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2023-03-31-accounts

Charity registration number 1137686

Company registration number 07309173 (England and Wales)

HOPE INTO ACTION UK

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

HOPE INTO ACTION UK

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees The Reverend Mrs D Tidball (Chair)
Mr A J W Barnes (Appointed 28 February 2023)
Mr I G Billage
Mr G Howard
Mrs J Hunte
Mr H J Kettel
Ms R Mathew
Mrs D J Nash
Secretary Mr M Oldaker (Appointed 11 May 2023)
Ambassador Mr E Walker
Executive team John Kuhrt, CEO
Kate Doran-Smith, Head of Network
Mark Oldaker, Head of Operations
Phil Crawford, Interim Head of Supporter Relations
Charity number 1137686
Company number 07309173
Registered office 26 North Street
Peterborough
United Kingdom
PE1 2RA
Auditor Azets Audit Services
Ruthlyn House
90 Lincoln Road
Peterborough
Cambridgeshire
United Kingdom
PE1 2SP
Bankers Lloyds Bank plc CAF Bank
65 High Street 25 Kings Hill Avenue
Stamford West Malling
Lincolnshire Kent
United Kingdom United Kingdom
PE9 2AT ME19 4JQ
The Co-operative Bank
Business Customer Services
P.O. Box 250
Skelmersdale
Wigan
United Kingdom
WN8 6WT

HOPE INTO ACTION UK

CONTENTS

Page
Trustees' report 1 - 11
Statement of trustees' responsibilities 12
Independent auditor's report 13 - 15
Statement of financial activities 16 - 17
Balance sheet 18 - 19
Statement of cash flows 20
Notes to the financial statements 21 - 36

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their report and accounts for the year ended 31 March 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The charity's objects are to relieve poverty or financial hardship in England. Hope into Action works to enable churches, using their resources and matched with others raised by Hope into Action, to provide homes and support for the vulnerable and those experiencing homelessness in their community. In deciding the activities of the Charity, the Trustees have taken account of the public benefit guidance published by the Charity Commission.

The charity aims to use investment resources to buy homes for 2-3 tenants. Each home is linked to a local church that provides a community, friendship, mentoring and support. Also included is a professional Empowerment Worker who provides expertise to the tenants in benefits, tenancies, jobs, liaising with other agencies and action plans.

Each house is run in conjunction with a local church who sign a five year partnership with us committing to build long-term, holistic relationships with the tenants who were formerly homeless.

One tenant’s story

"Before I came across Hope into Action, I was in a very bad position...constant drug abuse, alcohol abuse, moving from sofa to sofa.

Since moving into the Hope into Action house, I've been able to get my life back on track, and have goals and aspirations to set myself and ultimately conquer.

What helped was being somewhere stable. Being somewhere where you know you're in a supported environment, where if you do have any issues, you've got someone to help you, or even someone to just sit with you and help you understand the situation, so then you can solve it yourself. Hope into Action helps you get your life back on track.”

from one of our tenants living in Portsmouth franchise

The Hope into Action model

Hope into Action is a unique response to the injustice and tragedy of homelessness. We both offer high quality accommodation and positive relationships with the local community. As the story above from one of our tenants shows, it is this combination that is transformative.

Our model is based on investors who are willing to use their savings to purchase houses. We then turn these houses into homes by partnering with churches who welcome people who would otherwise be homeless to live there. Churches provide the friendship and support and Hope into Action’s professional staff look after the elements of assessment, benefits and housing management.

At the core of our work is a commitment to combine both professional excellence and spiritual passion. We are committed to professional excellence in how we support tenants, manage accommodation and how we steward investments, donations and our people. Alongside this, we want to maintain our spiritual passion and our belief in the transformative role that the Christian faith plays.

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Our Network of line managed houses and franchises

Hope into Action began in Peterborough in 2010 when our founder Ed Walker used his own money to purchase our first house. The charity remains based in Peterborough at our Hope Centre. We directly manage the accommodation in Peterborough, Norwich, Nottingham and Cambridge.

The rest of our Network is run by churches and organisations who run Hope into Action franchises across the country.

Headline achievements from 2022/23

New houses

In 2022/23, we opened 5 new houses which took our total number of houses to 101.

New franchises opened

During 2022-23 we opened franchises in 6 new locations. This means that by 31[st] March, HiA is working in 36 locations across the country.

Our Founder receives an MBE

In June 2022, we were delighted to celebrate that HiA’s founder Ed Walker received an MBE in the Queen’s Birthday Honours. This was awarded for services in tackling homelessness.

Transition of leadership

In February 2023, we completed the transition of leadership from Ed Walker to Jon Kuhrt, who became HiA’s new CEO. Jon has worked for 30 years in different leadership roles within the homeless and Christian social action sector. He is a former CEO of the West London Mission and immediately before joining HiA had spent 4 years as a government adviser on the role of faith groups in addressing rough sleeping.

This transition is a significant moment for the organisation. A comprehensive handover was completed and Ed and Jon worked together for a month. Ed transitioned to the role of Ambassador and has undertaken up to 2 days work per week since in speaking engagements and representing the organisation.

Strategic review

As new CEO Jon Kuhrt has led a review of strategy to build on the success of Hope into Action’s first 13 years and also to address areas where we need to develop. The key headlines and priorities of this review are shared at the end of this report.

Rent Review

A key element has been a Rent Review which was initiated in February and involved a consultant from Homeless Link who helped us assess our costs and work out a rent level which more accurately reflected them.

This has led to our rent levels being increased and we are pleased that almost all of these changes have been accepted by the Local Authorities that we work within. This has significantly increased our income and helped our projected financial position for the coming year. In order to continue our emphasis on helping people into work, we have a bursary scheme in place which provides a discounted level of rent to those in employment.

Housing development project, Peterborough

A number of years ago, a benefactor donated Hope into Action UK £500,000 to build 3 new homes. We have identified some land and have managed to negotiate its sale from the local authority. We have entered into negotiations and are excited to be developing state of the art modular houses on the site, all of which conform to the highest energy ratings and will be a model of innovative supported housing. We aim to open this accommodation in November 2023.

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Black Country Areas franchise

Our franchise relationship with the Enterprise Homes Group ended in July 2021 at which time HiA UK took over 5 of their homes and managed them from 21[st] July 2021. This location was renamed Black Country Areas and in April 2023, this transitioned back to being a franchise operation. We continue to work closely with this new franchise as it develops.

Conference 2023

In March 2023, we held our Annual Conference at Kingsgate Church, Peterborough. Over 350 people booked in and Les Isaac, founder of Street Pastors, was our keynote speaker. We also gave a heart-felt thanks and farewell to our Founder Ed Walker who was stepping down as Executive Director. New CEO, Jon Kuhrt spoke about this being a new chapter for HiA but one where we are telling the same story.

Achievements and performance

New franchises opened

During 2022-23 we opened franchises in 6 new locations in Belfast, Beverley, Bromley, Diss, South Belfast and Warrington.

New houses opening

During 2022/23, we opened 10 new Hope into Action houses in

This took our total houses by 31[st] March 2023 to 101.

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Net growth

The graph above factors in homes which have closed as well as opened so gives a net result. 5 homes have closed in each of the last 2 years. These closures were due to a number of reasons, but most were due to reaching the end of a 5 year cycle of investment or projects closing due to church capacity.

At the time of writing, 3 more houses have already opened in the 2023-24 year and there are at least 27 others in the pipeline. We have also recently signed up 2 new Full Franchises in the North of England who expect to have houses open within the 23-24 year.

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Summary of tenant outcomes

The point of all our work is transformation in the life of our tenants and our churches. Once again, we are delighted by the outstanding outcomes achieved by our tenants with the support of staff, church partners and franchisees. We believe these outcomes validate our theory of change: that by giving tenants a quality home with genuine connection and support to churches in the local community, we can see significant and sustained change.

Outcome 2022-23
[2021-22]		 Description
Demographics 412
[^ from 352]		 Adults:
300
(195
Male,
105
Female);
Children: 112 (61 Male, 51 Female)
50% classed themselves as White British. At 31st March 2023,
21.8% of our houses housed at least one refugee, and 28% of our
tenants were refugees, mostly families.
24% of tenants considered themselves to have a disability.
Maintaining Tenancy 93%
[^ from 92%]		 383 tenants, including children, from 412 remained in Hope into
Action properties and/or moved on well.
Abstaining from Crime 92%
[^ from 90%]		 63 tenants have previously served a custodial sentence. Of those,
92% did not reoffend.
Drug and Alcohol Intake
has not increased
89%
[= 89%]		 122 tenants have (had) a relationship with drugs and alcohol. 89% of
those have not become more dependent, have reduced their
dependency or became sober.
Improved
Social Relationships		 88%
[v from 91%]		 264 of our tenants felt that they had improved or maintained positive
relationships.
Meaningful use of time:
Volunteering, Training &
Education

32%
[v from 41%]		 The number of adult tenants in education, training or volunteering
was 96
Meaningful use of time:
Employment
37%
[^ from 35%]		 112 adult tenants in employment of all kinds (zero hours, full and
part time contracts).
3% of adult tenants were unable to work.
Improving
Financial Management		 92%
[^ from 88%]		 203, 68% of tenants did not have rent arrears;
31, 10% of tenants were actively managing debt.
Mental Health 92%
[^ from 88%]		 168
tenants’
mental
health
was
stable
or
improving.
61% of tenants indicated that they had physical or mental health
needs at start of year or point of referral. 92% of these maintained or
improved this during the year.
There were 2 deaths, and 5 babies born to tenants.
Engaging with Faith and
Spirituality
beyond
that
provided by F&S

46%
[^ from 22%]		 50% of tenants engaged in a church service, Christian course or
activity and 20% of tenants attended church more than once a
month.
56% of tenants asked for or accepted prayer.
6 tenants were baptised or made some kind of commitment to the
Christian faith.
13% of tenants engaged with a faith group other than the Christian
faith.

^ signifies increase from last year / = signifies same result / v signifies drop from last year

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

This is a summary of how these outcomes relate to previous years:

Tenant move-on from our houses

There is a crisis of affordable housing in the UK. This is obviously one of the key issues that HiA was established to influence. But this wider issue has a direct effect on our ability to move people on from our accommodation. The problem of accessing suitable and affordable move-on options is a key challenge for us.

We are therefore looking at ways to creatively address this issue. As well as working closely with the Local Authorities we will increase our search for private landlords who wish to partner with us and take on tenants who have established a good track record of tenancy management with us.

Reasons for negatively moving on include abandoning the property, moving on to substandard or poor quality housing (sofa-surfing, street homeless) or being evicted due to behaviour.

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Risk

The Trustees have assessed the major risks to which the Charity is exposed, in particular those related to the operations and finances of the Charity and are satisfied that systems are in place to mitigate exposure to the major risks. We have recently reviewed our risk register and have assessed these key factors as representing the key risk areas.

  1. Unsuccessful grant funding would lead to a deficit and non-compliance with reserves policy

  2. Ineffective management of voids leads to a deficit compromising reserves

  3. A case of abuse/mishandling of power/ complaint/ poor safeguarding which leads to a scandal which could damage reputation

  4. Ineffective management of houses leading to below standard or non-compliant properties

  5. Lack of growth in regular donors

  6. Closure of franchises and houses leading to lack of growth

  7. Inability to recruit key staff reduces effectiveness of work

  8. Loss of properties due to investor ending lease

  9. Inability to source properties within investor expectations

  10. Losing the Christian distinctiveness would compromise the core vision and mission of HiA to mobilise Christian faith, prayer, investments, donations and volunteering

  11. Ineffective management of arrears leads to a deficit compromising reserves

  12. Breakdown of church Friendship & Support groups reduces outcomes

Safeguarding

Maintaining professional excellence in how we manage Safeguarding continues to be one of our top priorities. The last year has seen us investing further in this area and we now have a Safeguarding Administrator and two Deputy Safeguarding Officers to support our Safeguarding Lead, Laura Cuthill, to ensure that advice and support around safeguarding is always available to staff and tenants. Throughout the year we ensure all staff are trained and confident in their safeguarding responsibilities.

We continue to monitor and log all incidents and safeguarding concerns across the Hope into action Network. In 2022/23, there were a total of 35 safeguarding concerns reported and 69 incidents reported. We logged all safeguarding concerns and incidents reported under the following categories: Domestic violence (including coercive control), Anti-social behaviour (including Threatening behaviour or Violence), Sexual abuse, Mental health crisis (including suicide attempt and self harm), Substance misuse or suspected drug dealing, Child protection, Modern day slavery, Financial abuse, Abandonment or disappearance.

Of the 35 Safeguarding concerns reported by staff the most common reason for completing a safeguarding concern report related to a tenant’s mental health (16 reports). This included suicide ideation, self-harm or overdose of medication. Other categories in which we had safeguarding concerns raised by staff include, antisocial behaviour (6), domestic violence (5), sexual abuse (3), child protection (2), financial abuse (2), and substances abuse(1). Local Authority Social Services were involved with 6 of these cases including referrals made to them by staff because of concerns for a tenant’s safety.

Of the 69 incidents logged, the most common reason for staff submitting a report was due to anti-social behaviour (24 reports) followed by mental health ( 16 reports). Other categories in which incidents reports were submitted include domestic violence (10), child protection (5), substance misuse (3), abandonment (3), sexual abuse (2) . This year there were 7 reports of incidents which did not fit into one of our current categories, 2 of these were around staff behaviour, 3 around physical health needs , 1 tenant death and 1 was a house fire. For next year we have added the categories of physical health, staff, and death so that we monitor the number of incidents that fall into these areas.

As part of our accountability, there were 3 reports made to the Charity Commission throughout the year in relation to the more serious safeguarding concerns. One was in relation to a Child Protection case, one following a tenant accused of a sexual offence and one relating to a tenant suicide. In each case, our actions were reported to the Charity Commission and they concluded that the trustees have dealt with the matter appropriately and responsibly and no further action was required.

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Strategic direction for 2023/24

This is a key moment in Hope into Action’s story as we transition from the leadership of our Founder and move into a new chapter.

We have undertaken a review of our strategy which has involved discussions with key staff, the Executive and the Trustees. We have re-confirmed our commitment to integrating professional excellence and spiritual passion. We believe this is the healthy root from which everything that Hope into Action does will grow.

We have committed to the following 3 strategic objectives and we developed an action plan based under these headings:

1. Our line-managed work will be an incubator of best practice.

Our work in our 4 line managed cities will embody the practice we want to see across our whole network.

2. We will strengthen and grow our franchise Network.

We want to grow the network significantly but also strengthen it through clarifying expectations, addressing fragility and focussing growth on areas where there is adequate capacity.

3. Faithful stewardship of finances, supporters and people.

Ensure our finances, houses, supporters and people are supported, valued and invested in as well as possible

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Financial review

Reserves

The Trustees’ policy with regard to reserves is to seek to maintain unrestricted funds, other than those designated from time to time for specific purposes, at a level sufficient to provide the charity with enough working capital to carry on its existing activities successfully for two to four months. This will enable the trustees to ensure continuity of activities and honour contractual liabilities.

The Trustees have noted that the current level of free reserves is within that range at 3.4 months. In the unfortunate event of funding levels dropping to dangerous levels then the Trustees would have to consider the sale of one of our houses or re-mortgage a property.

Note 20 provides an analysis of funds where it can be seen that £448k of our cash balance is a restricted fund. This is the donation to for the housing development project in Peterborough, referenced in “Achievement in 2022/ 23” above.

Income and Expenditure

The net outgoing funds for 2023 is £72,429 (2022: income of 29,034) which includes donations of various restricted funds.

Trustees monitor the balance of income from the three primary sources.

Grant income was lower due to changes in some of the criteria for applications. Renewed focus has been given to this by employing a grant writer and consultancy support for new opportunities.

Individual donations were able to compensate for this due to the impact of the campaign to increase regular giving at the 2022 conference and the successful BIG Give campaign in December 2022. There were no restricted donations in the year (2022: £50,776). This was due to the focus on increasing our unrestricted income.

Our expenditure on charitable activities has grown by 9% (2022:19%). The 2022 number was affected by the temporary incorporation of the Black Country Areas (BCA) franchise into HIA UK to nurture its development. BCA was franchised out from 1 April 2023 and so its income and expenditure will no longer feature on our accounts. The main drivers for the increase were staff costs, maintenance and additional bad debts.

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Assets and Investments

Hope into Action UK owns its main office and 14 houses used to support tenants.

As an organisation we encourage individuals and churches to share their wealth with people affected by poverty by investing in homes for people who are homeless. Where reserves allow, Trustees invest free reserves in homes within the Hope Into Action network.

This financial year, the trustees made the difficult decision not to invest free reserves in this way due to the challenging financial year. However, within a few weeks of making this decision a current investor decided to gift their part-investment to Hope into Action UK as they had been diagnosed with a terminal disease. We were able to visit this generous donor before they went to be with the Lord. The amount donated was £20,000 (this will appear in the 2023-24 accounts).

Conclusion

The financial management of Hope into Action is a key area where we seek to integrate professional excellence and spiritual passion. We are deeply grateful to our donors and investors for the valued financial support they give to us and we want to use these precious resources as well as possible. So often, their support for our work is an expression of their faith in God and his purposes.

It is to these purposes that we want to be focussed, spiritually and professionally, so that everything we do is to the glory of God.

HOPE INTO ACTION UK

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Structure, governance and management

The charity is a company limited by guarantee and a registered charity governed by its articles and memorandum of association.

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:

The Reverend Mrs D Tidball (Chair) Mr A J W Barnes (Appointed 28 February 2023) Mr I G Billage Mr G Howard Mrs J Hunte Mr H J Kettel Ms R Mathew Mrs D J Nash

The existing Trustees have the power to appoint new trustees.

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

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

The Reverend Mrs D Tidball (Chair) Trustee Dated: 12 August 2023

HOPE INTO ACTION UK

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

The Trustees, who are also the directors of Hope Into Action UK 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 INTO ACTION UK

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF HOPE INTO ACTION UK

Opinion

We have audited the financial statements of Hope Into Action UK (the ‘charity’) for the year ended 31 March 2023 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.

Matters on which we are required to report by exception

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

HOPE INTO ACTION UK

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HOPE INTO ACTION UK

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 as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

HOPE INTO ACTION UK

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF HOPE INTO ACTION UK

This report is made solely to the company’s members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Mark Jackson FCA DChA (Senior Statutory Auditor) for and on behalf of Azets Audit Services 21 August 2023 Chartered Accountants Statutory Auditor Ruthlyn House 90 Lincoln Road Peterborough Cambridgeshire United Kingdom PE1 2SP

Azets Audit Services 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 INTO ACTION UK

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023

Current financial year
Unrestricted
Designated
Restricted
funds
funds
funds
2023
2023
2023
Notes
£
£
£
Income from:
Donations and legacies
3
795,735
-
131,823
Charitable activities
4
692,493
-
-
Investments
5
8,564
-
-
Total income
1,496,792
-
131,823
Expenditure on:
Raising funds
6
33,955
-
-
Charitable activities
7
1,462,797
31,116
173,176
Total resources expended
1,496,752
31,116
173,176
Net incoming/(outgoing) resources
before transfers
40
(31,116)
(41,353)
Gross transfers between funds
(9,785)
9,785
-
Net (expenditure)/income for the year/
Net movement in funds
(9,745)
(21,331)
(41,353)
Fund balances at 1 April 2022
429,246
1,518,842
571,632
Fund balances at 31 March 2023
419,501
1,497,511
530,279		 Total
2023
£
927,558
692,493
8,564
1,628,615
33,955
1,667,089
1,701,044
(72,429)
-
(72,429)
2,519,720
2,447,291		 Total
2022
£
929,005
649,852
5,144
1,584,001
34,730
1,520,237
1,554,967
29,034
-
29,034
2,490,686
2,519,720

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 INTO ACTION UK

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023

Prior financial year

Unrestricted
Designated
Restricted
funds
funds
funds
2022
2022
2022
Notes
£
£
£
Income from:
Donations and legacies
3
653,775
-
275,230
Charitable activities
4
649,852
-
-
Investments
5
5,144
-
-
Total income
1,308,771
-
275,230
Expenditure on:
Raising funds
6
34,730
-
-
Charitable activities
7
1,243,090
32,748
244,399
Total resources expended
1,277,820
32,748
244,399
Net incoming/(outgoing) resources before
transfers
30,951
(32,748)
30,831
Gross transfers between funds
(31,651)
37,427
(5,776)
Net (expenditure)/income for the year/
Net movement in funds
(700)
4,679
25,055
Fund balances at 1 April 2021
429,946
1,514,163
546,577
Fund balances at 31 March 2022
429,246
1,518,842
571,632		 Total
2022
£
929,005
649,852
5,144
1,584,001
34,730
1,520,237
1,554,967
29,034
-
29,034
2,490,686
2,519,720

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 INTO ACTION UK

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
14
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
15
Net assets
Income funds
Restricted funds
Property
Specific projects
19
Unrestricted funds-general
Designated funds
20
Other charitable funds		 2023
£
£
1,883,072
159,966
795,288
955,254
(131,011)
824,243
2,707,315
(260,024)
2,447,291
74,834
455,445
530,279
1,497,511
419,501
2,447,291		 2022
£
£
1,914,497
83,190
889,342
972,532
(98,295)
874,237
2,788,734
(269,014)
2,519,720
75,940
495,692
571,632
1,518,842
429,246
2,519,720

HOPE INTO ACTION UK

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2023

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 March 2023, 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 board of directors and authorised for issue on 12 August 2023 and are signed on its behalf by:

The Reverend Mrs D Tidball (Chair)

Trustee

Company Registration No. 07309173

HOPE INTO ACTION UK

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
23
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash generated from/(used in)
investing activities
Financing activities
Repayment of bank loans
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		 2023
£
£
(92,834)
(794)
8,564
7,770
(8,990)
(8,990)
(94,054)
889,342
795,288		 2022
£
£
69,272
(166,681)
5,144
(161,537)
(110,746)
(110,746)
(203,011)
1,092,353
889,342

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

Charity information

Hope Into Action UK is a private company limited by guarantee incorporated in England and Wales. The registered office is 26 North Street, Peterborough, PE1 2RA, 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) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

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

The accounts have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives 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 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 INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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.

All resources expended are accounted for gross, and in the period in which they are incurred. VAT is not recoverable by the charity and as such is included in the relevant costs in the Statement of Financial Activities.

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.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity.

All costs are allocated between the expenditure categories of the Statement of Financial Activities on a basis designed to reflect the use of the resource.

1.6 Tangible fixed assets

Tangible fixed assets are measured at cost, 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:

Land and buildings 1% p.a. straight line on buildings Shared ownership properties 1% p.a. straight line Equipment 33% p.a. straight line Motor vehicles 33% p.a. straight line

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 net income/(expenditure) for the year.

Shared ownership housing properties are included in fixed assets at the percentage of the charity's share in the ownership. Any payment for an increase in percentage of share is treated as an addition. Any payments received for a decrease in share is treated similar to the sale of property.

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 Cash and cash equivalents

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

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

1.9 Financial instruments

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

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

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

Basic financial assets

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

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.10 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.

1.11 Retirement benefits

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

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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 Restricted
funds
funds
2023
2023
£
£
Donations and gifts
572,705
-
Grants receivable
223,030
131,823
795,735
131,823
Donations and gifts
Donations from individuals
522,941
-
Churches
49,764
-
572,705
-		 Total Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
572,705
400,584
50,776
354,853
253,191
224,454
927,558
653,775
275,230
522,941
362,634
50,776
49,764
37,950
-
572,705
400,584
50,776		 Total
2022
£
451,360
477,645
929,005
413,410
37,950
451,360

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

3 Donations and legacies

(Continued)

Unrestricted Restricted
funds
funds
2023
2023
£
£
Grants receivable
Albert Hunt Trust
-
7,000
Andrews Charitable Trust
72,050
-
Arnold Clark
-
-
Barclays
-
-
Beatrice Hankey Foundation
-
2,500
Beatrice Laing Trust
17,750
-
Beer Harris Memorial Trust
-
2,171
Big Lottery Funding
-
10,470
Blunt Trust
-
-
Cambridgeshire Community
Fund
-
1,678
Cornerstone
10,000
-
Didymus Charity
-
10,000
Dominic Beer Trust
-
-
Garfield Weston Foundation
-
-
Homeless Link
-
-
Hopestead
-
6,607
Jerusalem Trust
-
3,240
Jones 1886 Trust
-
-
Lankelly Chase
-
-
Lighthouse Community Church
-
2,000
Maclellan Foundation
-
47,027
Maurice & Hilda Laing
Charitable Trust
17,750
-
Mirembe Charitable Trust
480
-
Nationwide
-
-
Norfolk Community Foundation
-
-
Paul Bassham Trust
-
2,000
Pears Foundation
45,000
-
Persimmon
-
-
Porticus Foundation
45,000
-
St Baranabas Church
-
2,100
The Big Give
-
-
The Mercers' Company
-
32,530
The Rowney Trust
15,000
-
Vardy Foundation
-
2,500
Other
-
-
223,030
131,823		 Total Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
7,000
-
-
72,050
33,825
-
-
-
2,000
-
-
400
2,500
-
2,500
17,750
15,000
-
2,171
-
-
10,470
-
41,685
-
-
50
1,678
-
6,801
10,000
-
-
10,000
-
10,000
-
-
1,000
-
50,000
-
-
-
88,000
6,607
-
-
3,240
31,000
-
-
-
4,700
-
1,000
-
2,000
-
-
47,027
-
-
17,750
15,000
-
480
1,440
-
-
-
19,188
-
-
600
2,000
-
-
45,000
40,000
-
-
1,000
-
45,000
45,000
-
2,100
-
-
-
10,000
-
32,530
-
32,530
15,000
-
-
2,500
-
10,000
-
9,926
5,000
354,853
253,191
224,454		 Total
2022
£
-
33,825
2,000
400
2,500
15,000
-
41,685
50
6,801
-
10,000
1,000
50,000
88,000
-
31,000
4,700
1,000
-
-
15,000
1,440
19,188
600
-
40,000
1,000
45,000
-
10,000
32,530
-
10,000
14,926
477,645

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

4
5
6		 Charitable activities
Provision of housing
Franchise income
Book sales
Investments
Rental income
Interest receivable
Raising funds
Fundraising and publicity
Costs of generating donations and legacies		 2023
£
641,403
50,763
327
692,493
2023
£
4,252
4,312
8,564
2023
£
33,955
33,955		 2022
£
611,313
37,098
1,441
649,852
2022
£
4,983
161
5,144
2022
£
34,730
34,730

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

7 Charitable activities

Staff costs
Depreciation and impairment
House rental and running costs
House maintenance and equipment
Franchising expenses
Volunteer expenses
Client support
Property refurbishment
General rates
Wolverhampton support costs
Norwich support costs
Nottingham support costs
Bad debt provision
Peterborough support costs
Cambridge support costs
Books
Support costs (see note 8)
Governance costs (see note 8)
Analysis by fund
Unrestricted funds - general
Designated funds
Restricted funds		 2023
£
972,794
32,222
253,731
11,995
55,458
4,124
7,122
93,533
9,657
6,202
5,708
9,444
30,365
4,052
10,883
70
1,507,360
154,329
5,400
1,667,089
1,462,797
31,116
173,176
1,667,089		 2022
£
868,445
33,854
252,523
9,172
69,484
16,812
3,664
83,768
5,824
5,140
5,235
7,955
10,374
2,144
7,187
1,083
1,382,664
133,973
3,600
1,520,237
1,243,090
32,748
244,399
1,520,237

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

8 Support costs

Property costs
Loan interest
Marketing
Franchising expenses
Light and heat
Travel and subsistence
Printing, postage and
stationery
Telephone and fax
Computer and software
Professional and
consultancy costs
Insurance
Refreshments
Sundry expenses
Legal fees
Accountancy fees
Audit fees		 Support
costs
Governance
costs
£
£
1,458
-
2,663
-
7,303
-
3,033
-
2,084
-
12,374
-
2,990
-
11,570
-
56,929
-
23,605
-
14,454
-
2,399
-
9,393
-
2,986
-
1,088
-
-
5,400
154,329
5,400		 2023Support costs Governance
costs
£
£
£
1,458
156
-
2,663
5,492
-
7,303
1,128
-
3,033
2,551
-
2,084
2,503
-
12,374
8,580
-
2,990
2,524
-
11,570
13,100
-
56,929
47,466
-
23,605
22,687
-
14,454
12,577
-
2,399
140
-
9,393
2,762
-
2,986
8,683
-
1,088
3,624
-
5,400
-
3,600
159,729
133,973
3,600		 2022
£
156
5,492
1,128
2,551
2,503
8,580
2,524
13,100
47,466
22,687
12,577
140
2,762
8,683
3,624
3,600
137,573

Governance costs represents payments to the auditors of £5,400 (2022- £3,600) for audit fees.

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year. Two Trustees (2022 - 1) were reimbursed a total of £513 for travelling expenses (2022- £106).

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10 Employees

Number of employees

The average monthly number of employees during the year was:

Average number of employees
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2023
Number
41
2023
£
842,649
66,146
63,999
972,794		 2022
Number
40
2022
£
760,408
50,392
57,645
868,445

The average full time equivalent number of employees during the year was 30 (2022 - 28).

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

11 Tangible fixed assets

Tangible fixed assets
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022		 Land and
buildings
£
1,988,533
-
1,988,533
141,486
19,885
161,371
1,827,162
1,847,047		 Shared
ownership
properties
£
50,000
-
50,000
700
500
1,200
48,800
49,300		 Equipment Motor vehicles
£
£
56,125
5,776
795
-
56,920
5,776
41,825
1,925
9,911
1,925
51,736
3,850
5,184
1,926
14,299
3,851		 Total
£
2,100,434
795
2,101,229
185,936
32,221
218,157
1,883,072
1,914,497

Included in land and buildings above is the office and 14 (2022 – 14) houses which are used to support tenants. Shared ownership properties represents an interest in 2 (2022 – 2) properties.

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

12
Debtors
Amounts falling due within one year:
Tenant and franchise debt
Other debtors
Prepayments and accrued income
13
Loans and overdrafts
Notes
Bank loans
Payable within one year
14
Payable after one year
15		 2023
£
66,247
63,835
29,884
159,966
2023
£
270,724
10,700
260,024		 2022
£
42,675
30,377
10,138
83,190
2022
£
279,714
10,700
269,014

The long-term loans are secured by fixed charges over five of the properties owned by the charity.

14 Creditors: amounts falling due within one year

Notes
Bank loans
13
Other taxation and social security
Deferred income
16
Trade creditors
Other creditors
Accruals
15
Creditors: amounts falling due after more than one year
Notes
Bank loans
13		 2023
£
10,700
17,186
56,213
9,899
21,374
15,639
131,011
2023
£
260,024		 2022
£
10,700
13,979
7,000
42,736
19,812
4,068
98,295
2022
£
269,014

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 Deferred income

Deferred income is included in the financial statements as follows:

Deferred income is included within:
Current liabilities
Movements in the year:
Deferred income at 1 April 2022
Released from previous periods
Resources deferred in the year
Deferred income at 31 March 2023		 2023
2022
£
£
56,213
7,000
7,000
19,188
(7,000)
(12,188)
56,213
-
56,213
7,000

17 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 and loss in respect of defined contribution schemes was £63,999 (2022 - £57,645).

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 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:

Movement in funds Movement in funds
Balance at 1 Incoming Resources **Transfers ** Balance at 31
April 2022 resources expended March 2023
£ £ £ £ £
Special Projects
Albert Hunt Trust - 7,000 (7,000) - -
Beatrice Hankey Foundation - 2,500 (2,500) - -
Cambridgeshire Community Fund - 1,678 (1,678) - -
Didymus Trust 7,502 10,000 (10,000) - 7,502
Dominic Beer Trust - 2,171 (2,171) - -
Hopestead - 6,607 (6,607) - -
Lighthouse Community Church - 2,000 (2,000) - -
Maclellan - 47,027 (47,027) - -
Mercer's Trust - 32,530 (32,530) - -
Paul Bassham Trust - 2,000 (2,000) - -
St Barnabas Trust - 2,100 (2,100) - -
Vardy Foundation - 2,500 (2,500) - -
Donation for property 488,190 - (40,247) - 447,943
495,692 118,113 (158,360) - 455,445
Other including core costs
Big Lottery - 10,470 (10,470) - -
Jerusalem Trust - 3,240 (3,240) - -
- 13,710 (13,710) - -
Property
SEIF 75,940 - (1,106) - 74,834
75,940 - (1,106) - 74,834
Total 571,632 131,823 (173,176) - 530,279

There are a number of restricted funds as outlined above, some of which are for specific projects, some that cover specific elements of core costs. The two largest funds are as follows:

Donation for property - this relates to a donation received to enable the charity to invest in further property to be used to house tenants.

SEIF - the funds received were for the purchase of a property by the charity. A property was purchased in 2012 and this fund is now represented by fixed assets, but the fund remains a restricted fund as the funding is potentially repayable to SEIF if there is a future change to the use of the property or the property is sold.

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

19 Designated funds

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 April 2021
£
Fixed asset
fund
1,314,163
Mortgage
repayment
provision
100,000
Additional
property
provision
100,000
1,514,163		 Resources
expended
£
(32,748)
-
-
(32,748)		 Transfers
Balance at
1 April 2022
£
£
237,427
1,518,842
(100,000)
-
(100,000)
-
37,427
1,518,842		 Resources
expended
£
(31,116)
-
-
(31,116)		 Transfers
31
£
9,785
-
-
9,785		 Balance at
March 2023
£
1,497,511
-
-
1,497,511

The fixed asset fund represents the net book value of the property and other fixed assets that is not represented by restricted funds, excluding the £40,000 investment from unrestricted funds in accordance with the charity’s reserves policy.

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

20
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
Restricted
funds
2023
2023
2023
£
£
£
Fund balances at 31 March 2023 are represented
by:
Tangible assets
40,000
1,768,238
74,834
Current assets/(liabilities)
379,498
(10,700)
455,445
Long term liabilities
-
(260,024)
-
419,498
1,497,514
530,279
The analysis of current assets/(liabilities) is as follows:		 Total
Unrestricted
funds
Designated
funds
2023
2022
2022
£
£
£
1,883,072
40,000
1,798,557
824,243
389,246
(10,701)
(260,024)
-
(269,014)
2,447,291
429,246
1,518,842		 Restricted
funds
2022
£
75,940
495,692
-
571,632		 Total
2022
£
1,914,497
874,237
(269,014)
2,519,720
Unrestricted
funds
Designated
funds
Restricted
funds
2023
2023
2023
£
£
£
Current assets
152,464
-
7,502
Cash
347,345
-
447,943
Current liabilities
(120,311)
(10,700)
-
379,498
(10,700)
455,445		 Total
Unrestricted
funds
Designated
funds
2023
2022
2022
£
£
£
159,966
83,191
-
795,288
393,649
-
(131,011)
(87,595)
(10,700)
824,243
389,245
(10,700)		 Restricted
funds
2022
£
-
495,692
-
495,692		 Total
2022
£
83,191
889,341
(98,295)
874,237

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

21 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		 2023
£
99,444
10,091
109,535		 2022
£
91,530
558
92,088

22 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel including pension contributions is as follows.

2023 2022
£ £
Aggregate compensation 158,113 136,998

Key management personnel represents 4 (2022 - 5) members of staff who form the executive team.

Included in expenditure are the following amounts in respect of rent paid on properties used for the charity's clients.

clients.
2023 2022
£ £
Property rented from children of Mr G Howard 11,400 11,224
Property rented from Mr G Howard 1,597 1,597
Property rented from Mr and Mrs E Walker 5,437 6,112
Property rented from The Reverend Mrs D Tidball 1,919 1,920

HOPE INTO ACTION UK

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

23 Cash generated from operations 2023 2022
£ £
(Deficit)/surplus for the year (72,429) 29,034
Adjustments for:
Investment income recognised in statement of financial activities (8,564) (5,144)
Depreciation and impairment of tangible fixed assets 32,222 33,854
Movements in working capital:
(Increase)/decrease in debtors (76,779) 10,628
(Decrease)/increase in creditors (16,497) 13,088
Increase/(decrease) in deferred income 49,213 (12,188)
Cash (absorbed by)/generated from operations (92,834) 69,272
24 Analysis of changes in net funds
At 1 April 2022 Cash flows At 31 March 2023
£ £ £
Cash at bank and in hand 889,342 (94,054) 795,288
889,342 (94,054) 795,288
Loans falling due within one year (10,700) - (10,700)
Loans falling due after more than one year (269,014) 8,990 (260,024)
609,628 (85,064) 524,564