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2023-03-31-accounts

REGISTERED COMPANY NUMBER: 07381550 REGISTERED CHARITY NUMBER: 1139233

RECOOP (COMPANY LIMITED BY GUARANTEE)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

RECOOP

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

CONTENTS Pages
Company information 2
Annual report 3 to 7
Independent auditor’s report to the members of RECOOP 8 to 10
Statement of financial activities including income and expenditure account 11
Balance sheet 12
Notes to the financial statements 13 to 21

RECOOP

COMPANY INFORMATION

TRUSTEES AND DIRECTORS:-

Kerryn Huck (Chair) Catherine Morgan Leah Warwick (resigned 17.06.22) Dylan Phillips David Bailey Dave Nicholson Lorraine Lloyd (Chair resigned 17.10.22) Della Cannings (resigned 04.03.23) Prof Helen Codd Robbie Motamed (appointed 8.12.22) Sharon Dorkings (appointed 18.05.23) Peter Jons (appointed 18.05.23) Nicholoas Linfoot (appointed 18.05.23) Keith Moran (appointed 18.05.23) COMPANY SECRETARY:- Philip Baker REGISTERED OFFICE:- The Factory 14 Alder Hills Poole BH12 4AS REGISTERED COMPANY NUMBER:- 07381550 REGISTERED CHARITY NUMBER:- 1139233 AUDITOR AND BUSINESS ADVISOR:- Crowe U.K. LLP St James House St James’ Square Cheltenham GL50 3PR SOLICITOR:- Steele Raymond Solicitors Richmond Point 43 Richmond Hill Bournemouth BH2 6LR BANKER:- Lloyds TSB Bank Plc 45 Old Christchurch Road Bournemouth BH1 1ED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 March 2023

RECOOP

ANNUAL REPORT

The Trustees present their report and the financial statements for the year ended 31 March 2023, which should be read in conjunction with the information on page 2. This report also serves as the Directors’ Report for the purposes of Company Law. The financial statements have been prepared in accordance with Accounting and Reporting by charities; Statement of Recommended Practice applicable to Charities preparing their accounts with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019 – Charity’s SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.

GOING CONCERN

As set out in the accounting policies note, after reviewing the company’s forecasts and projections, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. This includes consideration of the impact inflation may have upon its forecasts and projections, and measures taken to try and limit the potential impact. As the trustees have concluded that it has sufficient resources to enable it to continue in existence, the company continues to adopt the going concern basis in preparing its financial statements.

OBJECTIVES AND ACTIVITIES

RECOOP objectives, as defined in the Memorandum of Association, are:-

To promote the care, resettlement and rehabilitation of offenders and ex-offenders, in particular those over the age of 50, notably but not exclusively, through the provision of support services, advocacy, financial advice, and mentoring on issues such as employment and training and advice on housing and health, enabling them to take control of their lives and remain free from offending and prevent them from being socially excluded.

The trustees have given due regard to public benefit when planning the charity’s activities, in accordance with Sections G2 and G3 of the Charity Commission’s General Guidance on Public Benefit (January 2008).The paragraphs below set out our activities, achievements and performance during the year, which are directly related to the objects and purposes for which the charity exists. The charity achieves its principal objects and purposes through the provision of support and advice to offenders and exoffenders. These benefits are directly related to the aims of the charity and are fully compliant with Principles 1 and 2 of the Charity Commission Principles on Public Benefit.

ACHIEVEMENTS AND PERFORMANCE

During 2022/23, prison regimes slowly started to open back up across the country allowing the staff team to reestablish service delivery and support. Some of the interventions developed in the previous year remained particularly relevant to help individuals build back muscle strength, increase body conditioning and healthy well-being habits. These interventions, including ‘On Track, Wing It and HELP’ were purchased by a number of customers as part of a broader social prescribing offer.

RECOOP has been successful this year in securing a number of important long contracts that will be mobilised in the coming financial year. Our Buddy contract in the North West cluster has been won back and extended to include two more prisons. We were successful as the older cohort supply chain partner in the retendering of two private prison contracts and in the award of the first new prison build at HMP Fosse Way.

Over the last 12 months RECOOP’s THREADS pilot work has extended across the three South West prisons. THREADS is an accessible, strengths-based support tool consisting of twelve mind maps prisons using prison peer facilitators to help those with mental health and emotional well-being support needs. This

RECOOP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 March 2023

intervention allows individuals to take ownership of their recovery, giving them time and space to reveal personal information only when they are happy to do so. Using the mind maps mean that individuals can gently untangle their thoughts, emotions and behaviours sorting them into a manageable system.

“I’m a prisoner who has been a volatile angry person at times in my 22 sentences. If this was available years ago, I would have definitely changed. This is a very positive thing for myself let alone the other convicts who need guidance”. – THREADS Peer Supporter

Of the 226 individuals to complete the programme; some have come off their prison support plans (ACCT’s) and suicide watch, many have been given the tools to move forward during their time in prison and ultimately into the community. This is alongside 48 individuals who have been trained as peer supporters, who guide the programme participants through the mind maps, providing them with a sense of purpose and responsibility. The pilot finished in March with the evaluation due out in June 2023.

Alongside this, RECOOP currently has 41 Buddies supporting 160 clients with health and social care needs across six prisons. The Transition course has also provided tailored resettlement information to 267 individuals over 50’s, making sure they have the tools and knowledge to live a successful life outside of prison.

Staff training to over 150 prison officers was delivered across a number of prisons including the Unlocked Grads Summer program for new officer recruits.

There is increasing demand for RECOOP’s services and it has been successful in being awarded funding to develop further work across England and Wales over the next year. We are anticipating a period of growth over next few years and are reviewing our business and governance structures to ensure we have the agility and capacity to be responsive as we grow.

The Trustees are extremely grateful for the valuable contribution made by our staff and our volunteers, both of whom help the charity to achieve its objectives in supporting older prisoner welfare.

FINANCIAL REVIEW

The Charity reports a net deficit for the year of £11,611 (2022: surplus £42,733). Total funds at 31 March 2023 were £330,142 of which £330,142 were unrestricted.

PRINCIPAL RISKS AND UNCERTAINTIES

RECOOP’s trustees acknowledge their responsibility for identifying and managing the risks to which the charity is exposed. The approach to the management of risk includes:

Risk Management is also coupled with Group-level stress test scenarios of our Financial Plan each year and ensuring that mitigation strategies are put in place to ease financial pressures where scenarios crystallise singularly or concurrently.

RECOOP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 March 2023

The top three strategic risks as identified and scored on the Strategic Risk Register at the year end are summarised below:

Mitigations have been identified by the trustees for these and other risks.

An ongoing review of the risk register ensures that the trustees are well informed to arrive at a set of parameters and decisions for the amount of risk they consider to be acceptable. The trustees continue to review and question the reserves policy to establish and agree an appropriate level of reserves. With this information the trustees can make informed choices about the strategic proposals put forward by the Chief Officer.

RECOOP’s trustees acknowledge their responsibility for identifying and managing the risks to which the charity is exposed. An ongoing review of the risk register ensures that the trustees are well informed to arrive at a set of parameters and decisions for the amount of risk they consider to be acceptable. The trustees continue to review and question the reserves policy to establish and agree an appropriate level of reserves. With this information the trustees can make informed choices about the strategic proposals put forward by the Chief Officer.

Recent years have been characterised by large scale changes in the criminal justice policy and operating environment which have provided opportunities as well as challenges for voluntary organisations working in criminal justice. There are risks that our activity and work loses its broad reach as budgets are squeezed and policy priorities and emphases shift.

This year we again assessed the appropriate level of RECOOP reserves. We therefore considered how we could continue to operate in the event of a critical loss of funding. We feel that this is where we are most at risk and therefore most vulnerable. We strongly believe that our work is essential and that there is a longer term need for our services especially with a national Older Prisoner Strategy about to be launched. The prison population projection is forecast to grow from 78,000 to 98,700 by 2026 (MOJ 2021). The older prisoner group remains the fastest growing cohort. Our services will be needed more than ever in the future.

RECOOP’s business model means that income and expenditure can be forecast with reasonable accuracy. However, the uncertainty of voluntary sector funding; the turbulence of external factors and potential delays or cessation in previously relied upon income streams; mean that the trustees feel that an operating reserve needs to provide a core service level plus the cost of an orderly wind down of operations under the most extreme scenario. Therefore, our reserves policy is based on the scenario in which RECOOP is faced with a critical loss of funding, making the continuation of the current model untenable, but in which the trustees wish to continue to provide core services to the sector.

Forecasting suggests that we would need a minimum of eight months to allow RECOOP the time to explore new strategies and income streams to rebuild. Should this approach be adopted and reserves used, consideration will therefore have to be given to increasing the magnitude of reserves over the medium term. Caution, prudence and vigilance will be paramount, whilst operating with lower levels of reserves, so that a decrease in funding, or unplanned or increased expenditure can be accommodated without recourse to reserves.

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 March 2023

RECOOP

RECOOP will continue to monitor this position and a further review will be undertaken in March 2023 to agree RECOOP’s reserves in relation to environment, risk and functionality. Based on current (2022/23) expenditure levels, the minimum amount required to execute the above is circa £200,000. RECOOP’s free reserves at 31 March 2023 are £330,142 (including designated funds of £140,000). The trustees have assessed the going concern basis as at the date this report and accounts are approved. They believe that the level of reserves held (including the flexibility of the use of the designated funds) outlined above and an analysis of the financial risks currently faced gives sufficient assurance to conclude that RECOOP continues to be a going concern.

RESERVES AND RESERVES POLICY

The Board has approved setting aside designated reserves of £140,000 in total. £120,000 is committed from the reserves to restructuring the management team over the next 24 months providing the corporate support required for the anticipated growth in the charity’s size. In March 2021 this plan was suspended due to the Covid-19 pandemic but was reviewed again as part of the 2022/23 budget round and recruitment has commenced. The remaining £20,000 is designated to independently evaluate new services. This will enable RECOOP to increase the quality of the products and services being developed as well as providing evidence of both cost savings and social return on investment for both prison partners and other stakeholders. It is expected that this will increase the impact of promotional and marketing activities to push these services more widely.

STRUCTURE, GOVERNANCE AND MANAGEMENT

RECOOP is a company limited by guarantee and a registered charity. The liability of the members is limited by their guarantee. The company was incorporated on the 20[th] September 2010 and is a subsidiary of Bournemouth Churches Housing Association Limited (BCHA).

The Trustees listed on page 2 have held office during the whole of the period from 1 April 2022 to the date of this report unless otherwise noted. No person may be appointed as a Trustee unless approved in writing by the parent member (BCHA), but the organisation does seek, through general advertisement and networking, additional members with relevant experience or interest in the work of the charity. The induction and training of trustees is undertaken by the parent member (BCHA).

RECOOP has signed up to the National Housing Federation 2020 Code of Governance (also adopeted by the parent member, BCHA). It should be noted that some provisions are only applicable at Group-level (for example Audit Committee requirements) and others are not applicable at all (for example Board remuneration).

The Board of RECOOP has self-assessed as being compliant as at the year ending 31 March 2023. A full statement of compliance can be found on the Charity’s website www.recoop.org.uk

COMPLIANCE & INTERNAL CONTROL

RECOOP uses the Group-wide Framework of Business Planning Risk and Internal Control which is based on the model developed by the US Committee of Sponsoring Organizations of the Treadway Commission (COSO). This internationally recognised model has five integrated components:

  1. Control Environment (standards, processes and structures)

  2. Business Planning and Risk Assessment (defining the strategy and understanding risks to achieving objectives)

  3. Control Activities (policies, procedures and systems to mitigate risk)

  4. Information & Communication (generating and sharing data)

  5. Monitoring (assessing that the components are present and functioning)

  6. 6 -

RECOOP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 March 2023

Within these five components are 17 principles which drill down into a broad range of control measures.The Board receives regular and ongoing assurance on legal/regulatory compliance and control via a number of measures including:

Assessment of the effectiveness of Internal Controls

In our annual Group-level self-assesment, nine of the principles were scored as Strong, six as Moderate to Strong and two as Moderate. There were no components scored as Weak. It also concluded that there were no weaknesses that have resulted in material losses, contingencies or uncertainties which require disclosure in the accounts. The measures in place give robust assurance to the Board on a regular basis that the viability of the organisation should not be compromised. The Group Board reviewed the range and effectiveness of controls that were in place for the year ending 31[st] March 2023 and up to the date of this report.

Statement of Trustees' responsibilities in respect of the trustees’ annual report and the financial statements

The trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the trustees to prepare financial statements for each financial year. Under that law they have are required to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of the excess of[income over expenditure that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the charitable company and to prevent and detect fraud and other irregularities.

RECOOP REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 March 2023

DISCLOSURE OF INFORMATION TO AUDITOR

In so far as the trustees are aware:

Approved by the Trustees on 30 August 2023 and signed on their behalf by:

P. Baker - Company Secretary

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RECOOP

________________

Opinion

We have audited the financial statements of RECOOP (the “charitable company”) for the year ended 31 March 2023 which comprise the Income and Expenditure Account, the Balance Sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion 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 charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information contained within the annual report. 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.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RECOOP

________________

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 7, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011, together with the Charities SORP (FRS102). We assessed the

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RECOOP

________________

required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the company for fraud. The laws and regulations we considered in this context for the UK operations were health and safety, employment and taxation legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income, and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit, Risk and Treasury Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, designing audit procedures over the timing of income and reading minutes of meetings of those charged with governance.

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 noncompliance 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. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect noncompliance with all laws and regulations

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Guy Biggin

for and on behalf of Crowe U.K. LLP, Senior Statutory Auditor

Chartered Accountants

Crowe U.K. LLP St James House, St James’ Square Cheltenham GL50 3PR

Date: 31 August 2023

RECOOP

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

Notes
INCOME AND EXPENDITURE
Income:
Charitable activities
3
Total income
Expenditure:
Charitable activities
4
Total expenditure
5
Net income and net movements
in funds for the year
Reconciliation of funds
Total funds brought forward
Funds Transferred
Total funds carried forward		 Unrestricted
Funds
Restricted
Funds
Total
2023
Total
2022
£
£
£
£
302,363
164,929
467,292
514,086
302,363
164,929
467,292
514,086
312,908
165,995
478,903
471,353
312,908
165,995
478,903
471,353
(10,545)
(1,066)
(11,611)
42,733
331,010
10,743
341,753
299.020
9,677
(9,677)
-
-
330,142
-
330,142
341,753

The notes on pages 14 to 22 form part of these financial statements

Company number: 07381550

RECOOP BALANCE SHEET AT 31 March 2023

Notes
Fixed Assets
Tangible assets
6
Total Fixed Assets
Current Assets
Debtors
7
Cash at bank and in hand
Total Current Assets
Liabilities
Creditors falling due within one year
8
Net Current Assets
Total assets less current liabilities
Creditors:falling due after more than one year
Net Assets
The funds of the charity
Restricted funds
9,10
Unrestricted funds
10,11
Total Charity Funds		 2023
2022
£
£
-
553
-
553
168,552
155,400
293,563
325,005
462,115
480,405
(131,973)
(139,205)
330,142
341,200
330,142
341,753
-
-
330,142
341,753
-
10,743
330,142
331,010
330,142
341,753

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime under the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A – small entities.

The financial statements were approved by the Trustees and authorised for issue on 30 August 2023.

Kerryn Huck (Chair)

The notes on pages 14 to 22 form part of these financial statements.

RECOOP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

1) COMPANY STATUS

The charity is a company limited by guarantee incorporated in England and Wales, whose registered office is set out on page 2. The members of the company are the trustees named on page 2. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

2) ACCOUNTING POLICIES

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements have been prepared in accordance with the 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 (FRS102) (effective 1 January 2015) – (Charities SORP effective 1 January 2019), and the Companies Act 2006.

RECOOP meets the definition of a public benefit entity under FRS102. Assets and liabilities are recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s) and the trustees consider it to be a going concern.

In preparing these financial statements the company has taken advantage of the disclosure exemptions conferred by FRS102 paragraph 1.12, in accordance with paragraphs 1.8 – 1.10. Therefore these statements do not include a cashflow statement, or certain disclosures in respect of financial instruments. The disclosure exemption has been adopted because the equivalent disclosure is included in the consolidated financial statements of Bournemouth Churches Housing Association Limited.

b)

Income

Income is recognised when the charity has entitlement to funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Trust that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

RECOOP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

c) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

d)

Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular purpose or defined project.

e) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified as relating to charitable activities, including any associated support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

f) Tangible fixed assets

Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:

Asset Category Annual rate
Fixtures and Fittings 33%

g) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered and provision for impairment. Prepayments are valued at the amount prepaid net of any trade discounts due.

RECOOP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

h) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

j) Financial Instruments

The charity only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are recognised at transaction value.

k) Going concern

After reviewing the company’s forecasts and projections, the trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The majority of the income for 23/24 comes from secured grants and committed Her Majesty’s Prisons and Probation Service contracts (HMPPS). The company therefore continues to adopt the going concern basis in preparing its financial statements.

l) Estimates and Judgements

The Trustees have considered key estimates and judgements over balances and have concluded there are no significant issues to disclose.

3) INCOMING RESOURCES FROM CHARITABLE ACTIVITIES

Unrestricted Funds
Grant and contract income
Restricted Funds
Grants		 2023
2022
£
£
302,363
365,634
302,363
365,634
2023
2022
£
£
164,929
148,452
164,929
148,452

RECOOP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

4) COST OF CHARITABLE ACTIVITIES

Charitable activities 2023
Charitable activities 2022
5)
TOTAL RESOURCES EXPENDED
Charitable activities 2023
Charitable activities 2022		 General Funds
Restricted
Funds
Total
£
£
£
312,908
165,995
478,903
335,712
135,641
471,353

Staff Costs
£
Other Costs
£
Total
£
366,897
112,006
478,903
346,792
124,561
471,353

Included within other costs are external audit fees of £3,000 (2022: £2,600).

TRUSTEES AND EMPLOYEES

Staff costs include the following:

Wages and salaries
Redundancy
Social security costs
Pension costs		 2023
2022
£
£
324,357
2,919
30,678
312,023
-
27,076
8,943
7,693
366,897
346,792

The number of employees for whom retirement benefits are accruing under money purchase pension schemes amounted to 1. (2022:1).

The average number of employees, analysed by function, was:

Number Number
2023 2022
Project based staff 12 14

No employee earned £60,000 or more in the period (2022 £nil).

No trustee received any remuneration or reimbursed expenses during the period (2022: £nil).

There are no retirement benefits accruing to the trustees under money purchase – pension schemes (2022: £nil).

RECOOP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

6) TANGIBLE FIXED ASSETS

Cost
At 1 April 2022
Additions
Disposals
At 31 March 2023
Accumulated depreciation
At 1 April 2022
Charge for the year
Disposals
At 31 March 2023
Net book value
At 31 March 2023
At 31 March 2022
7) DEBTORS
Trade debtors
Prepaid expenses
Amounts owed from parent company
Taxation and social security		 Fixtures
and
Fittings
Total
£
£
6,485
6,485
-
-
-
-
6,485
6,485
5,932
5,932
553
553
-
-
6,485
6,485
-
-
553
553
2023
2022
£
£
60,206
30,207
38,272
55,193
70,000
70,000
74
-
168,552
155,400

Outstanding balances relating to intercompany recharges are settled in the following month. The loan from RECOOP to Bournemouth Churches Housing Association is charged at a fixed rate of interest of 2% and is settled monthly. The loan balance of £70,000 (2022: £70,000) is repayable on demand.

RECOOP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

8) CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Accruals and deferred income
Grants in advance
Amounts owed to group undertaking
Other Creditors		 2023
2022
£
£
4,449
3,738
5,138
4,645
87,550
85,884
34,407
42,279
429
2,659
131,973
139,205

Outstanding balances relating to intercompany recharges are settled in the following month.

9) RESTRICTED FUNDS

The Valentine Charitable Trust
Aldo Trust
Bereavement Counselling
The Triangle Trust
Esmee Fairbairn Foundation
Third House Trust
Devon Threads Grant
Chadwick Charitable Trust
Total		 Balance
Balance
1 April 2022
Incoming
resources
Resources
expended
Transfers
31 March
2023
£
£
£
£
-
5,333
(5,333)
-
-
601
2,000
(2,601)
-
-
-
678
(678)
-
-
(491)
29,688
(29,197)
-
-
10,633
12,917
(23,550)
-
-
-
10,000
(323)
(9,677)
-
-
99,813
(99,813)
-
-
-
4,500
(4,500)
-
-
10,743
164,929
(165,995)
(9,677)
-
The Valentine Charitable Trust
Aldo Trust
The Triangle Trust
Esmee Fairbairn Foundation
Third House Trust
Devon Threads Grant
Chadwick Charitable Trust
Total		 Balance
Balance
1 April 2021
Incoming
resources
Resources
expended
Transfers
31 March
2022
£
£
£
£
£
-
7,361
(7,361)
-
-
-
900
(791)
492
601
-
29,881
(27,812)
(2,560)
(491)
-
23,427
(12,794)
-
10,633
-
4,150
(4,150)
-
-
-
82,233
(82,233)
-
-
-
500
(500)
-
-
-
148,452
(135,641)
(2,068)
10,743

The Esmee Fairbairn Foundation funding supports our new Buddy Support, ‘Transition’ resettlement training and business development. The final part of this grant was released in April 2022, the last operating quarter for the work undertaken.

RECOOP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

The Valentine Trust grant funded our Dorset resettlement support and prison work at HMP Erlestoke.

Chadwick Charitable Trust grant was received in relation to the Healthy Living Project at HMP Eastwood Park female prison.

10) UNRESTRICTED FUNDS

Unrestricted Funds
Designated Funds
Total
Unrestricted Funds
Designated Funds
Total		 Balance
Balance
1 April 2022
Incoming
resources
Resources
expended
Transfers
31 March
2023
£
£
£
£
191,010
302,363
(312,908)
9,677
190,142
140,000
-
-
-
140,000
331,010
302,363
(312,908)
9,677
330,142
Balance
Balance
1 April 2021
Incoming
resources
Resources
expended
Transfers
31 March
2022
£
£
£
£
159,020
365,634
(335,712)
2,068
191,010
140,000
-
-
-
140,000
299,020
365,634
(335,712)
2,068
331,010

The Board has approved the transfer of reserves to a designated fund for the purpose of developing and independently evaluating new services.

RECOOP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

11) ANALYSIS OF NET ASSETS BETWEEN FUNDS

As at 31 March 2023

s at 31 March 2023
Restricted funds:
Unrestricted funds:		 Tangible Fixed
Assets
£
Net Current
Assets
£
Total
£
-
-
-
-
330,142
330,142
-
330,142
330,142

As at 31 March 2022

Restricted funds:
Unrestricted funds:		 Tangible Fixed
Assets
£
Net Current
Assets
£
Total
£
-
10,743
10,743
553
330,457
331,010
553
341,200
341,753

12) CONTROL

The ultimate and immediate parent undertaking is Bournemouth Churches Housing Association Limited. The results of RECOOP are included in the consolidated accounts of Bournemouth Churches Housing Association Limited; these consolidated accounts are available from: The Factory, 14 Alder Hills, Poole BH12 4AS.

13) RELATED PARTY TRANSACTIONS

During the year, BCHA charged RECOOP £36,922 (2022: £38,022) in respect of goods and services and management charges. There was a net £35,593 (2022: £27,721) owed by BCHA to RECOOP as at 31 March 2023.

The registered office and full address for RECOOP and BCHA is The Factory, 14 Alder Hills, Poole BH12 4AS.

RECOOP NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 March 2023

14) FINANCIAL INSTRUMENTS

The charity’s financial instruments may be analysed as follows:
2023 2022
£ £
Financial assets that are recorded at transaction price 423,769 425,212
Financial liabilities that are recorded at amortised cost 44,423 53,321
Financial assets comprise cash, trade debtors and loans
Financial liabilities comprise trade creditors, accruals and other loans.