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2021-08-31-accounts

REGISTERED COMPANY NUMBER: 07744211 (England and Wales) REGISTERED CHARITY NUMBER: 01144246

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

FOR

FORTUNATUS HOUSING SOLUTIONS

Voisey & Co LLP 8 Winmarleigh St Warrington Cheshire WA1 1JW

FORTUNATUS HOUSING SOLUTIONS

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

Page
Report of the Trustees 1 to 8
Report of the Independent Auditors 9 to 11
Statement of Financial Activities 12
Balance Sheet 13
Cash Flow Statement 14
Notes to the Cash Flow Statement 15
Notes to the Financial Statements 16 to 23
Detailed Statement of Financial Activities 24 to 25

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 August 2021. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES Objectives and aims

The charity's objective is to house vulnerable adults in the community, whilst providing them with weekly support to manage their bills and any other housing related issues.

The charity aims to do this with the aid of local government funding and any other fund-raising activities that it sees fit.

In the short term, the charity's aims are to continue to house its' 170 vulnerable adults in the community successfully following a difficult period over the last couple of years caused by the global pandemic of Covid 19.

With rising costs over the last couple of years, the charity will be carrying out a review of its costs in April 2022 and restructuring its charging formula. This will be done in consultation with the local authorities who fund the charity. Based on current tenant levels, this will generate a further approximate £250,000 per year income to ensure that current levels of success and quality can be met.

In the longer term, the charity's main objective is to maintain stability for its tenants and ensure that the charity is always working within the remits of the housing benefit regulations.

The charity's managing director continues to play a key part in the current reform of supported housing funding that is currently being legislated in parliament and in her position as President of the lobbying organisation the IRRV (Institute of Rating, Rents and Valuation) is speaking at several prominent conferences in the coming year about the challenges faced in this sector in the coming year.

Prudent decisions in the short term have meant the charity has come out of the pandemic in a good position and in the coming years aim to solidify that base that has been built up over the last 10 years.

Page 1

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

OBJECTIVES AND ACTIVITIES

Significant activities

The charity's main activity is the sourcing of individual properties, within respectable areas of the community, which enable successful independent living for its tenants. Once these properties are sourced, the charity's weekly activity includes the support of these individuals in their home.

The charity's tenants are vulnerable adults, referred to the charity by local authorities and NHS trusts for specialist housing.

Working with local authorities and NHS trusts to receive referrals for housing that meet the criteria required for funding, ensures that there is continuity of funding and a best practice method adopted.

The main aim and therefore activity of the charity is that each vulnerable adult is housed for life and often for the first time stays in 1 property for longer than 6 months. This is done by a method of wrap around support available 24 hours a day and a methodology of funding whatever is needed to make that tenancy a success. This includes a fully furnished home, support with bills, replaced furnishings if damaged due to poor mental health, books, specific beds, bedding etc - the list is unlimited.

The majority of the charity's tenants have been housed with the charity for 5 years or more, a very quantifiable success for the individuals housed and for the savings to the wider community.

The charity's achievements are therefore measured by the success of vulnerable adults living with them for longer than 6 months and the money saved therein to the public purse. See Measuring of Success for how these achievements are recorded.

The charity's measure of success is with regards to the meeting of its objectives, as follows:

These successes are recorded using a piece of software from Destin Solutions. This enables the charity to record every individual it houses, where they were housed previously, the longevity of their tenancy and the savings provided to the public purse for the period housed with the charity. These saving figures are provided to the individual local authorities.

Continued membership of the IRRV, Chartered Institute of Housing and participation in government reform ensures that legislation is always adhered to.

Public benefit

In setting our objectives and planning our activities our trustees have given careful consideration to the Charity Commission's general guidance on public benefit and, their guidance on fee-charging regarding services provided.

Page 2

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

OBJECTIVES AND ACTIVITIES

Grant income

The charity is funded by local government funding, in the form of Housing Benefit for supported and exempt accommodation. This funding is received when certain criteria are met regarding the vulnerability of the tenants and the fact that the charity is a not-for-profit organization.

The funding for supported accommodation was reviewed and the results of that review were published in May 2018. The decision has been made centrally to leave the funding of supported accommodation as it currently is, providing a stable and ongoing funding structure for the charity. From 2020 the charity was required to provide management information to show that it's housing is not a short-term solution (longevity of tenants) and that it provides Value for Money.

To this aim, the charity already collates data of the savings provided by a tenant being housed with Fortunatus, by comparing the weekly costs of living with Fortunatus compared to the weekly costs of where they lived previously (e.g., long term hospital). The savings to the public purse per annum currently exceeds £2,000,000 per annum.

Fortunatus went 'live' with a new system from Destin Solutions in early 2019, which it has continued to develop since, producing reports for local government funding decision makers of the savings to the public purse and wider community. The system records all referrals into the charity and records the length of time for the process of receiving a referral to housing someone, how long they live with Fortunatus, and the weekly savings provided. This enables reports to be produced and provided to both local authorities and central government.

In addition, the charity currently has a waiting list of 14 individuals awaiting housing, the upfront cost to housing each of these is approximately £3,000 per head.

The charity has also committed to another 5-year lease in August 2018 on its premises and has acquired new vehicles to lease for a 3-year period. The total of all its commitments is supported by the reserves it has gradually built and these reserves will also enable the charity to further enhance the quality of life of its tenants.

In September 2021, staff continued to work from home and it was decided that other than the core management team of 7, all staff would be classed as homeworkers, with investment to be made into providing equipment for home offices for all staff.

The Housing Support team now work from home and go out in the community and carry out their fortnightly meetings virtually. They reverted to providing in person weekly visits in October 2021 and despite the national lockdown in January to March 2021, they continued with this and were deemed essential workers. Due to losing two members of staff in 2021 and the further lock down in the early part of 2021 - moves, repairs and expansion were again halted. The decision was made again by trustees to carry forward a provision at year end of £45,000 for known dilapidations at the 31st August 2021 and a provision for this work (as per the same modelling as the previous year) Due to the situation, it was agreed that the maintenance costs, property damage etc would still have occurred during this time and that financially the costs would still be there, in fact probably at a greater level. A combination of known costs that should have been attributed to 2020/21 and a COVID provision to make spending consistent with a 'normal' year, means that £45,000 provision is being carried forward into the next financial year

In addition, the charity currently has a waiting list of 14 individuals awaiting housing, the upfront cost to housing each of these is approximately £3,000 per head.

Page 3

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

OBJECTIVES AND ACTIVITIES

The charity has also committed to another 5-year lease in August 2018 on its premises and has acquired new vehicles to lease for a 3-year period. The total of all its commitments is supported by the reserves it has gradually built and these reserves will also enable the charity to further enhance the quality of life of its tenants.

In September 2021, staff continued to work from home and it was decided that other than the core management team of 7, all staff would be classed as homeworkers, with investment to be made into providing equipment for home offices for all staff.

The Housing Support team now work from home and go out in the community and carry out their fortnightly meetings virtually. They reverted to providing in person weekly visits in October 2021 and despite the national lockdown in January to March 2021, they continued with this and were deemed essential workers.

Due to losing two members of staff in 2021 and the further lock down in the early part of 2021 - moves, repairs and expansion were again halted. The decision was made again by trustees to carry forward a provision at year end of £45,000 for known dilapidations at the 31st August 2021 and a provision for this work (as per the same modelling as the previous year) Due to the situation, it was agreed that the maintenance costs, property damage etc would still have occurred during this time and that financially the costs would still be there, in fact probably at a greater level. A combination of known costs that should have been attributed to 2020/21 and a COVID provision to make spending consistent with a 'normal' year, means that £45,000 provision is being carried forward into the next financial year.

Volunteers

The charity currently has no volunteers on a daily basis, although two of the trustees are paid expenses only.

The charity continues to sell Christmas Cards each year and also has become the charity of choice of a local business. However, its main funding remains grants from local government.

Page 4

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The charity did not increase its number of houses and tenants in due to the restrictions of Covid 19, several unavoidable voids due to deaths, severe mental health breakdown and other factors. It has been agreed by the board that growth for 2021/22 will be 0 and the charity will attempt to stay at the same size.

Some maintenance services continue to be contracted out (gardening, window cleaning, decorating) to enable the in-house maintenance team to spend more time with each individual when carrying out other repairs. This has continued throughout the year and is used whenever necessary.

A local 'one-man' company has started to do rubbish removals for the charity, which has reduced costs from using larger firms and preventing build-up of rubbish at the warehouse

The Communications Officer continues to provide concentrated resources into building the charity's presence on the web and within social media, to help build an audience that will work hand in hand with the fundraising team to build both awareness of mental health but also to encourage supporters to support us financially. The Communications Officer also continues to work with the Business Development Manager to raise awareness of fundraising events.

The management team of the MD, Housing Manager, Property and Lettings Manager (previously Operations Manager) and Business Development Manager (previously Fundraising Manager) continue to ensure that all parts of the business work within a tight and transparent framework of procedures that enable the charity to house individuals promptly and safely in the community

What charity did achieve in this period was:

FINANCIAL REVIEW

Reserves policy

The Trustees have considered the amount that would be required to administer the organisation in the event of a crisis. This would include potential costs of redundancy, notice periods, accounting, legal fees and repayment of any long-term contracts on closure. A prudent sum would equate to three months operating costs with within the unrestricted general reserve - around £600,000

The unrestricted reserves at the year-end totalled £213,683.

Page 5

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

FUTURE PLANS

The charity's aim is to continue to provide housing for vulnerable adults in compliance with its funding stream

This requires:

Due to decreased growth during the Covid pandemic, decisions were made to not replace some staff and an increase in voids enabled the charity to review its internal working practices.

Going forward, this means that the charity has reviewed the following:

Any future developments will only involve a solidification of the quality provided to the charity to its tenants.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company number

07744211 (England and Wales)

Registered Charity number

01144246

Registered office

Unit 9 Colville Court Winwick Quay Warrington Cheshire WA2 8QT

Trustees

Mrs C Nicholson I D Theobold Mrs S Ellison Mrs S Pimblett Mrs J Dentith

Page 6

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

REFERENCE AND ADMINISTRATIVE DETAILS

Company Secretary

Ms R Langhorn

Auditors

Voisey & Co LLP 8 Winmarleigh St Warrington Cheshire WA1 1JW

Key Management Personnel

Catherine Nicholson - Managing Director Sara Pimblett - Business Development Manager Rachel Langhorn - Property and Lettings Manager Stephen Sweeney - Housing Manager

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of Fortunatus Housing Solutions for the purposes of company law) are responsible for preparing the Report of the Trustees 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 charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

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

In so far as the trustees are aware:

Page 7

FORTUNATUS HOUSING SOLUTIONS

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 AUGUST 2021

AUDITORS

Following the resignation of the previous auditors WatkinsonBlack in 2020 due to the retirement of the senior statutory auditor, Voisey & Co LLP were appointed auditors for the year ending 31st August 2021.

The auditors, Voisey & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Approved by order of the board of trustees on 13h May 2022 and signed on its behalf by:

........................................................... Mrs C Nicholson - Trustee

Page 8

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FORTUNATUS HOUSING SOLUTIONS

Opinion

We have audited the financial statements of Fortunatus Housing Solutions (the 'charitable company') for the year ended 31 August 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Page 9

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FORTUNATUS HOUSING SOLUTIONS

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees.

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

Responsibilities of trustees

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

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

Page 10

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF FORTUNATUS HOUSING SOLUTIONS

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Enquiry of management, those charged with governance around actual and potential litigation and claims;

Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors.

Use of our report

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

Lee Warburton (Senior Statutory Auditor) for and on behalf of Voisey & Co LLP 8 Winmarleigh St Warrington Cheshire WA1 1JW

Date: 13th May 2022

Page 11

FORTUNATUS HOUSING SOLUTIONS

STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

Notes
INCOME AND ENDOWMENTS FROM
Donations and legacies
2
Charitable activities
3
Activites for generating funds
Total
EXPENDITURE ON
Charitable activities
4
Activites for generating funds
NET INCOME
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 31.8.21
Unrestricted
Restricted
Total
fund
fund
funds
£
£
£
974
-
974
2,487,551
-
2,487,551
2,488,525
-
2,488,525
2,476,453
-
2,476,453
12,072
-
12,072
201,611
-
201,611
213,683
-
213,683		 31.8.20
Total
funds
£
1,105
2,539,540
2,540,645
2,512,209
28,436
173,175
201,611

The notes form part of these financial statements

Page 12

FORTUNATUS HOUSING SOLUTIONS

BALANCE SHEET 31 AUGUST 2021

Unrestricted
Restricted
fund
fund
Notes
£
£
FIXED ASSETS
Tangible assets
12
20,155
-
CURRENT ASSETS
Debtors
13
236,133
-
Cash at bank and in hand
216,548
-
452,681
-
CREDITORS
Amounts falling due within one year
14
(259,153)
-
NET CURRENT ASSETS
193,528
-
TOTAL ASSETS LESS CURRENT
LIABILITIES
213,683
-
NET ASSETS/(LIABILITIES)
213,683
-
FUNDS
15
Unrestricted funds
TOTAL FUNDS		 31.8.21
Total
funds
£
20,155
236,133
216,548
452,681
(259,153)
193,528
213,683
213,683
213,683
213,683		 31.8.20
Total
funds
£
16,091
205,765
214,493
420,258
(234,738)
185,520
201,611
201,611
201,611
201,611

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

The financial statements were approved by the Board of Trustees and authorised for issue on 13th May 2022 and were signed on its behalf by:

............................................. C Nicholson - Trustee

The notes form part of these financial statements

Page 13

FORTUNATUS HOUSING SOLUTIONS

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Interest element of hire purchase or
finance lease rental payments paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Net cash used in investing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 31.8.21
£
32,021
(14,935)
17,086
(15,031)
(15,031)
2,055
214,493
216,548		 31.8.20
£
74,433
(15,781)
58,652
(9,885)
(9,885)
48,767
165,726
214,493

The notes form part of these financial statements

Page 14

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 AUGUST 2021

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
Interest element of hire purchase and finance lease rental payments
Increase in debtors
Increase in creditors
Net cash provided by operations		 31.8.21
£
12,072
10,967
14,935
(30,368)
24,415
32,021		 31.8.20
£
28,436
10,363
15,781
(404)
20,257
74,433

2. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.20 Cash flow At 31.8.21
£ £ £
Net cash
Cash at bank and in hand 214,493 2,055 216,548
214,493 2,055 216,548
Total 214,493 2,055 216,548

The notes form part of these financial statements

Page 15

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, 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 accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery - 33% on cost

Taxation

The charity is exempt from corporation tax on its charitable activities.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.

Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate.

Page 16

continued...

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

1. ACCOUNTING POLICIES - continued

Grant income

Grants relating to revenue are recognised in the statement of financial activities on a systematic basis over the periods in which the charity recognises the related costs for which the grant is intended to compensate.

2. DONATIONS AND LEGACIES

Donations
3.
INCOME FROM CHARITABLE ACTIVITIES
Activity
Housing benefit receivable
Activites for generating funds
Grants
Activites for generating funds		 31.8.21
£
974
31.8.21
£
2,480,265
7,286
2,487,551		 31.8.20
£
1,105
31.8.20
£
2,539,540
-
2,539,540

During the year the charity received £7,286 in grant funding via the Coronavirus Job Retention Scheme to support the salaries of furloughed members of staff.

4. CHARITABLE ACTIVITIES COSTS

Activites for generating funds
5.
SUPPORT COSTS
Activites for generating funds		 Direct
Costs
£
1,389,673
Management
£
1,015,795		 Support
costs (see
note 5)
£
1,086,780
Finance
£
17,905		 Totals
£
2,476,453
Information
technology
£
26,945

continued...

Page 17

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

5. SUPPORT COSTS - continued

SUPPORT COSTS - continued
Human Governance
resources costs Totals
£ £ £
Activites for generating funds 13,025 13,110 1,086,780

6. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Depreciation - owned assets
Hire of plant and machinery
Other operating leases
TRUSTEES' REMUNERATION AND BENEFITS
Trustees' salaries
Trustees' social security
Trustees' pensions paid		 31.8.21
£
5,400
10,967
83,404
1,206,628
31.8.21
£
124,772
15,703
6,395
146,870		 31.8.20
£
3,900
10,363
81,024
1,214,294		 31.8.20
£
3,900
10,363
81,024
1,214,294
31.8.20
£
122,275
14,455
6,111
142,841

7. TRUSTEES' REMUNERATION AND BENEFITS

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 August 2021 nor for the year ended 31 August 2020.

8. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:
Average employees		 31.8.21
£
774,222
69,209
30,964
874,395
31.8.21
27		 31.8.20
£
769,582
68,295
31,022
868,899
31.8.20
27

continued...

Page 18

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

8. STAFF COSTS - continued

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

31.8.21 31.8.20
£100,000 - £110,000 1 1

The key management personnel of the charity comprise the trustees, MD, Housing Manager, Property and Lettings Manager (previously Operations Manager) and Business Development Manager (previously Fundraising Manager). The total remuneration of key management personnel during the year was £227,616 (2020: £215,215).

9.

COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
Restricted
fund
fund
£
£
INCOME AND ENDOWMENTS FROM
Donations and legacies
1,105
-
Charitable activities
Activites for generating funds
2,539,540
-
Total
2,540,645
-
EXPENDITURE ON
Charitable activities
Activites for generating funds
2,512,209
-
NET INCOME
28,436
-
RECONCILIATION OF FUNDS
Total funds brought forward
173,175
-
TOTAL FUNDS CARRIED
FORWARD
201,611
-		 Total
funds
£
1,105
2,539,540
2,540,645
2,512,209
28,436
173,175
201,611

continued...

Page 19

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

10. LEASING COMMITMENTS

At the balance sheet date the charity had several financial commitments such as vehicle and property leases.

The total amount contracted for but not provided in the financial statements was £214,141 (2020 - £212,333).

The most significant lease commitment being a new 5 year property lease that was signed on 3rd August 2018.

11. EMPLOYEE LOANS

The charity has provided interest free loans to some employees. These loans are all repayable over more than 1 year.

The total balance on these loans at the year end was £23,422, and the amount repayable after more than 1 year was £17,722.

12. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Plant and
machinery
£
COST
At 1 September 2020 51,850
Additions 15,031
At 31 August 2021 66,881
DEPRECIATION
At 1 September 2020 35,759
Charge for year 10,967
At 31 August 2021 46,726
NET BOOK VALUE
At 31 August 2021 20,155
At 31 August 2020 16,091

continued...

Page 20

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

13.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Other debtors
Bonds recoverable
Employee loans
Prepayments
14.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
Pensions
Factoring loan
Accrued expenses
15.
MOVEMENT IN FUNDS
At 1.9.20
£
Unrestricted funds
General fund
201,611
TOTAL FUNDS
201,611
Net movement in funds, included in the above are as follows:
Incoming
resources
£
Unrestricted funds
General fund
2,488,525
TOTAL FUNDS
2,488,525		 31.8.21
£
144,228
45
20,585
23,422
47,853
236,133
31.8.21
£
33,990
20,836
9,098
87,230
107,999
259,153
Net
movement
in funds
£
12,072
12,072
Resources
expended
£
(2,476,453)
(2,476,453)		 31.8.20
£
134,377
45
21,845
7,850
41,648
205,765
31.8.20
£
29,518
21,183
4,611
81,303
98,123
234,738
At
31.8.21
£
213,683
213,683
Movement
in funds
£
12,072
12,072

continued...

Page 21

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

15. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Net
movement
At 1.9.19
in funds
£
£
Unrestricted funds
General fund
173,175
28,436
TOTAL FUNDS
173,175
28,436
Comparative net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
2,540,645
(2,512,209)
TOTAL FUNDS
2,540,645
(2,512,209)
A current year 12 months and prior year 12 months combined position is as follows:
Net
movement
At 1.9.19
in funds
£
£
Unrestricted funds
General fund
173,175
40,508
TOTAL FUNDS
173,175
40,508		 At
31.8.20
£
201,611
201,611
Movement
in funds
£
28,436
28,436
At
31.8.21
£
213,683
213,683

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
TOTAL FUNDS		 Incoming
resources
£
5,029,170
5,029,170		 Resources
expended
£
(4,988,662)
(4,988,662)		 Movement
in funds
£
40,508
40,508

continued...

Page 22

FORTUNATUS HOUSING SOLUTIONS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 AUGUST 2021

16. RELATED PARTY DISCLOSURES

During the year the charity paid consultancy fees to IDAT Services Limited of which Ian Theobold, a trustee of the charity, is a director.

The charity also paid accountancy fees to Susan Ellison who is a trustee of the charity.

Both of these engagements were carried out on normal commercial terms.

Julian Nicholson is the husband of a trustee and in a role of prominence.

Remuneration and benefits were paid to Trustees and related parties totalling £195,105 (2020: £189,765).

Page 23

FORTUNATUS HOUSING SOLUTIONS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

INCOME AND ENDOWMENTS
Donations and legacies
Donations
Charitable activities
Housing benefit receivable
Grants
Total incoming resources
EXPENDITURE
Charitable activities
Vehicle lease and plant hire
Property rentals payable
Sub-contract costs
Repairs and maintenance
Motor expenses
Consultancy fees
Plant and machinery
Support costs
Management
Trustees' salaries
Trustees' social security
Trustees' pensions paid
Wages
Social security
Pensions
Rent
Rates and water
Insurance
Light and heat
Telephone
Office expenses
Sundries		 31.8.21
£
974
2,480,265
7,286
2,487,551
2,488,525
83,404
1,170,970
15,512
58,562
27,226
23,032
10,967
1,389,673
124,772
15,703
6,395
649,450
53,506
30,964
35,658
4,987
29,610
5,344
30,921
10,285
18,200
1,015,795		 31.8.20
£
1,105
2,539,540
-
2,539,540
2,540,645
81,024
1,178,636
27,979
82,545
19,022
24,616
10,363
1,424,185
122,275
14,455
6,111
647,307
53,840
31,022
35,658
5,045
30,908
7,864
32,232
6,339
23,313
1,016,369

This page does not form part of the statutory financial statements

Page 24

FORTUNATUS HOUSING SOLUTIONS

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 AUGUST 2021

Management
Finance
Bank charges
Factoring charges
Information technology
Software and maintenance
Human resources
Training
Staff welfare
Travel expenses
Governance costs
Auditors' remuneration
Legal fees
Accountancy and legal fees
Total resources expended
Net income		 31.8.21
£
2,970
14,935
17,905
26,945
824
11,438
763
13,025
5,400
-
7,710
13,110
2,476,453
12,072		 31.8.20
£
2,762
15,781
18,543
25,865
84
9,533
7,375
16,992
3,900
955
5,400
10,255
2,512,209
28,436

This page does not form part of the statutory financial statements

Page 25