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2022-03-31-accounts

Charity Registration No. 1140235

Company Registration No. 07363967 (England and Wales)

DERBY CITY MISSION LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

DERBY CITY MISSION LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A N Town
H C Disney
J S Millard
G J Pickup
D Radcliffe
A Mann
R N Orford
G R Watkins
Charity number 1140235
Company number 07363967
Registered office 10 Normanton Road
Derby
DE1 2GW
Auditor Azets Audit Services
Ruthlyn House
90 Lincoln Road
Peterborough
United Kingdom
PE1 2SP
Bankers Unity Trust Bank Plc
9 Brindley Place
Birmingham
United Kingdom
B1 2HB
Charity Aid Foundation Bank
25 Kings Hill Avenue
Kings Hill
West Malling
Kent
United Kingdom
ME19 4JQ

DERBY CITY MISSION LIMITED

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 - 37

DERBY CITY MISSION LIMITED

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

The Directors of Derby City Mission Limited, who are also its Trustees (the "Directors" or the "Trustees") present their report and financial statements for the year ended 31 March 2022.

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

Objectives and activities

Principal activities

The principal activities of the Charity are the relief of need amongst citizens of Derby, Derbyshire and surrounding counties based on Christian principles and to advance the Christian faith in the City of Derby and other parts of the world. This is in accordance with the objects contained in the Memorandum and Articles of Association, the Charity’s governing document.

Charitable objectives

The charitable objects of the company are:

In their capacity as trustees as well as directors, the Trustees consider that they have complied with their duties under section 4 of the Charities Act 2006 to have due regard to the guidance published by the Charity Commission on the subject of public benefit. The Charity’s activities are summarised below.

The two underlying principles are:

Our main activity for the year has been the continued running of a number of social action projects which come under object 1 of our charitable objects.

Achievements and performance

Our work among the homeless and those requiring debt advice and support to tackle extreme poverty and emerge from chaotic or addictive lifestyles is organised into two separate but operationally linked departments, Crisis Support and Poverty Prevention. Crisis Support covers the operation of our Safe Space, Winter Provision, Storehouse, My Place and By My Side projects; the Jubilee Project, the Food Bank, Befriending and Community Shop & Café come under the banner of Poverty Prevention.

DERBY CITY MISSION LIMITED

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

Crisis Support Operations and Projects

Safe Space

This is a pioneering initiative providing entrenched rough sleepers with a ‘safe space’ to rest and recover, including showering and laundry facilities, advocacy and medical support during the day, and temporary accommodation overnight. This service began in March 2019. The project receives funding from the Department of Levelling up, Housing, and Communities (DLUHC) and locally from the Derbyshire Police and Crime Commissioner’s Office (OPCC), Derby Homes, Derbyshire Constabulary, Derby City Council (Public Health) with whom the project operates in partnership. Since inception, the support given to the homeless community through Safe Space has had a dramatic effect, contributing to the 77% reduction in rough sleeper numbers in Derby (37 in 2017; 6 in 2020), a reduction in antisocial behaviour (93% reduction in dispersals in the city centre) and savings to local services (97% reduction in Accident and Emergency attendances/999 calls for an ambulance by/for the cohort). The commissioners of this project have recently put the contract for operating this service out to competitive tender, for its provision for a period of up to three years from January 2023. Until the existing arrangements expire, in January 2023, Derby City Mission will continue to deliver the service under the current conditions. The Safe Space project is delivered by sixteen staff members (11 fulltime equivalent) with additional support from a paramedic.

We have continued to deliver the service in a manner that satisfies all pandemic-related requirements. Although we have had occasions where staff and guests have contracted the virus we have remained open and operating satisfactorily.

During this financial year, 244 different people accessed the Safe Space service, compared to 171 last year. This was for varying levels of support, from showering and laundry facilities to support with benefit claims and getting into rehabilitation or a permanent tenancy. Of those 244, 178 people moved into accommodation, 25 already had accommodation but came for recovery and support to stay in their tenancies, 22 have gone to prison, three have passed away, and 16 remain in a homeless situation. In this, its third year of operation Safe Space staff recorded 10,508 interventions or engagements with the different guests, compared to 9,606 last year. This equates to an average of 43 engagements per guest. This illustrates the complexity and chaotic nature of the needs that we are working with and the level of work required in assisting each guest to progress out of homelessness.

Crisis Project

Starting in December 2020, funding was secured from a homelessness charity, CRISIS, for one year to employ two staff to provide support to guests moving on from Safe Space into their own accommodation. These staff assisted in acquiring furniture and home equipment, setting up best value utilities and appropriate payment arrangements for essential bills. They attended appointments and in many practical ways provided the support and encouragement for our former guests to maintain their tenancies and take a significant step out of the chaotic lifestyle often associated with homelessness. Over the course of the project, which concluded in November 2021, the Crisis project staff worked with 80 individuals. Of those 80, they were significantly instrumental in 32 individuals moving on from Safe Space into their own accommodation. Six months after the end of the project, DCM staff were still in contact with 13 individuals who successfully remained in their accommodation. With the other 48 individuals, the Crisis project worked alongside other agencies as part of a joint approach with helping them move on. The approach of the Charity’s staff drawing alongside people and building relationships of trust, led to two new projects being offered to Derby City Mission to deliver, namely My Place and By My Side.

DERBY CITY MISSION LIMITED

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

My Place Project

In October 2021, funding was secured from Derby Homes for one year starting in December 2021 to employ two staff to provide support within their own accommodation to guests who have had a criminal background or convictions. Due to their history, these individuals can face challenges in maintaining settled accommodation. The My Place project is a pilot to see if, as with the CRISIS project, with the right support, individuals can retain their accommodation and make some life-enhancing decisions so that their future prospects are not impaired by their past actions. These staff assist in acquiring furniture and home equipment, setting up best value utilities and appropriate payment arrangements for essential bills. Staff are able to attend appointments with the individuals they support and in many practical ways provide the support and encouragement for guests to maintain their tenancies and take a significant steps to change their lifestyle. In the life of this project, the Charity has already seen 20 people helped and maintain in their tenancies.

By My Side Project

In December 2021 we secured some funding from Derby City Council to deliver a pioneering project to support individuals with histories of addiction, to try a different approach to engage with this cohort. The project started towards the end of March 2022. We have recruited six staff to this project and they will be working with around sixty individuals who have substance abuse issues and have experienced homelessness in their recent past or who are at high risk of eviction.

Homeless Winter Provision

For the winter of 2021-2022 the Charity was successful in securing funding from the Department of Levelling Up, Housing and Communities via Housing Justice, Housing Link and Derbyshire County Council to provide support to those who found themselves homeless in Derbyshire over the winter months. The original plan was to deliver a similar project to winter 2020-2021, where a facility designed to satisfy all pandemic-related safety requirements was provided at Mount Cook Adventure Centre, near Wirksworth, Derbyshire. However, due to being unable to source an appropriate single venue, DCM worked in partnership with two other charities, Freedom and Canaan Trust, to provide floating support across Derbyshire to individuals placed in emergency placements in bed and breakfast facilities or hotels. The objective was to help with the wellbeing of individuals by providing care, food, support, and addressing loneliness or other mental health issues, as well as dealing with physical needs and advocating for them. A team of seven staff were recruited to deliver the service to the eight local authority areas that make up Derbyshire outside of Derby City. In Chesterfield, where there was a greater concentration of homeless people, hot meals and a warm welcome were provided daily by a total of 104 volunteers over the period, led by Church on the Bus and hosted by Grace Chapel and Holy Trinity Church. Between 1st December 2021 and 31st March 2022, 61 individuals were supported. Of these, 22 are still being supported, six of them lost their accommodation during the period, but we continued to support them and continue to do so. Fourteen people remain in bed and breakfast accommodation while the local authority continues to work with them to find them a more permanent solution, and two individuals were never offered accommodation, but we felt it was right to support them and are continuing to do so. Of the other 39 individuals that were supported, 28 were housed in more permanent accommodation.

Recovery Lunch and Storehouse Projects

Our weekly Recovery Lunch, which we have operated for many years, did not re-commence after the end of lock-down owing to our staff and volunteer base availability being impacted by the pandemic. Storehouse successfully relaunched in November 2021. The volunteer team of approximately 30, is seeing around 50 individuals attending most weeks for food, conversation and support. The impact of higher energy bills and food costs mean people, whether in employment or unwaged, are seeing Storehouse and places like them as a necessity, as living costs continue to rise to well above their wages and benefit provisions. For some this is a place to seek help whilst homeless; for others it is also a place which offers food and support to help prevent them falling deeper into poverty. It is expected over the coming months and into the winter that we will see a growth in our guest community as the impact of cost of living rises grows. This project runs with support from a Derby church, Reach Derby, and is staffed by volunteers from the pre-pandemic Storehouse team, bolstered by DCM volunteers who had previously volunteered within the Derby Churches Nightshelter. This project operates on a Thursday evening at Derby Urban Church, Osmaston Road, close to DCM’s hub building.

DERBY CITY MISSION LIMITED

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

Poverty Prevention Operations and Projects

The Jubilee Project

This is a free, open access debt and welfare benefits advice service. In ‘normal’ times, weekly clinics are held in three different locations across the city identified by the English Indices of Deprivation 2019 as being the areas of highest deprivation in Derby and an additional fortnightly clinic is based in a Surestart centre, sponsored by local churches. This year has been dominated by change for the project and we have very quickly had to adapt to providing advice online and over the phone. This has been managed very effectively and whilst other projects in the city have had to reduce their services, Jubilee has continued to be able to reach out to the local community. Clients are referred mainly by recommendation from former clients, or by various Derby City Council departments and other voluntary and statutory agencies. As one of only a small number of debt advisers licenced to handle tier 2 debt, we are the preferred advice agency for many statutory bodies and other charities in the city. The project works individually with each client on a weekly basis advising them of their possible courses of action, liaising with creditors, local authority departments and the Department for Work and Pensions on their behalf, helping them with forms and applications and also supporting them emotionally by means of trained volunteers.

A large part of the year has been focused on helping people experiencing financial difficulties or insecurity, often exacerbated by the impact of the pandemic. As we emerged from the height of the pandemic, we began to see the legacy of the extraordinary conditions brought on by COVID-19 in levels of debt far in excess of those seen in previous periods. These have been contributed to by rent arrears, including some accruing during the moratorium on evictions, and Council tax debt, which is emerging at a far higher level that we have been used to seeing pre-pandemic.

In the year to March 2022, the project held around 3,340 client appointments, a 45% increase on the previous year (2021: 2,294). From the work we undertook, our clients financially benefitted by over £1.5 million. We were able to help clients access over £318,210 in benefit payments to which they were entitled. We directly intervened for 133 clients to prevent homelessness, utility disconnection or bailiff/court action, almost three times as many as in 2021, when evictions were banned during the pandemic, and 75 clients went through the process of a Debt Relief Order, writing off £1.1 million of debt. 304 clients received funds through a trust fund application or a grant at a value of £49,550. 239 debt repayment plans or payment arrangements were made on behalf of clients. During the year, this project had two staff members (one full-time and one part-time), one volunteer adviser and twenty volunteers who assist at clinics when they are open.

Food Bank

This is a sister project to the Jubilee Project. The food bank provides food in the form of food parcels and also stocks our Community Shop and Café. This is mainly used by people who are accessing and engaging with our Jubilee Project. We estimate the food bank gave away approximately £44,625 (2021: £52,325) worth of food this year (in the equivalent of 1,785 food parcels), feeding an estimated 5,000 people, 1,000 fewer than at the height of the pandemic but twice as many as in 2020. We continue to help the rough sleepers using Safe Space with basic food items as well as sharing excess stock with our partners from Derby Food 4 Thought Alliance, a foodbank collective, and other local foodbanks and homeless projects in the city (c. £6,750). All the food is donated by members of local churches, schools, businesses and the public, including through collection points at ASDA, Spondon and Sainsbury’s on Osmaston Road. We also put a weekly order in to Derby Food 4 Thought Alliance hub who help us with items we need the most. We receive regular donations of surplus stock from Tesco and Marks & Spencer Food via the Neighbourly food distribution project. The food bank project has one part-time staff member and twelve volunteers.

DERBY CITY MISSION LIMITED

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

Community Shop and Café

Our Community Shop and Café, which began operating in October 2021, is situated within our Normanton Road hub. It enables clients to come and choose their own food, to give dignity, choice and better cater for individual dietary requirements, rather than having a pre-packed food parcel. Clients can also stop and have a coffee and a chat with one of our dedicated volunteers to help alleviate loneliness and build a sense of community. The community shop and café was officially opened by Elizabeth Fothergill, the Lord Lieutenant of Derbyshire, on Friday 25thMarch 2022. This was an opportunity to gather church and community leaders and promote the support and services we offer to people experiencing difficulties owing to the unprecedented cost of living rise and / or mental health issues. To date, since October approximately 900 clients have used the shop. We also offer craft activities to promote relaxation and wellbeing. We are planning to develop a community garden that will allow clients to get involved in growing flowers and vegetables to aid mental and physical wellbeing. The project has one part-time staff member and twenty-eight volunteers.

Befriending Project

Our befriending scheme continues to contact some of the 30 clients who were befriended over the telephone during lockdown. Many have reached a natural conclusion, as restrictions ended and they could return to socialising and normal activities. Most of our befriending now happens in the Community Café whilst people wait to use the Community Shop. We have recently helped clients with making phone calls to other agencies, if they have difficulty using the telephone. We also offer a laptop for clients to access their benefits journal or respond to emails. The informal atmosphere of the café and friendly presence of our volunteers and staff encourages clients to discuss the challenges they are facing, which in turn leads to the opportunity to help the access appropriate resources, advice and support. The project has one part-time staff member and five volunteers.

Christmas Connection Project

Each December we run this project which gives Christmas presents to children in Derby who otherwise might not receive any. In December 2021 we distributed Christmas present parcels to 850 children. Around 200 of these children were from families being supported by our Jubilee project and we received referrals from 13 other organisations including Christian charities supporting families in need, refugees and asylum seekers, as well as churches, schools and a community centre in areas of the highest deprivation in Derby. Each Christmas parcel contains two toys, a book, sweets/chocolate, smaller stocking fillers, a soft toy (if age appropriate) and a Christmas message. Following the popularity of our Amazon Wish List last Christmas, we again launched a similar appeal for gifts and received £12,000 worth of gifts purchased. An additional £5,522 was raised through our website appeal. We also received large donations of gifts from staff at Rolls-Royce, East Midlands Railway, Vinci Facilities and Derby High School, as well as from a church and community toy collection in Breaston. This project is overseen by the Head of Services and has twenty volunteers.

DERBY CITY MISSION LIMITED

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

Night-time Economy Operations

Street Pastors

This is the Derby outworking of the national Street Pastors initiative established by the Ascension Trust. We have now been operating the Street Pastors franchise for the last thirteen years and put teams of Christian volunteers from up to 20 different churches into the city centre between 10pm and 4am on a Friday and Saturday night to listen, care and help. All volunteers receive forty hours of training to equip them to serve as a Street Pastor. Derby City Mission partners with Derbyshire Constabulary, Derby City Council CCTV, Derby Pubwatch, licensed premises door staff, club managers and the taxi marshal scheme to ensure that a coordinated service of help and protection is offered to people in Derby city centre late at night. People enjoying a night out may at some point find themselves in a place of vulnerability or difficulty. It is our aim to leave someone in a safer situation than when we first encounter them. A shift may involve helping someone sober up to ensure that they have safe transport home, reuniting people with friends, administering basic first aid for those who are injured, or simply chatting with people about their lives, hopes and fears. As the nation started to emerge from COVID-19 restrictions in April 2021 the Street Pastor operational shifts were adjusted to match those requirements, before becoming fully operational again in July. A number of Street Pastors have retired during the last year leaving 36 volunteers still involved in this project, including four new recruits in autumn 2021. Team size has been reduced from four to three volunteers per shift. This has enabled us to meet our commitment to cover Friday and Saturday nights but we continually seek to recruit, to return to prepandemic volunteer levels. The project is managed by two part-time staff.

Across all our projects, we clearly demonstrate benefit to the public, from helping people out of debt or addictive lifestyles and contributing to their well-being and to community cohesion to making the city centre safer at night-time and providing food and shelter to rough sleepers throughout the year.

Further Activities

In addition to these activities, under the second of our charitable objects we are involved in teaching Christian values and biblical truth in schools and offering a safe and friendly environment for people to explore the Christian faith through Alpha courses. Through all our activities we seek to demonstrate God’s love and compassion by listening, treating people with dignity and as individuals, and helping and caring for them. If asked by guests, clients or members of the public, our staff and volunteers are always willing to share about our faith and pray with people. Alpha course-based sessions have been held with enquirers who attend Storehouse or some Jubilee clinics. In partnership with City Vision, we have continued during the pandemic to hold a quarterly Citywide Prayer event online, to gather Christians from churches across the city to pray for our city and the world and we encourage people to pray for different groups and needs in our city through our monthly Prayershield publication.

Schools Work

During most of the year, both during lockdown and after most restrictions eased, access to schools was severely limited because of the pandemic. Adapting to these conditions, our self-supporting Associate Schools Worker continued to deliver assemblies and teaching via videos, rather than in person. He took advantage of this change in routine to undertake a short course on Mental Health and Children and to learn ventriloquism to use puppets to add variety to lessons. During the summer holidays, a team of volunteers visited families in the Normanton area door-to-door to offer craft and Wordsearch activities for the children. These families have been regularly visited with more activities and special literature at Christmas and Easter and good relationships are being built. Currently video presentations of a five-week interactive Religious Education teaching programme to engage groups of primary school children (Years 5 & 6) with chronological teaching of the big picture of the Bible are still being used. It is hoped that, from September 2022, it will be possible to deliver this teaching in person. Since Christmas, our Associate Schools Worker has been involved in delivering weekly assemblies in person in four primary schools in the Normanton and Littleover areas of Derby, in partnership with workers from local churches. Around 400 children from six local primary schools came to see Experience Easter, a presentation of the true message of Easter, at two new church venues and he was invited into another school to give two Easter assemblies covering the whole school, reaching a further 500 children. The Experience Christmas presentation was not able to proceed due to the pandemic. He also continues to work with Children Worldwide which supports children’s work at conferences and helps to organise local events to train and encourage children’s workers.

DERBY CITY MISSION LIMITED

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

Continued Development of 10 Normanton Road

In January 2020 we received funding from Maurice & Hilda Laing Charitable Trust towards the installation of a commercial kitchen, which took place in June 2021, delayed by the pandemic. This will be used to provide meals for our guests in Safe Space and the By My Side project, and to service our Community Café. In turn, it will enable our guests and service users to learn basic cooking skills. In the summer of 2021 extensive work took place to upgrade the building’s heating system, to install zones to improve energy-efficiency.

Fundraising

Financial year 2021/22 continued to be a difficult fundraising year due to Covid-19, where many Trusts and Foundations remained closed for the year. For those funders that had funding, many shut early due to overwhelming demand for financial support.

We were however successful with over £870,000 funding from across the statutory, business and charity sectors. This includes single and multi-year awards. Funding has been used to support our frontline services to support those most vulnerable through the pandemic as well as to pay for essential core costs which enable the running of the Charity. The multi-year awards will enable us to support our vulnerable communities on a longer term basis, as well as better support the rough sleeper community who often present with deep rooted trauma whilst experiencing multiple and complex issues overlapping at the same time.

We are grateful for all our funders and individual donors whose generosity and support enabled us to support many people. As we look to the future, we are developing a new flexible Fundraising Strategy as well as seeking to further diversify our income base to minimise operational risk to the organisation.

Going concern

After making appropriate enquiries, the Trustees have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. For this reason , they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

Review of activities

All projects are reviewed by the Charity’s leadership team on an ongoing basis. Operational reports for each project are submitted to the Trustees on a quarterly basis.

Measuring outcomes

Within our Safe Space project, attendance data and the number of interventions or engagements in the process of finding a suitable housing solution for each guest is recorded, along with an incident log. This information is vital for the management of the project and is reported to our funding partners on a weekly basis. After receiving renewals of grant funding for all periods since its March 2019 inception, this project has grant funding in place until 14th January 2023. A competitive tender exercise is being undertaken by the commissioners of this project, in which we are participating. The outcome of this process is expected in October 2022.

Outcomes achieved through the CRISIS project were reported to the funders quarterly with a full report being

submitted to CRISIS at the end of the 12-month funding period in December 2021.

Attendance and outcome data were collected during the period of operation of Derbyshire Winter Provision and shared with other local partners who assisted in finding housing and support solutions for guests. A full report was submitted to funders Homeless Link and results shared with Derbyshire County Council and nine borough and district councils which make up the partnership covering Derbyshire and Staffordshire Moorlands (Erewash Borough Council, Amber Valley District Council, Bolsover District Council, Chesterfield Borough Council, Derbyshire Dales District Council, High Peak Borough Council, North East Derbyshire District Council, South Derbyshire District Council and Staffordshire Moorlands District Council).

DERBY CITY MISSION LIMITED

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

In the case of the Jubilee Project, quarterly statistics are collected on quantitative outputs, including financial gain and debt written off. This has shown [a continuation of] the number of cases dealt with and the resulting financial outcomes over the year. Numbers of food parcels distributed through our Community shop and Jubilee clinics are reported weekly and the numbers of people using the café and shop are also monitored. It is clear from the results that we have achieved that there is a growing trend in the level of debt that we are seeing and those in food insecurity have increased at the same rate.

Nightly statistics are collected by Street Pastors in a process meeting Street Pastor franchise standards. These are formulated into a quarterly report and then a longer annual report. These reports are circulated amongst the statutory partners, the Ascension Trust, Derby City Council and other stakeholder bodies. The relationship between the Street Pastors team and local agencies has continued to be valued in the city and the statistics demonstrate the close working partnership, which had again been supported by renewed funding from Derby City Council.

For the other projects, performance and review is of a more ad hoc nature, with checks to ensure that the project is stable and able to be resourced, both in terms of people and finances. Since much of our work is delivered or supported by volunteers, we have a continuing emphasis on recruiting more volunteers and making the most of funding opportunities and provision of other resources as they arise.

Financial review

The overall surplus for the year to March 2022 was £127k. This is a significant reduction on the 2020-21 result of £232k, and is an indication of the harsh financial climate we operate in, especially when you take out two exceptional items of income received in 2021-22: £95k surplus from the sale of 25 Charnwood Street, and the recognition of a capital grant of £32k for the development of the kitchen. Within the surplus of £127k, £123k was unrestricted and £4k was restricted.

Without the exceptional items, there would have been no surplus, with income equalling expenditure. This is a truer representation of the operating result rather than the reported surplus, and is an important issue that the trustees are bearing in mind as they look to the future and seek to improve the underlying financial performance. In particular, the strategy for fundraising is being reviewed, with donations and gifts dropping from £501k in 2020-21 to £357k in 2021-22, and grants from £796k to £680k.

As a result of the year’s financial activities, the restricted reserves stood at £224k at the end of March 2022. These do not belong to DCM, as they must be spent in line with the funders’ wishes. The ' true ' reserves are the unrestricted reserves which stood at £484k at the end of the year. Of these, £330k were held as fixed assets (the designated reserves) and therefore not accessible without the sale of those assets, and £154k were held in liquid form – the ' free ' reserves. This is slowly moving towards the target of £200k required by the reserves policy (20% of operational expenditure).

Another significant part of the balance sheet is the fixed asset and loan balances. As indicated above, 25 Charnwood Street was sold for more than the net book value (hence the £95k surplus) and the commercial loan of £177k was fully repaid with the proceeds. This leaves the interest free loans amounting to £575k.

Net current assets stand at a healthy £378k (2021 : £288k), but £224k of this balance belongs to the restricted reserves.

In summary, we are thankful for the surplus for the year, being able to sell 25 Charnwood Street and repay our commercial loan, and for the growth in reserves; but we are mindful of the tough financial challenges which lie ahead.

DERBY CITY MISSION LIMITED

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

Risk mitigation policy

Where appropriate, systems or procedures are established to mitigate the risks the charity faces. The significant external risks to funding are an ongoing issue that is continually monitored with a view to diversification of funding sources and activities.

Internal control risks are minimised by the implementation of procedures for authorisation of all material transactions and projects. Procedures are in place to ensure compliance with all statutory obligations e.g. Health and Safety, DBS checks, etc, for staff, volunteers, clients and visitors to the Charity where applicable. Precautionary Insurance is also in place designed to respond in the event of any claims that may arise against the Charity, in accordance with good practice. These insurance covers include public liability, employer’s liability, business interruption and trustees and professional indemnity.

The Trustees have assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

Plans for the future periods

Using our purpose-built facilities, we plan to continue all services currently operated from our Normanton Road hub building. These are detailed above and include provision of the Safe Space, 24/7 rest and recovery facility for entrenched rough sleepers, funded partly by the Department for Levelling Up Housing and Communities (DLUHC) and part-funded and operated in partnership with the Derbyshire Police and Crime Commissioner’s Office (OPCC), Derby Homes, Derbyshire Constabulary, Derby City Council (Public Health). We are participating in the tender process for the provision of this service for the two-year period from 15th January 2023. The outcome will be announced in October 2022. We are applying for additional funding to employ workers to assist those who have moved on from Safe Space or have been part of the rough sleeper community, supporting them in recovery from addictions and enabling them to get established in and maintain their tenancies.

With the significant rise in the cost of living now being experienced, personal and household budgeting is increasingly important. We plan to help our clients by developing a volunteer-led programme in the coming months. Its aim will be to empower our clients to manage their money and help them access applicable benefits, to maximise their income. We are also planning to develop a garden at the side of our building where people using the community café and clients from other DCM ministries could grow fruit, vegetables, herbs and flowers. This would create a creative and relaxing space to improve mental health and give opportunities for people to learn new skills.

In September 2022 we plan to hold a campaign to recruit and train more Street Pastors to replenish our volunteer base towards pre-pandemic levels. More generally, now that the restrictions of the pandemic have lifted we plan to attract more volunteers in a number of areas of our ministries and services as well as involving volunteers in projects that commenced during the lockdown.

Financially, plans for the future are threefold. Firstly, to increase the amount of income received towards the work particularly by targeting individual donors, grant funders and promoting the work of Derby City Mission, secondly, to keep a tight control of expenditure, and thirdly to seek to achieve and maintain our reserves policy.

DERBY CITY MISSION LIMITED

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

Structure, governance and management

The company is a charitable company limited by guarantee with no share capital, incorporated on 2 September 2010 and registered as a charity on 7 February 2011. The company's Memorandum of Association as amended by special resolution dated 7 December 2010 and a further special resolution dated 19 July 2018, establish its objects and powers as a charitable company. It is governed by its Articles 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:

A N Town

H C Disney J S Millard G J Pickup D Radcliffe A Mann R N Orford G R Watkins

Method of election of Trustees

The management of the charity is the responsibility of the directors/trustees who are elected and appointed under the terms of the Articles of Association.

Organisational structure

The Board of Trustees meets at least six times per year and is responsible for the strategic direction and policy of the Charity. A scheme of delegation is in place and day to day responsibility for the running of the Charity rests with the most senior staff member. For the whole of the financial year this role was entitled Chief Executive Officer, with responsibility to oversee an executive group made up of the respective heads of the finance function and the operational functions: Crisis Support, Night-Time Economy and Poverty Prevention. In January 2022 the Charity undertook a small-scale restructure affecting two leadership positions. This amalgamated the functions of Chief Executive and Head of Finance to create a new role, combining both financial and operational management. No other roles within DCM were affected by this. On 23rd May 2022 the Trustees announced the appointment of Elle Warrener-Davis to the new role of Managing Director. She takes up the post on 27th June 2022.

Other staff changes at a senior level were the retirement of the Head of Night-time Economy and the departure of the Head of Crisis Support to join another charity. This gave the opportunity to review the senior leadership of operational teams within the Charity. A Head of Services role was created to oversee the management of all DCM’s projects and the existing Head of Poverty Prevention took up this new role in April 2022. The Trustees remained in regular communication with and provided all the necessary support to the senior staff during this period. Nominated Trustees continued their participation in functional and project leadership teams, as required.

The Managing Director, Head of Services and functional heads attend meetings of the Board of Trustees by invitation and have no voting rights.

Policies and procedures for induction and training of Directors/Trustees

The induction and training pack for employees forms the model for an induction and training programme for D irectors/ T rustees.

The pay of the senior staff is reviewed annually and normally (subject to affordability) increased in accordance with inflation.

DERBY CITY MISSION LIMITED

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

Benefits to Directors

The directors of the charity are also charity trustees for the purposes of charity law and all directors give their time voluntarily and received no benefits from the charity during the year ended 31 March 202 2 (see note 9 ).

Related parties

Derby City Mission has no other related parties that make a significant impact upon the policies adopted by the organisation.

Auditor

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

Disclosure of information to auditor

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

The Trustees' r eport was approved by the Board of Trustees.

A N Town

Trustee Dated: 21 July 2022

DERBY CITY MISSION LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2022

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

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

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

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DERBY CITY MISSION LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF DERBY CITY MISSION LIMITED

Opinion

We have audited the financial statements of Derby City Mission Limited (the ‘Charity’) for the year ended 31 March 2022 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the 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 FRS 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.

DERBY CITY MISSION LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DERBY CITY MISSION LIMITED

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:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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.

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.

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

DERBY CITY MISSION LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF DERBY CITY MISSION LIMITED

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 noncompliance. 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.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees 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 July 2022
Chartered Accountants
Statutory Auditor Ruthlyn House
90 Lincoln Road
Peterborough
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 of section 1212 of the Companies Act 2006.

DERBY CITY MISSION LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Designated
Restricted
funds
funds
funds
2022
2022
2022
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
231,100
-
125,914
Charitable activities
4
32,500
-
647,276
Other income
5
97,759
-
16,272
Total income
361,359
-
789,462
Expenditure on:
Raising funds
6
3,068
-
610
Charitable activities
7
235,145
-
784,946
Total resources expended
238,213
-
785,556
Net incoming resources before transfers
123,146
-
3,906		 TotalUnrestricted Designated
funds
funds
2022
2021
2021
£
£
£
357,014
311,676
-
679,776
160,500
-
114,031
6,610
-
1,150,821
478,786
-
3,678
9,087
-
1,020,091
376,865
-
1,023,769
385,952
-
127,052
92,834
-		 Restricted
funds
2021
£
188,929
635,348
10,068
834,345
-
695,521
695,521
138,824		 Total
2021
£
500,605
795,848
16,678
1,313,131
9,087
1,072,386
1,081,473
231,658

DERBY CITY MISSION LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2022

Unrestricted Designated
Restricted
funds
funds
funds
2022
2022
2022
£
£
£
Net incoming resources before transfers
123,146
-
3,906
Gross transfers between funds
(45,169)
52,919
(7,750)
Net income/(expenditure) for the year/
Net movement in funds
77,977
52,919
(3,844)
Fund balances at 1 April 2021
76,103
277,419
228,043
Fund balances at 31 March 2022
154,080
330,338
224,199		 TotalUnrestricted Designated
Restricted
funds
funds
funds
2022
2021
2021
2021
£
£
£
£
127,052
92,834
-
138,824
-
34,393
(35,990)
1,597
127,052
127,227
(35,990)
140,421
581,565
(51,124)
313,409
87,622
708,617
76,103
277,419
228,043		 Total
2021
£
231,658
-
231,658
349,907
581,565

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.

DERBY CITY MISSION LIMITED

BALANCE SHEET

AS AT 31 MARCH 2022

Notes
Fixed assets
Tangible assets
11
Investments
12
Current assets
Stocks
13
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
17
Net assets
Income funds
Restricted funds
20
Unrestricted funds
Designated funds
21
General unrestricted funds		 2022
£
£
905,338
2
905,340
9,548
15,692
473,081
498,321
(120,044)
378,277
1,283,617
(575,000)
708,617
224,199
330,338
154,080
484,418
708,617		 2021
£
£
1,029,044
2
1,029,046
14,095
35,696
415,712
465,503
(177,859)
287,644
1,316,690
(735,125)
581,565
228,043
277,419
76,103
353,522
581,565

DERBY CITY MISSION LIMITED

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2022

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 2022, although an audit has been carried out under section 144 of the Charities Act 2011.

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

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

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

The financial statements were approved by the Trustees on 21 July 2022

A N Town J S Millard Trustee Trustee

Company Registration No. 07363967

DERBY CITY MISSION LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022

2022 2021
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 25 48,540 424,868
Investing activities
Purchase of tangible fixed assets (67,865) (126,025)
Proceeds on disposal of tangible fixed
assets 253,319 2,995
Net cash generated from/(used in)
investing activities 185,454 (123,030)
Financing activities
Repayment of bank loans (176,625) (16,500)
Net cash used in financing activities (176,625) (16,500)
Net increase in cash and cash equivalents 57,369 285,338
Cash and cash equivalents at beginning of year 415,712 130,374
Cash and cash equivalents at end of year 473,081 415,712

DERBY CITY MISSION LIMITED

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

1 Accounting policies

Charity information

Derby City Mission Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 10 Normanton Road, Derby, DE1 2GW.

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 a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

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

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

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements .

1.4 Income

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

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

DERBY CITY MISSION LIMITED

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

1 Accounting policies

(Continued)

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.

Donated services or facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. On receipt, donated services and facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

Income received in advance o f provision of other specified services are deferred until the criteria for income recognition are met.

1.5 Expenditure

Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure is reported as part of the expenditure to which it relates:

1.6 Tangible fixed assets

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

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

Freehold buildings 10-50 years straight line
Kitchen equipment 3 years straight line
Fixtures and fittings 5 years straight line
Office equipment 3 years straight line
Motor vehicles 3 years 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.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

A subsidiary is an entity controlled by the Charity. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

DERBY CITY MISSION LIMITED

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

1 Accounting policies

(Continued)

1.8 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 ) .

1.9 Stocks

Donated goods for distribution held at the balance sheet date are valued at the fair value of the goods at the time of receipt .

1.10 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.

1.11 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 p aymen ts 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.

DERBY CITY MISSION LIMITED

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

1 Accounting policies

(Continued)

1.12 Employee benefits

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.

1.13 Retirement benefits

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

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
2022
2022
£
£
Donations and gifts
231,100
125,914
Coronavirus Job
Retention Scheme
grants
-
-
231,100
125,914		 TotalUnrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
357,014
288,557
188,929
-
23,119
-
357,014
311,676
188,929		 Total
2021
£
477,486
23,119
500,605

DERBY CITY MISSION LIMITED

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

4 Charitable activities

Grants
Analysis by fund
Unrestricted funds
Restricted funds
Performance related grants
Safe Space
Homeless Link
Derby City Council
Crisis UK
Laing Family Trust
Derby Homes
Nationwide
Derbyshire County Council
Community Action
MIND
Western Power Distribution Trest
Derbyshire Dales District Council
Garfield Weston
Love Your Neighbour
CAF Covid Support
Other
Other income
Unrestricted
Restricted
funds
funds
2022
2022
£
£
Net gain on disposal of
tangible fixed assets
95,619
-
Other income
2,140
16,272
97,759
16,272		 2022
£
679,776
32,500
647,276
679,776
320,235
100,000
78,733
34,750
32,000
25,838
25,000
20,800
16,919
15,001
10,000
-
-
-
-
500
679,776
TotalUnrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
95,619
-
-
18,412
6,610
10,068
114,031
6,610
10,068		 2021
£
795,848
160,500
635,348
795,848
405,910
89,774
25,000
40,750
-
18,767
-
-
-
27,468
-
97,250
50,000
30,000
5,000
5,929
795,848
Total
2021
£
-
16,678
16,678

5 Other income

DERBY CITY MISSION LIMITED

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

6 Raising funds

Unrestricted
Restricted
funds
funds
2022
2022
£
£
Fundraising and publicity
Seeking donations, grants and legacies
3,068
610
Membership schemes and social lotteries
-
-
3,068
610
Charitable activities
Staff costs
Depreciation and impairment
Premises costs and insurances
Staff training and travel
Purchases
Sundries
Computer and telephone costs
Printing, postage and stationery
Donated food
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds		 TotalUnrestricted
funds
2022
2021
£
£
3,678
4,399
-
4,688
3,678
9,087
2022
2021
£
£
451,948
511,138
6,298
4,947
19,187
26,016
22,423
3,651
113,276
19,597
16,377
57,265
5,152
12,352
334
2,705
44,625
62,975
679,620
700,646
320,736
357,486
19,735
14,254
1,020,091
1,072,386
235,145
376,865
784,946
695,521
1,020,091
1,072,386

7 Charitable activities

DERBY CITY MISSION LIMITED

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

8 Support costs

Support
costs
Governance
costs
£
£
Staff costs
169,241
-
Depreciation
27,573
-
Premises costs and insurances
73,166
-
Staff training and travel
6,405
-
Sundries and mortgage interest
23,541
-
Computer and telephone costs
20,810
-
Audit fees
-
7,560
Accountancy
-
268
Legal and consultancy fees
-
11,907
320,736
19,735		 2022
£
169,241
27,573
73,166
6,405
23,541
20,810
7,560
268
11,907
340,471		 Support
costs
Governance
costs
£
£
90,613
-
170,574
-
40,797
-
1,685
-
33,302
-
20,515
-
-
7,200
-
600
-
6,454
357,486
14,254		 2021
£
90,613
170,574
40,797
1,685
33,302
20,515
7,200
600
6,454
371,740

Governance costs includes payments to the auditors of £ 7,560 (2021- £ 7,200 ) for audit fees.

9 Trustees

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

10 Employees

The average monthly number of employees during the year was:

Staff
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2022
Number
29
2022
£
568,419
42,758
10,012
621,189		 2021
Number
26
2021
£
552,553
39,683
9,515
601,751

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

DERBY CITY MISSION LIMITED

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

11 Tangible fixed assets

Cost
At 1 April 2021
Additions
Disposals
At 31 March 2022
Depreciation and impairment
At 1 April 2021
Depreciation charged in the year
Eliminated in respect of disposals
At 31 March 2022
Carrying amount
At 31 March 2022
At 31 March 2021		 Freehold
buildings
£
1,209,377
63,581
(200,000)
1,072,958
204,940
22,524
(42,300)
185,164
887,794
1,004,437		 Kitchen
equipment
Fixtures and
fittings
£
£
5,030
51,227
-
-
-
-
5,030
51,227
5,030
37,420
-
7,524
-
-
5,030
44,944
-
6,283
-
13,807		 Office
equipment
Motor vehicles
£
£
26,519
4,674
4,284
-
-
(4,674)
30,803
-
15,719
4,674
3,823
-
-
(4,674)
19,542
-
11,261
-
10,800
-		 Total
£
1,296,827
67,865
(204,674)
1,160,018
267,783
33,871
(46,974)
254,680
905,338
1,029,044

DERBY CITY MISSION LIMITED

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

12
Fixed asset investments
Cost or valuation
At 1 April 2021 & 31 March 2022
Carrying amount
At 31 March 2022
At 31 March 2021
Other investments comprise:
Notes
Investments in subsidiaries
24
13
Stocks
Finished goods and goods for resale
14
Debtors
Amounts falling due within one year:
Prepayments and accrued income
15
Loans and overdrafts
Bank loans
Other loans
Payable within one year
Payable after one year		 Other
investments
2
2
2
2022
2021
£
£
2
2
2022
2021
£
£
9,548
14,095
2022
2021
£
£
15,692
35,696
2022
2021
£
£
-
176,625
575,000
575,000
575,000
751,625
-
16,500
575,000
735,125

DERBY CITY MISSION LIMITED

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

15 Loans and overdrafts

(Continued)

The bank loan represents a loan from CAF Bank secured on the freehold property of the charity, repayable over 10 years by monthly instalment, and at an interest rate of 3.99%. This was repaid in full during the year.

Other loans represent interest free loans from H Disney, a trustee, of £150,000 and £425,000 from a supporter of the charity, both due for repayment 31 October 2029 although the loan agreements allow the lender to request earlier payment if funds allow. These loans are regarded by the trustees as being Concessionary loans advanced to the charity at a below market rate of interest to advance the charitable purposes of the charity for the benefit of its beneficiaries. The trustees have elected to record these loans at the amount received, with adjustment in subsequent years for amounts repaid, rather than at their fair values and subsequently at amortised cost using the effective interest method, as permitted by FRS102.

16 Creditors: amounts falling due within one year

Notes
Bank loans
15
Other taxation and social security
Deferred income
18
Trade creditors
Other creditors
Accruals and deferred income
Creditors: amounts falling due after more than one year
Notes
Bank loans
15
Other borrowings		 2022
£
-
13,315
71,281
12,690
2,430
20,328
120,044
2022
£
-
575,000
575,000		 2021
£
16,500
13,522
132,097
4,930
3,610
7,200
177,859
2021
£
160,125
575,000
735,125

17 Creditors: amounts falling due after more than one year

DERBY CITY MISSION LIMITED

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

18 Deferred income

Deferred grant income
Deferred income is included in the financial statements as follows:
Laing Family Charitable Trust
Nationwide community grant
CRISIS UK
MIND
Derbyshire County Council
Wellness Cafe		 2022
£
71,281
2022
£
-
25,000
-
-
33,200
13,081
71,281		 2021
£
132,097
2021
£
32,000
50,000
34,750
15,347
-
-
132,097

19 Retirement benefit schemes

Defined contribution schemes

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

The charge to profit or loss in respect of defined contribution schemes was £10,012 (2021 - £9,515).

Other creditors includes outstanding pension contributions of £2,430 (2021: £2,763).

DERBY CITY MISSION LIMITED

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

20 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 Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at
1 April 2020 resources expended 1 April 2021 resources expended 31 March 2022
£ £ £ £ £ £ £ £ £
Jubilee - 48,715 (34,607) 20,344 34,452 110,065 (82,982) - 61,535
Street Pastors 44,373 21,551 (21,727) - 44,197 23,568 (38,947) - 28,818
Mansfield Churches Nightshelter 3,361 (40) (189) - 3,132 - - - 3,132
M:Power 532 - - - 532 - (532) - -
Relief of Poverty: Rough Sleeping - 20,374 (19,837) - 537 9,266 (2,056) (7,747)
-
Schools 2,294 - - - 2,294 100 - - 2,394
YADA 24 - - - 24 - (24) - -
Christmas Connection 1,662 19,387 (3,177) - 17,872 8,567 (4,172) - 22,267
Partnership House 206 - - - 206 - (206) - -
Chesterfield Churches Nightshelter 3,565 1,809 (4,378) - 996 248 - - 1,244
Safe Space - 351,845 (340,603) 1,597 12,839 336,080 (382,369) 33,450 -
School Pastors 3,098 300 (56) - 3,342 - - - 3,342
Storehouse 5,479 3,186 (125) - 8,540 847 (574) - 8,813
New Build Fund 23,028 - - - 23,028 - - (23,028)
-
Foodbank - 77,246 (25,529) (20,344) 31,373 21,006 (21,002) - 31,377
Wellness Café - 7,190 - - 7,190 20,294 (14,033) - 13,451
MIND - 28,468 (25,932) - 2,536 15,000 (14,924) - 2,612
Homeless Link - 62,000 (62,000) - - 119,800 (107,712) (10,800)
1,288
Crisis UK - 36,625 (24,003) - 12,622 34,750 (38,756) - 8,616
Love Your Neighbour - 30,125 (29,920) - 205 - (580) 375 -
Mount Cook - 125,564 (103,438) - 22,126 300 (22,426) - -
My Place - - - - - 25,838 (22,057) - 3,781
By My Side - - - - - 63,733 (32,204) - 31,529
87,622 834,345 (695,521) 1,597 228,043 789,462 (785,556) (7,750)
224,199

DERBY CITY MISSION LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

20 Restricted funds

(Continued)

The Jubilee fund supports a completely free and open access debt and welfare benefits advice service. Clinics are run on a drop-in basis in different locations across the city on a regular basis. During the pandemic much of this support has been provided remotely.

The Street Pastors fund is to enable teams of Christians to patrol the city centre between 10pm and 4am on Friday and Saturday nights. The teams are there to listen, care and help anyone who is vulnerable.

Mansfield Churches Nightshelter was funded by Mansfield District Council and Transforming Notts Together to cover the operational costs of running the Nightshelter in Mansfield in previous winters. Due to the pandemic we were not able to operate this facility.

Schools fund is donations given specifically for sharing the Christian message with children in schools and church-based children’s clubs.

Christmas Connection fund is made up of donations given to purchase Christmas presents for children in need in Derby to supplement toys and presents given in kind by churches, businesses, schools and members of the public. Children are referred to us from our Jubilee Project and from churches and other Christian charities.

Chesterfield Churches Nightshelter was funded by local district councils and churches to cover the operational costs of running the nightshelter in Chesterfield for winter 2019/20. Due to the pandemic we were not able to operate this facility.

Safe Space is funded by MHCLG and a Derby funding partnership comprising the Police and Crime Commissioners Office (OPCC), Derby Homes, Derbyshire Constabulary and Derby City Council (Public Health) to provide a 24/7 rest and recovery facility and onward support for entrenched rough sleepers.

School Pastors is a project which will aim to care for and support a ‘school community’. It will promote safety and help reduce anti-social behaviour.

The Storehouse project involved the provision of a hot meal for around 100 guests on a weekly basis in a city centre venue. Support and friendship was also provided at these events.

Foodbank is a sister project to the Jubilee fund which provides food parcels primarily to people engaged with the Jubilee project. The transfers relate to donations originally given specifically for food but, with the agreement of the donors, have been reallocated to the Jubilee project.

Wellness Café fund supports the operation of the community café at 10 Normanton Road which operates three days per week and offers support and debt and welfare benefits advice as well as giving clients the dignify of choosing their own food at the community shop rather than receiving a pre-packed food parcel.

MIND is one year funding secured to launch ‘Elevate’, a befriending scheme.

DERBY CITY MISSION LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

20 Restricted funds (Continued)

Homeless Link provides a contribution to overall running costs to enable successful delivery of services to help the homeless off the streets during the winter months.

Crisis is funding to enable DCM to employ two Moved-on support workers who help guests move into their own accommodation.

Love Your Neighbour is a grant provided initially by the Church Revitalisation Trust to respond to the needs of the most vulnerable and marginalised people affected by the pandemic.

Mount Cook represents grants provided to fund winter accommodation for the homeless. This project was in collaboration with MHCLG (rough Sleeping), nine county, borough and district councils as well as the Mount Cook Adventure Centre near Matlock.

My Place is a project to support guests who have had convictions to stay in their accommodation and maintain their tenancies.

By My Side is a pioneering project supporting individuals with histories of substance misuse and addictions by using trauma-informed methods to engage with individuals to encourage recovery.

DERBY CITY MISSION LIMITED

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

21 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 2020
£
Fixed asset fund
313,409
313,409		 Transfers
Balance at
1 April 2021
£
£
(35,990)
277,419
(35,990)
277,419		 Transfers
Balance at
31 March 2022
£
£
52,919
330,338
52,919
330,338

The fixed asset fund represents the undepreciated element of capitalised fixed assets funded out of the general unrestricted funds of the Charity.

DERBY CITY MISSION LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2022

22
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
Restricted
funds
2022
2022
2022
£
£
£
Fund balances at 31 March 2022 are represented
by:
Tangible assets
-
905,338
-
Investments
2
-
-
Current assets/(liabilities)
154,078
-
224,199
Long term liabilities
-
(575,000)
-
154,080
330,338
224,199		 TotalUnrestricted
funds
Designated
funds
2022
2021
2021
£
£
£
905,338
-
1,029,044
2
2
-
378,277
76,101
(16,500)
(575,000)
-
(735,125)
708,617
76,103
277,419		 Restricted
funds
2021
£
-
-
228,043
-
228,043		 Total
2021
£
1,029,044
2
287,644
(735,125)
581,565

DERBY CITY MISSION LIMITED

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

23 Related party transactions

There were no disclosable related party transactions during the year (2021 - none) .

24 Subsidiaries

Details of the Charity's subsidiaries at 31 March 2022 are as follows:

Name of undertaking Registered Nature of business Class of % Held % Held
office shares held
Direct		 Indirect
Derby City Mission Trading England and Dormant Ordinary 100
-
Limited Wales
25 Cash generated from operations 2022 2021
£ £
Surplus for the year 127,052 231,658
Adjustments for:
Gain on disposal of tangible fixed assets (95,619) -
Depreciation and impairment of tangible fixed assets 33,871 175,520
Movements in working capital:
Decrease/(increase) in stocks 4,547 (4,095)
Decrease in debtors 20,004 45,349
Increase/(decrease) in creditors 19,501 (31,161)
(Decrease)/increase in deferred income (60,816) 7,597
Cash generated from operations 48,540 424,868
26 Analysis of changes in net (debt)/funds
At 1 April Cash flows At 31 March
2021 2022
£ £ £
Cash at bank and in hand 415,712 57,369 473,081
Loans falling due within one year (16,500) 16,500 -
Loans falling due after more than one year (735,125) 160,125 (575,000)
(335,913) 233,994 (101,919)