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2023-03-31-accounts

Charity registration number 1140235

Company registration number 07363967 (England and Wales)

DERBY CITY MISSION LIMITED

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

DERBY CITY MISSION LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees A N Town
H C Disney
J S Millard
D Radcliffe
A Mann
R N Orford
G R Watkins
E Milner (Appointed 17 May 2023)
Charity number 1140235
Company number 07363967
Registered office 10 Normanton Road
Derby
DE1 2GW
Auditor Azets Audit Services
Ruthlyn House
90 Lincoln Road
Peterborough
Cambridgeshire
United Kingdom
PE1 2SP
Bankers Unity Trust Bank Plc
9 Brindley Place
Birmingham
United Kingdom
B1 2HB
Charities 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 - 4
Statement of Trustees' responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9 - 10
Balance sheet 11 - 12
Statement of cash flows 13
Notes to the financial statements 14 - 30

DERBY CITY MISSION LIMITED

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

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 2023.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". 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 Safe Space provision continues to provide emergency nightly shelter for homeless people in Derby. It is also a key day-time provision where they can come in for refreshments, have a shower and wash their clothes and take a rest. We have continued with great success the By My Side and My Place services working with those with addictions and ex-offenders respectively. Our community shop and café has proven to be a welcoming place for those who need emergency food provision, (provided through our food bank provision of donated goods) as well as others who simply want to come and socialise with others. Jubilee, our well-established debt advice project, is needed now more than ever as we help people in debt and provide advice. Christmas Connection once again saw an increase on last year as hundreds of children received presents that otherwise their families could not afford. Street Pastors is growing its much-needed volunteer base, and has continued to assist people who are vulnerable in the city centre every Friday and Saturday night. Our Storehouse community, the weekly provision of meals and socialising space, has also grown once again as numbers increase showing the need in the community.

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

DERBY CITY MISSION LIMITED

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

We continue to measure the results of our activities and services. Each successful funding application, grant agreement or contract has its own outcomes recorded and tracked. Reports and date are submitted in line with these either monthly or quarterly. Regular monitoring takes place to ensure that each project meets its targeted outcomes. A narrative report also gives meaning to statistics ensuring that the impact of what we do is emphasised - the difference that is made to peoples lives is the key reason we do what we do.

Financial review

The accounts show a surplus for the year of £314,671. At the outset it must be noted that £222,613 of this were funds received for capital expenditure, the exclusion of which reveals an operating surplus of £92,058. At the beginning of the year the plan to achieve a break-even result was considered by the Trustees as requiring a considerable effort, so a surplus of this size has been received by the Trustees with gratitude and encouragement.

Of the surplus, £88,532 is added to restricted reserves, of which £94,934 is a "one-off" as it is money received but not yet spent on the Ark capital project. The difference of £6,402 represents the use of restricted reserves on operational activities.

Excluding the funds received for capital expenditure and other capital receipts, income was £1,118,588, compared to £1,010,577 for 2021-22, Expenditure has remained steady at £1,026,530, which is good in the context of increases in grant-funded activities, and has largely been achieved by reductions in central costs.

At the end of the financial year, the restricted reserves stand at £312,731. As indicated above, they are already “spoken for”, as required by funders. Unrestricted reserves are £710,557, of which £502,525 are held as fixed assets (the designated reserves), leaving £208,032 as free reserves. This is another encouraging figure in the accounts, as the target for the last few years has been £200,000 which at times has seemed unattainable.

Also of note in the balance sheet are the fixed assets, which have increased by £209,538 as a result of the development of “The Ark” the new service based at 10 Normanton Road which is due to start operating in the Autumn of 2023. The funding of this expenditure is shown as revenue income (see above). Net current assets stand at £520,761, of which £312,731 is restricted.

In summary, the Trustees are satisfied with the financial performance for the period, whilst being conscious that the operating environment continues to present challenges for the sector.

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, fire risks, DBS checks and the like, 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.

DERBY CITY MISSION LIMITED

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

Plans for future periods

A fully-functioning cafe with counter and new tables and chairs is to be installed at our 10 Normanton Road, Derby premises, along with a brand new eight bedroom facility for emergency accommodation for homeless people. These will allow us to extend our services even more within the community of those most in need and vulnerable.

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, establishes 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 (Resigned 11 May 2023) D Radcliffe A Mann R N Orford G R Watkins E Milner (Appointed 17 May 2023)

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 Managing Director who was appointed in June 2022. Nominated Trustees have continued their involvement and participation, along with attending Board meetings throughout the year.

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 Directors/Trustees.

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

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.

DERBY CITY MISSION LIMITED

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

Disclosure of information to auditor

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

The Trustees' Report was approved by the Board of Trustees.

A N Town

Trustee Dated: 23 August 2023

DERBY CITY MISSION LIMITED

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

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 2023 which comprise the statement of financial activities, the balance sheet, the statement of cash flows 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 Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

DERBY CITY MISSION LIMITED

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

Responsibilities of Trustees

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

Auditor's responsibilities for the audit of the financial statements

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

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: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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

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

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

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

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

DERBY CITY MISSION LIMITED

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

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 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 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

Chartered Accountants Statutory Auditor

23 August 2023

Ruthlyn House 90 Lincoln Road Peterborough Cambridgeshire United Kingdom PE1 2SP

Azets Audit Services is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

DERBY CITY MISSION LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Designated
Restricted
funds
funds
funds
2023
2023
2023
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
220,185
-
95,646
Charitable activities
4
25,000
-
980,554
Other income
5
4,032
-
15,784
Total income
249,217
-
1,091,984
Expenditure on:
Raising funds
6
32,811
-
1,128
Charitable activities
7
197,186
-
795,405
Total resources expended
229,997
-
796,533
Net incoming resources before transfers
19,220
-
295,451		 Total
Unrestricted
Designated
funds
funds
2023
2022
2022
£
£
£
315,831
186,475
-
1,005,554
32,500
-
19,816
97,759
-
1,341,201
316,734
-
33,939
3,068
-
992,591
190,520
-
1,026,530
193,588
-
314,671
123,146
-		 Restricted
Total
funds
2022
2022
as restated
£
£
125,914
312,389
647,276
679,776
16,272
114,031
789,462
1,106,196
610
3,678
784,946
975,466
785,556
979,144
3,906
127,052		 Restricted
Total
funds
2022
2022
as restated
£
£
125,914
312,389
647,276
679,776
16,272
114,031
789,462
1,106,196
610
3,678
784,946
975,466
785,556
979,144
3,906
127,052
1,106,196
3,678
975,466
979,144
127,052

DERBY CITY MISSION LIMITED

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

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Designated
Restricted
funds
funds
funds
2023
2023
2023
£
£
£
Net incoming resources before transfers
19,220
-
295,451
Gross transfers between funds
34,732
172,187
(206,919)
Net income for the year/
Net movement in funds
53,952
172,187
88,532
Fund balances at 1 April 2022
154,080
330,338
224,199
Fund balances at 31 March 2023
208,032
502,525
312,731		 Total
Unrestricted
Designated
funds
funds
2023
2022
2022
£
£
£
314,671
123,146
-
-
(45,169)
52,919
314,671
77,977
52,919
708,617
76,103
277,419
1,023,288
154,080
330,338		 Restricted
Total
funds
2022
2022
as restated
£
£
3,906
127,052
(7,750)
-
(3,844)
127,052
228,043
581,565
224,199
708,617		 Restricted
Total
funds
2022
2022
as restated
£
£
3,906
127,052
(7,750)
-
(3,844)
127,052
228,043
581,565
224,199
708,617
127,052
581,565
708,617

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 2023

Notes
Fixed assets
Tangible assets
12
Investments
13
Current assets
Stocks
14
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
17
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
18
Net assets
Income funds
Restricted funds
21
Unrestricted funds
Designated funds
22
General unrestricted funds		 2023
£
£
1,077,525
2
1,077,527
-
176,192
458,596
634,788
(114,027)
520,761
1,598,288
(575,000)
1,023,288
312,731
502,525
208,032
710,557
1,023,288		 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

DERBY CITY MISSION LIMITED

BALANCE SHEET (CONTINUED)

AS AT 31 MARCH 2023

The Company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2023, although an audit has been carried out under section 144 of the Charities Act 2011.

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

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 23 August 2023

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 2023

2023 2022
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 26 195,053 48,540
Investing activities
Purchase of tangible fixed assets (209,538) (67,865)
Proceeds from disposal of tangible fixed
assets - 253,319
Net cash (used in)/generated from
investing activities (209,538) 185,454
Financing activities
Repayment of bank loans - (176,625)
Net cash used in financing activities - (176,625)
Net (decrease)/increase in cash and cash
equivalents (14,485) 57,369
Cash and cash equivalents at beginning of year 473,081 415,712
Cash and cash equivalents at end of year 458,596 473,081

DERBY CITY MISSION LIMITED

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

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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The Charity is a Public Benefit Entity as defined by FRS 102.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

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

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the Charity's 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.

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.

Items donated for distribution to beneficiaries are not recognised as income.

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

DERBY CITY MISSION LIMITED

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

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 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.

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).

DERBY CITY MISSION LIMITED

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

1 Accounting policies

(Continued)

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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Derecognition of financial liabilities

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

1.12 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.

DERBY CITY MISSION LIMITED

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

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Donations and legacies

Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Donations and gifts 220,185 95,646 315,831 186,475 125,914 312,389

DERBY CITY MISSION LIMITED

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

4 Charitable activities

Grants
Analysis by fund
Unrestricted funds
Restricted funds
Performance related grants
Derbyshire Police and Crime Commissioner
Derby City Council (Revenue grant)
Derby City Council (Capital grant)
Department For Levelling Up, Housing & Communities (Capital grant)
Department For Levelling Up, Housing & Communities (Revenue grant)
NHS Derby and Derbyshire ICB (capital grant)
Derby Homes
Community Action
Garfield Weston
Nationwide
Western Power Distribution Trust
Homeless Link
Crisis UK
Laing Family Trust
Derbyshire County Council
MIND
Other		 2023
£
1,005,554
25,000
980,554
1,005,554
318,909
265,783
20,000
126,613
27,848
76,000
67,042
45,081
25,000
25,000
2,500
-
-
-
-
-
5,778
1,005,554		 2022
£
679,776
32,500
647,276
679,776
320,235
78,733
-
-
-
-
25,838
16,919
-
25,000
10,000
100,000
34,750
32,000
20,800
15,001
500
679,776

5 Other income

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Net gain on disposal of
tangible fixed assets
-
-
Other income
4,032
15,784
4,032
15,784		 Total
Unrestricted
Restricted
Total
funds
funds
2023
2022
2022
2022
£
£
£
£
-
95,619
-
95,619
19,816
2,140
16,272
18,412
19,816
97,759
16,272
114,031		 Total
Unrestricted
Restricted
Total
funds
funds
2023
2022
2022
2022
£
£
£
£
-
95,619
-
95,619
19,816
2,140
16,272
18,412
19,816
97,759
16,272
114,031
16,272
114,031

DERBY CITY MISSION LIMITED

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

6 Raising funds

Unrestricted
Restricted
funds
funds
2023
2023
£
£
Fundraising and publicity
Seeking donations,
grants and legacies
32,811
1,128
32,811
1,128		 Total
Unrestricted
Restricted
funds
funds
2023
2022
2022
£
£
£
33,939
3,068
610
33,939
3,068
610		 Total
2022
£
3,678
3,678
Staff costs
Depreciation and impairment
Premises costs and insurances
Staff training and travel
Purchases
Sundries
Computer and telephone costs
Printing, postage and stationery
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds		 2023
£
547,172
6,237
21,110
26,753
59,217
10,525
4,442
1,077
676,533
282,934
33,124
992,591
197,186
795,405
992,591		 2022
£
451,948
6,298
19,187
22,423
113,276
16,377
5,152
334
634,995
320,736
19,735
975,466
190,520
784,946
975,466

DERBY CITY MISSION LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

8
Support costs
Staff costs
Depreciation
Premises costs and insurances
Staff training and travel
Sundries and mortgage interest
Computer and telephone costs
Audit fees
Accountancy
Legal and consultancy fees		 Support
costs
Governance
costs
£
£
148,993
-
31,115
-
61,392
-
1,073
-
19,764
-
20,597
-
-
8,000
-
15,840
-
9,284
282,934
33,124		 2023
£
148,993
31,115
61,392
1,073
19,764
20,597
8,000
15,840
9,284
316,058		 Support
costs
Governance
costs
£
£
169,241
-
27,573
-
73,166
-
6,405
-
23,541
-
20,810
-
-
7,560
-
268
-
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

Governance costs includes payments to the auditors of £8,000 (2022- £7,560) 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		 2023
Number
32
2023
£
630,777
51,658
13,730
696,165		 2022
Number
29
2022
£
568,419
42,758
10,012
621,189

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

11 Taxation

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

DERBY CITY MISSION LIMITED

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

12
Tangible fixed assets
Cost
At 1 April 2022
Additions
At 31 March 2023
Depreciation and impairment
At 1 April 2022
Depreciation charged in the year
At 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022
13
Fixed asset investments
Cost or valuation
At 1 April 2022 & 31 March 2023
Carrying amount
At 31 March 2023
At 31 March 2022
Other investments comprise:
Investments in subsidiaries
14
Stocks
Foodbank stock		 Freehold
buildings
£
1,072,958
206,918
1,279,876
185,164
28,876
214,040
1,065,836
887,794		 Kitchen
equipment
Fixtures and
fittings
£
£
5,030
51,227
-
1,200
5,030
52,427
5,030
44,944
-
3,987
5,030
48,931
-
3,496
-
6,283
Notes
25		 Office
equipment
Total
£
£
30,803
1,160,018
1,420
209,538
32,223
1,369,556
19,542
254,680
4,488
37,351
24,030
292,031
8,193
1,077,525
11,261
905,338
Other
investments
2
2
2
2023
2022
£
£
2
2
2023
2022
£
£
-
9,548

DERBY CITY MISSION LIMITED

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

15
Debtors
Amounts falling due within one year:
Prepayments and accrued income
16
Loans and overdrafts
Other loans
Payable after one year		 2023
£
176,192
2023
£
575,000
575,000		 2022
£
15,692
2022
£
575,000
575,000

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.

17 Creditors: amounts falling due within one year

Notes
Other taxation and social security
Deferred income
19
Trade creditors
Other creditors
Accruals
18
Creditors: amounts falling due after more than one year
Borrowings		 2023
£
9,692
47,925
6,499
235
49,676
114,027
2023
£
575,000		 2022
£
13,315
71,281
12,690
2,430
20,328
120,044
2022
£
575,000

DERBY CITY MISSION LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

19 Deferred income

Deferred grant income
Deferred income is included in the financial statements as follows:
Garfield Weston
The Society of the Holy Child Jesus
Derby City Council
Derbyshire County Council
Nationwide community grant
Wellness Cafe		 2023
£
47,925
2023
£
25,000
20,000
2,925
-
-
-
47,925		 2022
£
71,281
2022
£
-
-
-
33,200
25,000
13,081
71,281

20 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 £13,730 (2022 - £10,012).

Other creditors includes outstanding pension contributions of £235 (2022: £2,430).

DERBY CITY MISSION LIMITED

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

21 Restricted funds

The income funds of the Charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Balance at
1 April 2021

£
Jubilee
34,452
Street Pastors
44,197
Mansfield Churches Nightshelter
3,132
M:Power
532
Relief of Poverty: Rough Sleeping
537
Schools Fund
2,294
YADA
24
Christmas Connection
17,872
Partnership House
206
Chesterfield Churches Nightshelter
996
Safe Space
12,839
School Pastors
3,342
Storehouse
8,540
New Build Fund
23,028
Foodbank
31,373
Wellness Café
7,190
MIND
2,536
Homeless Link
-
Crisis UK
12,622
Love Your Neighbour
205
Mount Cook
22,126
My Place
-
By My Side
-
The Ark
-
228,043		 Movement in funds
Incoming
resources
Resources
expended
£
£
110,065
(82,982)
23,568
(38,947)
-
-
-
(532)
9,266
(2,056)
100
-
-
(24)
8,567
(4,172)
-
(206)
248
-
336,080
(382,369)
-
-
847
(574)
-
-
21,006
(21,002)
20,294
(14,033)
15,000
(14,924)
119,800
(107,712)
34,750
(38,756)
-
(580)
300
(22,426)
25,838
(22,057)
63,733
(32,204)
-
-
789,462
(785,556)		 Transfers
Balance at
1 April 2022

£
£
-
61,535
-
28,818
-
3,132
-
-
(7,747)
-
-
2,394
-
-
-
22,267
-
-
-
1,244
33,450
-
-
3,342
-
8,813
(23,028)
-
-
31,377
-
13,451
-
2,612
(10,800)
1,288
-
8,616
375
-
-
-
-
3,781
-
31,529
-
-
(7,750)
224,199		 Movement in funds
Incoming
resources
Resources
expended
£
£
78,353
(67,463)
31,013
(27,903)
-
-
-
-
-
-
-
-
-
-
8,723
(5,738)
-
-
3,584
(622)
366,996
(362,713)
-
-
1,204
(3,777)
-
-
31,620
(18,850)
48,930
(39,148)
-
-
-
-
-
-
-
-
-
-
59,092
(56,411)
209,008
(213,561)
253,461
(347)
1,091,984
(796,533)		 Transfers
Balance at
31 March 2023
£
£
2,612
75,037
-
31,928
(3,132)
-
-
-
-
-
(1,500)
894
-
-
(13,750)
11,502
-
-
(1,244)
2,962
12,992
17,275
-
3,342
-
6,240
-
-
(15,000)
29,147
(7,201)
16,032
(2,612)
-
(1,288)
-
(8,616)
-
-
-
-
-
-
6,462
(10,000)
16,976
(158,180)
94,934
(206,919)
312,731		 Transfers
Balance at
31 March 2023
£
£
2,612
75,037
-
31,928
(3,132)
-
-
-
-
-
(1,500)
894
-
-
(13,750)
11,502
-
-
(1,244)
2,962
12,992
17,275
-
3,342
-
6,240
-
-
(15,000)
29,147
(7,201)
16,032
(2,612)
-
(1,288)
-
(8,616)
-
-
-
-
-
-
6,462
(10,000)
16,976
(158,180)
94,934
(206,919)
312,731
312,731

DERBY CITY MISSION LIMITED

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

21 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 2023

21 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.

The Ark is a project for which funding was secured to build a new eight bedroom emergency accommodation provision and also to refurbish the Community Shop and Cafe. Funders were DLUHC, Derby City Council, ICB/NHS, Derby Domestic Abuse Service, East Midlands Airport and B&Q Foundation.

The transfers from restricted funds relate to contributions to core costs and fixed asset additions.

DERBY CITY MISSION LIMITED

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

22 Designated funds

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

Balance at
1 April 2021
£
Fixed asset fund
277,419
277,419		 Transfers
Balance at
1 April 2022
£
£
52,919
330,338
52,919
330,338		 Transfers
Balance at
31 March 2023
£
£
172,187
502,525
172,187
502,525		 Transfers
Balance at
31 March 2023
£
£
172,187
502,525
172,187
502,525
502,525

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 2023

23
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
Restricted
funds
2023
2023
2023
£
£
£
Fund balances at 31 March 2023 are represented
by:
Tangible assets
-
1,077,525
-
Investments
2
-
-
Current assets/(liabilities)
208,030
-
312,731
Long term liabilities
-
(575,000)
-
208,032
502,525
312,731		 Total Unrestricted
funds
Designated
funds
Restricted
funds
2023
2022
2022
2022
£
£
£
£
1,077,525
-
905,338
-
2
2
-
-
520,761
154,078
-
224,199
(575,000)
-
(575,000)
-
1,023,288
154,080
330,338
224,199		 Total
2022
£
905,338
2
378,277
(575,000)
708,617

DERBY CITY MISSION LIMITED

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

24 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

25 Subsidiaries

Details of the Charity's subsidiaries at 31 March 2023 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
26 Cash generated from operations 2023 2022
£ £
Surplus for the year 314,671 127,052
Adjustments for:
Gain on disposal of tangible fixed assets - (95,619)
Depreciation and impairment of tangible fixed assets 37,352 33,871
Movements in working capital:
Decrease in stocks 9,548 4,547
(Increase)/decrease in debtors (160,500) 20,004
Increase in creditors 17,338 19,501
(Decrease) in deferred income (23,356) (60,816)
Cash generated from operations 195,053 48,540
27 Analysis of changes in net (debt)/funds
At 1 April 2022 Cash flowsAt 31 March 2023
£ £ £
Cash at bank and in hand 473,081 (14,485) 458,596
Loans falling due after more than one year (575,000) - (575,000)
(101,919) (14,485) (116,404)

DERBY CITY MISSION LIMITED

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

28 Prior period adjustment

Changes to the Statement of Financial Activities

Period ended 31 March 2022
As previously
Adjustment		 As restated
reported
£ £ £
Donations and legacies 357,014 (44,625) 312,389
Charitable activities 1,020,091 (44,625) 975,466
Net movement in funds 127,052 - 127,052

Historically the Charity's accounting policy was to recognise donated services or facilities as income on receipt, 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 the services or facilities of equivalent benefit on the open market; a corresponding amount was also recognised in expenditure in the period of receipt.

Due to the increasing difficulty of measuring the value accurately, the Trustees have decided to change the policy to not recognise items donated to the Charity for distribution to beneficiaries.

The effect of the change in accounting policy is shown above. This was an allocation between income and expenditure only and there has been no change in fund balances.