK;
- We considered the nature of the industry, the control environment and the charity's performance;
- We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
- We considered the procedures and controls that the charity has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-forauditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
- 9 -
## **HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **INDEPENDENT AUDITOR'S REPORT (CONTINUED)**
## **TO THE MEMBERS OF HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
**(Senior Statutory Auditor) for and on behalf of TC Group**
## **Statutory Auditor**
Office: Bournemouth
Date:.........................
- 10 -
## **HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Unrestricted**
**funds**
**2020**
**Notes**
**£**
**Income from:**
Donations and grants
**3**
191,410
Charitable activities
**4**
1,039,956
**Total income**
1,231,366
**Expenditure on:**
Charitable activities
**5**
1,140,786
**Net incoming/(outgoing) resources before**
**transfers**
90,580
Gross transfers between funds
2,600
**Net income/(expenditure) for the year/**
**Net movement in funds**
93,180
Fund balances at 1 January 2020
189,764
**Fund balances at 31 December 2020**
282,944|**Restricted**
**funds**
**2020**
**£**
31,510
-
31,510
44,365
(12,855)
(2,600)
(15,455)
58,158
42,703|**Total**
**2020**
**£**
222,920
1,039,956
1,262,876
1,185,151
77,725
-
77,725
247,922
325,647|Total
2019
**£**
211,753
998,767|
|---|---|---|---|
||||1,210,520|
||||1,129,817|
||||80,703
-|
||||80,703
167,218|
||||247,921|
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.
- 11 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **BALANCE SHEET**
## _**AS AT 31 DECEMBER 2020**_
||||**2020**|||**2019**||
|---|---|---|---|---|---|---|---|
||**Notes**|**£**||**£**|**£**||**£**|
|**Fixed assets**||||||||
|Tangible assets|**9**|||503,587|||504,461|
|**Current assets**||||||||
|Debtors|**10**|61,300|||63,121|||
|Cash at bank and in hand||93,527|||72,237|||
|||154,827|||135,358|||
|**Creditors: amounts falling due within**||||||||
|**one year**|**11**|(226,058)|||(278,301)|||
|Net current liabilities||||(71,231)|||(142,943)|
|**Total assets less current liabilities**||||432,356|||361,518|
|**Creditors: amounts falling due after**||||||||
|**more than one year**|**12**|||(106,709)|||(113,597)|
|**Net assets**||||325,647|||247,921|
|**Income funds**||||||||
|Restricted funds|**14**|||42,703|||58,158|
|Unrestricted funds||||282,944|||189,763|
|||||325,647|||247,921|
The financial statements were approved by the Trustees on .........................
.............................. Mr. G Underhill **Trustee**
## **Company Registration No. 06877535**
- 12 -
## **HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **STATEMENT OF CASH FLOWS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**Notes**
**Cash flows from operating activities**
Cash generated from operations
**20**
**Investing activities**
Purchase of tangible fixed assets
**Net cash used in investing activities**
**Financing activities**
(Repayment)/ advancement of borrowings
Repayment of bank loans
Payment of obligations under finance
leases
**Net cash used in financing activities**
**Net increase in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2020**
**£**
(35,196)
(57,464)
(4,910)
(1,978)|**£**
120,838
(35,196)
(64,352)
21,290
72,237
93,527|**2019**
**£**
(48,755)
4,293
(9,127)
(1,816)|**£**
96,312
(48,755)
(6,650)
40,907
31,330
72,237|
|---|---|---|---|---|
- 13 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **Charity information**
Hope Housing, Training And Support Ltd is a charitable company limited by guarantee incorporated in England and Wales. The registered office is 10 St Swithuns Road South, Bournemouth, Dorset, BH1 3RQ, United Kingdom.
## **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 accounts are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest pound.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
## **1.2 Going concern**
To date the charity has received financial support from DKB Leasing Limited in the form of an interest free, unsecured loan, which the charity has used to invest in its fixed assets and fund its charitable activities. The loan has no formal repayment terms, however the trustees have received assurances from DKB Leasing Limited that they will not seek repayment of the loan if it would be detrimental to the ability of the charity to continue to operate. The continuing operations of the charity are expected to generate positive cashflows and hence with the continued support from DKB Leasing Limited, the trustees are satisfied that the charity will have sufficient resources to continue to operate for the foreseeable future. Accordingly the trustees continue to apply the going concern assumption in the preparation of these financial statements.
## **1.3 Charitable funds**
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.
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 accounts.
## **1.4 Incoming resources**
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.
- 14 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
Income from charitable activities relates to rental incomes receivable on the provision of accommodation to residents in furtherance of the charity's objects. Fees and grants for service provision are accounted for on the basis of the amount receivable for the year with income recognised in the year in which this supply is made.
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.
Other income includes and gains on the disposal of fixed assets recognised on a receivable basis.
## **1.5 Resources expended**
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
All expenditure is recognised once there is a legal or constructive obligation to the expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use. Other support costs are allocated based on the spread of staff costs.
All resources expended are inclusive of irrecoverable VAT.
## **1.6 Tangible fixed assets**
Individual fixed assets with a life expectancy of 3 years or more and of a capital nature, are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation is provided on tangible fixed assets so as to write off the cost of valuation, less any estimated residual value, over their expected useful economic life as follows:
24 Library Road 100 years straight line Outdoor Classroom & Office 10 years straight line basis Fixtures, Fittings & Equipment 3 years straight line basis Motor Vehicles 4 years straight line basis New office 25 years straight line basis Refurb 10 years straight line
- 15 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **1 Accounting policies**
## **(Continued)**
## **1.7 Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **1.8 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.
## _**Basic financial assets**_
Trade debtors , loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.
## _**Basic financial liabilities**_
Trade creditors , loans and other payables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and payabl es'. Loans and payables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term payables when the recognition of interest would be immaterial.
## **1.9 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.
## **1.10 Leases**
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the asset have passed to the charity, are capitalised in the balance sheet as tangible fixed assets and are depreciated over their useful lives. The capital elements of future obligations under the leases are included as liabilities in the balance sheet. The interest element of the rental obligation is charged to the statement of financial activities over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.
Assets held under hire purchase agreements are capitalised as tangible fixed assets and are depreciated over their useful lives. The capital element of future finance payments is included within creditors. Finance charges are allocated to accounting periods over the length of the contract.
Rentals payable under operating leases are charged in the statement of financial activities on a straight line basis over the lease term.
- 16 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **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 vary 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 have considered whether there are any critical judgements required in the preparation of these accounts and have concluded that there are none requiring disclosure.
## **3 Donations and grants**
|**Unrestricted**
**funds**
**2020**
**£**
Donations and gifts
177,732
Coronavirus Job Retention Scheme grants
13,678
191,410|**Restricted**
**funds**
**2020**
**£**
31,510
-
31,510|**Total**
**2020**
**£**
209,242
13,678
222,920|Total
2019
£
211,753
-|
|---|---|---|---|
||||211,753|
In 2019, of the total donations of £211,753, £71,830 were attributable to unrestricted funds and £139,923 were attributable to restricted funds.
## **4 Charitable activities**
||**Rental**|Rental Income|
|---|---|---|
||**Income**||
||**2020**|2019|
||**£**|£|
|Rental income|1,039,956|998,767|
- 17 -
## **HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **5 Charitable activities**
|Staff costs
Staff training
Rental expenses
Rates
Light and heat
Insurance
Travel and subsistence
Breakfast club for residents
Equipment repairs and renewals
General maintenance
Printing, postage and stationery
Subscriptions
Telephone and fax
Project expenses
Cleaning
Sundry
Accountancy fees
Consultancy fees
Bad debt write off
Loan interest
Depreciation
(Profit)/loss on disposal of fixed asset
HP interest
Bank charges
**Analysis by fund**
Unrestricted funds
Restricted funds|**Total**
**2020**
**£**
298,076
45
542,713
22,807
50,355
18,735
12,945
15,550
933
62,324
5,621
15,049
18,084
42,303
4,170
6,504
800
4,320
15,313
4,947
36,069
-
457
62
1,185,151
1,185,151
1,140,786
44,365
1,185,151|**Total**
**2019**
**£**
286,595
2,270
511,412
23,630
40,113
17,825
14,070
17,447
370
65,313
5,582
18,522
5,971
45,580
2,771
7,862
235
1,470
16,065
5,894
33,622
(719)
419
101
1,129,818
1,129,818
1,037,247
92,571
1,129,818|
|---|---|---|
- 18 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**6**
**Net movement in funds**
Net movement in funds is stated after charging/(crediting)
Depreciation of owned tangible fixed assets
**7**
**Trustees**|**2020**
**£**
36,069|**2019**
**£**
33,622|
|---|---|---|
||||
None of the trustees (or any persons connected with them) received any remuneration , reimbursement of expenditure or benefits from the charity during the year. No donations were made to the charity from any of the trustees during the year.
## **8 Employees**
## **Number of employees**
The average monthly number of employees during the year was:
|
**Employment costs**
Wages and salaries
Social security costs
Other pension costs|**2020**
**Number**
14
**2020**
**£**
274,362
19,249
4,465
298,076|**2019**
**Number**
14|
|---|---|---|
|||**2019**
**£**
265,015
17,770
3,810|
|||286,595|
No employee received emoluments of more than £60,000 during the current or the previous year.
- 19 -
## **HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **9 Tangible fixed assets**
|**24 Library Road**
**Outdoor**
**Classroom &**
**Office**
**Fixtures, Fittings**
**& Equipment**
**Motor Vehicles**
**£**
**£**
**£**
**£**
**Cost**
At 1 January 2020
363,996
18,679
148,896
21,459
Additions
-
690
20,264
-
At 31 December 2020
363,996
19,369
169,160
21,459
**Depreciation and impairment**
At 1 January 2020
15,906
9,221
116,806
12,118
Depreciation charged in the year
3,640
1,631
20,911
3,099
At 31 December 2020
19,546
10,852
137,717
15,217
**Carrying amount**
At 31 December 2020
344,450
8,517
31,443
6,242
At 31 December 2019
348,090
9,458
32,091
9,341|**New office**
**£**
90,957
-
90,957
4,642
3,638
8,280
82,677
86,315|**Refurb**
**£**
21,296
14,242
35,538
2,130
3,150
5,280
30,258
19,166|**Total**
**£**
665,283
35,196
700,479
160,823
36,069
196,892
503,587
504,461|
|---|---|---|---|
- 20 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
|**10**
**Debtors**
**Amounts falling due within one year:**
Accounts receivable
Other debtors
Prepayments and accrued income
**11**
**Creditors: amounts falling due within one year**
**Notes**
Bank loans
**13**
Obligations under hire purchase
Other loans - DKB Leasing Limited
**13**
Other taxation and social security
Accounts payable
Other creditors
Accruals and deferred income
The hire purchase liability is secured against the assets to which they relate.
The bank loan is secured against the property owned by the charity.
**12**
**Creditors: amounts falling due after more than one year**
**Notes**
Bank loans
**13**
Obligations under hire purchase
The hire purchase liability is secured against the assets to which they relate.
The bank loan is secured against the property owned by the charity.|**2020**
**£**
13,812
954
46,534
61,300
**2020**
**£**
9,147
1,978
151,594
4,788
24,932
4,087
29,532
226,058
**2020**
**£**
104,559
2,150
106,709|**2019**
**£**
21,554
1,081
40,486|
|---|---|---|
|||63,121|
|||**2019**
**£**
9,150
1,978
209,058
5,467
22,493
4,406
25,749|
|||278,301|
|||**2019**
**£**
109,466
4,131|
|||113,597|
||||
- 21 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **13 Loans and overdrafts**
|**Loans and overdrafts**|||
|---|---|---|
|Bank loans
Other loans
Payable within one year
Payable after one year
Amounts included above which fall due after five years:
Payable by instalments|**2020**
**£**
113,706
151,594
265,300
160,741
104,559
59,964|**2019**
**£**
118,616
209,058|
|||327,674|
|||218,208
109,466|
|||66,953|
Bank and other loans on which security has been given by the Charity totalled £113,706 (2019 - £118,616).
The mortgage loan is repayable over 15 years from December 2014 to November 2029 by monthly instalments and carries an annual interest rate of 4.5%.
Other loans represents an amount DKB Leasing Limited has provided the charity, which is interest free, unsecured and has no formal repayment terms. The trustees have received assurances from DKB Leasing Limited that they will not seek repayment of the loan if it would be detrimental to the ability of the charity to continue to operate.
- 22 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
**NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **14 Restricted funds**
The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:
|**Balance at**
**1 January 2020**
**£**
Rucksack appeal
13,143
Bedroom refurbishment
10
Choir/music
910
Heike Drum Share
650
Food for future
1,341
Garden project
123
Health and wellbeing
11,185
Kitchen - 10 St Swithens
(3,087)
Laundry room - 10 St Swithens
3,629
Maths/ English Tutoring
8,279
Hope Soap Kitchen
9,236
Space to grow
530
Starter Packs/ Employment
1,261
Store Room
1,000
Ten4Ten
9,948
Mental health nurse
-
Ex-offenders support worker
-
58,158|Movement in funds
**Incoming**
**resources**
**Resources**
**expended**
**£**
**£**
-
(16,178)
-
(10)
-
-
-
-
-
(127)
-
(903)
-
(6,393)
-
-
-
-
-
-
-
(5,325)
-
-
-
-
-
-
14,610
(10,655)
10,000
-
6,900
(4,774)
31,510
(44,365)|**Transfers**
**Balance at**
**31 December 2020**
**£**
**£**
3,035
-
-
-
-
910
-
650
-
1,214
780
-
-
4,792
-
(3,087)
-
3,629
-
8,279
(5,725)
(1,814)
-
530
-
1,261
(690)
310
-
13,903
-
10,000
-
2,126
(2,600)
42,703|
|---|---|---|
Included within transfers is £6,845 (2019 - £8,610) which relates to fixed assets purchased by the charity during the year and capitalised within fixed assets. The charity having acquired these fixed assets considers itself to have met the conditions of these funds and hence has released the restricted funds to unrestricted funds.
- 23 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **14 Restricted funds**
**(Continued)**
The specific purposes for which the funds are applied are as follows:
Rucksack Appeal - this appeal is to support 4 different packs we provide to help vulnerable adults across Dorset. We engage with 46 agencies and provide rucksacks for the homeless, move in packs for people moving in to supported accommodation, move on packs for moving into independent living and employment packs.
Bedroom refurbishment - part of a mayor refurbishment of 10 St Swithun’s Road, when the staff vacated their offices and moved to a purpose build office block, freeing up room to be redecorated and furnish as bedrooms, providing additional accommodation for more residents .
Choir/Music - part of relaxation therapy for the residents, we are going to start a choir. The donation given will be used to employ a Choir Master.
Heike Drum Share - a drum class to be held for our residents once a week for a year to help with their health and wellbeing.
Food For Future - involves organising cookery clubs for residents to learn about cookery skills, healthy eating, new recipes and cooking on a budget. Project also includes accredited training for residents to achieve a catering qualification.
Garden Project - help fund our 12 gardens, especially three large ones at our main site. We provide gardening opportunities, vegetable growing, fruit plants/trees and composting areas along with bird feeders and bird boxes for the wildlife. This is along with a water feature and bench areas for relaxation and contemplation.
Health and wellbeing - is a project to improve the health and wellbeing of clients through various in-house health monitoring of BMI, blood pressure, weight management etc through to arranging and facilitating doctors, dentist and vision checks. We also provide wellbeing activities such as a gym, cooking evenings, yoga classes, guitar lessons, gardening, outdoor table tennis and regular group events.
Kitchen - 10 St Swithuns- As part of the refurbishment at No 10, the very old kitchen was reallocated to a larger room and completely refitted
Laundry Room - to install new washers and dryers into a separate laundry room at our main site.
Maths/English Tutoring - provide one to one tutoring to our residents who have anxiety around group course to work on their English and Maths up to an accredited level.
Hope soap – This is a project to get residents involved with the making of soap to sell in the Charity shop that we are opening in 2021.
Space to Grow - project involved purchasing a summerhouse for Hope's property in Poole, which can be used by residents for gardening, craft, social and therapeutic activities.
- 24 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **14 Restricted funds**
## **(Continued)**
Ex-Offenders Support Worker - new funding received for ex-offenders counselling services which has started this year.
Store Room - funding to provide storage predominately for AOK Rucksack appeal - to date we have purchased one shed.
Ten4Ten - Move on Project 2019 10th Anniversary - to date we have successfully moved on 12 person with support for the first year and then progressing onto unsupported living. This project has been such a success we will be looking to apply for future funding to extend the scheme.
## 14 **Restricted funds Previous year**
|**Restricted funds**
**Previous year**||||||
|---|---|---|---|---|---|
|||Movement in funds||||
||**Balance at**|**Incoming**|**Resources**|**Transfers**|**Balance at**|
||**1 January 2019**|**resources**|**expended**||**1 January 2020**|
||**£**|**£**|**£**|**£**|**£**|
|Rucksack appeal|2,632|32,607|(22,096)|-|13,143|
|Bedroom refurbishment|-|2,800|-|(2,790)|10|
|Choir/music|-|910|-|-|910|
|Heike drum share|1,250|-|(600)|-|650|
|Food for future|1,727|-|(386)|-|1,341|
|Garden Project|-|700|(577)|-|123|
|Health and wellbeing|3,054|32,040|(23,909)|-|11,185|
|Kitchen - 10 St Swithuns|-|4,400|(5,367)|(2,120)|(3,087)|
|Laundry room|1,629|2,000|-|-|3,629|
|Life skills - support worker|-|10,000|(10,000)|-|-|
|Maths/english tutoring|4,399|3,880|-|-|8,279|
|Hope soap|-|21,456|(12,220)|-|9,236|
|Space to grow -24 Library|530|-|-|-|530|
|Starter packs/employment|495|1,000|(234)|-|1,261|
|Store room||1,000|||1,000|
|Ten4ten||27,130|(17,182)||9,948|
|New van|3,700|||(3,700)|-|
||19,416|139,923|(92,571)|(8,610)|58,158|
- 25 -
## **HOPE HOUSING, TRAINING AND SUPPORT LTD**
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## _**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **16 Analysis of net assets between funds**
|**Unrestricted**
**funds**
**2020**
**£**
Fund balances at 31 December 2020 are
represented by:
Tangible assets
503,587
Current assets/(liabilities)
(113,934)
Long term liabilities
(106,709)
282,944|**Restricted**
**funds**
**2020**
**£**
-
42,703
-
42,703|**Total**
**2020**
**£**
503,587
(71,231)
(106,709)
325,647|Total
2019
£
504,461
(142,943)
(113,597)
247,921|
|---|---|---|---|
## **17 Financial commitments, guarantees and contingent liabilities**
The Talbot Trust has a proportional charge over the property at 24 Library Road Poole. In the event that the property is either sold or no longer used for its charitable purpose an amount would be owed to the Talbot Trust at a value proportional to the contribution the Trust made to the purchase of 24 Library Road (being £55,000 of £242,237).
## **18 Operating lease commitments**
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|**2020**
**£**
454,244
635,848
1,090,092|**2019**
**£**
186,446
65,344
251,790|
|---|---|---|
During the year £542,715 (2019 - £511,412) of lease payments were recognised as an expense.
- 26 -
**HOPE HOUSING, TRAINING AND SUPPORT LTD**
_**FOR THE YEAR ENDED 31 DECEMBER 2020**_
## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)**
## **19 Related party transactions**
The CEO of the charity is a director and person of significant control of DKB Leasing Limited. DKB Leasing Limited established the charity in 2009 to enable supported housing to continue after the loss of supported people funding.
DKB Leasing Limited operate Leo Training as a division of the company.
During the year the charity paid rent totalling £537,215 (2019 - £505,912) to DKB Leasing Limited. During the year the charity received £29,432 (2019 - £26,875) in unrestricted donations from DKB Leasing Limited.
At the year end the charity owed DKB Leasing Limited £167,726 (2019 - £221,807), of this £16,132 (2019 - £12,749) was within accruals. This amount has accrued over a period of nine years since conception through differing rent payments to enable the charity to support its core running costs and has increased during the year. Part of the future development plans for the charity is a two year repayment plan.
|**20**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
Increase in creditors
**Cash generated from operations**
21
**Analysis of changes in net (debt)/funds**
**At 1 January 2020**
**£**
Cash at bank and in hand
72,237
Loans falling due within one year
(218,208)
Loans falling due after more than one year
(109,466)
Obligations under finance leases
(6,109)
(261,546)|**2020**
**2019**
**£**
**£**
77,725
80,702
36,069
33,622
1,820
(18,890)
5,224
97
120,838
95,531
**Cash flows**
**At 31 December**
**2020**
**£**
**£**
21,290
93,527
57,467
(160,741)
4,907
(104,559)
1,981
(4,128)
85,645
(175,901)|
|---|---|
- 27 -